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Preface
Project Feasibility Study and Evaluation course is use of mathematical analysis to assist in project. It can analyze the returns of investment analysis to assist in decision making. It learns how to evaluate projects using case studies to analyze and evaluate projects. We can apply the knowledge for solving and analyzing the project’s situation to be feasible more. We get new experiences and we can apply the knowledge for use in the real life in the future. We would like to thanks many people for helping in this project and for giving the suggestion to do this project. Moreover, we thank Aj. Chaiyawat Thongintr for helping in many part of this project and thank for a good suggestion. And we thank Aj. Noraset Polsin the lecturer in Management School for a good suggestion for this project. And we thank Yai and Namice that helping in financial part. The project is smooth as member group attend to do this project for helping and solving the problem together, so every member group have the harmony to do the project. Finally, this project will help other people who want to study about Project Feasibility Study and Evaluation course and wish other people can get the knowledge from this.

Yours truly February 18, 2010

Phithakchai Thunyalak

Somjai junthiboon

Pattamaporn Prommee Krongkan Chatmanee Temjai Kaewplang

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Exclusive summary
In the present, the competitions are strongly. They used promotion or packaging to attractive the customer for make more profit. Nowadays, economic of Thailand is growing continually. Then it has affective to the investor who interest to invest in Thailand. The interest business is handmade bedding because handmade products are quite expensive. It is telling about Thai culture. The most people prefer to buy finished goods bedding when compare with qualities, handmade product is stronger than finished goods bedding. Handmade product can be souvenir such as new house party, wedding, or birth day gift. We will assemble come in to order, to start a shop sell the craft of bedding by use the name that Fun Wan , we establish to the company limited , and we will start a shop at the Chiang Rai , the area is adjoin , Thai airways office , and night Bazaar Chiang Rai because of , Chiang Rai is tourism province then makes to have both of Thai tourist , and foreign come in travel greatly then have money circulates very much then make people in the area have money buy , and craft competition still have less , the majority is will the craft from a hill tribes mostly , and the competition of walking street person , we hope foresee the aim that the Chiang Rai is will a place at can make a profit to give us very much compare with Chiang Mai , which the Chiang Mai has more competition , because be the big city , by our work goods that make of the craftsmanship , no the machine , be elaborate craft , and

beautiful , suit old the lead goes to have interior decoration your bedroom are livable. This is good opportunities to invest in Chiang Rai province. Therefore we will be investing handmade bedding business in this province.

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Content
Page Preface Exclusive Summary Chapter 1: Introduction Background and significance of the project Project Objectives Benefits of Project Activities/Time Frame Chapter 2: Industry Profile Nature of Industry Situation of Industry Product -Bedcover -Blanket -Backrest pillow (Cushion) -Pillow cover -Child bedding -Wall hanging Vision Mission Strategy -Corporate Level -Business Level -Functional Level Marketing Financial and sales Chapter 3: Market Feasibility Study Market Analysis -General Environment Analysis Political factor i ii 1 1 3 3 4 5 5 8 10 10 11 12 13 14 15 16 16 16 16 16 17 17 18 19 19 19 19

iv Economic factors Social factors Technological factors -Competition Analysis (3C Analysis) Competitor Analysis Direct Competitor Indirect Competitor Customer Analysis Competitive Analysis STP Analysis -Market Segmentation -Market target -Product positioning Marketing Mix Strategy -Product -Price -Place -Promotion Sales Forecast/Profit Estimation -Cash receipt -Marketing Expenses -Exhibition -Leaflet Conclusion Chapter 4: Technical Feasibility Study Production and Operations Analysis -Product Characteristics Bedcover Blanket Backrest pillow (Cushion) 20 21 22 23 23 23 24 26 26 27 27 28 28 29 29 30 30 30 33 37 40 40 43 49 50 50 50 50 51 52

v Pillow cover Baby’s bedding Wall hanging -Services Process Customer’s greeting process Purchase order process Reparation process -Location -Facility Layout -Equipment -Logistics Management -Facility Management Cost of Investment -Pre- operating cost Investment Cost Depreciation Management Analysis -Organization Management Organization Chart -Administration cost -Other expenses Conclusion Chapter 5: Financial Analysis Income Statement Statement of cash flow Statement of Balance Sheet Chapter 6: Risk Management Risk from Fire Risk from New competitor 53 54 56 57 57 57 57 58 59 67 82 84 85 85 93 95 98 98 99 103 110 117 118 119 124 129 134 134 134

vi Risk from Theft Risk from Supplier Risk from Obsolete Design Chapter7: Summary Appendix 135 135 135 136 144

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CHAPTER 1 Introduction

1.1 Background and significance of the project
Human desire to get many things that does not end. They need to be a good physical and also good in their mind but usually they are not satisfied in all that they have. They always seek something new. When we looking back to the past, human being is very simple and they create more things to use with the need of them. And the next human use their brain that they have got it much more above all animal to create of many things for concern the basic needs of living of the human. They were fighting with any things to survive. So, it’s cause of many things that we can see in the present times. Creation is the result of creativity. It’s implemented in a various characteristics to be occurring the new things that have never been shown before. Human only that has to think creatively. Creative is a high of ideas and is the ability to understand and think in variety directions with no boundaries into the process of thinking to create something new or for to develop the original to be better. Cause the works that have self-confident particularities , a human is the living things just one kind in the world that thinks to create , because of in the past preceding have only a human only that can build the innovation upward for use assemble in the living , and can develop the thing differs and improve originally more , include have the ability in self development , develop the social , develop the country , and include develop the world to have the character that are

appropriate a human most , while kind animal differs ,have the evolution comes to like , we still are alive the being like originally not change. Art especially contemporary art have to create more variation. However, every types of art can give the value for people in the performance of emotional expression feelings and thoughts. Art is the performance that shows big story or impressible event. It cans response for the satisfaction in both of minds and the benefit of artifact using. The successful creation work will have creative thinking for determine the way and pattern and it will use the perfect ability of artist. It is the individual talent that happens from the practice and effort. Because of the perfect ability can make the perfect performance. Furthermore, the best performance will use more equipment to make them.

2 The equipment for create the art have two types. Materials use as media of expression and the tools use to create a work based on the expertise of each artist. The way that each artist uses to create performance has different way. Some artist have inspire from the beauty, thinking, feeling or impression. But some artists create the performance to show ability of them and they don’t interest in detail of the performance. And some artists create the performance with concern about material and don’t focus on pattern and concept. Around 3400 BC Egyptian pharaohs had their beds moved off the ground and slept on a raised surface. Roman mattresses were stuffed with wool, feather, reeds or hay. The beds were decorated with paint, bronze, silver, jewels and gold. During the Renaissance, mattresses were stuffed with straw and feathers and then covered with silks, velvets or satin material. The arrival of the 18th century brought bed frames made from cast iron, and mattresses that were made of cotton. The 19th century saw the invention of the bed spring, also called the box spring. The 20th century brought the inner spring mattress, futon, water bed (starting in the 1960s), air mattresses, foam rubber mattresses and pillows. Bedding refers to the materials laid above the mattress of a bed for warmth and decorative effect. Bedding does not include the mattress, box spring or bed frame. Down materials are often used for warmth in bedding. Bedding is made from a variety of materials, including cotton, flannel, down, pulsating, polyester, satin, silk, wool and latex. Bedding sizes usually are made with the dimensions of the bed and mattress for which it is to be used in mind. Bed sizes vary considerably around the world, with most countries having their own standards and terminology. Furthermore, mattresses have different thicknesses, which must be kept in mind when designing bedding for a particular bed, especially if they are to be fitted. Each component part of the overall bedspread is sized specifically to accommodate the individual specifications; from duvet covers to fitted sheets, everything needs to be produced with the appropriate dimensions to avoid excessive overhanging or, worse still, being too small to fit. We think bedding is necessary in daily life. The general production needs of the market, then the production focused on the novelty pulchritude and meticulousness. Moreover, there are emphasis on natural materials is not dangerous to health, such as hand woven cotton. In the current art of patchwork has an important role in the sewing by using a variety of fabrics. It makes the features, more beautiful, and adding value to products. There also used patchwork’s techniques and applied techniques to decorate clothing. Today, the

3 patchwork is very popular especially the sewing by decorated with Thai fabrics. We are a

retailer as well as make follow the order by customer requirement. We focus on the quality of raw materials within domestic like 100% cotton and synthetic fabrics. We have a wide range of products to such beautiful sweet blanket handmade which has a variety of sizes, most elaborate coverlet’s quilting and variety of pillowcase.

1.2 Project Objectives
1. To study feasibility of operational management. 2. For support the handicraft groups. 3. For maintains the Thai handicraft. 4. For expand the products base around Northern Region.

1.3 Benefits of Project
1. To everyone know Thai handicraft. 2. To get more profit from handicraft. 3. Everyone knows our company. 4. Can be promotion Thailand. 5. Our products will be famous. 6. We can export our products to aboard. 7. This project can help who would like to do handicraft.

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1.4 Activities/Time Frame
Time frame of the study since November 2009 - November 2010 Activities Nov Dec Jan Feb Mar Apr May Jun Jul 1. Study and analysis about bedding 2. Study and analysis about STP 3. Competitor analysis 4. Survey shop building 5. Contract with building own 6. Sales forecast 7. Contracting with bedding procedures 8. Decorating own shop 9. Set up prices of our products 10. Making advertising for promote our shops 11. Making promotion 12. Opening our shop 13. Sumarize expense, income per week and also collect together by monthly Table 1.1 Time frame of the study since November 2009- November 2010 Remark: For one week For three week More than one month For two week For a month Aug Sep Oct Nov Dec

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CHAPTER 2 Industry Profile

2.1 Nature of Industry
In the beginning man slept on the cold hard ground. But it did not take long until he fashioned a mound of leaves, straw, and twigs to create a more comfortable sleeping surface. He soon placed an animal skin over the mound as a sheet and another as a cover. Later he formed mattresses by sewing skins or fabrics together and filling it with cushioning materials. To raise the mattress off the floor crude wooden frames were built, some cross-strung with rope to support the mattresses. This rope would eventually sag and need to be tightened. This is where the expression "sleep tight" comes from. This basic bed was called the pallet, and little changed for thousands and thousands of years. The Egyptians, Greeks, and Romans ornate beds were used by the upper classes but the basic mattress was still filled with organic materials such as straw, animal hair, cotton, or feathers. From early civilizations through the Middle Ages ornate beds were a symbol of wealth and power. But the basic mattresses were still not very good. With the industrial revolution came the steel coil spring. It was first patented for use in a chair seat in 1857. Heinrich Westphalia was credited with inventing the innerspring mattress in 1871. Heinrich lived in Germany and never profited from his invention dying in poverty. During this time manufactured mattresses were filled with cotton, hair, or feathers. Variations of cotton were the best sellers. Raw cotton was filled into a sewn mattress ticking and beaten out with a stick to make it flat. The ticking was then closed and hand or machine tufted to help hold its shape. Foundations were usually open coil box springs but sometimes flat metal springs. In the early 1900's the bedding industry got together and fought for sanitary bedding laws and eventually got them. It was not uncommon to have vermin-infested mattresses, even new off the production lines. Organic mattresses fillings of the time were subject to all sorts of attack by bugs, bacteria, and mildew. Cotton mattresses were popular even into the 1950's and 1960's. Cotton would mildew easily in hot humid climates before the advent of air conditioning. Cotton mattresses differentiate themselves in price points by using combinations of raw cotton and cotton felt. Cotton felt is cotton that is run through a garnet

6 machine which combs the cotton into a fine and fully layer. Medium price mattresses had a layer of cotton felt on the outside portions with raw cotton stuffed in the center. Higher priced mattresses were all cotton felt. Cotton mattresses tended to compact and become harder with age, and innerspring mattresses tend to become softer with age. Innerspring mattresses started gaining some market share in the late 1920's but it took until after World War II for them to really start catching on. In the late 40's and through the 50's there was a rash of patents issued on different innerspring mattress designs. In the 1950''s marked the rapid development of licensee groups like Sealy, Simmons, Spring Air and King Coil. King and Queen super-size bedding made its first serious impact on the market. In an effort to sell higher priced bedding manufacturers promoted more and heavier steel coils as firmer is better. The "firm is best" concept caught on and is still largely accepted today. In the late 50's and early 60's quilted ticking became popular. Instead of simple flat surfaces of striped ticking, mattress covers are now multi-needle quilted in fashion ticking colors and designs. Today, this style dominates the market. The major bedding brands sell strictly on people’s emotion. They make the beds pretty and people think that if it is a major brand it must be good. In reality it is very old technology and much better alternatives exist. In the early 1970's waterbeds made their debut into the market. Unlike spring beds water displaces to conform to the exact shape of your body and actually pushes up to support recessed areas of your body such as the small of your back. The result is even all over support, an even distribution of pressure, much greater comfort, less backaches, a better night's sleep, and feeling better the next day. Waterbeds were the only real innovation in bedding in over 100 years. From that time up through the early 20th century, bedding evolved into basic flat white sheets. For years we were satisfied with the basics.
According to bedding market survey in Thailand found that Thai consumers are buying their

bedding from an average 2 times per year. Especially fashion decoration style hotel set has a maximum growth because the current lifestyle of many people changes from the past. They must take on more work when their rests to sleep less as well as they have a less time to buy bedding. Which these groups turned to focus on bedding to help their sleep easily in the limited time and helps relax tension from work.
Potential market of bedding in the direction of Thailand is better because the economy and real estate background will return to conditions that result in better overall market trends in bedding with growth of around 10-15 percent. Owners and brand name products from overseas in Thailand and began working toward a plan to increase market distribution channels and product development,

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product design, to create a brand with a variety of new beddings to cover all customer groups. Because the behavior of the Thai people tends to buy novelty is always popular. Bedding's competitive market of Thailand as follow by current competitive market of bedding a global strategy is to use price and promotion increased the price of bedding and softening 40-60 percent.

Today when shopping for bedding the choices are vast and for some the terms are confusing. Among the bedding selections today are: Sheets: flat and fitted Tailored: fitted bedding that keeps the sheet in place, often wrinkle free Quilts: thicker than a blanket yet relatively flat, top stitched often by hand Comforter: a thick puffy cover designed for warmth, often reversible Bed Spread: a cover that adds warmth over the top of the sheets, often reaches the floor Shams: pillows primarily used for decorative purposes, with covers that can be removed This list is not complete. It is only a sample of the names and words one must consider when shopping. While bedding was once designed solely designed for utility purposes, today it has found its place in home decor. The colors and patterns available today can add ambiance to any bedroom. Bedding ensembles are available that take the guesswork out of buying. Children's bedding now comes with cartoon character designs. Toddlers bedding for cribs has been created in soft pastel colors with special attention to a proper fit for safety. Some bedding comes with the sheets sewn together on one side, assisting in making up a bed that is next to a wall. The attached sheets are a favorite among families with bunk beds and for kids going to camp. With so many choices available in today, it is important that we know exactly what we are looking for when we go shopping and what we can afford. The prices of sheets today can vary from less than $10 per sheet to hundreds of dollars.

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2.2 Situation of Industry
Nowadays Thailand is famous in travel country. You can see from rate of travel will be growing 12% in 2553. (Fiscal Policy Office)

Figure 2.1 Situation of foreigner It has affected to handmade market. The most of tourist prefer to travel in the north part of Thailand. Then the municipal of each province are promoted their province by exhibition and used their identity to attract tourist such as Chiang Rai has walking street.

Figure 2.2 Chiang Rai walking street

For the situation of bedding decorate in Thailand Market. The big brands of bedding in Thailand are TOTO, TULIP, and SATIN etc. They are compete by use only promotion.
Potential market of bedding in the direction of Chiang Rai is better because the economy and real estate background will return to conditions that result in better overall market trends in bedding with growth of around 10-15 percent. Owners and brand name products from overseas in Chiang Rai and began working toward a plan to increase market distribution channels and product development, product design, to create a brand with a variety of new beddings to cover all customer groups.

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Because the behavior of the Chiang Rai people tends to buy novelty is always popular. Bedding's competitive market of Chiang Rai as follow by current competitive market of bedding a global strategy is to use price and promotion increased the price of bedding and softening 40-60 percent.

Those days have passed. Today when shopping for bedding the choices are vast and for some the terms are confusing. With so many choices available in today, it is important that we know exactly what we are looking for when we go shopping and what we can afford. The prices of sheets today can vary from less than $10 per sheet to hundreds of dollars.

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2.3 Product
Every products of Fun Wan Company are made by hand and we use natural 100% cotton that has a good quality. The pattern of products is exhaustively elaborate. So, the price of products will be high follow quality of value and elaborate of products and then we can gain a lot of profit. It makes our customers feel smooth and think it’s rationally for their paying. There are variety beautiful patterns of products that very elegant. And we also pack the products into the nice packaging of Fun Wan Company. Our products compose of six kinds as follows:

Bedcover Bedcover of Fun Wan Company uses the cotton 100%. Behind is a beautiful striped of cotton 100% and very elaborate work. We made it from high quality material, durable and there are many color and sizes. Bedcover size: • • • King size (6.5 x 6.5 foot) Queen Size (5 x 6.5 foot) Twin Size (3.5 x 6.5 foot)

11 Blanket Blanket handmade of Fun Wan Company made from the cotton 100%. In the front side will be stitch in a different pattern by use hand. We use only good quality materials to produce Blanket, durable materials, and unbreakable. Blanket size: • • • King size (100x92 inch) Queen Size (84x92 inch) Twin Size (78x87 inch)

12 Backrest pillow (Cushion) Backrest pillow of Fun Wan Company are made from highly quality materials, variety of color and many design. And it made from the cotton 100%. It is very cute design, soft and comfortable. It can washable mattress, pillow and narrow pillow Backrest pillow size: • • Small Size (15x15 inch) Large Size (30x30 inch)

13 Pillow cover The pillow cover is designed for use with all standard pillows. It’s easy to clean. We can remove the pillow cover for washing as needed. It made from the cotton 100%. Pillow covers size: • normal size (80x130 cm)

14 Child bedding Set of Child Bedding is important accessories so Fun Wan Company made the bedding from high quality materials for baby’s deep sleep. Fun Wan Company has a beautiful design and colorful. And our products also develop hand and eye co-ordinates and gain a sense of size and shape through grasping and holding. Our products will focus on the lovely pattern. And it also helped children to develop the learning. And it also makes children sleep comfortably and feeling smooth with our products that safety and quality. Baby bedding size: • Baby size

15 Wall hanging Wall hanging of Fun Wan Company will make you enjoy with the exploring these breathtaking fabrics and designs. Clearly it defined by style and origin, our tapestry feature historic, cultural and modern themes. Wall hanging size: • • small size large size

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2.4 Vision
“The best handmade bedding retailer in Chiang Rai”

2.5 Mission
Fun Wan Company’s mission is to increase bedding market share that we believe that advertising can promote our shop and attract come to our shop. We plan to make sales growth by improve ability to increase sales for our company for will have more value than it is now. We believe our products have success with high quality.

2.6 Strategy
• Corporate Level Fun Wan Company is a retail shop that brings the products from Nakhon Sawan province where is a head quarter to sell products at Chiang Rai. The appropriate strategy of Fun Wan is Intensive strategies in the level of market development. We will introduce and present the products that already have in many provinces into the new market at Chiang Rai.

Business Level Fun Wan Company is a shop that has less direct competitors. It effects that many

of customers can choose to buy products in only our shop. The appropriate strategy of our shop is Focus strategy. We will focus on the interest of customers. Fun Wan Company will be always designed and created new products all the time and also have a strategy to penetrate customers that have demand to choose bedding always. Including to studying of consumer behavior and studying the changes that occur all the time for make our shop can serve the customer’s needs and wants. Fun Wan Company always pay attention to present a distinguish products for customers who has high income level. And we focus to design variety pattern of handmade to serve the customer’s needs.

17 • Functional Level Functional level of our store is divided into 2 parts that are marketing and financial and sales. The details of each strategy as follow:

Marketing Strategy of marketing that important can be summary as follow: Target market

Fun Wan Company is the people who have average salary or high salary more than this because these groups have enough power to buying products. And they also like the handmade products and the products also different from other brand in the market. Positioning

Fun Wan Company is a shop that sells handmade bedding that has several of patterns that can make customers interest on it. Fun Wan Company is the only one shop in Muang district, Chiang Rai that sells handmade bedding. Fun Wan Company is a new shop in the market although the products in our shop have a high price but our products are high quality and the price is appropriate with the customers will pay. Customers will be located the brand of Fun Wan Company in their minds when they want to buy a high quality of handmade bedding. Marketing mix

Fun Wan Company is the shops that sell variety kind of products about blanket, cover bed, cover pillow, picture’s wall, baby bedding and etc. Fun Wan set the moderate prices for general products for our shop can be competing in the market. Fun Wan is located near Night Bazaar where many people around here. And it’s comfortable and easy for customers to come to our shop. We will give our customers for discount, gift voucher and etc. Advertise of our shop will be used leaflet, radio.

18 Financial and sales Strategy of financial and sales can be summary as follow: - Sales products 1. Inviting customers to view our products within our shop as a satisfaction. To let’s our customers know that our shop have a wide variety of products it effects to make the benefit of our shop when customers will be buy products for the next time they will be think about Fun Wan Company before other stores. 2. If our shop has no products within the store, our shop has a service for customers can be order. 3. For set up price, we can reduce the price for customers slightly. It’s for create the awareness of customers to recognize Fun Wan Company. - Financial 1. Compare the cost of purchasing goods with cash for purchase the product at the low cost. 2. Sell products by cash to maintain the liquidity of the shop. And prevent the problem of collect dept. 3. Provide the sufficient of working capital for purchasing of products at the low cost.

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CHAPTER 3 Market Feasibility Study

3.1 Market Analysis
3.1.1 General Environment Analysis For firms that effectively compete in an organization, an analysis of its specific organization must be guarantee. This is done to provide the firm with a description of the elements in society that directly affect the organization and the organizationmust take to achieve appropriate strategies to survive. This study is commonly referred to as the general environmental analysis. General environment is the factor that has unrelated directly with the organization. But, the conversion of general environment can effect indirectly for operation of the organization. There are four factors that have effect for the organization as follow: political factor, economic factor, social and environment factor and technological factor. These four factors describe the external environmental factors a firm must understand to effectively compete in the market.

Political factor

Figure 3.1 Political Factor The political situation is very important that can effect for every organization anywhere in this world. The political situation always changes. So the organization should be get the political information for avoid bad situation that can effect for the organization. In Thailand, the political situation is changing dramatically.

20 Since Mr. Thaksin Shinawatra was coup d’état the political situation is very stress. Until now that Mr. Abihisit Vejjajiva is the prime minister of Thailand. Although ,political situation is very stress because the people have no harmony and the people divided to each parties. But the government creates the policy for make people feel good and creates the confidence to people. The important policy that the government created as follow: create the confidence and urge the economy of the country for give the confidence to private sector and people to invest and consume, the government will increase the income, the government help people to decrease cost of living. Especially, economic policy that the government changes the structure in agricultural sector, adjust quality of product, produce the good worker to support labor market, promote free trade agreement (FTA) for expand new export market. Although, the situation in Thailand changes. Thai government finds the way for help and supports the people.

Economic factors The economy of Thailand in 2009 and 2010 are likely to adapt better than anticipated

was a 2.8 percent and will enter a positive growth rate in 2010 at 3.5 percent per year because of the efficiency causes of government sector policy and the recovery of private sector spending including with global economy. Thailand Gross Domestic Product (GDP) contracted 2.80% over the last 4 quarters. The Thailand Gross Domestic Product is worth 261 billion dollars or 0.42% of the world economy, according to the World Bank. The economy of Thailand is an emerging economy which is heavily export-dependent, with exports accounting for more than two thirds of gross domestic product (GDP). Well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, made Thailand one of East Asia's best performers. However, overall economic growth has fallen sharply in 2008 and 2009 as global downturn and persistent political crisis stalled infrastructure mega-projects, eroded investor and consumer confidence. After, we consider the positive factors and negative factors that have the effect for economy in 2010. We found that the positive factors will push the economy in 2010 as follow: The economy of country’s partner recovers continuously. So, the export business may increase in the next year. By the economic growth rate during the second quarter compare with the third quarter shows that the recovery of US economy grows up to 0.9 percent. Japan

21 economy grows up to 1.2 percent. And the China economy continues to grow up to 8.9 percent in the third quarter when compared with same period at the last year. The government policies can help economy process to drive. The government set 2010 fiscal year budget is basement about 3.5 billion in Thai Kham Kang Project. Moreover, Thai government has other project such as solve the debt problem that can help Thai people to decrease debt. And it effects for increase the consumption and the investment is better.

Social factors

Figure 3.2 Social Factor The Office of the National Economic and Social Development Board has issued a report on Thailand’s social outlook in the second quarter of 2009. The report, which was acknowledged by the Cabinet, covers four major areas, namely the quality of human resources, social security, people’s behaviour and living conditions, and the environmental situation. The report presents interesting facts and figures, which may be used as indicators for a broad picture of Thailand in terms of social aspects. For instance, criminal cases in the country were on the decline during the second quarter. About 8,100 sexual assault cases were reported, a drop of 5.7 percent against the same period of 2008. Assaults related to theft fell by 15 percent. The decline in criminal cases was a result of better surveillance carried out by officials in various areas at risk. Employment during the period expanded by 2-3 percent. Because of economic uncertainties, the number of educated workers in the agriculture sector was on the rise. The unemployment rate stood at 1.8 percent, a drop from 2.1 percent recorded in the first quarter of this year.

22 • Technological factors The Thai IT market is the largest market in the South East Asia region and despite current economic headwinds is projected to grow at a CAGR of 9% over the 2009-2013 periods. The total value of Thai domestic spending on IT products and services should reach US$4.9bn in 2009 and US$7.0bn by 2013. However, BMI’s view is that the fundamentals of growing affordability and low PC penetration, supported by government ICT initiatives, will keep the market in positive territory during the forecast period. In early 2009, a number of underlying indicators offered encouragement for overall IT spending, and there should be areas of opportunity, despite prevailing economic and political uncertainties. Industry Developments In 2009 Thailand’s government has outlined a number of projects to help close the digital divide. One potentially significant initiative from the ICT Ministry is to offer a special tax reduction to companies that donate their used computers to local communities. Meanwhile, the government is also making plans to offer computers, as well as software applications, bundled with broadband services from government telecoms operators CAT and TOT. The ICT Ministry is currently negotiating with state-owned banks to offer special loans to users who participate in the programme. SIPA (Software Industry Promotion Agency) has led ‘Buy Thai First’ campaigns to persuade local SMEs to buy Thai developed software, and has lobbied government to endorse tax incentives for local developers. Competitive Landscape International vendors dominate the Thai brand PC market, with Acer and HP the leaders in terms of shipments, ahead of Dell, Lenovo and Toshiba. Unbranded ‘white boxes’ still claim up to 50% of the local PC market, although this share has fallen from around 70% a couple of years ago. The sales of these generic products have received a boost from government-subsidised PC programmes. Locally produced software vendors claimed around 20% of the Thai market in 2008. With the economic and political crisis having an impact in both public and private sectors, some vendors and their local partners are likely to see a further slowdown in some business in 2009. However, growing PC penetration, and new technologies and business models, including 3G mobile, WiMAX, and industry trends, such as software-as-a-service, Green IT and virtualisation, will represent growth areas in 2009. There is a growing emphasis on cost efficiency as enterprises look to enhance productivity through automating these and other functions.

Figure 3.3 Technological factors

23 3.1.2 Competition Analysis (3C Analysis) We can classify the competition analysis to 3 part, Competitor Analysis, Customer Analysis, and Competitive Analysis (3C Analysis). In Chiang Rai Province is a biggest province in the north part of Thailand and has more population about 1,248,242persons (Department of Internal Trade, October2552). The most important thing Chiang Rai is a travel province so many people want to invest business in Chiang Rai. Then many business was become invest in Chiang Rai such as tour agency, super store, or handicraft shop. So Chiang Rai has high competition handmade products because Chiang Rai has more minorities. They can use their design to create product for sale in Chiang Rai for the travelers. Therefore we use 3C analysis to analyze the competition in Chiang Rai.

Competitor Analysis We will open handmade bedding shop in Muang District of Chiang Rai. It is close to

Night Plaza. Then we can divided competitors into 2 groups are direct and indirect.

Direct competitor Therefore the indirect competitors

compose with “A and Ann Towel Shop”. They sale products are seminar our products.The located is close to Mengrai Farther statue. It is. The most of product are Lanna handmade and some cloth handmade. It can be compete with our product.

Figure 3.4 A and Ann Towel Shop

24 Indirect Competitor Big C super center store sells bedding of SATIN, TOTO and TULIP. Big C super center store is a biggest store in Chiang Rai. Many people come to Big C for buying a lot of goods. And Big C also has many brand of bedding for serve the customers want. Many bedding products of SATIN, TOTO and TULIP brand name are already in the shelf of Big C for customers can choose and compare price with other brand name. Big C always have a promotion for attract people come to buy products. So Big C can earn a lot of money from customers.

Figure 3.5 Big C logo

Tesco Lotus also sells bedding of SATIN, TOTO, and TULP. Tesco Lotus is located in Meachan district and Measai district. People are close to Tesco Lotus will come to buying goods. And Tesco Lotus also has many brand of bedding for serve the customers want. People can chose and compare with other brand in that shelf of Tesco Lotus. Tesco Lotus always have a promotion for attract people come to buy products. So Tesco Lotus can earn a lot of money form customers.

Figure 3.6 Tesco Lotus logo

25 Pi Nang (Baan Duu, Chiang Rai) sells bedding of SATIN and TOTO brand name. Many people in Chiang Rai like to look for bedding in Pi Nang for selecting bedding of TOTO and SATIN’s products. We know that TOTO bedding sets are produced with advanced machinery and technology that is considered the most modern in Asia. The weaving machinery is capable of weaving a cloth as width as 110 inches. The Airjet weaving system maintains smoothness in between weaves, additionally controlling the temperature and humidity and filtering dust.

Figure 3.7 Pi Nang

Shop in Mae Sai District, they sale the bedding cover and blanket from China. It has not brand name but price is cheaper than our products. Many people love to shop there. And in the winter that shop will have many design of blanket for attract customers and price will be increase too.

Figure 3.8 Shop in Mae Sai District

26 • Customer Analysis From our survey questionnaire, we got information of customer behavior in Chiang Rai. Our customers is officers and get salary about 15,000 – 20,000 baths up. They chosen go to shopping at shops or stores rather than buy products on internet or catalog. They would like to pay money buy cash and credit cards. Each they spend money about 1,000 – 3,000 baths per time for shopping bedding decorates. The most of customers in Chiang Rai like to change their bedding decorate one time per year. The behavior of shopping is survey by them slave and they design their bed room by themselves too.

Competitive Analysis We are study about competitive handicraft bedding in Chiang Rai by using five force

to analyze the possibilities of our business and other factor for competitive with competitors.

1. Rivalry Among Current Competitors

In Chiang Rai are less handicraft shop but you can buy handicraft on night day at Night Plaza. We have the indirect competitors in Chiang Rai such as PhreeNuan, Ruan Tong etc. They sale bedding decorate for factory but we are handicraft bedding decorate. Tend of handicraft are growing.
2. Bargaining Power of Suppliers

We received products from suppliers. So suppliers have more bargaining because they are the one supplier for Fun Wan Shop. We don’t have bargain with suppliers. Then new shop cannot bargain with supplier.
3. Bargaining Power of Customers

Bedding decorate is not necessaries products. So the buyers do not more power to bargain this product but buyer have more choice to choose other handicraft shop and the productsubstitutes. So buyers will change to buy other handicraft shop.
4. Threat of Substitute Products

In the bedding decorate market has many substitute products. Many people have more choice to buy bedding decorate such as blanket, bed cover, or pillowcase. The bedding decorate are easy to buy.

27
5. Threat of New Entrance

This business is quite hard to open because cost of invest and price are expensive. The most think the building and rent the building are expensive and this business quite difficult to invest in Chiang Rai. If invest in the big province, it can be entrance to the market.

3.2 STP Analysis
• Market Segmentation Marketing Teacher Ltd 2000 – 2010 said that segmentation is essentially the identification of subsets of buyers within a market that share similar needs and demonstrate similar buyer behavior. The world is made up of billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment'. Think of your market as an orange, with a series of connected but distinctive segments, each with their own profile. For market segmentation of Fun Wan company set the segmentation from customers who come to buy the product and the unique of product. The first segmentation is the customers who come to buy the product. Our company can divide into three groups. First, people who prefer in handmade products. They like in art and value of the nice things that make by hand. Because they think it’s be worthwhile for their payment and handmade products are fineness and neatly. Second, people who prefer in machine production products as a machine fiber production are a domestic consumption mainly to 85.0 percent. Such as SATIN, TOTO that are strong brand which consumers prefer to use it. They think the products that produce by machine has a good quality and not have a high price. Last, people who prefer in mix with handmade and machine. Sometimes, some group of customers likes to change their style. So, they will be switch from production of machine to be handmade. Next segmentation is about the unique of products. The majority of customer want to buy product that have unique and have different from other product and handmade product is one choice of customer. And handmade product expected to be increasingly popular. Because of technology in production of manufactured goods has virtually none Homogeneous. Moreover, handmade product can create selling points of difference and the unique product produced over time by many. (Business research division of EXIM Bank)

28 • Market target Target of Fun Wan Company is the people who prefer in handmade products. Our company divided target into two groups. The first group is people who have high income and prefer in products that have a high value nice and neatly. It trends to continue increasing every year in which there is many factors to affect them such as unemployment rate is decreasing, general trading conditions to start growing in a better direction after slowing from World economic crisis in the past. Investors are confident start economic activities in Thailand and turned to increase investment in Thailand. The second group is the foreigner who like handmade product. The product of our company is the unique product that the foreigner prefers to buy and the tourism continues growing because Chiang Rai is the province that is interested from the tourist. More than 200,000 foreigners come to Chiang Rai. It is the opportunity for the foreigner come to Fun Wan company. (Office of Commercial Affairs Chiangrai and Office of Tourism Development)

Product positioning

High quality

FunWan • A & Ann

• Low Unique

PiNang High Unique • Chiang Rai Night Bazaar

Mae sai market

Low quality

Figure 3.9 Product positioning

29 The positioning of Fun Wan company is base on high quality and high unique that make the customer come to our shop. The product of the company produces from 100 percent cotton and does not use any machine. It is a 100 percent handmade and the design of product is very unique that other does not have. Nowadays, customer want to buy the product that have high quality because the high quality product can use very long time and can save the maintenance cost. The product of our company is high value because of the loyal family use this product. These products that make the customer feel good as aristocracy agree. So, Fun Wan Company provided many quality products to increase satisfaction to our customers. And our company gives the best thing to our customer. And we are the new choice for the customers who love handmade bedding products.

3.3 Marketing Mix Strategy
• Product “Fun Wan” is the bedding shops that sell variety kind of handmade bedding about blanket, cover bed, cover pillow, wall hanging, baby bedding and etc. under the brand name of “Fun Wan” The features of our products are all types of bedding are Handmade with beautiful and modern design. Handmade bedding of Fun Wan has the best quality and has a sufficient quantity to serve the customers want and our shop always has service for our customers. Customers can design or choose pattern of the fabric that they want, it causes to make them satisfy of our services. Inside the shop has a point of sitting for customers who waiting to receive their handmade bedding products and have lounges for customers who come to purchase our products.

30 • Price “Fun Wan” set the moderate prices for general products for our shop can be competing in the market. Including to set up price to promote in some period of time for stimulate our net sales such as, in the New Year or other important day. And if customers buy many of products we will give them for discount. And the setting price of our products we will select the pricing strategy in the sales promotion that appropriate for each group of customer.

Place “Fun Wan” shop is located near Night Bar Za Chiang Rai where has many people

around here. It’s comfortable and easy for customers to come to Fun Wan shop. Fun Wan is focused on expanding of distribution channels to increase base of consumers and give the facilitation to customer who comes to our shop. It is a good channel of distribution. Inside of “Fun Wan” shop will be available space and box shelf for show handmade bedding products for customers can view and purchase more easily. We will be selling directly to consumers who want to purchase our products.

Promotion “Fun Wan” has a strategy to promote our sales and marketing that can reach

consumers as well as follow: Giving them for 15% discount if they buy many quantities of products. And also has a 500 baht gift vouchers when they buy 3,000 baht of our products. By focus to do this activities in the time that people are spending a lot of money like a new year, father’s day, mother’s day, valentine’s day and etc. When they buy 2 pieces of our product, in the third piece they will get a half price and we will gift premium for customers who come to buy our products. Advertise of our shop will be used leaflet. In this advertise will be inform of news promotion of our shop that can make customers to remember “Fun Wan” through that advertising.

31 Fun Wan will be exhibiting for show our products at shopping malls or in the events by regular to increase net sales of our shop.

32 Promotion Jan 1,5 5 5 5 5 Feb 1,3 3 3 3 3 Mar 1 Apr 2 2 2 2 2 May 3 3 3 3 3 Jun 3 3 3 3 3 Jul 5 5 5 Aug 2 2 2 2 2 Sep Oct Nov 5 5 5 Dec 2 2 2 2 2

Y1 Y2 Y3 Y4 Y5

Table 3.1 Promotion Remark: 1. Giving them for 15% discount if they buy many quantities of products. 2. And also has a 500 baht gift vouchers when they buy 3,000 baht of our products. 3. When they buy 2 pieces of our product, in the third piece they will get a half price and we will gift premium for customers who come to buy our products. 4. Advertise of our shop will be used leaflet. In this advertise will be inform of news promotion of our shop that can make customers to remember “Fun Wan” through that advertising. 5. Fun Wan will be exhibiting for show our products at shopping malls or in the events by regular to increase net sales of our shop.

33

3.4 Sale forecast and profit estimation

Figure 3.10 Rate of household
According to statistics, rate of household in Chiang Rai between 2004 to 2008. We found that the trend of household has increased but has decreased a few number of household in year 2008. From the statistics, rate of household in 2004 has number of household about 334,042 families; in 2006 has number of household 386,135 families; and in 2008 has decreased to 384,000 families. (Department of provincial, 2009). From our survey questionnaire, we found that behavior of people in Chiang Rai would like to change their bedding for 1 time per years. It means that we can increase sale volume in every year that related with our promotion. For high season in December to February which the weather is cold and many people usually buy our product to be present for New Year festival and low season in September to November that the period of time has a few of festival which affect our sale volume.

34

Sales forecast Year1
Jan Sale 1,261,600 1,261,600 289,845 23,885 33,220 37,137 2,907,288 Feb Sale 1,605,673 1,605,673 368,893 30,400 42,280 47,265 3,700,184 Mar Sale 1,032,218 1,032,218 237,146 19,543 27,180 30,385 2,378,690 Apr Sale 917,528 917,528 210,796 17,371 24,160 27,009 2,114,391 May Sale 688,146 688,146 158,097 13,028 18,120 20,257 1,585,793 Jun Sale 688,146 688,146 158,097 13,028 18,120 20,257 1,585,793 Jul Sale 573,455 573,455 131,748 10,857 15,100 16,881 1,321,494 Aug Sale 1,146,909 1,146,909 263,495 21,714 30,200 33,761 2,642,989 Sep Sale 573,455 573,455 131,748 10,857 15,100 16,881 1,321,494 Oct Sale 573,455 573,455 131,748 10,857 15,100 16,881 1,321,494 Nov Sale 573,455 573,455 131,748 10,857 15,100 16,881 1,321,494 Dec Sale 1,835,055 1,835,055 421,592 34,742 48,320 54,018 4,228,782 Total Sale 11,469,094 11,469,094 2,634,950 217,140 302,000 337,610 26,429,888

Description Bedcover Blanket Wall hanging Baby's bedding Bolster Pillowcase Total

Cost 6,333.0 6,333.0 2,500.0 2,400.0 250.0 400.0

Price 8,323.0 8,323.0 3,490.0 3,290.0 400.0 490.0

Sale forecast Year2
Jan Sale 1,605,673 1,605,673 368,893 30,400 42,280 47,265 3,700,184 Feb Sale 1,605,673 1,605,673 368,893 30,400 42,280 47,265 3,700,184 Mar Sale 917,528 917,528 210,796 17,371 24,160 27,009 2,114,391 Apr Sale 802,837 802,837 184,447 15,200 21,140 23,633 1,850,092 May Sale 573,455 573,455 131,748 10,857 15,100 16,881 1,321,494 Jun Sale 573,455 573,455 131,748 10,857 15,100 16,881 1,321,494 Jul Sale 688,146 688,146 158,097 13,028 18,120 20,257 1,585,793 Aug Sale 1,146,909 1,146,909 263,495 21,714 30,200 33,761 2,642,989 Sep Sale 573,455 573,455 131,748 10,857 15,100 16,881 1,321,494 Oct Sale 458,764 458,764 105,398 8,686 12,080 13,504 1,057,196 Nov Sale 688,146 688,146 158,097 13,028 18,120 20,257 1,585,793 Dec Sale 1,835,055 1,835,055 421,592 34,742 48,320 54,018 4,228,782 Total Sale 11,469,094 11,469,094 2,634,950 217,140 302,000 337,610 26,429,888

Description Bedcover Blanket Wall hanging Baby's bedding Bolster Pillowcase Total

Cost 6,333 6,333 2,500 2,400 250 400

Price 8,323 8,323 3,490 3,290 400 490

35 Sale forecast Year3
Jan Sale 1,926,808 1,926,808 442,672 36,480 50,736 56,718 4,440,221 Feb Sale 1,806,382 1,806,382 415,005 34,200 47,565 53,174 4,162,707 Mar Sale 1,083,829 1,083,829 249,003 20,520 28,539 31,904 2,497,624 Apr Sale 722,553 722,553 166,002 13,680 19,026 21,269 1,665,083 May Sale 602,127 602,127 138,335 11,400 15,855 17,725 1,387,569 Jun Sale 481,702 481,702 110,668 9,120 12,684 14,180 1,110,055 Jul Sale 602,127 602,127 138,335 11,400 15,855 17,725 1,387,569

Description Bedcover Blanket Wall hanging Baby's bedding Bolster Pillowcase Total

Cost 6,333 6,333 2,500 2,400 250 400

Price 8,323 8,323 3,490 3,290 400 490

Aug
Sale 1,083,829 1,083,829 249,003 20,520 28,539 31,904 2,497,624

Sep
Sale 722,553 722,553 166,002 13,680 19,026 21,269 1,665,083

Oct
Sale 602,127 602,127 138,335 11,400 15,855 17,725 1,387,569

Nov
Sale 842,978 842,978 193,669 15,960 22,197 24,814 1,942,597

Dec Sale
1,565,531 1,565,531 359,671 29,640 41,223 46,084 3,607,680

Total Sale
12,042,549 12,042,549 2,766,698 227,997 317,100 354,491 27,751,382

Sale forecast Year4
Description Bedcover Blanket Wall hanging Baby's bedding Bolster Pillowcase Total Cost 6,333 6,333 2,500 2,400 250 400 Price 8,323 8,323 3,490 3,290 400 490 Jan Sale 1,806,382 1,806,382 415,005 34,200 47,565 53,174 4,162,707 Feb Sale 1,565,531 1,565,531 359,671 29,640 41,223 46,084 3,607,680 Mar Sale 963,404 963,404 221,336 18,240 25,368 28,359 2,220,111 Apr Sale 722,553 722,553 166,002 13,680 19,026 21,269 1,665,083 May Sale 722,553 722,553 166,002 13,680 19,026 21,269 1,665,083 Jun Sale 602,127 602,127 138,335 11,400 15,855 17,725 1,387,569 Jul Sale 481,702 481,702 110,668 9,120 12,684 14,180 1,110,055 Aug Sale 1,324,680 1,324,680 304,337 25,080 34,881 38,994 3,052,652 Sep Sale 842,978 842,978 193,669 15,960 22,197 24,814 1,942,597 Oct Sale 722,553 722,553 166,002 13,680 19,026 21,269 1,665,083 Nov Sale 602,127 602,127 138,335 11,400 15,855 17,725 1,387,569 Dec Sale 1,685,957 1,685,957 387,338 31,920 44,394 49,629 3,885,194 Total Sale 12,042,549 12,042,549 2,766,698 227,997 317,100 354,491 27,751,382

36 Sale forecast Year5

Description Bedcover Blanket Wall hanging Baby's bedding Bolster Pillowcase Total

Cost 6,333 6,333 2,500 2,400 250 400

Price 8,323 8,323 3,490 3,290 400 490

Jan Sale 2,018,561 2,018,561 463,751 38,217 53,152 59,419 4,651,660

Feb Sale 1,766,240 1,766,240 405,782 33,440 46,508 51,992 4,070,203

Mar Sale 883,120 883,120 202,891 16,720 23,254 25,996 2,035,101

Apr Sale 756,960 756,960 173,907 14,331 19,932 22,282 1,744,373

May Sale 630,800 630,800 144,922 11,943 16,610 18,569 1,453,644

Jun Sale 630,800 630,800 144,922 11,943 16,610 18,569 1,453,644

Jul Sale 756,960 756,960 173,907 14,331 19,932 22,282 1,744,373

Aug Sale 1,135,440 1,135,440 260,860 21,497 29,898 33,423 2,616,559

Sep
Sale 756,960 756,960 173,907 14,331 19,932 22,282 1,744,373

Oct
Sale 504,640 504,640 115,938 9,554 13,288 14,855 1,162,915

Nov
Sale 756,960 756,960 173,907 14,331 19,932 22,282 1,744,373

Dec
Sale 2,018,561 2,018,561 463,751 38,217 53,152 59,419 4,651,660

Total
Sale 12,616,003 12,616,003 2,898,445 238,854 332,200 371,371 29,072,877

37 3.4.1 Cash receipt Year 1

Year2

38

Year 3

Year 4

39

Year 5

40

3.5 Marketing expense • Exhibition
King

MengRai and Chiangrai Red Cross Fairson January 26 – February 4

Figure 3.11 Exhibition For King MengRai and Chiangrai Red Cross Fairs is the fairs that occur for Chiangrai province people and other province people to remember the great king who established Chiangrai province on January 26, 1262. And the fairs want to promote culture native tradition of Lanna. As well as present the progress of government services, present product booth and show the exhibition of government agency, Red Cross, educational institution, charity and sell the consumer product. For Fun Wan company will use this fair to promote bedding product. The rate of rental for 1 booth (4x4m) is 16,000 baht via the company rent 2 booths and the company pays for electricity charge about 1,000 baht.

41 Amazing Thailand Grand Sale Fair on July – August

Figure 3.12 Amazing Thailand Grand Sale Fair logo Amazing Thailand Grand Sale Fair is the great fair that collects many products, services and activities from every part of Thailand. It located at Plenary Hall 1-3, Zone C 1-2, Queen Sir kit National Convention Center, Bangkok Thailand. The Tourism Authority of Thailand, cooperate with N.C.C. Exhibition Organizer, company limited are the organizer. Event objectives: • • • • for imagine good words gives with Thai tourism for special activity supports the project , "Amazing Thailand Grand Sale" for great festival expo , be the good quality in special price for support give the marketing activity to the entrepreneur , and encourage develop both of tourism more • for something the public relations and support production part and export of Thailand , give Thai is the center , the business and the tourism in provincial the South-east Asia Space Rental Rate: and the foreign countries to that know to is well-known more and

42

Table 3.13 Space Rental Rate Note: 1. Corner area must pay 3,000 again a baht / arched space 2. The price still don't total up 7% vat 3. Arched standard space compose of , 3 space side walls , company label , 2 light tube bulbs , 1 table , 2 chairs , a carpet within the space , 15 ampere plugs , and 1 dust basket 4. Special especial zone food space composes of , 3 space side ( do not total up the wall ), company label only 5. Person attend show the work in Plenary Hall , at reserve empty area , must prepare a carpet within your space comes to by oneself 6. Person attend show goods will must discount goods specially more usual 10 - 80% for attends the project , Amazing Thailand Grand Sale

Thailand best buys on November - December

43

Figure 3.10 Thailand best buys logo

The great annual exhibition organized for the eighth consecutive year. The event will bring together scores of quality gifts, souvenirs, accessories and home decorative items, plus Thailand’s leading brand names. It located at Plenary Hall, Zone C1-2, Meeting Room 1-4, Main Foyer, Atrium, Plaza Queen Sirikit National Convention Center, Bangkok, Thailand. Event objectives: • • To create retail sales opportunities for small-sized manufacturers and retailers. To serve as a platform for the promotion of companies and new products ready for the market. • To serve as a prime location for varied and high quality products, offering shoppers a wide selection of gifts for the New Year and other special occasions. Space Rental Rate / 9 Sq.m.:(price are excluded VAT 7%)

Table 3.3 Space Rental Rate Note: 1. The above prices are excluding any bank charges or bank transactional fee 2. Standard Shell Scheme includes 3 sides of white partition, fascia name, 2 fluorescents, 1 socket (5 amp.), 1 basket, 1 table, 2 chairs and booth carpet

Leaflet

44 In this advertise will be inform of news promotion of our shop that can make customers to remember “Fun Wan” through that advertising.

Front

Back

Figure 3.14 Leaflet

45

46

47

48

49

50

3.7 Conclusion
“Fun Wan” is a handmade bedding company which sells various beautiful kinds and also has high quality and high unique products. Fun wan is located near Night Bazaar Chiang Rai where have many people come to travels every day. Chiang Rai is a province that has many people come to travel so there are many investors interest to invest business in Chiang Rai. Fun Wan have a lot of indirect competitors that sells bedding decorate such as Big C, Phree Nuang Furniture which have many promotion for attract customers. So, we have to do a lot of promotion for promote our shop. And Fun Wan has a few direct competitors in Mae Sai district and some from minority at Night Bazaar Chiang Rai. But some of products of our direct competitors are not the same with our shop. Our target group of Fun Wan is a person who has high income and prefer in handmade product. So, they have an ability to pay for handmade bedding from Fun Wan Company.

51

CHAPTER 4

Technical Feasibility Study
4.1 Production and Operations Analysis
We divided the production and operations analysis into 6 parts including product characteristics, services process, location, Facility layout, logistics management, and facility management. 4.1.1 Product Characteristics If you are looking for gift, present, or bedding for decorate your bedroom which is handmade products and high quality, beautiful design as well as appropriate price. Our products have a long life time. Customers can choose to buy at Fun Wan Shop. Fun Wan Shop will be updated new products regularly and also change the design to be new style and especially unique than other competitor. As our slogan “Reach good slumber by Fun Wan” And about the pricing, we focus on a fair price and the most rationally price to customers have enough power to purchase products in Fun Wan Shop. At all events are subject to preference, love and like in the handmade products about home decorations of target group. From the survey data of our group, people in Chiang Rai interested in blanket, bolster case, pillow cover and also they have to buy handmade bedding every year. We can identify the characteristics, details, price, size, and dimension of all goods that Fun Wan Shop has sold as the following: 1. Bedcover: Use the Cotton fabric

100% all parcels. Behind is a beautiful striped of Cotton fabric and very elaborate work. It helps a bedroom has a distinctive identity and adds charm to your bedroom. Fabrics that use are durable, away

Figure 4.1 Bedcover

52 from dust and waterproof. Sophistication to our customers especially. We made it from high quality material, durable and there are many color and sizes. It is a maximum satisfaction.

There are three types of Bedcover that are Bedcover for King Size, Bedcover for Queen Size and Bedcover for Twin Size.

Figure 4.1 Bedcover • • • Price of Bedcover for King Size is9,990baht Price of Bedcover for Queen Size is 7,990 baht Price of Bedcover for Tween Size is 6,990 baht

2. Blanket:

It’s

a

blanket

handmade that made from the Cotton fabric 100%. It’s give you feel smooth and cool; it’s not stuffy and hot. We’ll fill in the synthetic fiber inside the products. And in the front side will be stitch in a different pattern by use hand. It’s can launder both hand and washing machine. We use only good quality materials to produce Blanket, durable materials, unbreakable, restless. So, you can make sure that product of Fun Wan Shop is good quality products. Figure 4.2 Blanket

53

There are four types of Blanket that are Blanket for King Size, Blanket for Queen Size, and Blanket for Twin Size.

Figure 4.2 Blanket • • • Price of Blanket for King Size is 9,990 baht Price of Blanket for Queen Size is 7,990 baht Price of Blanket for Twin Size is 6,990 baht

3. Backrest pillow (Cushion): It’s

made

from 100% Cotton fabrics. Stitch a variety pattern by hand. It has variety options for select. We have available in various patterns to choose. We can use it to be relaxed.

Figure 4.3 Backrest pillow (Cushion)
Outside of the fabric is very durable for use. And also have the features that well designed and beautiful color. It can use for a long duration for use. It’s not soft or hard much more. But it appropriate fit. With the perfect mix percentage both synthetic and sponge it makes our Backrest pillow have a high quality. Features

54 Every piece of Fun Wan Shop products are made from highly quality materials, variety of color and many design. It is very cute design, soft and comfortable. It can washable mattress, pillow and narrow pillow

Figure 4.3 Backrest pillow (Cushion) There are two types of Bolster case that are Small Size and Large Size.

• •

Price of Backrest pillow for small size is 450 baht Price of Backrest pillow for normal size is 350 baht

4. Pillow cover:

The pillow cover is

use for wear the pillow before wearing the pillowcase. This prevents the spot of dirty. And the pillow cover is designed for use with all standard pillows. It’s easy to clean. We can remove the pillow cover for washing as needed. Figure 4.4 Pillow cover

To sleeping very well it beginning from your bed and also you pillow. Your body wants the convenience, supporting weight that appropriate, and your body will tell you that, your bed cannot meet that need of you already.

Figure 4.4 Pillow cover

55 To choose to buy pillow cover that appropriate for you, you must understand the requirement for your sleeping before initial to seek to buy in the many stores, give a little time and think of way of your life. Your lifestyle, how is it changes to? , when you compare with the last time that you buy the bedding, and how is it different go to?

There is one type of Pillow cover that is Pillow cover for normal size.

Price of Pillow cover for normal size is 490 baht

Figure 4.4 Pillow cover

5. Baby’s bedding:

Fun Wan Shop

understands the type of energy and attention required to the daily tasks of parenting. So, we developed our products to fulfill parent’s need. Set of Child Bedding is important

accessories so Fun Wan Shop made the bedding from high quality

materials for baby’s deep sleep.

Figure 4.5 Baby’s bedding

56 We developed all articles continuously to adjusted the wishes and requirements of the nowadays parents. We always remain a challenge to our people to make beautiful things for new parents and their children. Therefore we are always open for good ideas and suggestions from future mothers and fathers.

Figure 4.5 Baby’s bedding Child bedding helps baby to improve their skill and can increase EQ (Emotional Quotient) and PQ (Play Quotient). Colorful bedding of child can attract all children. So, we should understand the nature of children that which types of bedding is suitable for them to avoid the unexpected accident. Fun Wan Shop has a beautiful design and colorful. And our products also develop hand and eye co-ordinates and gain a sense of size and shape through grasping and holding. Our products will focus on the lovely pattern. And it also helped children to develop the learning. And it also makes children sleep comfortably and feeling smooth with our products that safety and quality. There is one type of Baby’s Bedding that is Baby Size. Figure 4.5 Baby’s bedding Bedding is 3,290 baht • Price of Baby’s

57

6. Wall hanging:

A flat decorative

object, such as a tapestry, rug, or antique map, hung against a wall. And decoration is hung (as a tapestry) on a wall or over a window. It will enjoy exploring these breathtaking fabrics and designs. Clearly it defined by style and origin, our tapestry feature historic, cultural and modern themes. We also offer a collection of elegant.

Figure 4.6 Wall hanging

There are two types of Wall hanging that are Wall hanging for small size and Wall hanging for large size.

Price of Wall hanging for small size is 2,990 baht

Price of Wall hanging for Large size is 4,290 baht

Figure 4.6 Wall hanging

58 4.1.2 Services Process Our shop open on Tuesday to Sunday, 10a.m. to 10p.m. and close on Monday. We divided services process into 3 parts that are customer’s greeting process, purchase order process, and reparation process.

Customer’s greeting process

- When customer comes in to our shop, workers will greeting “SawadeeKa” - Workers will advise about our products to customers. - Workers will take care of customers until they get what they want. - When customers leave from our shops, workers will deliver a speech the thank “Thank you
and welcome to next time”

Purchase order process

In case of products sold out or customers would like to buy special product. They can order from our catalog or can give special design to our shop then we will contact with headquarter.Customers can take product within 1 - 2 week which depends on easy or difficulty of production process and also customer must put up money of their product’s orders in half price of product. If customers want to create new design that design is out of the catalog, a customer must pay for transportation expense that follow by the rate of NTC Overnight Express Co., Ltd.

Reparation process

Our shop has reparation service by depend on the damage If be a little damage the shop will repair the product by myself and if be more damages, we will send the product to repair at headquarter which do not pay for expenses in the reparation process.

59 4.1.3 Location

Figure 4.7 Location

Fun Wan Co., Ltd. Located at 596/7 TambonRobViang, Muang District, Chiang Rai Province 57000. Reason for locate at that there because there is business area of ChaiangRai as well as there is center of the city. Our shop located near to Night Bazaar and Chiang Rai bus terminal. There is opposite Top Charoen Optical and Edison Department Store. Moreover, there are hotel, guesthouse and many shop located near to our shop.

Figure 4.7 Location Our shop has 3rd floors (width 4 meter and deep 28 meter) that the 1st floor we are the store, by the front and the side are the glass. For 2nd floors is the reparation area and stock area and 3rd floors is the stock area too.

60

Figure 4.7 Location Our shop has many parking area that in front of our shop, beside our shop, and opposite our shop has comfortable for customer.

4.1.4 Facility Layout Decoration of shop is very important for the development shop that intent to all the details within the shop. Because of the first thing that customers can see before other one else are the display of our products in our shop and entrance of our shop. From observe we can see that if these things are good and interesting design it can motivate many customers come to our shop. Our shop should to assess the flexibility of traffic in the store and also allocate space in the store to be more efficient. We are not designed just to make it be beauty shop but we also plan to make our shop to be sold more effectively. Because to arranged the layout of our shop to be good enough we will cover all areas in the shop. We need to set the plot of products in our shop to be appropriate for serve the comfortable to our customers can walk to see products all over. And also have adequate lighting and good weather in the shop. References (from the http://namchiang.com/smf/index.php?topic=3612.0) tell that to decorate our shop, we consider the points that appeal in the shop. When customers walk into our shop, they will be often thinking about various things in addition to buying products. To placing the table or have an exhibition to show our products nears the door of entrance it can make customers stop to thinking stories of them and thinking about what is the thing that our shop wants to showing.

61 • Pattern of store building Structure

Shop building of Fun Wan Shop has 3rd floors. It’s width about 4 meters and deep about 20 meters. That are the 1st floor of our shop is the store. In the front and the side near street are the glasses. And the one side that next to the other one building is a screen of cement. For the 2nd floor is the reparation area and stock area. And the 3rd floor is the stock area too.

Pattern inside of store

Figure 4.8 Pattern inside of store

First floor When we start from the left hand side we will see the door, we will catch sight of many decorate things in our shop. Layout of “Fun Wan Shop” is arranging our products systematically. For make customers can walk in and walk out easily. And easily to access to the products that they are looking for. Because Fun Wan Shop has to organize the layout of shop to customers can wall throughout the shop. It’s very convenient. From observe we can see that from the entrance, customers can walk to both the left and right side. When they are inmost of the shop, they can turn back to another side so as to comfortable for looking the products.

62 Signage of "Fun Wan Shop" is installed in the prominent positions in the front of the shop. We also made a handmade signage and also have blinker around to it for appeal from the customers in the night. We divided area in the shop into 6 sections are section 1 which is bedroom show case zone, section 2 which are six multipurpose boxes, section 3 which is show wall hanging in the both side of wall of our shop, section 4 which is products zone and section 5 which is corner of living for customers, and section 6 which is area of counter for payment. All of these will be explain as the following. Section 1 - showcase of bedding zone We focus on providing a feeling of bedroom. “Shop is the first thing that customers see and feel the brand and personality of our organization. Therefore to arrange the shop have to present both of performance and our personality. It must to go together with other details for create a strong image.” Showcase of bedding zone will be changes every month. And plan to promote products every month for let customers to see the new things always. To promote new promotion by change the set of pattern of the bedding will be attracting customers to interest more. Section 2 - six multipurpose boxes It’s easy to set up and also has other benefits, such as can be move as appropriate. We will see that the use of the multipurpose box can be usable all sides of the multipurpose box. Section 3 - show wall hanging in the both side of wall of our shop To show the wall hanging in our shop is a Contact Point that has more important in the key process to building Brand Experience. Section 4 - Products zone To show the distinguish products that can be attract appeal from the customers. Because of this zone is set up in the heart center of our shop. It effects to make customers see our products clearly.

63 Section 5 - corner of living for customers Corner of living composes of 1 modern table and 4 modern chairs. For serve our customers to sit while waiting to receive their products or ask some information. In this corner of living have catalogs and brochures of Fun Wan Shop for serve customers. Section 6 - area of counter for payment Areas of counter for payment should be clean, customers can easily to get in and ask some information. And also has well management of traffic systems. To set the cashier counter as a U shape that can allocate zone to work clearly. We divided into information services and payment service because to provide a convenience and flexibility work.

Equipments of first floor
-

Light bulbs. We use chopsticks tube, economize number five because it’s cheap and help us to save cost. Or use the various kinds of orange light bulbs because it is the best way to highlight the colors to be outstanding. And it also makes the atmosphere in the shop look at more warmth.

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Chandelier. It will highlight the products to have more found out. Air conditioner. We will be set up it in the top of the wall which near the back of shop. For distribute the cooling throughout the shop.

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Cashier counter. In the zone of cashier counter compose of one table and two chairs. We use cashier counter for to a zone of estimate the price of products for our customers. And this point is also give information for customers when they need some information from us.

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Fax and Telephone. We need to use Fax machine and telephone to connect and exchange information with customers who want to order products from Fun Wan Shop.

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Computer. We use it to keep information of customers who come to purchase products from our shop. And also keep information about products that already sell.

64
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Calculator. We use calculator for estimate the price for our customers. And the reason that why we need to use calculator instead use program on computer because it’s easy when we walk to give some details for customers in the zone of products. And then it’s easy that we can bring calculator together with us for estimate price for customers.

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Twin bed (3.5 foot). We use twin bed in the zone of Showcase. We will have a set of handmade bedding decorate and also change in each month to show on the twin bed. Twin bed in the zone of Showcase will be set on behind of the door when we come to the shop. It’s for attracts customers who come to our shop and make an eye catching of them.

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Multipurpose box. Six multipurpose boxes will be in our shop. It use for put the products into it for make customers can see it easily in over all side.

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Table set. Table set compose of one modern chair and one modern table. We use table set for serve the comfortable for our customers when they need to sit for waiting their products.

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Fujiko CCTV. We use Fujiko CCTV for the security camera because we need to have secured from any thief. It’s all to the good save for our shop. And also prevent the damage that can be on us.

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Drinking water machine. We use it for serve the convenience to customer when they need some drinking.

Our shop need to have more space for comfortable to walk. And don’t have much more cabinet in the shop because we think it will not be easy for customers to walk to looking for the products. We provide catalogs for our customers to select products depend on their satisfaction. And there are many products in our shop and it has a moderate large size. We resolve this problem by use the multipurpose boxes placed to both side of room wall to reduce the area in other parts. And we will be allocated the area to be in order and also increase the space that is suitable to sales our products mostly. And many products of us will be stock in the second floor and the third floor.

65 Second Floor

Figure 4.9 Second Floor Second floor of our shop divided into three sections that are the section of the stock, office and the section of the repair products that customers bring it to repair caused by a little damage such a break of thread and etc. Stock room is the important room. Fun Wan Company will be separate 6 of stock cabinets. By divided into the type of products that are bedcovers, pillow covers, backrest pillow (Cushion), blankets, wall hanging and baby bedding and also identify in the front of the box about what is the type of each products. It effects to search and pick up to use easily and safety. And it’s comfortable for employees can find the products easily. Stock cabinets should to be in the position that easy to access and should not be very mysterious. And also in the front of the entrance of stock room should not be having something hamper it’s for bring the products in and out from the stock room easily.And in the second floor also is an office of Fun Wan Company that is zone of manager, accounting department and marketing department are in the second floor. Zone of manager is the set of desk for manager to work and manage about Fun Wan Company. The next is zone of marketing department. The person who works in the part of marketing will be look at all of works about marketing, sales, customers and also competition. The next is zone of accounting department. The cost of equipment or the tax or the benefits from selling will be concluded in this department.

66 We understand the importance of after sales service. So, we establish the part of after sales service provider which services the customers to repair products that caused by a little damage by without charge from our customers. The benefit that our customers will receive is fast service. And the other one part of cabinets is storage of the finished repair products. It’s easy to find the products when customers come to receive their products. If the damaged of product is very much, we will send it to repair in a head company and the customers will be receive reports of damaged of their products before. And Head Company must to receive confirmation from the customers before repair the products. This is for help to support and recommend the customers in the appropriate price. Equipments of second floor Electronic fan. We use 2 electronic fans for installation ventilate in the stock room for not too hot weather. Light bulbs. We use 4 light bulbs for have enough light. Stock room need to have enough light to emit thoroughly. For easy to storage and take the products. If stock room have a little light it may cause to damage to the person who come into the stock room. Because our stock room in the second floor have some sharp tools such as scissors or needles that we use to repair the products and etc. So, if we can’t see what is in the stock room because it does not have enough light, it could be dangerous to us. Stock cabinet. We have to use six stock cabinets for keep the products. We separate to be six boxes because we think it will be easy when we storage each type of products to each stock cabinet. When we come to find the products it easy for us. Table. In the zone of repair products on the second floor. There are one chair and one table. We have to use table for place the products and the equipment that use in the process of fixing it. Multi functional cabinet. This cabinet uses for keep the products that already repair finish. We will keep it in the cabinet and when the customers come to receive their products, it easy to find the products for them.

67 Small plastic drawer. We use it for put the equipments that need to use on the process of fixing products such as eraserScissors Cutter needles

Third Floor

Figure 4.10 Third Floor

In fact there are many types of stock room and each type has different advantage and obligation. Third floor of our shop is particular stock room. We have to divide this area of the stock room. The particular stock room of our shop is quite being large. This stock room is designed to work to the full. And also have the full of utility. First of all, all of products that we bring it to storage in the stock room will be at the third floor. And the next step will quietly move to storage in the stock room in the second floor for prepared to distribute to customers next.

Equipment of third floor - Light bulbs. We use 4 light bulbs for have enough light. Stock room need to have enough light to emit thoroughly. For easy to storage and take the products. If stock room have a little light it may cause to damage to the person who come into the stock room and will not be comfortable for find the products.

68 4.1.5Equipment

1. Cashier counter

• •

Price 3,550 Baht. Office desk size 120*60*75 cm. price 1,750 Baht.

Computer table size 80*60*70 cm. price 950 Baht.

Corner table size60*60*75 cm. price 1,050 Baht.

2. Work table

• Price 2,660 baht • Size150*80*75 cm

3. Manager table • Price 13,900 Baht

830*1600*760 mm.

69 4. Chair

• • •

price890 Baht Chair staff size63x63x96-107 cm

5. Chair • • Price 2,899 Baht Size67(width)*73(length)*115-127(high)

6. Twin bed (3.5 foot)

• •

Price3,900 Baht. Twin bed 3.5 feet

70 7. Multipurpose box

• • •

Price999 Baht. Multipurpose box Size 35x94x123 cm

8. Table set • Price 2,490 Baht.

9. Bin

Price 45 Baht.

71 10. Light bulb

• •

Price 55 Baht. Light bulb number 5

11. Air condition • • • • • • • • • • • • • • • • • • • • • Capacity : 5.2kW Input : 1,490W Current : 7.4A Exterior dimensions (H x W x D) [Indoor unit] : 318 x 1,098 x 248mm Exterior dimensions (H x W x D) [Outdoor unit] : 640 x 850 x 290mm Net weight [Indoor unit] : 15kg Net weight [Outdoor unit] : 47kg Refrigerant : R22 : 1.30kg Air flow [Indoor unit] : Cooling : 20m³/min Air flow [Outdoor unit] : Cooling : 38m³/min Compressor motor [Outdoor unit] : 1.3kW Refrigerant piping [Liquid line] :6.35 (1/4 in.)mm Refrigerant piping [Gas line] :15.88 (5/8 in.)mm Connecting wiring : 1.5mm² x 4cores (including earth cable) Connecting method : Terminal block (screw fixing type) Noise level [Indoor unit] : 45dB(A) Noise level [Outdoor unit] : 49dB(A) Price: 17,990 Bath. MitsubishiMS-56E18UV-T1 Power Source : 1Phase, 220V, 50Hz

72 12. Calculator

• •

Price 345 Baht. CitycalCalculator

13. Eletrical fan • • • Price739 baht Imarflex screen size 16 inch blade

14. Fax • • • Price 2,970 baht. Sharp Model: GQ-12 Time to send in 15 seconds * per plate. • • • • • • • in the Super Fine 7.7 lines / mm in the Fine / Halftone 3.85 lines / mm in the Standard. Page width of the original 216 mm maximum Page width of 210 mm recorded the highest Definition of landscape images: 8 points / mm Vertical: 15.4 lines / mm

73 • • • • • • • Page width of 210 mm maximum reading Paper size 216 mm x 30 m Enter the original document continuous sheet 5. Power 220 volt + 10%, 50/60 Hirsch matches. Maximum power consumption 115 watts. Machine size (width x length x H) 304 x 236 x 122 mm Weight approximately 2.6 kg.

15. Chandelier • • Price 8,700 baht. Measurements: 22 W x 27 T

16. Computer Set • • • • Price 13,890 baht. Code: KY781AA # AKL. Brand: HP-Compaq. Model: Compaq Presario CQ3072L (KY781AA # AKL). • Brief Details:.

• Intel Pentium Dual Core Processor E5400 (2.7GHz). • RAM 1GB DDR2 up to 4GB. • Hard Drive 320GB SATA at 7200rpm. • Intel GMA 3100 Graphics with 128MB.

74 • DVD + /-RW / + /-R Super multilayer. 17.Desk • • • • • Price1,400 Baht. MTF-18-24-30 Brand: TOKAI Size: 1220x450xhigh737 mm. Price1,400 Baht.

18. Multi functional cabinet

• • • • •

Price 5,500 Baht CB-78B-01-furniture Brand: TAIYO-Fe’ Size: 915x457x1980 mm. Price 5,500 Baht

19. Chair

• •

Price: 390 Baht Brand: Unicorn Furniture

75 20. Document cabinet

• • • • •

Price 1,500 Baht M-481- Furniture Brand: TUM Size: 800x400x850mm. Black color Price 1,500 Baht

21. Drawer • • • • Price 70 Baht. Model: CUL15 Size: W190 x D300 x H77 mm. Price 70 Baht.

22. Drinking water machine • • • • • • Price 3,190 baht. Size (wide x deep x high) 300 x 300 x 900 millilitre Materail : Stainless Compresso 70 Watt (1/8 HP) Temperature 5-10 Degree Celsius

76 23. Plug

Price 135 baht.

24. Vacuum cleaner

• • • • • • •

Price 1,790 baht. 1,600 Watt Power 440 Watt Capacity 3 Liters Warranty 1 year. Size 20 x 13 x 12 cm. Weigh 4 Kg.

25. Fujiko CCTV

• • • •

Price 15,700 baht. FK-8880 FK-NEW204YO FK-600

26. Multipurpose Dry Chemical Fire Extinguisher

77

Price 4,000 baht

Multipurpose Dry Chemical Fire Extinguisher in red bucket. This fire extinguisher is dry chemical. When you use it push chemical to fire and fire will extinguisher a fire. It is easy to use (guarantee by TISI). It is speedily extinguishes fires of all types, (wood, paper-textile, rubber, oil gas and electric)

27. Rubber stamp of company

Price 140 baht per piece (include with freight cost is 30 baht)

The rubber stamp of company is very important for company limited registration. Our company uses the rubber stamp when we are sending the registration document. The company can submit the document at Provincial Department of Business Development in Chiangrai. It located at commercial building Autrakit rd. Wiang sub-district, Mueng, Chiangrai 57000. The rubber stamp of company makes order from Pt Studio Graphic Design. It is an online shop and located at BangSue, Bangkok 10800. Telephone number is 089- 5893579. Website of this shop is http://ptstudio.tarad.com. Size of rubber stamp is 3x3 cm.

78 Stationary 1. Pen

Price 150 baht.

2. Pencil

Price 75 baht.

3. Eraser

Price 15 baht

79 4. Ruler

Price 7 baht.

5. Liquid paper

Price 50 baht.

6. Scotch tape

Price 99 baht. (Per pack).

7. Stapler

Price 75 baht.

80 8. Scissors

Price 55 baht.

9. Cutter

Price 30 baht.

10. Document file

Price 40 baht.

81 11. Cash bill

Price 135 baht.

12. A4 paper

Price 430 baht.

13. Highlighter

Price 15 baht.

14. Stamp pad ink

• • •

Price 9 baht Size 28 CC Two Colors red and blue

82 15. Stamp pad
• • •

Price 17 baht Size 7.9x12.6 cm Two colors red and blue

16. Punch machine • Price 269 baht.

17. Blade

Price 110 baht (per box)

18.Staple

Price 130 baht (per dozen)

83 19. Bin

Price 45 baht.

4.1.6 Logistics Management Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers. Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer and legal requirements. Nowadays, our world is the economic world of competition. So, the logistics activities is the strategic that very important for distribute our product. For Fan Wan company use the logistics which is inland transportation for distribute our product. Our company will use the transportation every month because our company will order handmade bedding from headquarter in Nakornsawan province for stock the product. By use

NTC

84 Overnight Express Co., Ltd.

Figure 4.11 Logistics Management NTC Overnight Express established in 1995 October 10th with the inspiration of company’s director who used to work for Railway department which is responsible as a delivery. During working for railway department our director also have an idea about changing the service system to satisfy our customer. After resignation from Railway

department the director bring his philosophy “Get a package within 24 hrs” to impress the customer with our service and responsible for customer’s property and merchandise these will be our first priority as you can see our standard “Comfortable Accessible Reliable Guarantee” Nowadays NTC deliver the merchandise to 4 divisions of Thailand Northern, Central, North-East, and east of Thailand including 150 districts 36 provinces with more 20 branches to provide the merchandise to its destination. NTC Overnight Express got more 200 large and small container cars standby and ready to serve in the service area.

Transportation rates

In the North part of Thailand, freight charge that collect from the customer. Rate of the North part of Thailand 30x38x44 46x60x30 Province 1-10 kg. 11-20 kg. 1-10 kg. 11-20 kg. 1 Nakornsawan 35 55 55 85 2 Phitsanulok 35 55 55 85 3 Phichit 55 75 75 95 4 Phetchabun 55 75 75 95 5 Uttaradit 35 55 55 85 6 Sukhothai 67 82 82 115 7 Phrae 35 55 55 85 8 Nan 55 75 75 95 9 Phayao 55 75 75 95 10 ChiangRai 55 75 75 95

85 11 12 13 Lampang. ChiangMai Lamphun 35 35 55 55 55 75 55 55 75 85 85 95

Table 4.1Rate of the North part of Thailand

4.1.7Facility Management Facility management is an interdisciplinary field primarily devoted to the maintenance and care of commercial or institutional buildings, such as hotels, resorts, schools, office complexes, sports arenas or convention centers. Duties may include the care of air conditioning, electric power, plumbing and lighting systems; cleaning; decoration; grounds keeping and security. Some or all of these duties can be assisted by computer programs. These duties can be thought of as non-core or support services, because they are not the primary business (taken in the broadest sense of the word) of the owner organization. We can divided our facility management into 4 groups; electricity system, water system, telephone, and security camera. • Electricity system

Figure 4.12 Electricity systems We rent the building in the center of city. So they provided the electricity included the building when they build the building. Then we did not contract with the government for install electricity in the building that we rent.

86 • Water system

Figure 4.13 Water systems The owner of building also provided within the building. Then we did not contract with the government for install water from the main. • Telephone system Telephone the owner did not provided it. So we need to contract with telephone offices to come install the telephone for us. We contract with the TT&T Public Company Limited to install the telephone. Currently, they do not have promotion yet. Then the rate to install is 4,005 baths. In 4,005 baths, they provide one telephone machine, 500 meter of main line, and one point in house. • Security Camera systems We used security camera of Fujiko because they have warranty for lose products. They pay 300,000 baths for lose products. The security camera series is FK-NEW 204YO. They provided 2 camera, control machine, and hard disk 250 GB. Figure 4.14 Telephone system

Figure 4.15 Security Camera systems

4.2 Cost of Investment
4.2.1 Pre- operating cost

87 • Establishment of Company Limited

To establish the company limited, shall process according to the following: 1. Must have at least 3 persons signing together in order to prepare Memorandum and then register. Upon receiving the amount of shares, the director must register as the company within 3 months from the date of company’s meeting to establish the company.

The promoters must have the following qualifications: - Be ordinary person, not juristic person - Be 12 years old or more - Must reserve to buy at least 1 share Information used to register the Memorandum - Company’s name (the same as the name reserved) - Location of head office (located at which province) - Objective of the company - Registered capital must be divided into each share with the same value (share’s value must be at least 5 Baht) - Name, address, age, occupation and number of shares that persons who start up the company reserve to buy the shares) - Name, address, age of 2 witnesses

2. When the Memorandum has been registered, shall perform the following: - Every promoter manages to reserve and buy all the shares - When all the shares are reserved, the promoters must with out delay hold a general meeting of subscribers which shall be called the statutory meeting.

3. Meeting agenda. - The adoption of the regulations of the company, if any. - The ratification of any contracts entered into and any expenses incurred by the promoters in promoting the company. - The fixing of the amount, if any, to be paid to the promoters. - The fixing of the number of preference shares, if any, to be issued, and the nature and extent of the preferential rights accruing to them.

88 - The fixing of the number of ordinary shares or preference shares to be allotted as fully or partly paid-up otherwise than in money, if any, and the amount up to whice they shall be considered as paid-up. - The description of the services or property in return for which such ordinary shares or preference shares shall be allotted as paid-up shall be expressly laid down before the meeting - The appointment of the first directors and auditors and the fixing of their respective powers. - No resolutions of the statutory meeting are valid unless passed by a majority including at least one half of the total number of subscribers entitled to vote, and representing at least one half of the total number of shares to such subscribers.

4. The promoters shall over the business to the directors.

5. The directors shall the reopen because the promoters and subscribers to pay forth with upon each share payable in money such amount, not less than twenty-five percent of the share's value.

6. When the collection of share’s price is complete, the authorized director shall prepare the request for the registration of company’s establishment and submit to the registrar.

Regarding the submission for registration, the authorized director shall sign the name on the request and must submit to register within 3 months from the date of company statutory meeting. If not registered within the specified period, the company statutory meeting shall be void and if would like to register to establish the company, shall arrange the meeting for persons who reserve to buy the shares again.

Regarding the company establishment, if can perform every step as follows within the same day that the promoters prepare the Memorandum, and the director can request to register the Memorandum and register the company within the same day. Shall have the persons reserve to buy all the shares that the company can be registered. Arrange the meeting to establish the company to consider various affairs according to the Civil and Commercial Code, section 1108, and all the persons who start up the company and all the persons who

89 reserve to buy the shares shall attend the meeting, and all of them shall agree in the affairs in the meeting. Persons who start up the company assign all the affairs to the director. The director call the person who reserves to buy the shares to pay the shares according to the Civil and Commercial Code, section 1110, section 2 and such share’s price has already been paid.

Fee Rate for Registering Company Limited Registration Company Limited 1. Registering the memorandum of association 1.1 Registered capital of no more than 1,000,000 Baht 1.2 Every 100,000 Baht of the increase of registered capital (fraction of 100,000 Baht shall be counted as 100,000 Baht) 1.3 Registered capital of more than 50,000,000 Baht 2. Register for company limited’s establishment 2.1 Registered capital of no more than 1,000,000 Baht 2.2 Every 100,000 Baht of the increase of registered capital (fraction of 100,000 Baht shall be counted as 100,000 Baht) 2.3 Registered capital of more than 50,000,000 Baht 3. Registering the company’s merger 4. Registering the medication 4.1 Registering the extraordinary resolution (capital increase / capital decrease / company’s merger) 4.2 Registering the capital increase (calculate according to every 100,000 Baht of the increase) (Increase for more than 50,000,000 Baht) 4.3 Registering the capital decrease Baht 500.50.50.25,000.5,000.500.500.250,000.5,000.250,000.400.-

500.250,000.400.-

90 4.4 Registering the modification of every clause of the memorandum of association 4.5 Registering the modification of every clause of the regulation 4.6 Registering for new directors 4.7 Registering for partners’ resignation (no limit) 4.8 Registering the modification of directors’ authority 4.9 Registering the change of location of head office and / or branches 4.10 Registering the modification of seal 4.11 Register other transactions that should be publicized 5. Registering the company’s liquidation 6. Registering the change of liquidators 7. Registering the modification of liquidator’s power and authority 8. Registering the modification of liquidation office 9. Registering the completeness of liquidation Table 4.2 Fee Rate for Registering Company Limited Description for investment Fun Wan Co., Ltd. is Located at 596/7 Tambon RobViang, Muang District, Chiang Rai Province 57000. Shareholder as following: 1. Mr.Phithakchai Somjai, 22 years old, Thai Nationality Address: 119/6 Srinumsuem Rd. Tumbon Uthaimai, Muang District, per person

400.400.400.400.400.400.400.400.400.400.400.400.400.-

Uthaithani Province, 61000 Investment Capital: 200,000 Baht. 2. Ms.Thunyalak junthiboon, 22 years old, Thai Nationality Address: 471 Moo.1 Tumbon Sansai, Muang District, Chaiang Rai Province, 57000

91 Investment Capital: 400,000 Baht. 3. Ms.Pattamaporn Prommee, 22 years old, Thai Nationality Address: 3 Moo.9 Tumbon Bankrang, Sanpatong District, Chiang Mai Province, 50120 Investment Capital: 200,000 Baht. 4. Ms.Krongkan Temjai, 21 years old, Thai Nationality Address: 57 Moo.1 Tumbon Thapla, Thapla District, Uttaradit Province, 57150 Investment Capital: 200,000 Baht. 5. Ms.Chatmanee Kaewplang, 21 years old, Thai Nationality. Address: 80 Moo.2 Tumbon Tamprang, Kaenkhoi District, Saraburi Province, 18110 Investment Capital: 200,000 Baht.

Billboard of company

Figure 4.16 Billboard of company

92

The billboard of Fun Wan Company order from 4D Supply Co., Ltd. which located in 727/1-3 Uttarakit road, Vieng Sub district, Muang District, Chiang Rai 57000. Telephone number is 053-600855. Email address is sale@4d-supply.com The type of Fun Wan Company’s billboard is vinyl which has pink and green is main colors. Sizes of billboard of Fun Wan Company are wide 4 meters and height 8 meters. The billboard has English and Thai font and also include of picture of Products and logo in the billboard. The detail of font that uses in Billboard are • • • Sort of font is JasmineUPC Bold There are 4 sizes of fonts include of 90, 105, 145, and 210 pt. as follows: Sizes of 90 pt use for the footer of billboard that sentences are “Contact 053-499321, 087-8421886”

-

Sizes of 105 pt use the word of type of products.

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Sizes of 145 pt use for this sentence “Sell the handmade bedding”

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Size of 210 pt use for the header of billboardthat sentence is the name in English

93 and Thai font of company that is “Fun Wan” and

There are 2 pictures in the billboard as follows The picture of products of Fun Wan Company. Size is 450 x 450 pixels (w15.88xh15.88 cm.)

-

The picture of logo of Fun Wan Company. Size is 550x480 pixels (w19.4xh16.93 cm.)

From the price rate of 4D Supply Co., Ltd. tell that inkjet outdoor that have resolution is 72 pixels/inch by use the material is opaque vinyl by 3 PASS(the speed in the printed for 48 square meter/hours) the price is 120 baht/square meter. Size of billboard of Fun Wan Company is 32 square meter. So, the price of vinyl of Fun Wan Company is 120x32 equal to 3,840 baht.

• Security camera setting We used security camera of Fujiko because they have warranty for lose products. They pay 300,000 baths for lose products. The security camera series is FK-NEW 204YO. They provided 2 camera, control machine, and hard disk 250 GB. Cost of security camera setting depends on size of the company.

Figure 4.17 Security camera setting • Interior design

94

Figure 4.18 Interior design Interior design, renovation, house plans, house construction, best Interior design in Thailand, house design, office renovation, hotel renovation, Architect design, Landscape design with completed house construction, our motto is to make everybody see the importance of interior design. The cost for the design is 2,000 baht/square meter (from the total area). But, for any total area which is lower than 100 square meters, the cost for the design will be 200,000 baht. The customer will receive a discount in the amount of 1,0001,500 baht/square meter, therefore, the cost for the design will be changed from 2,000 baht/square meter to 500-1,000 baht/square meter, in case of the customer agree to follow the conditions of interior construction contract. Cost of investment

4.3 Investment Cost
• Office equipment

95

Electrical equipment

96 • Stationery

4.4

Depreciation
A noncash expense reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time and must be replaced once the end of their useful life is reached. There are several accounting methods that are used in order to write off an asset's depreciation cost over the period of its useful life. Because it is a non-cash expense, depreciation lowers the company's reported earnings while increasing free cash flow. Depreciation is, simply put, the expense generated by the use of an asset. - Office equipment 8 years - Computer 3 years - Electrical equipment 5 years

97

98

99

5. Management Analysis
5.1 Organization Management Fun Wan Company managed by registers Fun Wan Company to be a company limited. Follow the new law tells that Company limited will be arise as there are partnership and shareholder from 5 people, company limited will be divided the capital into share and each share will have an equal value, value of each shares shall not be less than 5 baht, shareholders will be have a limited responsibility of the company's debt by not exceeding the amount value of each shares that each shareholder held and must be registered as Civil and Commercial Code and also be corporate. (Department of business development, 2009) Fun Wan Company has to register to be Company limited at Office of Commercial Affairs Chiang Rai in the register partnership firm department. Name of partnership who invest in Fun Wan Company as follows: 1. Miss.Chatmanee 2. Miss.Krongkan 3. Miss.Pattamaporn 4. Mr.Phithakchai 5. Miss.Thunyalak Kaewplang Temjai Prommee Somjai Junthiboon

100 5.1.1 Organization Chart People in the organization There are 5 positions in Fun Wan Company are 1 manager, 1 accounting department, 1 sales & marketing department and 2 employees.

MANAGER

Accounting Department

Sales & Marketing Department
Figure 4.19People in the organization

Employees

To description the characters and duties of employee in each department of Fun Wan Company as follows:
1. Manager(1 position)

Manager is more important for organizations or entities so much. Manager will be responsible for success things and failure things of the organization. Manager who has more intelligence, good management, good human relation, good vision and good in strategy would to have advantages more than the manager who has less ability. Self development of manager is more important that required. Especially to learn about the role of them for working be fully operational capacity. This will be affecting the success of the organization because of the survival of the organization is the basic functions of manager. The primary task of a leader is to ensure the survival of the organization.

101 Character Male/Female 24 years old up Bachelor degree up Have work experience more than 2 years will be consider in specify Good skill in Microsoft Office like a Microsoft Word, Microsoft Excel and Microsoft PowerPoint Good skill in the organization management and good relationship with other people

Duty of manager Directly responsible to provide the internal control to beeffective and levels of productivity are always impressive. Manager of the Fun Wan Company must be people who have knowledge of marketing, looking the importance of marketing and see marketing as an investment cost. Do not see that the cost of marketing as a cost wastage. Manager of Fun Wan Company must be a good example foremployees and philosophize that "Customer is God." And they should to take the closer to customers more than meetings with employees in the company. Manager must not to evaluate the work of employees in just sales or profit, but should to assess in the ability that they can retain the existing customersand to satisfy customers until enable customer’s loyalty to use our products. Assessment of internal control of each department. Manager is a person who planned long-term decisions about the overall direction of Fun Wan Company, set the objectives, policies and strategies planning of company. Recommended the management in all things that have already defined. Maintain the viability of the company. Manager is a person who decisions the main important thing in the finalsuch as the personnel budget, human resource and business plan. 2. Accounting Department Accounting and Finance Department have a responsible for revenue and expenses of all internal value of Fun Wan Company such as the general work, documentation, fees, media

102 advertising, materials in the company and other expenses. And also they doing other works that have assigned for make the job well done. And the accounting department will be managing the finance of the company to make a financial liquidity of company. Managing the budget for make a finance spending complies with regulations. Character Male/Female 23 years old up Bachelor degree up Have an experience in accounting will be consider in specify Have a good skill to use program computer

Duty of accounting department Responsible for overseeing the operation of the accounting follow the regulation of the account of Fun Wan Company. Review and analysis of financial statement. Check the accuracy of cash flow and the daily reports. Collect the items that will be prepared for making an income statements and expenses. Offer financial budget to the manager informed. Acts of funds disbursement of Fun Wan Company. To storage the certificate documentation of Fun Wan Company.

3. Sales and Marketing Department "Marketing process" consists of 4 steps are the analysis the opportunity marketing, define strategies marketing, planning and organization, implementation and controlling. "Market-oriented planning by focused target market" is a management process to develop and the right consistencies between the organizational objectives, organizational skills, and resources of the organization.

103 "Market-oriented planning" may occur four things are the highest level characteristics (Corporate Strategy), class level (Division Strategy), business unit level (Business Unit Strategy) and the product level (Product Strategy). Character Female 23 years old up Bachelor degree in marketing or similar degree up Have a good skill in computer and Microsoft office

Duty of sales and marketing department To define common strategies and policies of Fun Wan Company to achieve its objective in all aspects of overall quality (Total Quality Excellence.) Everyone must work together to create and deliver quality marketing with the product quality to customers. Each marketing activities want to be taken with standards. (Such as market research, training, advertising sales. Customer service, etc.) Marketing need to track and create a feel good relationship with customers. An impressive customer loyalty.

4. Employee To be a good employee does not be a clever always. Have a proof to prove that clever people are not always good people. Today we need an honest people. If employee can take care themselves and increase their capacity to work well, then you will be having a professional employee. Character Male/Female 20 years old up Honest Have a good relationship Love to work in service and serve the customers need

104 Duty of employee Diligent, honest, have a self-development and love the company. All employees must be aware that whatever they work in any department. Their responsibilities are to help the company search new customers. And retaining the old customers. All employees of Fun Wan Company are ready and willing to help customer and take care of them. Employees must be trained to recognize rigorous appreciation of the importance of customers is very grateful of your customers. Employees must not be arrogant. The employees were doing to the customers, they must not think that they can help customers, but they must think that customers are helping them to work and get a salary. This idea will make employees have a good conscious of customer service.

5.2 Administration cost Utilities expense • Electricity expense

Electricity charge rate by Provincial Electricity Authority For Fan Wan company is a small business that uses electric energy average in 15 minutes and less than 30 KW.

Table 4.3 Electricity expense

105 Electricity charge expense / month method 22 meters voltage in rate = 2.4649 xunit 1,232.45 baht 228.17 baht 1,460.62 baht

Electricity approximate 500 units x 2.4649 = Add Service expense Total Electricity expense / month = =

Figure 4.20 Electricity’s bill

106 • Water expense rate

Water by

Provincial Waterworks Authority

107

Table 4.4 Water expense

Figure 4.21 Water’s bill

Telephone expense

Figure 4.22 Telephone expense - Telephoning in the province. You can call to any numbers that stay in the same province. You must press the provincial area code followed by numbers to call. The service charge is 3 baht per call in 1 time and unlimited in conversation. - Domestic long distance calls. The service charge in different province is different price. It depends on the distance of calls to numbers beginning at 3 baht to 18 baht per minute for domestic long distance divided into 2 types as follow: - Calls to numbers in the different province, but provincial use the same area code.

108 - Calls to numbers in the country and area code different.

109

110

111

112 5.2 Other expenses Fire insurance We have register with Viriyah Insurance, Thailand. They have fire insurance, thunderbolt, earth shake etc. They are general insurance advice at customer premises and claims procedures training courses to Agents etc. So we choose Viriyah Insurance, Thailand for grantee of our shop and building. We pay 7,600 Baht per year for insurance.

Figure 4.23 Fire insurance

Social Security insurance

Figure 4.24 Social Security insurance Background In 1954, the Social Security Act was enacted. However, the then Government considered that the economic condition of the country at that time was not favorable for enforcement of the Social Security Act 1954. As a result, the ROYAL DECREE was enacted in lieu of the said Act. In 1972, the Government by the Revolutionary Party decided that employees who sustained injuries or illness or who died as a result of working for the employer should be secured that they would receive compensation money. As a result, the Government by the Revolutionary Party then issued a Notification of the Revolutionary Party No 103 dated 16 March 1972 under which a compensation fund was established in the Department of Labor with the intention to protection security to employees who were ill or

113 injured in relation to performance of work. This Notification of the Revolutionary Party requires the employers to make contributions to the Compensation Fund to pay for compensation for employees in lieu of the employer; to pay for medical treatment expenses, to payment compensation for loss of monthly income; to pay the cost of physical rehabilitation of working capability; and to pay for funeral expense. However, the employer shall be required unilaterally to make contribution to the fund according to the risk of such category of business at the rate of 0.2 -2.0 percent. The Compensation Fund has started its management of the fund since 1 January 1974 under the supervision of the Department of Labor. This was the first step of actual social security. The Office of Social Security was transferred to be under the Ministry of Labor and Social Welfare on 23 September 1993. The document for registration of Employer In the case of registration of the juristic person (must use the annexes for every defined clause.) 1. A copy or a photocopy of the Certificate of Incorporation of the Juristic Person together with its corporate objects. 2. A copy or a photocopy of the Value Added Tax (VAT) Certificate (Form Phor.Por. 10); or a copy or a photocopy of the Specific Business Tax Certificate (Form Phor. Chor. 20); or a copy or a photocopy of the License to Operate Factory Business (Ror.Ngor. 4). 3. Sketch map of the location of the place of business. 4. The Power of Attorney (particularly the granting of authority to others to act on one’s behalf which requires the duty stamp to be affixed pursuant to the Revenue Code) How to register the insured Instructions: 1. The person who is signing to certify the personal information of the insured is the person who has the power to execute an act to bind upon the company or the authorized person. 2. A notice to register the insured with the Zone Office of Social Security must be given within 30 days with effect from the date on which the employee is engaged as an employee or otherwise it is an offense punishable by not more than 6 months imprisonment or a penalty fine of not more than 20,000 Baht or both.

114 3. When the fact given has been changed; a written notice to that effect must be given to the Zone Office of Social Security not later than the 15 today of the month following the month in which the change has taken place. If incorrect fact is given, it shall affect the rights and benefits to be entitled to under the law. 4. The filing of the Registration Form in which other persons who are not the employees are listed for registering as an insured shall be liable for imprisonment of not more than 6 months or a penalty fine of not more than 20,000 Baht or for both.

Social security calculation From social security law in Thailand assign every company that has employee more than one person have to pay for social security. Social security assign employee pay 5% of salary, employer pay 5% of employee’s salary and the government agency pay 5% of employee’s salary. Social security must pay in every month.

Billboard Tax The base tax and billboard tax rate are area and sort of billboard. If the billboard has

specified boundary, calculate the area of the billboard by use the highest and the widest of the billboard to be a boundary. Billboard of Fun Wan Company makes by English alphabet and Thai alphabet. And also include of pictures of product and logo in the billboard. To calculate the billboard tax we will calculate by use the area of billboard multiply by rate of billboard tax. As billboard of Fun Wan Company consist of English and Thai font. And also include of pictures of product and logo in the billboard. By the regulation of tax base and tax rate define that “the billboard that has a Thai alphabet combine with English alphabet and/or combine with picture or others symbol will calculate by 20 baht/500 square centimeter. So, we can calculate the area of billboard of Fun Wan Company as follows:

-

The size of billboard of Fun Wan Company equal wide 4 meters and height 8 meters equal to 32 square meters. 1 meter = 1 square meter, 1 meter = 10000 square centimeters

115 So, 4x8 meters =32 square meters, 32 square meters=320,000 square centimeters. Total billboard area equal to 320,000 square centimeters.

To calculate the billboard tax of Fun Wan Company as follows:

-

320,000 divide by 500, multiply by 20 equal to 12,800 baht. (320,000/500 x 20 = 12,800 baht)

And then we have to pay billboard tax at Rob Wieng Sub district Administration Organization where located at 336 Moo.5, Rob Wieng District, Muang, Chiang Rai 57100. The contact number is 665-374-2663.

116

117

118

119

Conclusion
In this chapter tell about technical feasibility study. It is include production and operation analysis, cost of investment, investment cost, operation cost, and management analysis. In each topic is taking about how to operate business. Products of Fun Wan are bedcover, blanket, backrest pillow (cushion), pillow cover, baby’s bedding, and wall hanging. The most products are punctilious, and then it is quite expensive. So our shop is decorating punctiliously. It is for adapt with our products. We have shield for protect our shop such as extinguish and security camera for recognize theft. For logistic, we used the logistics which is inland transportation for distribute our product. We transport products from headquarter in Nakornsawan province for stock the product. By use NTC Overnight Express Co., Ltd. The facility management, we still used basic factor such as electricity, water system, telephone system, and security camera. Cost of investment, we have to invest in pre-operating cost. We are register 1million baths for our company. Our shop is located in 596/7 Tambon RobViang, Muang District, Chiang Rai Province 57000. It is close to Thai Air Ways office and Night Brazes Chiang Rai Province. We warrantee our officer by pay for social security. We pay it every month for officer. In this chapter we are telling about requirement. The position is manager, accountant, sale and marketing, and Employee. All of this is our technical feasibility study.

120

CHAPTER 5 Financial Analysis

121

Income Statement
Fun Wan Company Limited Income Statement Monthly Based for Year 2010
First Year Revenue Gross sales Net sales Cost of Goods Sold Beginning inventory Goods purchased Total Goods Available For Sale Ending inventory Cost of Goods Sold Gross Profit (Loss) Expenses Pre-operating cost Marketing Expense Selling and administrative Expense Other Expense Total expenses EBITDA Depreciation Income before interest and tax Interest expense (15%) Income Before Taxes Income tax expense (30%) Net Income Retained earnings beginning of the months Retained earnings (104,004) 366,911 18,000 75,819 3,481 464,211 (108,587) 2,490 (111,077) 37,500 (148,577) (44,573) (104,004) 0 1,000 75,269 3,481 79,751 372,862 2,490 370,371 36,669 333,703 100,111 233,592 (104,004) 129,588 0 1,000 74,615 3,481 79,096 211,869 2,490 209,379 35,827 173,552 52,065 121,486 129,588 251,074 0 10,500 74,756 3,481 88,737 169,899 2,490 167,408 103,996 63,412 19,024 44,389 251,074 295,462 0 300 74,320 3,481 78,101 115,875 2,490 113,385 103,996 9,389 2,817 6,572 295,462 302,035 0 300 74,493 3,481 78,275 (16,447) 2,490 (18,938) 103,996 (122,934) (36,880) (86,054) 302,035 215,981 0 0 74,323 3,481 77,805 (35,941) 2,490 (38,432) 32,354 (70,786) (21,236) (49,550) 215,981 166,431 0 10,500 74,999 3,481 88,981 234,314 2,490 231,823 31,459 200,365 60,109 140,255 166,431 306,686 0 0 74,149 3,481 77,631 84,017 2,490 81,526 30,552 50,974 15,292 35,682 306,686 342,368 0 0 74,357 3,481 77,838 83,809 2,490 81,319 29,634 51,685 15,505 36,179 342,368 378,547 0 35,500 74,857 3,481 113,838 47,809 2,490 45,319 28,705 16,614 4,984 11,630 378,547 390,177 0 10,500 75,874 3,481 89,856 427,416 2,490 424,925 27,763 397,162 119,149 278,013 390,177 668,190 366,911 87,600 897,833 41,775 1,394,118 1,586,894 29,885 1,557,009 602,451 954,558 286,367 668,190 1,317,624 1,317,624 219,604 1,098,020 355,624 219,604 1,457,372 1,676,976 279,496 1,397,480 452,612 279,496 798,560 1,078,056 179,676 898,380 290,965 179,676 778,596 958,272 159,712 798,560 258,636 159,712 558,992 718,704 119,784 598,920 193,977 119,784 598,920 718,704 119,784 598,920 61,827 119,784 598,920 718,704 99,820 618,884 41,863 99,820 1,098,020 1,197,840 199,640 998,200 323,295 199,640 399,280 598,920 99,820 499,100 161,647 99,820 499,100 598,920 99,820 499,100 161,647 99,820 499,100 598,920 99,820 499,100 161,647 99,820 1,816,724 1,916,544 319,424 1,597,120 517,271 1,676,976 10,421,207 12,098,183 1,996,400 10,101,783 2,981,012 1,453,644 1,453,644 1,850,092 1,850,092 1,189,345 1,189,345 1,057,196 1,057,196 792,897 792,897 660,747 660,747 660,747 660,747 1,321,494 1,321,494 660,747 660,747 660,747 660,747 660,747 660,747 2,114,391 2,114,391 13,082,795 13,082,795 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

122 Fun Wan Company Limited Income Statement Monthly Based for Year 2011
Second Year Revenue Gross sales Net sales Cost of Goods Sold Beginning inventory Goods purchased Total Goods Available For Sale Ending inventory Cost of Goods Sold Gross Profit (Loss) Expenses Pre-operating cost Marketing Expense Selling and administrative Expense Other Expense Total expenses EBITDA Depreciation Income before interest and tax Interest expense (13%) Income Before Taxes Income tax expense (30%) Net Income Retained earnings beginning of the months Retained earnings 0 18,000 75,962 3,481 97,443 400,430 2,490 397,940 26,810 371,129 111,339 259,791 668,190 927,981 0 300 75,525 3,481 79,306 418,567 2,490 416,077 25,846 390,231 117,069 273,162 927,981 1,201,143 0 0 74,776 3,481 78,258 206,242 2,490 203,751 24,869 178,882 53,665 125,218 1,201,143 1,326,361 0 10,500 74,519 3,481 88,500 160,436 2,490 157,946 23,880 134,066 40,220 93,846 1,326,361 1,420,207 0 300 74,415 3,481 78,196 435,011 2,490 432,521 22,878 409,643 122,893 286,750 1,420,207 1,706,957 0 300 74,063 3,481 77,844 245,332 2,490 242,842 21,864 220,977 66,293 154,684 1,706,957 1,861,641 0 29,500 74,955 3,481 107,937 105,438 2,490 102,947 20,838 82,110 24,633 57,477 1,861,641 1,919,118 0 10,500 75,295 3,481 89,276 266,348 2,490 263,857 19,798 244,059 73,218 170,842 1,919,118 2,089,960 0 0 74,520 3,481 78,001 99,811 2,490 97,320 18,746 78,575 23,572 55,002 2,089,960 2,144,962 0 0 74,336 3,481 77,818 64,432 2,490 61,942 17,680 44,262 13,278 30,983 2,144,962 2,175,945 0 0 75,003 3,481 78,484 134,890 2,490 132,400 16,601 115,799 34,740 81,059 2,175,945 2,257,004 0 10,500 76,423 3,481 90,404 478,595 2,490 476,104 15,509 460,596 138,179 322,417 2,257,004 2,579,421 0 79,900 899,792 41,775 1,021,467 3,015,532 29,885 2,985,648 255,318 2,730,330 819,099 1,911,231 319,424 1,525,249 1,844,673 307,446 1,537,228 497,874 307,446 1,537,228 1,844,673 307,446 1,537,228 497,874 307,446 746,654 1,054,099 175,683 878,416 284,499 175,683 746,654 922,337 153,723 768,614 248,937 153,723 564,981 718,704 505,089 213,615 513,207 505,089 153,723 658,812 109,802 549,010 323,176 109,802 658,812 768,614 109,802 658,812 213,374 109,802 1,207,822 1,317,624 219,604 1,098,020 355,624 219,604 439,208 658,812 109,802 549,010 177,812 109,802 417,248 527,050 87,842 439,208 142,250 87,842 702,733 790,574 131,762 658,812 213,374 131,762 1,976,436 2,108,198 351,366 1,756,832 568,998 2,537,424 10,676,746 13,214,170 2,569,367 10,644,804 4,036,999 2,035,101 2,035,101 2,035,101 2,035,101 1,162,915 1,162,915 1,017,551 1,017,551 726,822 726,822 872,186 872,186 872,186 872,186 1,453,644 1,453,644 726,822 726,822 581,458 581,458 872,186 872,186 2,325,830 2,325,830 14,681,803 14,681,803 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

123 Fun Wan Company Limited Income Statement Monthly Based for Year 2012
Third Year Revenue Gross sales Net sales Cost of Goods Sold Beginning inventory Goods purchased Total Goods Available For Sale Ending inventory Cost of Goods Sold 351,366 1,948,486 2,299,853 383,309 1,916,544 383,309 1,772,803 2,156,112 359,352 1,796,760 359,352 934,315 1,293,667 215,611 1,078,056 215,611 646,834 862,445 143,741 718,704 143,741 574,963 718,704 119,784 598,920 119,784 455,179 574,963 95,827 479,136 95,827 622,877 718,704 119,784 598,920 119,784 1,173,883 1,293,667 215,611 1,078,056 215,611 646,834 862,445 143,741 718,704 143,741 574,963 718,704 119,784 598,920 119,784 886,402 1,006,185 167,698 838,488 167,698 1,700,933 1,868,630 311,438 1,557,192 2,435,608 11,938,471 14,374,079 2,395,680 11,978,399 2,537,269 2,537,269 2,378,690 2,378,690 1,427,214 1,427,214 951,476 951,476 792,897 792,897 634,317 634,317 792,897 792,897 1,427,214 1,427,214 951,476 951,476 792,897 792,897 1,110,055 1,110,055 2,061,531 2,061,531 15,857,933 15,857,933 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Gross Profit (Loss) Expenses Pre-operating cost Marketing Expense Selling and administrative Expense Other Expense Total expenses EBITDA Depreciation Income before interest and tax Interest expense (13%) Income Before Taxes Income tax expense (30%) Net Income Retained earnings beginning of the months Retained earnings

620,725

581,930

349,158

232,772

193,977

155,181

193,977

349,158

232,772

193,977

271,567

504,339

3,879,534

0 18,000 76,145 3,481 97,626 523,100 2,490 520,609 14,403 506,207 151,862 354,345 2,579,421 2,933,766

0 300 75,576 3,481 79,358 502,573 2,490 500,082 13,283 486,799 146,040 340,760 2,933,766 3,274,525

0 0 74,556 3,481 78,038 271,120 2,490 268,630 12,149 256,481 76,944 179,537 3,274,525 3,454,062

0 10,500 74,699 3,481 88,680 144,092 2,490 141,601 11,001 130,601 39,180 91,420 3,454,062 3,545,483

0 300 74,462 3,481 78,243 115,733 2,490 113,243 9,838 103,405 31,021 72,383 3,545,483 3,617,866

0 300 74,344 3,481 78,125 77,056 2,490 74,566 8,661 65,905 19,771 46,133 3,617,866 3,663,999

0 0 74,874 3,481 78,355 115,622 2,490 113,131 7,470 105,662 31,699 73,963 3,663,999 3,737,963

0 10,500 75,065 3,481 89,047 260,111 2,490 257,621 6,263 251,358 75,407 175,951 3,737,963 3,913,913

0 0 74,750 3,481 78,231 154,541 2,490 152,051 5,041 147,009 44,103 102,907 3,913,913 4,016,820

0 0 74,363 3,481 77,844 116,133 2,490 113,642 3,804 109,838 32,951 76,887 4,016,820 4,093,707

0 35,500 75,307 3,481 114,288 157,279 2,490 154,789 2,552 152,237 45,671 106,566 4,093,707 4,200,272

0 10,500 76,084 3,481 90,066 414,274 2,490 411,783 1,284 410,500 123,150 287,350 4,200,272 4,487,622

0 85,900 900,225 41,775 1,027,900 2,851,634 29,885 2,821,749 95,748 2,726,001 817,800 1,908,201

124 Fun Wan Company Limited Income Statement Monthly Based for Year 2013
Fourth Year Revenue Gross sales Net sales Cost of Goods Sold Beginning inventory Goods purchased Total Goods Available For Sale Ending inventory Cost of Goods Sold Gross Profit (Loss) Expenses Pre-operating cost Marketing Expense Selling and administrative Expense Other Expense Total expenses EBITDA Depreciation Income before interest and tax Interest expense (13%) Income Before Taxes Income tax expense (30%) Net Income Retained earnings beginning of the months Retained earnings 0 18,000 76,366 3,481 97,847 179,938 2,490 177,447 0 177,447 53,234 124,213 4,487,622 4,611,835 0 300 75,651 3,481 79,432 910,097 2,490 907,607 0 907,607 272,282 635,325 4,611,835 5,247,160 0 0 74,911 3,481 78,392 283,697 2,490 281,207 0 281,207 84,362 196,845 5,247,160 5,444,005 0 10,500 74,654 3,481 88,635 182,932 2,490 180,442 0 180,442 54,133 126,309 5,444,005 5,570,314 0 300 74,764 3,481 78,545 193,022 2,490 190,532 0 190,532 57,160 133,372 5,570,314 5,703,687 0 300 74,684 3,481 78,465 147,841 2,490 145,351 0 145,351 43,605 101,746 5,703,687 5,805,432 0 29,500 74,784 3,481 107,765 73,280 2,490 70,790 0 70,790 21,237 49,553 5,805,432 5,854,985 0 10,500 75,974 3,481 89,955 407,918 2,490 405,428 0 405,428 121,628 283,799 5,854,985 6,138,784 0 0 75,194 3,481 78,675 238,153 2,490 235,663 0 235,663 70,699 164,964 6,138,784 6,303,748 0 0 74,814 3,481 78,295 193,272 2,490 190,782 0 190,782 57,234 133,547 6,303,748 6,437,295 0 0 75,284 3,481 78,765 147,541 2,490 145,050 0 145,050 43,515 101,535 6,437,295 6,538,831 0 10,500 76,588 3,481 90,569 543,088 2,490 540,597 0 540,597 162,179 378,418 6,538,831 6,917,249 0 79,900 903,668 41,775 1,025,343 3,500,780 29,885 3,470,895 0 3,470,895 1,041,269 2,429,627 311,438 2,204,025 2,515,464 18,111 2,497,353 277,785 18,111 1,760,825 1,778,935 363,345 1,415,590 989,529 363,345 978,236 1,341,581 223,597 1,117,984 362,090 223,597 782,589 1,006,185 167,698 838,488 271,567 167,698 838,488 1,006,185 167,698 838,488 271,567 167,698 670,790 838,488 139,748 698,740 226,306 139,748 531,042 670,790 111,798 558,992 181,045 111,798 1,732,875 1,844,673 307,446 1,537,228 497,874 307,446 866,438 1,173,883 195,647 978,236 316,829 195,647 810,538 1,006,185 167,698 838,488 271,567 167,698 670,790 838,488 139,748 698,740 226,306 139,748 2,208,018 2,347,766 391,294 1,956,472 633,657 2,313,970 14,054,655 16,368,625 2,393,826 13,974,799 4,526,123 2,775,138 2,775,138 2,405,120 2,405,120 1,480,074 1,480,074 1,110,055 1,110,055 1,110,055 1,110,055 925,046 925,046 740,037 740,037 2,035,101 2,035,101 1,295,065 1,295,065 1,110,055 1,110,055 925,046 925,046 2,590,129 2,590,129 18,500,922 18,500,922 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

125 Fun Wan Company Limited Income Statement Monthly Based for Year 2014
Fifth Year Revenue Gross sales Net sales Cost of Goods Sold Beginning inventory Goods purchased Total Goods Available For Sale Ending inventory Cost of Goods Sold Gross Profit (Loss) Expenses Pre-operating cost Marketing Expense Selling and administrative Expense Other Expense Total expenses EBITDA Depreciation Income before interest and tax Interest expense (13%) Income Before Taxes Income tax expense (30%) Net Income Retained earnings beginning of the months Retained earnings 0 18,000 76,841 3,481 98,322 729,311 2,490 726,821 0 726,821 218,046 508,775 6,917,249 7,426,024 0 300 76,152 3,481 79,933 644,247 2,490 641,756 0 641,756 192,527 449,229 7,426,024 7,875,253 0 0 74,891 3,481 78,372 283,718 2,490 281,228 0 281,228 84,368 196,859 7,875,253 8,072,112 0 10,500 75,167 3,481 89,148 221,215 2,490 218,724 0 218,724 65,617 153,107 8,072,112 8,225,219 0 300 74,746 3,481 78,527 602,987 2,490 600,496 0 600,496 180,149 420,347 8,225,219 8,645,567 0 300 74,680 3,481 78,461 180,174 2,490 177,684 0 177,684 53,305 124,379 8,645,567 8,769,946 0 29,500 75,286 3,481 108,267 202,096 2,490 199,605 0 199,605 59,882 139,724 8,769,946 8,909,669 0 10,500 75,719 3,481 89,700 375,844 2,490 373,353 0 373,353 112,006 261,347 8,909,669 9,171,016 0 0 75,149 3,481 78,630 231,732 2,490 229,242 0 229,242 68,773 160,469 9,171,016 9,331,486 0 0 74,991 3,481 78,472 128,437 2,490 125,946 0 125,946 37,784 88,162 9,331,486 9,419,648 0 35,500 75,271 3,481 114,252 196,111 2,490 193,620 0 193,620 58,086 135,534 9,419,648 9,555,182 0 10,500 77,164 3,481 91,145 736,489 2,490 733,999 0 733,999 220,200 513,799 9,555,182 10,068,981 0 115,400 906,056 41,775 1,063,231 4,532,360 29,885 4,502,475 0 4,502,475 1,350,743 3,151,733 391,294 2,675,176 3,066,470 511,078 2,555,392 827,634 511,078 2,172,083 2,683,161 447,194 2,235,968 724,180 447,194 894,387 1,341,581 223,597 1,117,984 362,090 223,597 926,330 1,149,926 191,654 958,272 310,363 191,654 766,618 958,272 159,712 798,560 681,514 159,712 798,560 958,272 159,712 798,560 258,636 159,712 990,214 1,149,926 191,654 958,272 310,363 191,654 1,533,235 1,724,889 287,482 1,437,408 465,544 287,482 862,445 1,149,926 191,654 958,272 310,363 191,654 574,963 766,618 127,770 638,848 206,908 127,770 1,022,157 1,149,926 191,654 958,272 310,363 191,654 2,874,816 3,066,470 511,078 2,555,392 827,634 3,074,456 16,090,982 19,165,438 3,194,240 15,971,198 5,595,590 3,383,026 3,383,026 2,960,147 2,960,147 1,480,074 1,480,074 1,268,635 1,268,635 1,480,074 1,480,074 1,057,196 1,057,196 1,268,635 1,268,635 1,902,952 1,902,952 1,268,635 1,268,635 845,756 845,756 1,268,635 1,268,635 3,383,026 3,383,026 21,566,789 21,566,789 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

126

Statement of cash Flow
Fun Wan Company Limited Statement of Cash Flow Monthly Based for Year 2010
First year Cash flows from operating activities Net income after tax Depreciation Decrease (Increase) in Inventory Increase (decrease) in Accrued Expenses Net cash from operating activities Cash flows from investing activities Decrease (Increase) in Fixed Assets Net cash used in investing activities Cash flows from financing activities Increase (decrease) in Borrowings Increase (decrease) in pricipal paid Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Jan (104,004) 2,490 (219,604) 218,046 (103,071) (158,647) (158,647) 3,000,000 (66,496) 2,933,504 2,671,786 Feb 233,592 2,490 (59,892) (25,519) 150,671 0 0 0 (67,327) (67,327) 83,344 Mar 121,486 2,490 99,820 (108,159) 115,638 0 0 0 (68,169) (68,169) 47,469 Apr 44,389 2,490 19,964 (18,751) 48,092 0 0 0 (69,021) (69,021) (20,929) May 6,572 2,490 39,928 114,532 163,522 0 0 0 (69,884) (69,884) 93,639 Jun (86,054) 2,490 0 (126,844) (210,407) 0 0 0 (70,757) (70,757) (281,164) Jul (49,550) 2,490 19,964 6,576 (20,520) 0 0 0 (71,642) (71,642) (92,161) Aug 140,255 2,490 (99,820) 52,124 95,050 0 0 0 (72,537) (72,537) 22,513 Sep 35,682 2,490 99,820 (43,233) 94,759 0 0 0 (73,444) (73,444) 21,315 Oct 36,179 2,490 0 (30,989) 7,681 0 0 0 (74,362) (74,362) (66,681) Nov 11,630 2,490 0 20,302 34,423 0 0 0 (75,291) (75,291) (40,869) Dec 278,013 2,490 (219,604) 162,113 223,013 0 0 0 (76,233) (76,233) 146,781 Total 668,190 29,885 (319,424) 220,200 598,851 (158,647) (158,647) 3,000,000 (855,162) 2,144,838 2,585,041 28,970,312 31,555,353

0 2,671,786 2,755,129 2,802,598 2,781,669 2,875,308 2,594,144 2,501,982 2,524,495 2,545,810 2,479,129 2,438,261 2,671,786 2,755,129 2,802,598 2,781,669 2,875,308 2,594,144 2,501,982 2,524,495 2,545,810 2,479,129 2,438,261 2,585,041

127 Fun Wan Company Limited Statement of Cash Flow Monthly Based for Year 2011
Second year Cash flows from operating activities Net income after tax Depreciation Decrease (Increase) in Inventory Increase (decrease) in Accrued Expenses Net cash from operating activities Cash flows from investing activities Decrease (Increase) in Fixed Assets Net cash used in investing activities Cash flows from financing activities Increase (decrease) in Borrowings Increase (decrease) in pricipal paid Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning Cash and cash equivalents at end of year Jan 259,791 2,490 11,978 (108,861) 165,399 0 0 0 (77,186) (77,186) 88,213 Feb 273,162 2,490 0 5,731 281,383 0 0 0 (78,150) (78,150) 203,233 Mar 125,218 2,490 131,762 (63,405) 196,066 0 0 0 (79,127) (79,127) 116,939 Apr 93,846 2,490 21,960 (13,445) 104,852 0 0 0 (80,116) (80,116) 24,736 May 286,750 2,490 (351,366) 82,673 20,547 0 0 0 (81,118) (81,118) (60,571) Jun 154,684 2,490 395,287 (56,600) 495,862 0 0 0 (82,132) (82,132) 413,730 Jul 57,477 2,490 0 (41,660) 18,307 0 0 0 (83,158) (83,158) (64,851) Aug 170,842 2,490 (109,802) 48,585 112,115 0 0 0 (84,198) (84,198) 27,917 Sep 55,002 2,490 109,802 (49,645) 117,649 0 0 0 (85,250) (85,250) 32,399 Oct 30,983 2,490 21,960 (10,294) 45,140 0 0 0 (86,316) (86,316) (41,176) Nov 81,059 2,490 (43,921) 21,461 61,090 0 0 0 (87,395) (87,395) (26,305) Dec 322,417 2,490 (219,604) 103,439 208,742 0 0 0 (88,487) (88,487) 120,255 Total 1,911,231 29,885 (31,942) (82,021) 1,827,152 0 0 0 (992,634) (992,634) 834,518 37,107,837 37,942,356

2,585,041 2,673,254 2,876,487 2,993,426 3,018,162 2,957,591 3,371,321 3,306,470 3,334,387 3,366,786 3,325,610 3,299,305 2,673,254 2,876,487 2,993,426 3,018,162 2,957,591 3,371,321 3,306,470 3,334,387 3,366,786 3,325,610 3,299,305 3,419,560

128 Fun Wan Company Limited Statement of Cash Flow Monthly Based for Year 2012
Third year Cash flows from operating activities Net income after tax Depreciation Decrease (Increase) in Inventory Increase (decrease) in Accrued Expenses Net cash from operating activities Cash flows from investing activities Decrease (Increase) in per-operating Decrease (Increase) in Fixed Assets Net cash used in investing activities Cash flows from financing activities Increase (decrease) in Borrowings Increase (decrease) in pricipal paid Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning Cash and cash equivalents at end of year Jan 354,345 2,490 (31,942) 13,683 338,576 0 0 0 0 (89,593) (89,593) 248,982 Feb 340,760 2,490 23,957 (5,822) 361,385 0 0 0 0 (90,713) (90,713) 270,671 Mar 179,537 2,490 143,741 (69,095) 256,673 0 0 0 0 (91,847) (91,847) 164,825 Apr 91,420 2,490 71,870 (37,764) 128,017 0 0 0 0 (92,995) (92,995) 35,022 May 72,383 2,490 23,957 (8,159) 90,672 0 0 0 0 (94,158) (94,158) (3,486) Jun 46,133 2,490 23,957 (11,250) 61,330 0 0 0 0 (95,335) (95,335) (34,004) Jul 73,963 2,490 (23,957) 11,927 64,424 0 0 0 0 (96,526) (96,526) (32,103) Aug 175,951 2,490 (95,827) 43,709 126,323 0 0 0 0 (97,733) (97,733) 28,590 Sep 102,907 2,490 71,870 (31,305) 145,963 0 0 0 0 (98,955) (98,955) 47,008 Oct 76,887 2,490 23,957 (11,151) 92,182 0 0 0 0 (100,192) (100,192) (8,009) Nov 106,566 2,490 (47,914) 12,720 73,862 0 0 0 0 (101,444) (101,444) (27,582) Dec 287,350 2,490 (143,741) 77,479 223,578 0 0 0 0 (102,712) (102,712) 120,866 Total 1,908,201 29,885 39,928 (15,029) 1,962,985

(1,152,204) (1,152,204) 810,781 48,066,680 48,877,461

3,419,560 3,668,542 3,939,213 4,104,039 4,139,060 4,135,574 4,101,570 4,069,468 4,098,057 4,145,065 4,137,056 4,109,474 3,668,542 3,939,213 4,104,039 4,139,060 4,135,574 4,101,570 4,069,468 4,098,057 4,145,065 4,137,056 4,109,474 4,230,340

129 Fun Wan Company Limited Statement of Cash Flow Monthly Based for Year 2013
Fourth year Cash flows from operating activities Net income after tax Depreciation Decrease (Increase) in Inventory Increase (decrease) in Accrued Expenses Net cash from operating activities Cash flows from investing activities Decrease (Increase) in per-operating Decrease (Increase) in Fixed Assets Net cash used in investing activities Cash flows from financing activities Increase (decrease) in Borrowings Increase (decrease) in pricipal paid Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Jan 124,213 2,490 293,328 (69,916) 350,116 0 0 0 0 0 0 350,116 Feb 635,325 2,490 (345,234) 219,048 511,629 0 0 0 0 0 0 511,629 Mar 196,845 2,490 139,748 (187,920) 151,163 0 0 0 0 0 0 151,163 Apr 126,309 2,490 55,899 (30,229) 154,470 0 0 0 0 0 0 154,470 May 133,372 2,490 0 3,027 138,890 0 0 0 0 0 0 138,890 Jun 101,746 2,490 27,950 (13,554) 118,631 0 0 0 0 0 0 118,631 Jul 49,553 2,490 27,950 (22,368) 57,624 0 0 0 0 0 0 57,624 Aug 283,799 2,490 (195,647) 100,391 191,034 0 0 0 0 0 0 191,034 Sep 164,964 2,490 111,798 (50,929) 228,323 0 0 0 0 0 0 228,323 Oct 133,547 2,490 27,950 (13,464) 150,523 0 0 0 0 0 0 150,523 Nov 101,535 2,490 27,950 (13,719) 118,256 0 0 0 0 0 0 118,256 Dec 378,418 2,490 (251,546) 118,664 248,026 0 0 0 0 0 0 248,026 Total 2,429,627 29,885 (79,856) 39,029 2,418,685 0 0 0 0 0 0 2,418,685 66,168,415 68,587,100

4,230,340 4,580,456 5,092,085 5,243,248 5,397,718 5,536,607 5,655,239 5,712,863 5,903,897 6,132,220 6,282,743 6,400,999 4,580,456 5,092,085 5,243,248 5,397,718 5,536,607 5,655,239 5,712,863 5,903,897 6,132,220 6,282,743 6,400,999 6,649,025

130 Fun Wan Company Limited Statement of Cash Flow Monthly Based for Year 2014
Fifth year Cash flows from operating activities Net income after tax Depreciation Decrease (Increase) in Inventory Increase (decrease) in Accrued Expenses Net cash from operating activities Cash flows from investing activities Decrease (Increase) in per-operating Decrease (Increase) in Fixed Assets Net cash used in investing activities Cash flows from financing activities Increase (decrease) in Borrowings Increase (decrease) in pricipal paid Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Jan 508,775 2,490 (119,784) 55,867 447,348 0 0 0 0 0 0 447,348 Feb 449,229 2,490 63,885 (25,519) 490,085 0 0 0 0 0 0 490,085 Mar 196,859 2,490 223,597 (108,159) 314,788 0 0 0 0 0 0 314,788 Apr 153,107 2,490 31,942 (18,751) 168,789 0 0 0 0 0 0 168,789 May 420,347 2,490 31,942 114,532 569,312 0 0 0 0 0 0 569,312 Jun 124,379 2,490 0 (126,844) 25 0 0 0 0 0 0 25 Jul 139,724 2,490 (31,942) 6,576 116,848 0 0 0 0 0 0 116,848 Aug 261,347 2,490 (95,827) 52,124 220,135 0 0 0 0 0 0 220,135 Sep 160,469 2,490 95,827 (43,233) 215,553 0 0 0 0 0 0 215,553 Oct 88,162 2,490 63,885 (30,989) 123,549 0 0 0 0 0 0 123,549 Nov 135,534 2,490 (63,885) 20,302 94,442 0 0 0 0 0 0 94,442 Dec 513,799 2,490 (319,424) 162,113 358,979 0 0 0 0 0 0 358,979 Total 3,151,733 29,885 (119,784) 58,020 3,119,854 0 0 0 0 0 0 3,119,854

6,649,025 7,096,373 7,586,459 7,901,246 8,070,035 8,639,347 8,639,372 8,756,221 8,976,355 9,191,909 9,315,458 9,409,900 100,231,700 7,096,373 7,586,459 7,901,246 8,070,035 8,639,347 8,639,372 8,756,221 8,976,355 9,191,909 9,315,458 9,409,900 9,768,879 103,351,554

131

Statement of Balance Sheet
Fun Wan Company Limited Statement of Balance sheet Monthly Based for Year 2010
First year Assets Curent assets Cash Ending inventory Total current assets Non current assets Equipment Less: accmlated depreciation Total non current asset Total assets Liabilities Current liabilities Taxes payable Total current liabilities Non current liabilities Long term loan Total non current liabilities Total liabitlties Equity Retained earnings Total equity Total liabilities and equity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

2,671,786 219,604 2,891,390 158,647 2,490 156,157 3,047,546

2,755,129 279,496 3,034,625 158,647 4,981 153,666 3,188,291

2,802,598 179,676 2,982,274 158,647 7,471 151,176 3,133,450

2,781,669 159,712 2,941,381 158,647 9,962 148,685 3,090,067

2,875,308 119,784 2,995,092 158,647 12,452 146,195 3,141,287

2,594,144 119,784 2,713,928 158,647 14,942 143,705 2,857,632

2,501,982 99,820 2,601,802 158,647 17,433 141,214 2,743,017

2,524,495 199,640 2,724,135 158,647 19,923 138,724 2,862,859

2,545,810 99,820 2,645,630 158,647 22,413 136,234 2,781,864

2,479,129 99,820 2,578,949 158,647 24,904 133,743 2,712,693

2,438,261 99,820 2,538,081 158,647 27,394 131,253 2,669,333

2,585,041 319,424 2,904,465 158,647 29,885 128,762 3,033,228

31,555,353 1,996,400 33,551,753 1,903,764 194,250 1,709,514 35,261,267

218,046 218,046 2,933,504 2,933,504 3,151,550 104,004 104,004 3,047,546

192,527 192,527 2,866,177 2,866,177 3,058,704 129,588 129,588 3,188,291

84,368 84,368 2,798,008 2,798,008 2,882,376 251,074 251,074 3,133,450

65,617 65,617 2,728,987 2,728,987 2,794,604 295,462 295,462 3,090,067

180,149 180,149 2,659,104 2,659,104 2,839,252 302,035 302,035 3,141,287

53,305 53,305 2,588,346 2,588,346 2,641,651 215,981 215,981 2,857,632

59,882 59,882 2,516,705 2,516,705 2,576,586 166,431 166,431 2,743,017

112,006 112,006 2,444,167 2,444,167 2,556,173 306,686 306,686 2,862,859

68,773 68,773 2,370,724 2,370,724 2,439,496 342,368 342,368 2,781,864

37,784 37,784 2,296,362 2,296,362 2,334,146 378,547 378,547 2,712,693

58,086 58,086 2,221,070 2,221,070 2,279,156 390,177 390,177 2,669,333

220,200 220,200 2,144,838 2,144,838 2,365,037 668,190 668,190 3,033,228

1,350,743 1,350,743 30,567,991 30,567,991 31,918,734 3,342,533 3,342,533 35,261,267

132 Fun Wan Company Limited Statement of Balance sheet Monthly Based for Year 2011
Second year Assets Curent assets Cash Ending inventory Total current assets Non current assets Equipment Less: accmlated depreciation Total non current asset Total assets Liabilities Wages payable Taxes payable Total current liabilities Non current liabilities Long term debt Total non current liabilities Total liabitlties Equity Retained earnings Total equity Total liabilities and equity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2,673,254 307,446 2,980,700 158,647 32,375 126,272 3,106,972

2,876,487 307,446 3,183,933 158,647 34,865 123,782 3,307,714

2,993,426 175,683 3,169,109 158,647 37,356 121,291 3,290,400

3,018,162 153,723 3,171,884 158,647 39,846 118,801 3,290,685

2,957,591 505,089 3,462,680 158,647 42,337 116,310 3,578,990

3,371,321 109,802 3,481,123 158,647 44,827 113,820 3,594,943

3,306,470 109,802 3,416,272 158,647 47,317 111,330 3,527,601

3,334,387 219,604 3,553,991 158,647 49,808 108,839 3,662,830

3,366,786 109,802 3,476,588 158,647 52,298 106,349 3,582,937

3,325,610 87,842 3,413,451 158,647 54,788 103,859 3,517,310

3,299,305 131,762 3,431,067 158,647 57,279 101,368 3,532,435

3,419,560 351,366 3,770,926 158,647 59,769 98,878 3,869,804

37,942,356 2,569,367 40,511,722 1,903,764 552,865 1,350,899 41,862,621

111,339 111,339 2,067,652 2,067,652 2,178,991 927,981 927,981 3,106,972

117,069 117,069 1,989,502 1,989,502 2,106,571 1,201,143 1,201,143 3,307,714

53,665 53,665 1,910,375 1,910,375 1,964,039 1,326,361 1,326,361 3,290,400

40,220 40,220 1,830,258 1,830,258 1,870,478 1,420,207 1,420,207 3,290,685

122,893 122,893 1,749,140 1,749,140 1,872,033 1,706,957 1,706,957 3,578,990

66,293 66,293 1,667,009 1,667,009 1,733,302 1,861,641 1,861,641 3,594,943

24,633 24,633 1,583,850 1,583,850 1,608,483 1,919,118 1,919,118 3,527,601

73,218 73,218 1,499,653 1,499,653 1,572,870 2,089,960 2,089,960 3,662,830

23,572 23,572 1,414,402 1,414,402 1,437,975 2,144,962 2,144,962 3,582,937

13,278 13,278 1,328,086 1,328,086 1,341,365 2,175,945 2,175,945 3,517,310

34,740 34,740 1,240,691 1,240,691 1,275,431 2,257,004 2,257,004 3,532,435

138,179 138,179 1,152,204 1,152,204 1,290,383 2,579,421 2,579,421 3,869,804

819,099 819,099 19,432,822 19,432,822 20,251,921 21,610,700 21,610,700 41,862,621

133 Fun Wan Company Limited Statement of Balance sheet Monthly Based for Year 2012
Third year Assets Curent assets Cash Ending inventory Total current assets Non current assets Equipment Less: accmlated depreciation Total non current asset Total assets Liabilities Current liabilities Taxes payable Total current liabilities Non current liabilities Long term debt Total non current liabilities Total liabitlties Equity Retained earnings Total equity Total liabilities and equity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

3,668,542 383,309 4,051,851 158,647 62,260 96,387 4,148,238

3,939,213 359,352 4,298,565 158,647 64,750 93,897 4,392,462

4,104,039 215,611 4,319,650 158,647 67,240 91,407 4,411,057

4,139,060 143,741 4,282,801 158,647 69,731 88,916 4,371,718

4,135,574 119,784 4,255,358 158,647 72,221 86,426 4,341,784

4,101,570 95,827 4,197,397 158,647 74,712 83,936 4,281,333

4,069,468 119,784 4,189,252 158,647 77,202 81,445 4,270,697

4,098,057 215,611 4,313,669 158,647 79,692 78,955 4,392,623

4,145,065 143,741 4,288,806 158,647 82,183 76,464 4,365,271

4,137,056 119,784 4,256,840 158,647 84,673 73,974 4,330,814

4,109,474 167,698 4,277,172 158,647 87,163 71,484 4,348,656

4,230,340 311,438 4,541,779 158,647 89,654 68,993 4,610,772

48,877,461 2,395,680 51,273,141 1,903,764 911,480 992,284 52,265,425

151,862 151,862 1,062,611 1,062,611 1,214,473

146,040 146,040 971,897 971,897 1,117,937

76,944 76,944 880,050 880,050 956,994

39,180 39,180 787,055 787,055 826,235

31,021 31,021 692,897 692,897 723,918

19,771 19,771 597,562 597,562 617,333

31,699 31,699 501,036 501,036 532,734

75,407 75,407 403,302 403,302 478,710

44,103 44,103 304,348 304,348 348,451

32,951 32,951 204,156 204,156 237,108

45,671 45,671 102,712 102,712 148,383

123,150 123,150 0 0 123,150

817,800 817,800 6,507,625 6,507,625 7,325,425

2,933,766 2,933,766 4,148,238

3,274,525 3,274,525 4,392,462

3,454,062 3,454,062 4,411,057

3,545,483 3,545,483 4,371,718

3,617,866 3,617,866 4,341,784

3,663,999 3,663,999 4,281,333

3,737,963 3,737,963 4,270,697

3,913,913 3,913,913 4,392,623

4,016,820 4,016,820 4,365,271

4,093,707 4,093,707 4,330,814

4,200,272 4,200,272 4,348,656

4,487,622 4,487,622 4,610,772

44,939,999 44,939,999 52,265,425

134 Fun Wan Company Limited Statement of Balance sheet Monthly Based for Year 2013
Fourth year Assets Curent assets Cash Ending inventory Total current assets Non current assets Equipment Less: accmlated depreciation Total non current asset Total assets Liabilities Current liabilities Taxes payable Total current liabilities Non current liabilities Long term debt Total non current liabilities Total liabitlties Equity Retained earnings Total equity Total liabilities and equity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

4,580,456 18,111 4,598,567 158,647 92,144 66,503 4,665,069

5,092,085 363,345 5,455,429 158,647 94,635 64,012 5,519,442

5,243,248 223,597 5,466,845 158,647 97,125 61,522 5,528,367

5,397,718 167,698 5,565,415 158,647 99,615 59,032 5,624,447

5,536,607 167,698 5,704,305 158,647 102,106 56,541 5,760,846

5,655,239 139,748 5,794,987 158,647 104,596 54,051 5,849,038

5,712,863 111,798 5,824,661 158,647 107,086 51,561 5,876,222

5,903,897 307,446 6,211,343 158,647 109,577 49,070 6,260,413

6,132,220 195,647 6,327,867 158,647 112,067 46,580 6,374,447

6,282,743 167,698 6,450,441 158,647 114,558 44,089 6,494,530

6,400,999 139,748 6,540,747 158,647 117,048 41,599 6,582,346

6,649,025 391,294 7,040,319 158,647 119,538 39,109 7,079,428

68,587,100 2,393,826 70,980,926 1,903,764 1,270,096 633,669 71,614,594

53,234 53,234 0 0 53,234 4,611,835 4,611,835 4,665,069

272,282 272,282 0 0 272,282 5,247,160 5,247,160 5,519,442

84,362 84,362 0 0 84,362 5,444,005 5,444,005 5,528,367

54,133 54,133 0 0 54,133 5,570,314 5,570,314 5,624,447

57,160 57,160 0 0 57,160 5,703,687 5,703,687 5,760,846

43,605 43,605 0 0 43,605 5,805,432 5,805,432 5,849,038

21,237 21,237 0 0 21,237 5,854,985 5,854,985 5,876,222

121,628 121,628 0 0 121,628 6,138,784 6,138,784 6,260,413

70,699 70,699 0 0 70,699 6,303,748 6,303,748 6,374,447

57,234 57,234 0 0 57,234 6,437,295 6,437,295 6,494,530

43,515 43,515 0 0 43,515 6,538,831 6,538,831 6,582,346

162,179 162,179 0 0 162,179 6,917,249 6,917,249 7,079,428

1,041,269 1,041,269 0 0 1,041,269 70,573,326 70,573,326 71,614,594

135 Fun Wan Company Limited Statement of Balance sheet Monthly Based for Year 2014
Fifth year Assets Curent assets Cash Ending inventory Total current assets Non current assets Equipment Less: accmlated depreciation Total non current asset Total assets Liabilities Current liabilities Taxes payable Total current liabilities Non current liabilities Long term debt Total non current liabilities Total liabitlties Equity Retained earnings Total equity Total liabilities and equity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

7,096,373 511,078 7,607,452 158,647 122,029 36,618 7,644,070

7,586,459 447,194 8,033,652 158,647 124,519 34,128 8,067,780

7,901,246 223,597 8,124,843 158,647 127,010 31,637 8,156,481

8,070,035 191,654 8,261,690 158,647 129,500 29,147 8,290,837

8,639,347 159,712 8,799,059 158,647 131,990 26,657 8,825,716

8,639,372 159,712 8,799,084 158,647 134,481 24,166 8,823,251

8,756,221 191,654 8,947,875 158,647 136,971 21,676 8,969,551

8,976,355 287,482 9,263,837 158,647 139,461 19,186 9,283,022

9,191,909 191,654 9,383,563 158,647 141,952 16,695 9,400,258

9,315,458 127,770 9,443,227 158,647 144,442 14,205 9,457,432

9,409,900 191,654 9,601,554 158,647 146,933 11,714 9,613,269

9,768,879 511,078 10,279,957 158,647 149,423 9,224 10,289,181

103,351,554 3,194,240 106,545,793 1,903,764 1,628,711 275,053 106,820,847

218,046 218,046 0 0 218,046 7,426,024 7,426,024 7,644,070

192,527 192,527 0 0 192,527 7,875,253 7,875,253 8,067,780

84,368 84,368 0 0 84,368 8,072,112 8,072,112 8,156,481

65,617 65,617 0 0 65,617 8,225,219 8,225,219 8,290,837

180,149 180,149 0 0 180,149 8,645,567 8,645,567 8,825,716

53,305 53,305 0 0 53,305 8,769,946 8,769,946 8,823,251

59,882 59,882 0 0 59,882 8,909,669 8,909,669 8,969,551

112,006 112,006 0 0 112,006 9,171,016 9,171,016 9,283,022

68,773 68,773 0 0 68,773 9,331,486 9,331,486 9,400,258

37,784 37,784 0 0 37,784 9,419,648 9,419,648 9,457,432

58,086 58,086 0 0 58,086 9,555,182 9,555,182 9,613,269

220,200 220,200 0 0 220,200 10,068,981 10,068,981 10,289,181

1,350,743 1,350,743 0 0 1,350,743 105,470,104 105,470,104 106,820,847

136

CHAPTER 6 Risk Management

Business of handmade is quite less competing in market. Most of investor would like to invest in finished goods business. Fun Wan choose to invest in Chiang Rai province because Chiang Rai is famous in natural travel. Then tourist from Thailand and aboard will come to travel in Chiang Rai. Therefore, the investor would like to invest in this province. Investment has a risk. Then uncertain risk can be happen all time such as fire, flood, theft, or seasonal etc. Fun Wan can classify our risk into 5 groups Fire, New competitor, Theft, supplier, and obsolete design as follow as,

Risk from Fire For risk to be fire our shop. It can be happens of all time. Our can be opportunities to burn or electronic short in our shop. It has effect for our product and equipment. We don’t know when will be happens. Then risk to be fire can be. Risk form fire with our shop, we had sign contact with Viriyah Insurance. They have insurance for fire and hailstorm. We sign contact per year. We are installing a extinguisher.

fire

Risk from New competitor Risk of new competitor, we cannot stop who want to invest handmade business. Handmade business in Chiang Rai is sensitive because Chiang Rai is less handmade shop. Chiang Rai is a travel province. Then it has more opportunities to open handmade shop in Chiang Rai.

137 We cannot stop new competitor to invest business but we can protect them to get more market share. We will design new format to attract the customer but we still maintain our identity. We also use promotion to attract customer and we will go to exhibition for show our product in Chiang Rai and Bangkok to promote our shop.

Risk from Theft Our products are quite big size. It is difficult to steal products while we open. Theft will steal when we closed shop. At night is easy to steal. The theft would like the value equipment in shop. For the way to protect our shop, we are installing security camera. It can recognize the thefts who steal our products. It is the best for us to trail theft. The security camera company warrantee for loss product from theft.

Risk from Supplier We have only supplier. It is possible to have a risk from supplier such as lack of products and error produces. We don’t have other supplier. If our supplier cannot produce from order, it will effect with our shop. Therefore, the best way to manage risk is, we will expect sale when close to festival and order it before festival. We prevent the problem of lack of supplier. We will not rush the supplier to produces for prevent error products.

Risk from Obsolete Design Obsolete is the risk for handmade product. Our products can be possible. Nowadays fashion is changing dramatically. Then if we have more stock, it will be obsolete design. We are thinking to reduce risk from obsolete design. We need update new design to attract our customer. Before we will order products, we will ask supplier to give us to see design. It avoid to obsolete design.

138

CHAPTER 7 Summary
7.1 Project Objectives
The project objective can be divides in to 4 objects as follow: • • • • For study about feasibility of operational management. For support the handicraft groups have income. For maintains the Thai handicraft. For expand the products base around country.

7.2 Benefits of Project
• • • • • • • To everyone know Thai handicraft. To get more profit from handicraft. Everyone knows our company. Can be promotion Thailand. Our products will be famous. We can export our products to aboard. This project can help who would like to do handicraft.

7.3 Nature of Industry
The bedding industry got together and fought for sanitary bedding laws and eventually got them. It was not uncommon to have vermin-infested mattresses, even new off the production lines. Organic mattresses fillings of the time were subject to all sorts of attack by bugs, bacteria, and mildew. Cotton mattresses were popular even into the 1950's and 1960's. Cotton would mildew easily in hot humid climates before the advent of air conditioning. Cotton mattresses differentiate themselves in price points by using combinations of raw cotton and cotton felt. Cotton felt is cotton that is run through a garnet machine which combs the cotton into a fine and fully layer.

139 Medium price mattresses had a layer of cotton felt on the outside portions with raw cotton stuffed in the center. Higher priced mattresses were all cotton felt. Cotton mattresses tended to compact and become harder with age, and innerspring mattresses tend to become softer with age. According to bedding market survey in Thailand found that Thai consumers are buying their bedding from an average 2 times per year. Especially fashion decoration style hotel set has a maximum growth because the current lifestyle of many people changes from the past. They must take on more work when their rests to sleep less as well as they have a less time to buy bedding. Which these groups turned to focus on bedding to help their sleep easily in the limited time and helps relax tension from work. There are the reasons why we choose this product to run the project.

7.4 Analysis of bedding marketing
Thailand is famous in travel country. You can see from rate of travel will be growing 12% in 2553. It has affected to handmade market. The most of tourist prefer to travel in the north part of Thailand. Then the municipal of each province are promoted their province by exhibition and used their identity to attract tourist such as Chiang Rai has walking street. For the situation of bedding decorate in Thailand Market. The big brands of bedding in Thailand are TOTO, TULIP, and SATIN etc. They are compete by use only promotion. Potential market of bedding in the direction of Chiang Rai is better because the economy and real estate background will return to conditions that result in better overall market trends in bedding with growth of around 10-15 percent. Owners and brand name products from overseas in Chiang Rai and began working toward a plan to increase market distribution channels and product development, product design, to create a brand with a variety of new beddings to cover all customer groups. Because the behavior of the Chiang Rai people tends to buy novelty is always popular. Bedding's competitive market of Chiang Rai as follow by current competitive market of bedding a global strategy is to use price and promotion increased the price of bedding and softening 40-60 percent.

140

7.5 Analysis of bedding shop marketing
7.5.1 A and Ann Towel Shop A and Ann Towel Shop sell products are seminar our products. The located is close to King Meng Rai the great monument. It is. The most of product are Lanna handmade and some cloth handmade. It can be compete with our product. A and Ann Towel Shop is the direct competitor. 7.5.2 Big C super center store Big C super center store is a biggest store in Chiang Rai. Many people come to Big C for buying a lot of goods. And Big C also has many brand of bedding for serve the customers want. Many bedding products of SATIN, TOTO and TULIP brand name are already in the shelf of Big C for customers can choose and compare price with other brand name. Big C always have a promotion for attract people come to buy products. So Big C can earn a lot of money from customers. 7.5.2 Tesco Lotus They also sell bedding of SATIN, TOTO, and TULP. Tesco Lotus is located in Meachan district and Measai district. People are close to Tesco Lotus will come to buying goods. And Tesco Lotus also has many brand of bedding for serve the customers want. People can chose and compare with other brand in that shelf of Tesco Lotus. Tesco Lotus always have a promotion for attract people come to buy products. So Tesco Lotus can earn a lot of money form customers. 7.5.3 Pi Nang (Baan Duu, Chiang Rai) They sell bedding of SATIN and TOTO brand name. Many people in Chiang Rai like to look for bedding in Pi Nang for selecting bedding of TOTO and SATIN’s products. I Nang is the local bedding store in Chiang Rai. The majority people in Chiang Rai know this shop. 7.5.4 MaeSai Shop They sale the bedding cover and blanket from China. It has not brand name but price is cheaper than our products. Many people love to shop there. And in the winter that shop will have many design of blanket for attract customers and price will be increase too.

141

7.6 Marketing mix
Handmade bedding of Fun Wan has the best quality and has a sufficient quantity to serve the customers want and our shop always has service for our customers. Customers can design or choose pattern of the fabric that they want, it causes to make them satisfy of our services. Inside the shop has a point of sitting for customers who waiting to receive their handmade bedding products and have lounges for customers who come to purchase our products. Fun Wan set the moderate prices for general products for our shop can be competing in the market including setting up price to promote in some period of time. Fun Wan” shop is located near Night Bazaar Chiang Rai where has many people around here. It’s comfortable and easy for customers to come to our shop. Fun Wan has more strategy to promote our sales and marketing that can reach consumers as well such as 15% discount, 500 baht gift vouchers, exhibition etc.

7.7 Technical Feasibility Study
7.7.1 Location Fun Wan Co., Ltd. Located at 596/7 Tambon Robwiang, Muang District, Chiang Rai Province 57000. Reason for locate at that there because there is business area of ChaiangRai as well as there is center of the city.
The location is near the customer and easy to access for customer. It can

attractive for customer because this locate is on the main street

for travel.

7.7.2 Layout

142 7.7.3 Cost of investment Pre-operating costs Pre-operating costs are expenditures made in a period that precedes operation, to establish a business. These costs may be deferred in limited circumstances.

7.7.4 Investment costs Investment costs required beyond the development phase to introduce into operational use a new capability; to procure initial, additional, or replacement equipment for operational forces; or to provide for major modifications of an existing capability. They exclude research, development, test and evaluation, military personnel, and operation and maintenance appropriation costs.

143

144 7.7.5 Management Analysis Organization Management Fun Wan Company managed by registers Fun Wan Company to be a company limited. Follow the new law tells that Company limited will be arise as there are partnership and shareholder from 5 people There are 5 positions in Fun Wan Company are 1 manager, 1 accounting department, 1 sales & marketing department and 2 employees. Administration cost Rental fee Fun Wan has to pay 65,000 baht per month. Electricity expense The cost per unit of electricity is 2.978 baht. Fun Wan pay 2,500 baht in the first month and increase or decrease according to the sales.

Water expense The cost per unit of water supply is 0.9 baht. Fun Wan pay 80 baht in the first month and increase or decrease according to the sales.

Telephone expense - Telephoning in the province. You can call to any numbers that stay in the same province. You must press the provincial area code followed by numbers to call. The service charge is 3 baht per call in 1 time and unlimited in conversation. - Domestic long distance calls. The service charge in different province is different price. It depends on the distance of calls to numbers beginning at 3 baht to 18 baht per minute Fun Wan pay 1,200 baht in the first month and increase or decrease according to the sales.

145 Other expenses Fire insurance We have register with Viriyah Insurance, Thailand. We pay 7,600 Baht per year for insurance. Social Security insurance Social security assign employee pay 5% of salary, employer pay 5% of employee’s salary and the government agency pay 5% of employee’s salary. Social security must pay in every month.

Billboard Tax Fun Wan pay 12,800 baht per year for billboard tax.

7.8 Financial Analysis
Net incomes always increase in every year except in 2012 net income will a little bit decrease. From 2010 to 2011 our cash flow decrease dramatically but 2012 to 2014 cash flow change to increase and our balance sheet have always increase. Net present Value is equal 2,909,555 Internal Rate Of Return is equal 55% Investors can get money back with 26 months

7.9 Risk Management
Business of handmade is quite less competing in market. Most of investor would like to invest in finished goods business. Fun Wan choose to invest in Chiang Rai province because Chiang Rai is famous in natural travel. Then tourist from Thailand and aboard will come to travel in Chiang Rai. Therefore, the investor would like to invest in this province. Investment has a risk. Then uncertain risk can be happen all time such as fire, flood, theft, or seasonal etc. Fun Wan can classify our risk into 5 groups Fire, New competitor, Theft, supplier, and obsolete design

146

Appendix

147

Group Member

1. Krongkan 2. Chatmanee 3. Thunyalak 4. Pattamaporn 5. Phithakchai

Temjai Kaewplang Junthiboon Prommee Somjai

ID: 4931203004 ID: 4931203022 ID: 4931203038 ID: 4931203053 ID: 4931203191