A   

Preface

Preface This Project is a part of 1203302 Project Feasibility Study and Evaluation Course in the second semester of 2010. In this project is studying the feasibility of jewelry and gem business in Chiang Mai, which is include generally of jewelry and gem business, management in jewelry and gem business, competition analysis and marketing feasibility, the technical process in jewelry and gem business, the financial feasibility of jewelry and gem business, and risk of jewelry and gem business. This project makes everyone who interested to get knowledge and information about jewelry and gem business before make decision to investment, including preoperational process and operation process of jewelry and gem business, for the benefit to investment and profit of doing this jewelry and gem business. We expect that our project will provide benefit more and more interested person, more over, if they are any error in this project or whatever, our ground made an apology at this opportunity.

Group members Miss Nattida Miss Nartnarin Bua-ngam Suksao

Miss Nopphawan Klabdi Miss Piyaporn Miss Ulaikorn Nojit Singsook

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Table of Content Title Page

Preface.................................................................................................................................... A Content................................................................................................................................... B Chapter 1 Introduction............................................................................................................1 1.1 Background and Significance of the project..........................................................2 1.2 Project objectives...................................................................................................2 1.3 Benefits of project................................................................................................. 3 1.4 Operations methods...............................................................................................4 1.5 Time frame of study.............................................................................................. 5 Chapter 2 Industry Profile....................................................................................................... 6 2.1 Nature of Industry................................................................................................. 7 2.2. Situation of Industry........................................................................................... 10 2.3 Product and Service..............................................................................................20 2.3.1 Hand craft............................................................................................. 20 2.3.2 Fashion.................................................................................................. 24 2.3.3 Order......................................................................................................28 2.4 Vision................................................................................................................... 28 2.5 Mission..................................................................................................................28 2.6 Strategy................................................................................................................ 28 2.6.1 Corporate Level......................................................................................28 2.6.2 Business Strategy....................................................................................29 2.6.3 Functional Strategy................................................................................ 29 Chapter 3 Marketing Feasibility Study.................................................................................. 31 3.1 Marketing Analysis..............................................................................................32 3.1.1 General Environment of Chiang mai....................................................32 3.2. General Environment Analysis............................................................................37 3.2.1 Political Analysis..................................................................................37 3.2.2 Economic Analysis...............................................................................43

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3.3 Competition Analysis........................................................................................49 3.4 Customer Analysis.............................................................................................51 3.5 Competitive Analysis..........................................................................................53 3.6 STP Analysis.......................................................................................................54 3.6.1 Market Segmentation...........................................................................54 3.6.2 Target Analysis....................................................................................55 3.6.3 Position Analysis..................................................................................55 3.7 Marketing Mix Strategy Analysis.......................................................................56 3.7.1 Product strategy...................................................................................56 3.7.2 Price strategy........................................................................................58 3.7.3 Place strategy.......................................................................................62 3.7.4 Promotions strategy.............................................................................62 3.8 Sales Forecast/Profit Estimation........................................................................63 3.9 Marketing Expenses...........................................................................................71 3.10 Conclusion in market feasibility......................................................................73 Chapter 4 Technical Feasibility Study................................................................................75 4.1 Production and Operation Analysis...................................................................76 4.1.1 Product characteristics........................................................................76 4.1.2 Service Process...................................................................................81 4.1.3 Location............................................................................................. 82 4.1.4 Facility Layout................................................................................... 84 4.1.5 Machine/Tools/Equipment..................................................................86 4.1.6 Logistics Management........................................................................97 4.1.7 Machine/Tools/Equipment..................................................................100 4.2 Cost of Investment......................................................................................…..104 4.2.1 Pre- Operating Cost............................................................................104 4.3 Investment Cost................................................................................................ 108

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4.3.1 Equipments & Tools...........................................................................108 4.3.2 Depreciation.......................................................................................109 4.4 Management Analysis.......................................................................................115 4.4.1 Organization Management.................................................................115 4.4.2 Organization Chart............................................................................ 116 4.4.3 Administration Cost.......................................................................…120 4.5 Technical Feasibility Conclusion......................................................................121 Chapter 5 Financial Analysis...............................................................................................123 5.1 Income Statement............................................................................................. 126 5.2 Balance Sheet....................................................................................................131 5.3 Statement of Cash Flow................................................................................... 136 Chapter 6 Risk Management...............................................................................................142 6.1 Risk analysis.................................................................................................... 143 6.1.1 External Forces...................................................................................143 6.1.2 Internal Forces................................................................................... 148 6.2 Conclusion of Risk Management..................................................... ……….…156 Chapter 7 Summary..............................................................................................................157 7.1 Summary of project feasibility study................................................................ 158 Reference............................................................................................................................ 161 Appendix............................................................................................................................ 162
             

Chapter 1 Introduction

   

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Chapter 1 Introduction 1.1 Background and Significant of the Project The word jewelry is derived from the word jewel, which was Anglicized from the Old French "jouel" circa the 13th century. Further tracing leads back to the Latin word "jocale", meaning plaything. The first jewelry was worn by the Cro-Magnons, ancestors of Homo sapiens. Their jewelry included crude necklaces and bracelets made of bone, teeth and stone stitched to animal sinew. Jewelry was made for practical uses such as pinning of clothes together. It was used not only for decoration but was also considered as a status symbol. Jewelry had various functions to serve. Its main purpose, in ancient times, was to ward off evil. People have paid dowries with jewelry. It was also created to be used as currency for trading goods, evident from the use of slave beads. It also was a distinguishing mark between the ruler and the ruled. (www.fashion-era.com/jewellery.htm) Jewelry making is an old craft that has been in existence since ancient times. Many centuries men and women both liked to adorn themselves with jewelry items. Thailand in recent years has extended its range and scope of traditional handicraft products. Thai handcraft jewelry is saliently because Thailand is famous in handcraft and art. It is special identity and differentiation and the products which made by handcraft are attract foreigners. Thai handmade products are now being made to cater for western tastes and to a much higher western quality. Therefore Soul of Beauty jewelry offer the Thai handcraft jewelry which is salient, special identity and various designs to customers. Chiang Mai is center of North, Thailand and has distinguish culture, identity and traditional. We selected Chiang Mai, Thailand to launch the business because it is important of tourism industry in Thailand and has much tourist in every year. Moreover, Chiang Mai is traditions reflect the charm of the region namely diverse dialects, cuisine, handicrafts,
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festivals and architecture. Therefore Soul of Beauty company try to be combine Lanna art and jewelry together to design the quality of product and has identity, difficult to copy because our purchase of genuine handicraft products can really make a difference to some Thai artisans out in the countryside. Our company reminds in detail of product and neatly design and customer can preorder and design their own jewelry. So we are interested in study feasibility jewelry business in Chiang Mai, opportunity to access the market, risk and barrier and etc. 1.2 Project objective -To study feasibility of jewelry business - To study market activities. - To study trend and situation of jewelry market - To study finance feasibility - To study risk analysis and sales forecast of jewelry market. - To study behaviors of customer - To study new channel of distributions. - To study the way to success goal of our business.

1.3 Benefit of project - To gain more knowledge in jewelry market. - To know customer behavior and demand of jewelry - To know about business cycle of jewelry business - To know about customer demand and the way to satisfy them. - To get a structure that suitable for jewelry market in Chiang Mai. - To gain profit from business.

   

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1.4 Operating Methods ● Brainstorming to find project and topic ● Collect data and information searching ● Discuss and conclude the business ● To specify business structure and create prominent point for our business ● Discuss about background of business ● Create project objective, benefits and create project time frame. ● Industry profile discussion ● Create Product/Service, Situation mission, Vision and Strategy. ● Discuss about Market Feasibility. ● Create Market Analysis, Marketing Mix, Strategy and Sales Forecast. ● Discuss about Technical Feasibility Study and Financial Analysis. ● Create Production and Operations Analysis, Pre-Operating Cost, Investment Cost, Operating Cost and management analysis. ● Create Statement, cash flow and balance Sheet ● Create Advertising ● Review all part of project. ● Prepare final report draft

   

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1.5 Time frame of study

Operation Method 1 1. Brainstorming to find project and topic 2. Collect data and find information. 3.Discuss and conclusion about our business 4.To specify business structure and create prominent point for our business 5.Discuss about background of business 6. Create project objective, benefits and create project time frame. 7. Discuss industry profile. 8. Create Product/Service, Situation, Mission, Vision and Strategy. 9. Discuss about Marker Feasibility. 10. Create Market Analysis, Marketing Mix, Strategy and Sales Forecast. 11. Discuss about Technical Feasibility, Study and Financial Analysis. 12. Create Production and Operations Analysis, Pre-Operating Cost, Investment Cost, Operating Cost and management analysis. 13. Create Ad. 14. Review all part of project. 15 Prepare draft of final report.
 

November 2 3 4 1

December 2 3 4 1

January 2 3 4 1

February 2 3 4

Table 1.1 Time frames, since November 2010 - February 2011

   

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Chapter 2 Industry Profile

   

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Chapter 2 Industry Profile 2.1 Nature of industry The word "jewelry" is derived from the Latin word jocale, meaning "plaything," and the word jewel, which was anglicised during the 13th century from the Old French word "jouel." The word "jewelry" (spelled jewellery in European English) is used to describe any piece of precious material (gemstones, noble metals, etc.) used to adorn one's self. Jewelry making began with the ancestors of Homo sapiens. Over 40,000 years ago the Cro-Magnons (c. 45,000 BC—10,000 BC) began to migrate from the cradle of civilization in central Africa to the Middle East, the Indus Valley, and to the continent of Europe. As these early humans traveled the land they collected objects of curiosity, fashioning them into jewelry which would tell the story of their journey. The basic form has been used since the dawn of man, in conjunction with use of both clothing, and tools. The first jewelry was made from readily available natural materials including animal teeth, bone, various types of shells, carved stone and wood. It is believed that jewelry started out as a functional item used to fasten articles of clothing together, and was later adapted for use as an object for purely aesthetic ornamentation, or for use as a spiritual and religious symbol. Jewelry, like art, is a window into the soul of humanity, and a poignant reminder of that which separates humankind from the animal kingdom — a desire to capture the essence of beauty, to posses its secrets, and to unlock its mysteries. Jewelry was used as a symbol of wealth and status, as well as to protect against harm, ward of evil, and heal ailments. Jewelry was used by early man to adorn nearly every part of the human body, and has been made out of almost every natural material known to mankind. In jewelry circles today and in the recent past, there are considered only four truly precious stones: the diamond, the ruby, the emerald and the blue sapphire. Among the earliest

   

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known treasures of the pharaohs, emeralds, rubies and sapphires were seldom used, while turquoise, jasper, lapis lazuli, carnelian and rock crystal played a substantial role. Since color was all important, diamonds were quite unknown. The use of gemstones and precious metals during this time were not limited, but spread lavishly about wherever ornament was desired. Moreover, jewelry advanced from a simple ornamental or amulet stance to a more practical one. It became used as a symbol of rank, wealth and social standing. When taking on this role, they became an investment of marketable value. This economic aspect of easily liquidating these possessions became an essential part of the politics of Europe when Francis I instituted the crown jewels as legal entity. For his successors these jewels were often used during the religious wars to guarantee foreign loans. The three basic roles that jewelry has played, the ornament, the amulet and the symbol of wealth, have remained constant to the present time.

Diamonds Diamonds are perhaps the most sought after and most valued in all kinds of gemstone jewelry. A diamond is also the hardest known substance and represent of gemstone of Venus. Although diamonds are extremely expensive, these are not exactly rare. This is solely due to the fact that there are many numbers of diamonds being mined throughout the year. Of course, large diamonds, which are of a very high quality, are rare. In the ancient days, diamonds were known to be as a way of protection for the wearer.

   

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Diamonds also remain to be the focal point in most engagement rings. The wearers of diamond can be saved from ominous things and evil spirits such as witches, ghosts, black magic and even the effect of poison also decreases. Diamond gemstone increases the stamina and makes the marital life happy and permanent. Diamond gemstone also improves health, checks untimely death also. Diamond gemstone is advantageous in diseases like epilepsy, impotency, rheumatism, shortage of semen and other sexual diseases.(http://crystalcure.com/diamond.html) Ruby Ruby is a pink to blood-red colored gemstone its color varies from deep cochineal to pale rose red, in some cases with a tinge of purple; the most valued is a pigeon-blood red and also known as the Lord of the Gems. Be it the beauty or the uniqueness of this gemstone, it has found quite a few admirers till date. This gemstone is known to symbolize love and friendship. Some of the finest and most exotic of all rubies are found in Burma. (http://crystal-cure.com/ruby.html) Emerald This green gemstone is popular because of the intense green shade, which lends a unique kind of a beauty to all types of gemstone jewelry. The emerald is the sacred stone of the goddess Venus. It was thought to preserve love, Lucky for love, give your lover an emerald to stay faithful. In several cultures the emerald was the symbol for fertilizing rain. In the Christian faith it is the symbol of faith and hope. It is considered by many to be the stone of

   

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prophecy. For some the emerald acts as a tranquilizer for a troubled mind. The emerald is said to bring the wearer reason and wisdom. The strongest time for the powers of the emerald is said to be spring. One may think the emerald to be a really hard gemstone but if you own gemstone jewelry set with emeralds, and then does treat it with care as it may chip easily. Emeralds have been worn since ancient days to cure health related issues and also as a way to protect one from spells. (http://crystalcure.com/emerald.html) Opals Opals are available in a variety of options, such as the common opals, the precious opal etc. The name opal has been derived from the Latin word Opalus; this symbolizes a change in color. This is because, opals always sparkle differently in various angles and this dazzling beauty attracts many to own any beautiful jewelry that makes use of opals. Although initially, opals were associated with many stories that kept people away from these gemstones, they later became a symbol of fidelity and even assurance. Moreover, opal is said to be many things including the most powerful of healing stones, the stone of hope, the stone of great achievement and even the "stone of the Gods". It is said to be the stone of love, but only to faithful lovers. The opal will bring misfortune to an unfaithful lover. (http://crystal-cure.com/opal.html)

   

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Sapphire A sapphire means blue in Greek. The blue goes from dark blue almost black to pale blue. The finest blue sapphires are a strong blue. The star sapphire is very valued. The deep blue shaded gemstone is also found in other shades but the finest of all sapphires are known to be those with a shade of blue. Sapphire also remains to be the choice of many in England as an engagement stone. It is also believed that the Sapphires were deeply respected by ancient priests. The sapphire was called the "Stone of

Destiny". Sapphires contribute to mental clarity and perception. They can promote financial rewards. Moreover, sapphire is the symbol of heaven and joyful devotion to God. Sapphire is associated with Aquarius, Virgo, Libra and Capricorn. It is the birthstone of September and has been the birthstone of April. Sapphire is the symbol of Saturn (dark blue) and Venus (light blue). (http://crystal-

cure.com/sapphire.html) Aquamarine Aquamarine is a blue-green stone that comes from Colombia and Brazil. It has been called "Water of the Sea", because of its color. Aquamarine is quite popular as it is known to compliment all types of skins and complexions. Aquamarines can be seen in a beautiful shade of blue or even green. The name, Aquamarine is derived from the Latin word, which means seawater. Aquamarine is most powerful as a meditation stone, as it brings a great peace and serenity. Some people can meditate on an Aquamarine to receive the wisdom to see truth, but this is a very advanced meditation. It will protect against gossip. It is also said the aquamarine will pick up spirits. It is an excellent stone to use for

   

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meditating. The Romans used the aquamarine for diseases of the stomach, and believed it could cure liver and throat troubles. (http://crystal-cure.com/aquamarine.html) Turquoise Turquoise is an opaque, blue-to-green mineral that is a hydrous phosphate of copper and aluminum. It is rare and valuable in finer grades and has been prized as a gem and ornamental stone for thousands of years owing to its unique hue. Turquoise is one of the oldest protection amulets, and was also known as a symbol of wealth in many ancient cultures. Turquoise is a stone that has been prized for many years. The ancient Egyptians used turquoise in jewelry. The name means "Turkish stone" as it came to Europe by way of Turkey. Turquoise was mined more than 6,000 years ago in Sinai. The best turquoise comes from Iran, but not much is exported now. Much turquoise comes from Mexico and the United States today. This stone is a very personal and meaningful stone to one who wears it. Turquoise takes on the characteristics of the owner. Turquoise carries great wisdom of basic truth within it. It is one of the oldest stones known. This is a stone that a person must learn to attune to instead of the stone attuning to the person. It is important that the owner of a Turquoise give it the proper

   

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attention. If given a turquoise by a loving friend, that stone would protect the wearer from negative energy and bring good fortune. The turquoise is the symbol of friendship. It also brings peace to the home. (http://crystal-cure.com/turquoise.html) Topaz Topaz occurs in a range of different colors: deep golden yellow (Imperial Topaz), blue, light to medium brown (Champagne Topaz), pink, and white, or clear topaz. It can be found in Brazil, USA, Sri Lanka, Myanmar, former USSR, Australia, Tasmania, Pakistan, Mexico, Japan and Africa. Topaz is a soothing, empathetic stone that will direct energy to the place it is most needed. It heals and energizes. Topaz is a promoter of truth and forgiveness. Use it to find your own path. (http://crystal-cure.com/topaz.html) Garnet Garnets are a related group of minerals. Members of this group include: almandine (red to violet red); spessartite (yellow, rose, or orange to reddish-brown); pyrope (deep red); grossular (white, yellow, yellow-green, and brownish-red, orange or black); andradite (colorless, yellow-green, or brown to black). The most prized garnet is an emerald green variety called demantoid and is a member of the andradite group. Currently, the world's largest supply of garnets is the continent of Africa. In December 1996, a student in Central Australia discovered what is thought to be the largest single garnet ever found - measuring nearly one hundred feet across! Other sources of garnet include India, Soviet Union, Brazil and the United States. A garnet is known as the stone for a successful business. If your business is
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not as good as it should be, just put 3 or more garnets on your desk. It is believed that if a garnet is put under a pillow it will cure depression. Garnets can be used to make a person popular and have self-esteem when worn as jewelry. It helps protect one on trips. Garnets bring constancy to friendships. Garnets are also known for stimulating success in business. (http://crystal-cure.com/garnet.html)

Amethyst Crystalline quartz in shades of purple, lilac or mauve is called amethyst, a stone traditionally worn to guard against darkness and to instill a sober mind. The word amethyst comes from the Greek meaning "without drunkenness" and amethyst is believed to protect one from poison. It is used as a dream stone and to help insomnia. Put an amethyst under your pillow to bring about pleasant dreams, or rub it across your forehead to offer relief from a headache. The amethyst is known as the Bishop's Stone and is still worn by Catholic Bishops. The amethyst symbolizes piety, humility, sincerity and spiritual wisdom. It is thought the amethyst is the perfect stone to symbolize The Age of Aquarius. (http://crystalcure.com/amethyst.html)

   

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2.2 Situation of industry Nowadays, there are many jewelry businesses in Thailand. Those do for export and sale in the country. Jewelry has many price ranges depend on material, quality and design. Jewelry’s Thailand made from gems, color stones, pearl and zirconium so customer can choose as needed. Customers buy jewelry for wearing or colleting. Design of jewelry is important to attract customer’s want but depend on preference of each individual too. Design of jewelry for male is different female. Jewelry shop must be having many design of jewelry if other shops have more design that is attract customers to buying. In this business trusting is important because most customers are concern about quality. They thing when they pay too much, they want to get high value. Many companies try hardly to create their own strategies to compete with each other such as competition in price, quality of service and the special promotion in discount or premium to motivate the customers and after-sales service. (Source:http://www.manager.co.th/SMEs/ViewNews.aspx?NewsID=9530000168902, http://www.gotomanager.com/news/details.aspx?id=49902) When business about jewelry import material from another country to made Jewelry, the business isn’t pay for VAT because Thailand has exemption of VAT for import jewelry to driving toward to center of strong Thai gems and jewelry. (Source: http://news.impaqmsn.com/articles.aspx?id=275187&ch=ec1) Export value of Thailand is 304,361,845,140.00 baths and Import value is 294,710,817,092.00 baths in 2010 that is higher from 2009 so Jewelry business in Thailand is grown continuously in future. (Source: http://gemandjewelrydb.git.or.th/gem/home.asp)

   

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Thailand Export Statistics HS 71 : Gem & Jewelry January-October , 2009 to 2010

No. 1 2 3

Product Pearls Diamonds Precious Stones and Semi-Precious Stones Synthetic or Reconstructed Precious and SemiPrecious Stones Dust and Powder of Natural or Synthetic Precious or Semi-Precious Stones Total Silver Base Metals clad with Silver, not further worked than semi-manufactured Gold Base Metals or Silver, clad with Gold, not further worked than semimanufactured

2009 Value (Baht) 266,175,299.00 22,376,999,413.00 12,101,929,012.00 % 0.09

2010 Value (Baht) 394,309,510.00 % 0.13 9.51 4.30

Change (%) 48.14 29.30 8.04

7.43 28,934,451,830.00 4.02 13,075,337,850.00

4

1,727,025,343.00

0.57

2,108,381,177.00

0.69

22.08

5

16,638,033.00

0.01

8,406,159.00

0.00

-49.48

36,488,767,100.00 12.12 44,520,886,526.00 14.63 1,359,277,070.00 343,571.00 0.45 0.00 287,908,917.00 0.00 0.09

22.01 -78.82

6 7 8

0.00 -100.00 -8.60

185,144,520,369.00 61.50 169,220,676,271.00 55.60

9

5,459,070.00

0.00

4,546,717.00

0.00

-16.71

10 Platinum Base Metals, silver 11 or gold , clad with Platinum 12 Waste and Scrap Total 13 Articles of Jewelry 14 Article of Goldsmiths' or

56,995,548.00 7,587,051.00 644,937,651.00

0.02 0.00 0.21

79,718,699.00 1,154,531.00 675,362,350.00

0.03 0.00 0.22

39.87 -84.78 4.72 -9.05 15.87 -12.73

187,219,120,330.00 62.18 170,269,367,485.00 55.94 70,133,275,185.00 23.30 81,263,993,724.00 26.70 359,384,534.00 0.12 313,617,068.00 0.10

   

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Silversmiths' Wares and Parts Other Articles of Precious Metal or 15 of Metal clad with Precious Metal Articles of Natural or Cultured Pearls, 16 Precious or SemiPrecious Stones 17 Imitation Jewelry 18 Coin Total Grand Total

586,827,109.00

0.19

187,564,542.00

0.06

-68.04

177,131,923.00 6,025,911,013.00 36,903,884.00

0.06 2.00 0.01

201,923,813.00 7,585,843,333.00 18,648,649.00

0.07 2.49 0.01

14.00 25.89 -49.47 15.85 1.11

77,319,433,648.00 25.68 89,571,591,129.00 29.43 301,027,321,078.00 100.00 304,361,845,140.00 100.00 Table 2.1 Thailand Export Statistics

(Source: GIT with collaboration of Thai Customs Department) Thailand Import Statistics HS 71 : Gem & Jewelry January-October , 2009 to 2010

No. 1 2 3 4
Pearls

Product

2009 Value (Baht) 448,138,194.00 % 0.30

2010 Value (Baht) 510,696,740.00 % 0.17 7.58 2.65 0.62

Change (%) 13.96 -4.93 8.84 22.22

Diamonds Precious Stones and SemiPrecious Stones Synthetic or Reconstructed Precious and Semi-Precious Stones Dust and Powder of Natural or

23,482,227,532.00 15.52 22,325,126,036.00 7,184,400,536.00 1,489,279,230.00 4.75 0.98 7,819,439,904.00 1,820,194,073.00

5

Synthetic Precious or SemiPrecious Stones

100,150,262.00

0.07

181,338,310.00

0.06

81.07 -0.14 38.73 218.50 158.92

Total 6 7 8
Silver Base Metals clad with Silver, not further worked than semimanufactured Gold

32,704,195,754.00 21.62 32,656,795,063.00 11.08 14,365,849,094.00 1,214,285.00 9.49 19,929,112,206.00 0.00 3,867,450.00 6.76 0.00

86,200,233,066.00 56.97 223,185,995,299.00 75.73

   

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Base Metals or Silver, clad

9 10 11 12 13 14 15

with Gold, not further worked than semi-manufactured Platinum Base Metals, silver or gold , clad with Platinum Waste and Scrap

658,393.00 650,570,133.00 7,835.00 3,266,896.00

0.00 0.43 0.00 0.00

10,956,004.00 1,105,528,492.00 126,673.00 654,817.00

0.00 1,564.05 0.38 69.93

0.00 1,516.76 0.00 5.20 0.02 0.39 -79.96 141.29 0.97 -10.32 21.53

Total
Articles of Jewelry Article of Goldsmiths' or Silversmiths' Wares and Parts Other Articles of Precious Metal or of Metal clad with Precious Metal Articles of Natural or Cultured

101,221,799,702.00 66.89 244,236,240,941.00 82.87 15,168,644,057.00 10.02 15,316,077,102.00 76,693,743.00 934,111,306.00 0.05 0.62 68,776,484.00 1,135,203,877.00

16

Pearls, Precious or SemiPrecious Stones

106,189,994.00

0.07

113,822,593.00

0.04

7.19

17 18

Imitation Jewelry

612,825,876.00 484,419,942.00

0.41 0.32

780,415,026.00 403,486,006.00

0.26 0.14 6.05

27.35 -16.71 2.50 94.77

Coin

Total Grand Total

17,382,884,918.00 11.49 17,817,781,088.00

151,308,880,374.00 100.00 294,710,817,092.00 100.00

Table 2.2 Thailand Import Statistics Thailand have exhibition for sale jewelry every years that is Bangkok Thai gems & jewelry fair. There are many jewelry shops. Customers can choose much jewelry such as peals, gems, and color stones. This event held for stimulate jewelry sales in Thailand. (Source:http://www.git.or.th/thai/news/events/2010/09_september/event_20100911.html)

   

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First prize for Vol.1 hot 2009 and 2010

A survey of the latest industry jewelry that silver jewelry is a product sold best during the economic downturn and the price of gold higher, while this respect, the survey found that sales of silver is increasing in the last 3 years. Expected in 2011, Silver jewelry would still sell well because of silver jewelry is lower price of gold and diamonds jewelry. Products with new format are particularly popular with teenagers. Silver jewelry containing pearl, zirconium and beads are popular and Vendor jewelry more recently in small time. The competition between the retail sales increases. (Source: http://www.depthai.go.th Dec, 1, 2010, http://www.ryt9.com/s/expd/1040150) Chiang Mai is the economic center of the Upper North. Therefore, it has several advantages of geographic location with an area of contact with neighboring countries. Ease of moving goods transportation growth of several types of business hotel, restaurant, Jewelry

   

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and others these reflects the overall availability of commercial development in the future. Chiang Mai has potential to earn the support of travel abroad to travel to throughout the years in business, jewelry in Chiang Mai is the competition is quite high because it is a tourist destination of tourists coming through and has the capacity to purchase high. Allowing operators have increased rapidly as well. (Source: http://gotoknow.org/blog/export/111495?class=yuimenuitemlabel) 2.3 Product and Service There are 3 main product of our company, which are hand craft, fashion and order. In each type of product we design in various styles such as necklace, bracelet, ring, and earring 2.3.1 Hand craft Product deign neatly by using handmade under the concept of Lan-na or Thai design to conserve concept of Lan-na and Thai style • Necklace

   

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Bracelet

   

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Earring

   

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Ring

   

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2.3.2 Fashion Fashion design contemporary product. We design product in modern style. Most of this product we serve to teenager or group of customer who love to be the modern style. These products decorate by modern material. • Necklace

   

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Bracelet

   

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Earring

   

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Ring

   

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2.3.3 Order This type of product is customer can design product by them self. The company concern on satisfy of customer need the pre-order product our designer will help the customer design what they want. 2.4 Mission Our company focuses on customer; we offer honest service, the best in jewelry selection and takes great inspiration from the indigenous cultures found throughout the north of Thailand attention to detail and respect for the highest standards in all activities of the company. 2.5 Vision “Brings the place where dreams come alive throughout our jewelry‘s designs, Combined the modern style and soul of indigenous cultures style for the best classic beauty. You can touch the value we deliver.” 2.6 Strategy 2.6.1 Corporate Strategy Soul of beauty is a new jewelry shop in Kalare Night Bazaar Chaing Mai. Our company wants to be a well know in jewelry business so we choose best strategy for ultimate success. In Corporate Level Strategy, we decide to use Concentration Strategy because our company is a new business we need to maintain existing customers, create new product to increase sale and expand the market widely to increase a new customer. In the future, if Soul of beauty have strong customer base, we try to use Backward Strategy that we own design and produce by our company without Third Party Company.

   

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2.6.2 Business Strategy Soul and Beauty is a new brand in the market so we need to create the differentiation and build brand identity to make the customer remember our brand “Soul of Beauty”. We need to improve capability in creativity and up to date design of fashion. From the survey we found the most jewelry shop in Thailand is small size and number, because there are few jewelry manufactures in Thailand. Almost jewelry’s price in the market is not different, so it makes us to select Focused Differentiation for our Business Strategy because we have only one shop in Chiang Mai province, this is specific place and we serve the best quality product to our customers. 2.6.3 Function Level Marketing Mix Strategy • Product

-Building brand and logo which salient and easy to remember -Product is a high quality and high standard -Customer can design jewelry individually -Product guaranteeing • Prices

-We use cost based pricing strategy because we set the prices from the cost. - Skimming price strategy because our product is a high quality jewelry and emphasis on luxury. • Place We select Kalare Night Bazaar Chiang Mai location because this place is shopping bazaar with a unique combination of cultural- performances open and it is a center of Thai and foreigner Tourists with high purchasing power. Most customers will buy as souvenirs.

   

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Promotion

-Advertising in Tour Guide Magazine -Brochure -Bill board -Customers can clean jewelry free. --In festival we have promotions such as free gifts warping. -Couple ring discount • Human Resources Strategies We emphasize to salesperson performance because they can influence customer decision, they need to develop themselves all the time, grooming, appearance, speech, service mind and etc. for satisfy customer, make customer impressive and increase the sale volume. There are many reasons that we select this strategy; 1. Training and repeating all staffs to be always ready to work. 2. Motivating salesperson by high commission. 3. Salesperson can speak several languages. • Financial Strategy We have financial strategies to analyze revenue, company expense, and operation by consider form all financial resource. 1. Provide the financial management to improve circulation in business every month. 2. Making shop account. 3. Financial must be clear. 4. Analyzing financial situation and planning to reduce financial risk

   

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Chapter 3 Market Feasibility Study

   

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Chapter 3 Market Feasibility Study 3.1 General information of Chiang Mai

Figure 3.1 the symbol of Chiang Mai • Location Chiang Mai valley averages 310 metres (1,027 feet) above sea level, and the province covers 20,107 square kilometres (12,566,910 rai). The widest point of the province measures 136 kilometres (85 miles), and the longest 320 kilometres (200miles). To the north, a 227 kilometre (141.88 miles) stretch of mountains divides Chiang Mai's northern districts of Fang and Mae Ai from the region around Kengtung in the Shan State of Myanmar (Burma). On the east, Chiang Mai is bordered by Chiang Rai, Lampang and Lamphun provinces. The Mae Tuen River, Ream Mountains and Luang Mountains separate Chiang Mai's south from the province of Tak. Some stretches of Chiang Mai's south also border Lamphun province. To the west, Chiang Mai is bordered by Mae Hong Son province. • Geography Chiang Mai province is about 700 km from Bangkok and is situated on the Mae Ping River basin and is 300 m above sea level. Surrounded by high mountain ranges, it covers an

   

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area of approximately 20,107 km². The district is covered by many mountains, chiefly stretching in the south-north direction. The river Ping, one of the major tributaries of the Chao Phraya River,originates in the Chiang Dao mountains. The highest mountain of Thailand, the 2,565 meter high Doi Inthanon, is located in the province. Several national parks are in the district: Doi Inthanon, Doi Suthep-Pui, Mae Ping, Sri Lanna, Huay Nam Dang, Mae Phang, Chiang Dao. The mountainous terrain is mainly jungle, parts of which are within national parks which are still fertile and verdant with plentiful flora and fauna. There are many sites and locations where tourists prefer to visit to study the lifestyle of the tribal people who live on high hills. • Population As of December 2004, Chiang Mai has a population of 1,603,220. (790,107 males and 813,113 females) The average population density is 80 inhabitants per square kilometer and the total number of households is 551,696. There are 1,251 villages of highland communities scattered across many districts in Chiang Mai, making up 70,820 households or 312,447 inhabitants. The majority of them are from 13 ethnic backgrounds including Karen, Musoe, Hmong, Leesaw, Akha, Yao, Lua, Chinese, Burmese, Palong, Tai Yai and Tai Lue. The majority of people living in Chiang Mai are Buddhist (around 91.8%). 1.17% of people are Muslim, 5.6% Christian, and 0.02% Brahmin, Hindu or Sikh. 1.41% subscribe to other religions and beliefs.

   

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Education

Some cities seem to have been created to be seats of learning - ideal places both for teachers and students. Chiang Mai is such a city. Chiang Mai is home to six universities, Buddhist and Christian seminaries, technical colleges, six international schools and one German one, a large university teaching hospital and several private ones, some with nursing schools. There are also many private language schools as well as the AUA, the British Council, Australian and New Zealand centers and the Alliance Françoise. All this means that there are many opportunities for native English language teachers, especially if they have a university degree and teaching qualifications. The many Thai schools are hungry to employ English teachers. The international schools cater for the children of expatriates living in Thailand and are increasingly attracting Thai children and those from neighboring countries, whose parents want them to be educated in English. Universities are offering more and more courses in English and are anxious to establish exchange programs for overseas students and lecturers. All this activity results in a stimulating environment - students exchanging ideas at the food stalls around the university or picnicking beside the lake at the foot of the mountain; English teachers relaxing after a hard day's work in the quiet bars and restaurants along the banks of the River Ping. In the age of cyberspace and satellite dishes, Chiang Mai, only one hour's flight from Bangkok, is no longer an isolated outpost. It is, in fact, a regional centre of communications, the gateway to Burma, Laos and southern China. Chiang Mai is a safe, healthy and stimulating place for students and a low cost,

   

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convenient and idyllic heaven for teachers. Six years of primary education are compulsory and free for all Thai children, although there are certain small expenses for uniforms, books and writing materials. Some children fall through the net either because their parents can not afford even these expenses, because they live far from any school or because they do not have Thai citizenship. There is government and private charity scholarships that help poorer children complete their secondary education. Many of the schools in Chiang Mai are excellent - four of the best were founded by Christian missionaries, although there is no religious pressure on the children. Universities, technical colleges and vocational schools offer a wide range of subjects for those who wish or are able to go on to further education. Fees are not high but are still out of the reach of many, but again there are government and private charity scholarships. Basic Infrastructures • Transportation

By Car Take Highway No. 1 (Phahonyothin Road) and turn to Highway No. 32 (Asia Highway) passing Ayutthaya, Angthong, Nakhon Sawan, then by Highway No. 11, from Tak, Lampang, Lamphun to Chiang Mai: a distance of 696 kilometres or 9 - 10 hours. By Rail Express and rapid trains leave for Chiang Mai from Hualamphong Station several times daily and the trip takes about 12 - 15 hours depending on the class. It is recommended to reserve seats in advance, especially for

   

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sleepers. For further information please contact Tel. 0 2220 4334 or call 1690 or visit www.railway.co.th Chiang Mai Railway Station Tel. 0 5324 2094

By Air

Chiang Mai International Airport is the center for air travel in the north and is the second largest airport in Thailand after Bangkok International Airport. It is the main airport in the Northern Region and the hub for inter provincial flights from other regions, as well as international flights from other countries in Asia and Europe. • Infrastructure

Electricity Electricity service in Chiang Mai province is provided in 22 districts, 2 sub-districts and 1,892 villages, comprising 92.61% of all villages. Villages without electricity are located in jungles, forest conservation areas and national parks. In 2004 there were 496,448 electricity consumers, a 10.98% increase on the preceding year. Total electricity consumption in the province was 1, 630. 46 million units, a 7.11% increase on the year before. The major consumer of electricity is offices and factories, using 878.99 million kilowatts per hour, followed by residential users, government offices and public utilities using 621.24, 100.60 and 29.63 million kilowatts per hour respectively.

   

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Water There are 7 waterworks in the province capable of producing 49,546,800 cubic meters of water per year. In 2004, total water production was around 32,644,289 cubic meters. There were 76,939 consumers of mains water, an increase of 5,710 consumers over the preceding year. Telecommunications In 2004 there were 251,501 fixed telephone lines in the province; an increase of 9,780 lines over the previous year is total of 211,405 lines. The ratio of telephone lines to inhabitants is 1:6.

(Source: www.chingmaiinfo.com; www.cmcity.go.th ) 3.2. General Environment Analysis It consists of the actors and forces outside marketing that affect marketing management’s ability to build and opportunities and threats to our business. 3.2.1 Political Analysis Political situation is directly affect to the jewelry market in Thailand because the demand of product depend on tourist and power purchasing and two factor will decrease if political not stability. Political situation of Thailand in presently is the lack of stability. That factor affects to demand of product and the purchasing power because the customers have more concerning about spending and choosing products or services. In domestic market is people worry about stability that make they reduce unnecessary spending such as unnecessary product, traveling

   

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that make our value sale and profit decrease. In traveler market is directly affect about political problem because if political not stability they may change their minds and travel to other countries they see as more peaceful and safety. So revenue from this target market will be losing. • Thailand: Tourist Arrivals from 1998 till 2010. Quarterly Data 2007-2010 International arrivals to Thailand from 1998 to 2009 show a significant rise from 1998 onwards. There are significant dips with the SARS epidemic, and after the Tsunami of end 2004. From end 2008 political events in Thailand have influenced tourist arrivals. While total number of arrivals in 2009 was only mildly down on the year before, the tourist industry surely had expected more revenue. Probably a potential additional number of 1 to 2 million visitors elected not to come to Thailand. Both the Office of Tourism Development and the National Economic and Social Development Board (NSDB) provide arrival statistics, though not always timely or easy to find. We almost accidentally found the best updated files eventually on the Office of Tourism Development website (follow the little banner on the left saying: Tourism Statistics, on this otherwise Thai language website). Since somewhere in the middle of 2008 a severe worldwide recession dampened the desire to travel. Thailand furthermore suffered from political instability, starting with the closure of Suvarnabhumi Airport (26 november 2008, by the Yellow Shirts protesters). A Red Shirt mob invaded the East Asia Summit in Pattaya on 11 April 2009, leading to a cancellation of the summit, with world leaders scurried away to safety. This was followed by violent riots the next day (during Songkhran) and the declaration of a state of emergency by
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Prime Minister Abhisit Vejjajiva. The protesters withdrew and the state of emergency was lifted on 24 April. On top of all that, flu cases emerged in March and April of 2009 in Mexico, with the official first announcement of the new H1N1 flu on 23 April. On 12 May, it was made public by Health Minister Witthaya Kaewparadai that two Thais who returned from Mexico had been infected with swine and subsequently recovered. Fortunately while infections became epidemic, the resulting health risk of H1N1 infection proved to be less serious than expected by some. The graph below shows the evolution of international visitors to Thailand between 1998 and 2009. We made the graph but the data come from the Tourism Authority of Thailand. Despite the serious disturbances in April 2009, tourism arrivals for the whole year were only mildly affected, with a significant upturn (+28%) in the last quarter of 2009, when compared to the last quarter of 2010. The first quarter of 2010 was very promising, but serious demonstrations by the Red Shirts happened in April and May 2010, with serious repercussions for arrivals in the second quarter of 2010.

   

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Figure: 3. Tourist A .2 Arrivals from 1998 till 2010. Quar m 2 rterly Data 2 2007-2010 In the recen past, both SARS in e nt h early 2003, and the Tsu unami of De ecember 200 had 04, signific effects o the numb of intern cant on ber national arr rivals. Bird f also eme flu erged at the e beginni of 2004 in Thailand and probab with the Tsunami, caused a de ing d bly e ecreased num mber of visitors in the 2004 4-2005 perio The ch otherwis shows th number o arrivals st ods. hart se he of teadily increasi to more than 14 mi ing illion in 200 This may seem a lot, but quite a few count 08. y tries in Europe (and also C China) receive many more visitors. • Tourism In ndustry in Thailand Thailand's t tourism ind dustry makes up about 6.5 percent of the coun 6 ntry's GDP. When seeing t number of tourists, and the num the mber of tou urist destinat tions and ho otels, one would w actually expect a m y more substan ntial pertain of GDP. But Thailand tourism i n B d's industry, wh hile very vis sible, brings in much le money t s ess than other se ervice indus stries, and c certainly les than ss its manu ufacturing i industry. Neverth heless, inter rnational vis sitors spent more than 547 billion baht (somet 5 thing like 16 billion U Dollar in 2008. The averag length of stay per tou U.S. rs) ge urist in 2007 was 9 day 7 ys.
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Interestingly, the tourism sector does not only depend on foreign visitors. The number of domestic tourists actually dwarfs the number of foreign tourists. But domestic tourists (mostly Thais) do spend much less per day and their trips are shorter, on average two days and a half. In 2007 there were reportedly more than 83 million in-country travel trips. This created 380 billion baht in revenue. Average daily expenditure was around 1770 baht per person in 2007 (as compared to 4120 baht per person for international tourism). In 2008, 52.37 % of international tourists were East Asian, with Malaysia and Japan providing the most visitors. Close to two million Malaysians visited Thailand. We assume they take short trips over the Thai-Malaysian border, and we think the number of Malaysian visitors, unduly inflates the total number of international visitors. Europeans provided close to 4 million visitors in 2008, about 27.22 % of the total. The number of visitors from the Americas, South Asia and Africa, is much smaller. However, close to 700,000 Australians visited Thailand, which is actually an enormous number, when taking the total population of Australia into account. The downturn in the second quarter of 2009 was expected by the prime minister (as reported in April 2009) to cost the country something like 4 billion U.S. Dollar. Arrivals from 2007 to 2010 per quarter The number of tourist arrivals in the first quarter and second quarter of 2009 were 3.64 million and 2.96 million respectively. These figures were lower than during the first 2 quarters of 2007 or 2008. In the third quarter of 2009 we see that the number of visitors is similar to the number of visitors in both 2007 and 2008, suggesting that the worst was over. In the 4th quarter of 2009, we saw more arrivals than in 2007 and 2008. See the yellow line crossing over in the graph below.

   

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The first quarter of 2010 saw a significant increase of tourist arrivals, especially in January and February. Related to the political disturbances during April and May 2010, the second quarter arrivals of 2010 were low (but not much lower than in the second quarter of 2009, which also was characterized by riots and demonstrations. However, tourism rebounded strongly during the third quarter of 2010, with arrivals higher than in any of the preceding years. The surge in arrivals in the last quarter of 2009 and the first quarter of 2010 shows the potential of the Thai tourism industry for sustained growth. However arrivals in both the second quarter of 2009 and the second quarter of 2010 show the influence of political riots and uncertainty. We figure that Thailand missed out on in between 1 and 2 million potential extra visitors in both 2009 and 2010. It is interesting to know that negative factors (the same happened with the various flu scares) seem to loose influence in just 2 to 3 months each time, with visitors resuming their interest in Thailand as a tourist destination.

   

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Dates o political unrest: of 2009: most n negative ev vents 11-12 April 20 2 010: most n negative eve ents: 19 Ma ay Figure: 3 Arrivals from 2007 to 2010 pe quarter 3.3 s 7 er Office o Tourism D of Developmen  (http://w nt) www.thaiweb bsites.com/to ourism.asp)

3.2.2 Economic Analy ysis The movem of jewe busines is direct variation by the econom crisis which ment elry ss v y mic w the sam other bus me sinesses. So, the jewelry business will grow down if the e , y w economic fa all, while je ewelry busin will gr up if the economic rise becaus customer believe th ness row e c se rs hat factor a affect in they life. So, th power pu y he urchase of consumer w be relate by economic c will ed situation. This prob blem is not only Thai, b also inc but cluding foreigners who is tourist as s ant market. But m more over, T econom in 2011 is forecaste to grow at the Thai my ed a importa target m

   

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normal rate of 4.5 percent. This is great opportunity about increasing revenues and our business growth. • Economic Growth Thai economy in 2011 is forecasted to grow at the normal rate of 4.5 percent per year (or within the range of 4.0–5.0 percent per year). The main driver contributed to this growth is domestic spending, both consumption and investment, which are projected to continue to grow from 2010. Private consumption is forecasted to grow at 4.2 percent per year (or within the range of 3.7–4.7 percent per year) as consumer confidence would pick up following an ease in political tension. Private investment on the other hand is projected to grow at 5.9 percent per year (or within the range of 4.9–6.9 percent per year), with improving investor confidence combined with higher capital utilization especially in export-oriented industry that has stood high since 2010. Furthermore, the momentum from the persistent global economic growth would also help supporting the growth of export of goods and services at the projected rate of 5.4 percent per year (or within the range of 4.9–5.9 percent per year). This high rate is however lower than in 2010 due to high base. Import volume of goods and services is expected to grow at 8.3 percent per year (or within the range of 7.3–9.3 percent per year). On the public spending side, public consumption is forecasted to grow at 6.4 percent per year (or within the range of 7.3–9.3), follows the constant budget disbursement in 2011. Public capital expenditure growth, on the other hand, is projected to slow down to 1.7 percentper year (or within the range of 0.7–2.7 percent per year) as the role of government in supporting the economy begins to subside in the time when private sector is fully functioning in driving the economy forward.

   

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Figure: 3.4 Forecasted Economic Growth in year 2011 • Economic Stability Economic Stability On the internal stability, headline inflation in 2011 is projected to stand at 3.5 percent per year (or within the range of 3.0–4.0 percent per year), given oil price is still expected to remain steadily high. Unemployment is forecasted to stand at the normal rate of 1.2 percent of total labor force (or within the range of 1.1–1.3 percent of total labor force). On the external front, in 2011 Thailand is projected to record a smaller current account surplus of 11.9 billion US Dollars, equivalent to 3.4 percent of GDP (or within the range of 2.9–3.9 percent of GDP), as trade surplus is expected to drop to 9.4 billion US Dollars (or within the range of 8.4 – 10.4 billion US Dollars). This is due to import growth which is expected to outweigh export growth. More specifically, import value of goods is expected to grow at 13.2 percent per year (or within the range of 11.7–14.7 percent per year), while export

   

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value of goods is forecasted to grow at 12.0 percent per year (or within the range of 11.0–13.0 percent per year).

Figure: 3.5 Inflation Rate in year 2011 (Source:http://www.fpo.go.th/FPO/index2.php?mod=Content&file=contentview&contentID=CNT00
06204&categoryID=CAT0000028)

Social and Environment Analysis Social includes the belief, value, and attitude of person in the social. The social is

reflected by culture, education, religious, and other social environments of other social. The social condition is continuously changed because of person in the social need to control and adapt you with the environment. When the social condition is changed, the need of person is also changed such as dressing, hobby, even requirement of goods and service.

   

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Women and jewelry belong together for a long time ago, but not for only beauty or attract the eyes only. But people believe it has hidden power of each type of gem stone or jewelry .Especially in ancient time people believe gemstone cloud empower they lives and rise they fortunes, as well as prevent them from any dangers and sickness. And represent love for couple and has been used to denote status. All of things cloud add-value for our product and attach customer so, it is opportunity for our business.

Figure 3.6: Nine star glittering gemstones

   

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Figure 3.7: The myth of gemstone

Figure 3.8: Birthstone

   

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3.3 Competition Analysis

Competitor

For the jewelry business, it has some competition. The competitors in the market try to create their own identities for their brands and trust for customer. By emphasize the quality of products and services and design of product. And tries hardly to create and design of product. They are all having many interesting and attractive design and concern identity of product to promote their brands. Most of our competitors have good locations and many of them are the stores which were opened for a long time. So, they are well known for market and customer’s want because of their have more experiences.

Five Force Model for Jewellery Industry
POTENTIAL NEW ENTRY

INDUSTRY COMPETITORS SUPPLIER BUYERS

RIVARY AMONG EXISTING FIRMS

SUBSTITUTES

Figure 3.9: five force model • • Rivalry among existing competitors: Strong

Slow market growth Sales highly fragmented among locally owned jewelry stores, retail jewelry store chains.

   

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• •

Jewelry product has demand always since the part to present. Jewelry product not only accessory but collectible. Bargaining Power of Suppliers High

In jewelry industry the suppliers in domestic not much and more of supply produce for export.

• • •

The suppliers in other country have more barriers to check grade of gemstone. Few Alternatives of cutting & polishing. In jewelry industry skilled labor is lack because they much have more experience in this job.

Bargaining power of supply is enhanced because Thai’s gemstone is famous and have more demand form domestic market and international market Bargaining Power of Buyers Medium

• • •

Divided in two types 1. Domestic buyers & 2. Foreign buyers Consumers can choose from many jewelry retailers if they are not satisfied Bargaining power of buyers is more because jewelry is high price product, so they spend a lot of time and want satisfy service for make decision. Threat of Substitutes: Low

• •

Jewelry is value-product and less some product can be substitutes. Status and standard of living increase so demand is increasing at high rate. Barriers to entry Medium

High capital investment

   

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• •

Skilled manpower is essential Existing jewelry retailers well know into international areas of business.

3.4 Customer Analysis
Ministry of Tourism and Sports,Thailand Accommodation Establishments at Tourist Attraction (Hotels,Guesthouses,Resorts) in Thailand 2010 (January - March) Accommodation Guest Arrivals at Accommodation Establishments at Tourist Attraction in Thai Foreigners Total Thailand 2010 2009 2010 2009 2010 2009 ∆(%) ∆(%) ∆(%) Total 1,558,2 1,586,6 - 545,9 425,6 + 2,104,1 2,012,2 + 24 67 1.79 03 15 28.26 27 82 4.56 Kampaengphet 867 2,040 - 30,985 52,584 30,118 50,544 40.41 57.50 41.08 Chiangrai + 56,09 44,02 + 240,53 207,31 + 184,433 163,283 12.95 8 9 27.41 1 2 16.02 Chiangmai - 368,0 271,6 + 658,12 682,90 290,026 411,212 29.47 94 93 35.48 0 5 3.63 Tak - 5,043 5,654 - 136,92 195,88 131,880 190,227 30.67 10.81 3 1 30.10

Ministry of Tourism and Sports,Thailand Accommodation Establishments at Tourist Attraction (Hotels,Guesthouses,Resorts) in Thailand 2010 (April-June) Accommodation Guest Arrivals at Accommodation Establishments at Tourist Attraction in Thai Foreigners Total Thailand 2010 2009 2010 2009 2010 2009 ∆(%) ∆(%) ∆(%) Total 1,299,6 1,366,1 - 254,2 311,3 - 1,553,8 1,677,5 55 90 4.87 43 76 18.35 98 66 7.37 Kampaengphet 29,909 23,109 + 1,035 1,468 - 30,944 24,577 + 29.42 29.48 25.91 Chiangrai 134,75 142,28 - 19,89 27,21 - 154,64 169,50 5 9 5.29 3 8 26.91 8 7 8.77 Chiangmai 283,20 298,54 - 193,0 197,3 - 476,22 495,91 0 4 5.14 29 74 2.20 9 8 3.97 Tak 77,154 123,65 - 1,937 5,677 - 79,091 129,33 7 37.61 65.89 4 38.85

   

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Ministry of Tourism and Sports,Thailand Accommodation Establishments at Tourist Attraction (Hotels,Guesthouses,Resorts) in Thailand 2010 (July-September) Accommodation Guest Arrivals at Accommodation Establishments at Tourist Attraction in Thai Foreigners Total Thailand 2010 2009 2010 2009 2010 2009 ∆(%) ∆(% ∆(% ) ) Total 1,685,5 1,247,6 + 349,0 355,1 - 2,034,6 1,602,8 + 99 57 35.10 24 56 1.73 23 13 26.9 4 Kamphaengphet 30,220 19,037 + 710 401 + 30,930 19,438 + 58.74 77.0 59.1 6 2 Chiangrai 167,68 170,82 - 33,45 35,41 - 201,14 206,23 3 3 1.84 9 0 5.51 2 3 2.47 Chiangmai 620,88 223,27 + 244,7 226,4 + 865,60 449,77 + 5 9 178.0 17 99 8.04 2 8 92.4 8 5 Tak 84,441 95,310 - 2,719 4,692 - 87,160 100,00 11.40 42.0 2 12.8 5 4

Ministry of Tourism and Sports,Thailand Accommodation Establishments at Tourist Attraction (Hotels,Guesthouses,Resorts) in Thailand 2010 (October-December) Accommodation Guest Arrivals at Accommodation Establishments at Tourist Thai Foreigners Total Attraction in Thailand 2010 2009 2010 2009 2010 2009 ∆(% ∆(%) ∆(% ) ) Total 1,736,062 1,685,905 + 479,9 462,9 + 2,216,0 2,148,8 + 2.98 85 67 3.68 47 72 3.13 Kampaengphet 30,620 27,818 + 1,702 1,230 + 32,322 29,048 + 10.0 38.37 11.2 7 7 Chiangrai 278,005 175,776 + 50,04 40,94 + 328,05 216,71 + 58.1 8 3 22.24 3 9 51.3 6 7 Chiangmai 440,888 475,344 - 324,8 291,0 + 765,78 766,35 7.25 99 10 11.65 7 4 0.07 Tak 140,814 127,306 + 6,949 3,132 + 147,76 130,43 + 10.6 121.8 3 8 13.2 1 7 8

Table 3.1 Ministry of Tourism and Sports, Thailand Source: http://tourism.go.th/2010/th/statistic/tourism.php

   

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The consumers separate to typically two types: Domestic customer

Someone will be shopping; they are not in need of anything, will see the item and have to have it, were looking for an "accessory" that would match an outfit and happens to come across the piece of jewelry and buy it. They will made decision under condition that they satisfy and feel they receive the benefit from product and service. We are divided into two groups. There are Local citizen and Thai tourism. Chiang Mai tourist is 299,591 and Thai tourist is 252,120. Foreign customer Customer, who wants to buy gifts or souvenir and sometime them only sightseeing buys interest about product, a purchase occurs when the buyer is looking for a gift for someone, sees the art and design of product piece, and then purchases it. In this case the plan is to make a purchase, it is just not known what or where that purchase will be made. Consumers can choose from many jewelry retailers if they are not satisfied with certain of product or service. So, price differs and service is important e.g. information of product, certification, lower prices for high quality jewelry, customer service, guarantee etc. because refund, return or change the product could not be easy. So the trust and creditworthiness is more concerning. Foreign Tourist is 1,316,355. 3.5 Competitive Analysis
 

The jewelry industry, or even broader the art industry, is quite large and diverse. There are countless different artisans making so many different pieces of work. There are artists from every state that manufacture products. Some sell to large department stores, some to galleries, some sell them only via a website, others will travel with the products and sell

   

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what they are carrying. Many entrepreneurs interested to open jewelry shop that gives full service in Chiang Mai. After that the jewelry business becomes the business which is popular. Then the affects of jewelry business is high competition about price of products and various kind of dosing and creativity. Therefore the entrepreneurs of each store should be tries hardly to create their own identities for their brands and doing the best for attracting customer’s attentions to becomes successful business in finally. 3.6 STP Analysis 3.6.1 Market Segmentation The market segmentation of “Soul of Beauty” divide customers segment into 3 groups The first group is primary customer segment which can generating the most revenues for Soul of Beauty include Thai tourist, and foreign tourist which can generate secondary revenues and The last group is Chiang Mai local citizen. Chiang Mai local citizen divided into 5 groups of segment by age which age between 25-34 years old, 35-44 years old, 45-54 years old, 55-64 years old and more than 65 years old. Because we can satisfy customer needs and want and offer our product in different design, price, size and etc follow the customer segment behavior. Then, it can penetrate markets in each target market. Statistics from Tourism in Chiang Mai during the years 2007-2010, Soul of Beauty can be divided into market segmentation by a pie chart to understand easily.

   

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Average Tourism a Citizen i Chiang Mai during t years 20 e and in M the 007-2010

24% % 51%
Foreign touristt

25% %

Thai tourist CM Local citizen

Figure 3. Market Segmentati of Soul of Beauty .10 ion

3.6.2 Target Analysis Jewelry of “Soul of Be eauty” innov vation from the soul of Lanna, Th style whi m f hai ich combin the moder style it is already a s ne rn s souvenir wh our cus hich stomer can r reach to it. We try W to respo onse our target needs an want. W focus on foreign tour nd We rism becaus Chiang Mai is se M center o travel in T of Thailand an very popu in touri Thailand is famous on gemston and nd ular ist. d s ne jewelry Thailand i the top on y. is ne-fourth of the world so products that have b f s been popula ar with tou urists who w buy bac as souven and gift Foreign to will ck nirs ft. ourists have more pow of e wer purchas so we are target on f se e foreign touri ist.

7%
Foreing To ourism Local citize en

18% 75%

Thai touris sm

Figure 3.11 T F Target mark of Soul of Beauty ket

   

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3.6.3 Position Analysis "Soul of Beauty" is a creative work art of jewelry and still maintain the quality and value unique branded Soul of Beauty jewelry has created a new jewelry design up to date fashionable and still keep quality, identity and valuable under the brand “Soul of Beauty” Our image of product occurred in the mind of target group of customers is personal feeling. Target groups is customer have perception and perceive of our identity, from Soul of Beauty in a Thai contemporary because of this identity, we can continue to provide products that relate to it. And include the skills of our employees or expertise that can provide advice or consultation with clients for buying jewelry orders from their own design. We are also concerned meet the needs of customers first. So our business is recognized and customers can remember. The last, customers can tell to another by using word of mouth. It can gain more customers.

3.7 Marketing Mix Strategy Analysis 3.7.1 Product strategy • Branding Branding strategy, we set the brand in English language and symbol is SB. It represents “Soul of Beauty Brand”. This word means the core of beauty that radiate from diamond. The customer can remember easily and impressive when see our logo “Soul of Beauty”.

Figure 3.11 Logo of Soul of Beauty
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• Product Soul of beauty has several products and categorize in 3 big groups that offer to customer selection that different life style and preferred. 1. Modern style, we selected jewelry is a high quality materials form high skill technician. A design of products is trend to modern style which up to date fashionable. This category always change design depend on fashion trendy. 2. Hand craft style, this product category is high identity because we integrate the Lanna style and jewelry together in design the product. Moreover Handicraft jewelry is designed by Lanna artist in Vua-Lai Street that is salient Lanna art. 3. Made to order, the customer can design and create jewelry by themselves. • Packaging Although jewelry box is not show to customers on shop window, but we are emphasizing on packaging because we think jewelry is valuable must be suitable with elegant packaging. We choose luxury and modern package. We have 4 types 4. Glass box 5. Leather box 6. Velvet box 7. Wood box • Services We are attention to every detail of services for both during sale and after sale services. We select high skill salesperson and they can speak several languages to service foreign tourists. We have clean jewelry service to customers, whether they buy from anywhere. We are pleased to advice and fain for customers in any time. Our shop have credit card service, this service is high security to offer confidence to our customers.

   

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3.7.2 Price strategy We designed the price to be competitive to other jewelry shop. We use cost based pricing strategy. The pricing is based on the cost of product, depend on the refinement of hand craft, to each product has different components, the weight of product and type of jewelry. Our product we set the price starts in the hundreds bath. In currency trading we use the Thai Bath because easy to exchange for Thai customers. Because of our products is a fashion jewelry and emphasis on luxury, we set the Skimming price strategy to show value of the product. We set the price to promote our products, we use Special-event pricing for high season and festivals such as New Year festival, Valentine festival and Birth day.

Detail of the products

Model Ring R1341 R1223 R1221 R1453 R1567 R1345 R1315 R1464 R1245 R1334 R2315

silver /gram

size

main gems

weight/ karat

color

decorate

price Bath

99.99%/14.1 99.99%/9.30 99.99%/9.30 92.50%/5.30 99.99%/4.70 99.99%/6.60 99.99%/9.50 99.99%/5.40 99.99%/6.70 99.99%/5.40 99.99%/4.30

58 52 52 7-8 52 53 52 52 53 52 52

star gem ruby ruby garnet emerald ruby amethyst casedony ruby quartz Shitrin codolite

12.44 2.39 2.39 1.20 3.40 4.31 2.36 2.30 3.2 2.83 2.97

black pink white red green red green purple red green orange purple

swiss gems square shape square shape white zesad swiss gems swiss gems swiss gems sappier swiss gems -

10400 4900 2900 4500 6100 6500 3900 4900 7500 4900 4500

   

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Model R2316 R2331 R2332 R2533 R2534 R1783 R1704 R1572 R1890 R1439 R1237 R1907 R1569 R1267 R1097 R1094 R1790 R1556 R1667 R1668 R1578 R1390 Earring E2343
   

silver /gram 99.99%/4.30 92.25%/ 99.99%/4.95 95.00%/7.69 95.00%/3.65 95.00%/5.66 92.25%/4.25 92.25%/4.50 92.25%/4.25 90.00%/9.8 90.00%/6.5 99.99%/4.90 99.99%/5.0 99.99%/5.60 99.99%/5.60 99.99%/4.70 99.99%/5.60 99.99%/5.00 99.99%/6.60 99.99%/4.30 92.50%/4.30 92.50%/4.50

size 52 53 53 53 53 53 53 53 52 53 53 52 52 52 52 51 53 53 53 54 53 52

main gems prenite nine-gems london topaz zircon zircon black star emerald spechatie topaz CZ garnet amities amities quartz casedony ruby topaz topaz ruby ruby ruby ruby

weight/ karat 7.03 1.20 10.69 0.9 5.6 3.2 7.6 2.5 3.6 4 3.2 3.5 3 5.6 4 1.5 0.87 1.2 1.2 2.2 1.2 2

color green nine colors blue white white black green orange blue white red purple blue green gray pink white white pink pink pink pink

decorate swiss gems square shape swiss gems swiss gems swiss gems CZndimond swiss gems swiss gems swiss gems swiss gems myanmar swiss gems swiss gems myanmar myanmar myanmar myanmar

price Bath 3500 6900 4900 4500 4700 4500 11250 5200 2500 3000 5460 9400 4900 10800 3800 3400 5900 6500 3100 3600 2700 3400

95.00%/11

-

fancy
59  

14
   

fancy

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Model E2112 E2123 Bracelet B4543 B4332 B4556 B4565 B4563 B4336 B4786 B4778 B4906 B4560 B4314 B4326 B4366 B4667 B4668 B4669 Brooch BH656 BH675 BH687 BH690 BH642

silver /gram 95.00%/12 95.00%/11

size -

main gems sapphire sapphire

weight/ karat 5.18 4

color orange orange

decorate circle circle

price Bath 5600 4500

95.00%/27 95.00%/34 95.00%/29 95.00%/27 92.50%/40.1 92.50%/40.1 92.50%/40.0 92.50%/48.4 92.50%/30.0 99.99%/32.0 99.99%/34.4 99.99%/28.7 99.99%/40.2 99.99%/32.0 99.99%/25.0 99.99%/21.0

-

fancy sapphire shitrin fancy ruby jade amities jade fancy fancy rubellite topaz jade fancy fancy fancy

19 21.30 7.8 18 10.85 23.35 10.85 2.95 13.5 46.00 10.85 10.0 15.40 30.0 26.0 27.0

fancy orange yellow yellow pink green purple yellow fancy fancy purple blue green fancy fancy fancy

circle circle circle circle circle circle synthesis circle circle circle circle synthesis circle circle circle circle

11200 14000 13000 9400 19000 14000 3600 1300 12200 21600 19000 3500 13900 14600 13000 12400

99.99%/3.80 90.00%/7.50 99.99%/4.20 99.99%/8.00 90.00%/5.90

-

fancy garnet casedony amities silver

9.30 6.00 3 25.53 -

fancy red purple purple -

flower white goal swiss gems swiss gems Wua-Lai art

4600 11490 4200 10200 3600

   

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Model BH691 BH665 BH683 BH644 BH621 BH689 BH694 BH677 BH678 BH679 BH645 BH670 BH611 BH613 BH631 BH641 BH615 BH661 BH622 BH634 BH684 BH673 BH663 BH666 BH669

silver /gram 99.99%/5.00 99.99%/3.50 90.00%/6.00 99.99%/4.50 99.99%/4.50 99.99%/4.60 99.99%/4.50 99.99%/4.50 99.99%/5.20 99.99%/4.30 99.99%/4.70 99.99%/7.60 99.99%/6.90 99.99%/5.70 99.99%/14.1 99.99%/4.70 99.99%/5.90 95.00%/5.40 99.99%/5.90 99.99%/5.70 99.99%/6.30 99.99%/7.20 99.99%/3.50 99.99%/4.70 99.99%/9.50

size -

main gems prenite garnet shitrin ruby jade ruby garnet sapphire fancy casedony garnet jade ruby fancy fancy casedony garnet ruby fancy fancy fancy casedony ruby fancy fancy

weight/ karat 13.42 5.0 15.95 4.7 3.5 3.5 9.1 5.0 4.3 4.00 3.7 31.9 6.0 7.30 14.09 3.9 2 1.5 7.30 12 7.00 4.3 2.1 4.3 10.1

color green purple yellow pink green pink black black fancy white purple green pink pink fancy white white pink fancy fancy fancy white pink fancy fancy

decorate swiss gems gold sand swiss gems swiss gems swiss gems swiss gems swiss gems swiss gems swiss gems swiss gems swiss gems swiss gems -

price Bath 2900 4500 9456 7400 6300 5800 6200 2300 5300 4600 5000 11100 6500 4800 11900 4400 1900 2900 4800 7600 7600 4200

myanmar swiss gems swiss gems

2600 5300 12000

   

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Model BH675 BH688

silver /gram 99.99%/4.20 99.99%/17.5

size -

main gems fancy fancy

weight/ karat 2.3 95.50

color fancy fancy

decorate swiss gems flower

price Bath 2600 16000

Table 3.2 Product detail list 3.7.3 Place strategy Soul of beauty shop established on Chaing Mai Kalare night plaza zone G - G115 block area on Chang Klan Road which is the main road for business, This is a good location where has people around here, this is a center of Thai and foreigner tourists with high purchasing power and popular of night market in Thailand. The plaza have plenty of parking area is available and located near the shopping area. Our shop has interior decoration by Lanna Contemporary Art for affinity to customers and they can remember easily.

3.7.4 Promotions strategy • Brochure The employees distribute to restaurant, hotel, guest house and walking street. • Billboard We rent advertising area in Chiang Mai Airport because most customers are tourist both Thai and foreigner who come to visit Chiang Mai. This advertising is favorably influence target group. • Sale promotions We set the promotion for low season to influence sale revenue-10% on Low Season (May-Sep)

   

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3.8 Sales Forecast/Profit Estimation

Total Number of Tourism in Chian mai   between 2006 to 2010
6000000 5000000 4000000 3000000 2000000 1000000 0 Y 2006 Y 2007 Y 2008 Y 2009 Y 2010

Number of Tourism in Chian  mai /years

Figure 3.12 Total of Tourism in Chiang Mai statistic (Source: http://tourism.go.th/2010/th/statistic/tourism.php) According to the total number of tourism in chiang mai statistic between in 2006 to 2010 we assume the number of tourism in chiang mai in 2010 .There are 4,194,752 tourism to forecast sales of our shop as following Number of tourism in 2010 = 4,194,752 tourism Number of tourism/month = 4,194,752/12 ~ 349,563 tourism There are 15 main competitors = 349,563/15 ~ 23,304 tourism Soul of Beauty divided the customer segment into three types which are Chiang mai citizen,Thai tourism and foreign tourism. The primary customer segment which can generate the most revenues for Soul of Beauty is Thai tourism. Total of Thai tourism = 58.76%* 4,194,752 = 2,464,836 tourism

   

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-Female = 51.9%*2,464,836 = 1,279,249 peoples -Male = 48.1%*2,464,836 = 1,185,586 peoples -Number of Thai tourism that buy Jewelry is 10% of Thai tourism, Female is 9 % of Thai Female tourism and Male is 1% of Thai Male tourism. -Number of Thai Female tourism who buy jewelry = 1,279,249 *9% = 115,132 peoples -Number of Thai male tourism who buy jewelry = 1,185,586 *1% = 11,855 peoples So Tourism who buys jewelry is 115,132+11,855/12 = 10,582 / months The secondary customer segment which cans generate the most revenues for Soul of Beauty is foreign tourism. Total of Foreign tourism = 41.42%* 4,194,752 = 1,729,915 tourism -Female = 35.2%*1,729,915 = 562,222 peoples -Male = 64.8%*1,729,915 = 1,167,693 peoples (Source: http://tourism.go.th/2010/upload/filecenter/file/stat_File_pdf52/north/cheanmai.pdf) -Number of Foreign tourism that buy Jewelry is 10% of foreign tourism, Female is 9 % of foreign Female tourism and Male is 1% of foreign Male tourism. -Number of foreign Female tourism who buy jewelry = 562,222 *9% = 50,600peoples -Number of foreign male tourism who buy jewelry =1,167,693 *1% = 11,676 peoples

   

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So Tourism who buys jewelry is 50,600+11,676/12 = 5,170 / months There are 15 main competitor in Chiang mai = 10,582+5,170/15 = 1,050 / months Jewelry shop in Chiang mai was sold 1,050 for each shop Soul of Beauty can get about 30% of segment for first year We assume that percentage of customer increase 10 % of total sale for 1-4 year and 15% in year 5 Year Y1 Y2 Y3 Y4 Y5 Total Sales 1,631,425 1,879,825 (increase 15% from sale of Y1) 2,817,250(increase 20% from sale of Y2) 3,383,500 (increase 20% from sale of Y3) 3,891,325(increase 15% from sale of Y4)

Table 3.3 Sale forecast

   

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Sale of year 2011 Product Necklace Bracelet 3,525 2,550 Price Ring 1,400 Earrings 1,650

Table 3.4 Sales of "Soul of Beauty" in year 2011

250,000  200,000  150,000  100,000  50,000  -

Earrings Ring Bracelet Necklace

Figure 3.13 Sales of Soul of Beauty in year 2011

     

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Sale of year 2012

Table 3.5 Sales of "Soul of Beauty" in year 2012

90,000  80,000  70,000  60,000  50,000  40,000  30,000  20,000  10,000  Necklace Bracelet Ring Earrings

Figure 3.14 Sales of Soul of Beauty in year 201

     

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Sale of year 2013

Table 3.6 Sales of "Soul of Beauty" in year 2013

140,000  120,000  100,000  80,000  60,000  40,000  20,000  Necklace Bracelet Ring Earrings

Figure 3.15 Sales of Soul of Beauty in year 20

     

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Sale of year 2014

Table 3.7 Sales of "Soul of Beauty" in year 2014

180,000  160,000  140,000  120,000  100,000  80,000  60,000  40,000  20,000  Necklace Bracelet Ring Earrings

Figure 3.16 Sales of Soul of Beauty in year 2014

     

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Sale of year 2015

Table 3.8 Sales of "Soul of Beauty" in year 2015

180,000  160,000  140,000  120,000  100,000  80,000  60,000  40,000  20,000  Necklace Bracelet Ring Earrings

Figure 3.17 Sales of Soul of Beauty in year 2015

     

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3.9 Marketing Expenses Soul of Beauty is a new entrance to the market so we try to promote and communicate with our target market for customers’ recognition and remember Soul of Beauty brand. We will communicate with customers by • Bill Board The most customers are tourist both Thai and foreigner who come to visit Chiang Mai. The high season is winter about November to February so our company make and advertising on bill board for communicate with customers. Our company will improve Vinyl Bill Board 1 time per year and create the message up to customer’s behavior. Cost=80,000 Baht Organization Contact: Boss Creative & Organizer Address: 127/30 M.13 T.Padad, Moung, Chiang mai 50100 kangboss9999@hotmail.com Tel.081-8850381 • Sale Commission Because jewelry is rarely high price and valuable the customer assistant is very important to give the product detail to customers and skills to communicate with customers include appearance for customer trust. So we offer 2% of sale to customer assistant.

     

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Brochure Our target market is tourist both Thai and foreigner so we will give out Brochure in

Hotel, Guesthouse, Restaurants, and etc. Our company tries to communicate with customer as much as possible and pleasure customer touch our product. Year 2011 normally = 300 per month High Season (Nov-Apr) = 500 per month • Sale Promotion We offer 15% on Low Season (May-Sep) because our company has a policy to attract the customers in low season for increase sale volume.

Table 3.9 marketing expense year 2011

Table 3.10 marketing expense year 2012

Table 3.11 marketing expense year 2013
     

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Table 3.12 marketing expense year 2014

Table 3.13 marketing expense year 2015

3.10 Conclusion in market feasibility From the Soul of Beauty sale forecasting in long-term, the sale revenue has increase in every year because an effect of political factor, economic, political, technology and social factor. More over tourist season and festival in Chiang Mai is also affect to sale revenue because many tourists trend to high on high season or Chiang Mai festival and the Tourism Department promote and attract tourist to visit Chiang Mai. So this is an opportunity to increase the sale and make a profit of our company. Winter season (Octobers to February), this is high season of Chiang Mai there are many place and festival on winter such as mountain for touch cold weather, Loy Kra Tong festival, Christmas and New year festival. So the sale revenue on this period is highest because many tourists visit to Chiang Mai. Our company has promotion to attract customers such as Bill Board, Brochure and etc. Although the cost of marketing in high season is too high, the company still pays this cost because this season is high opportunity to make a profit.

     

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Summer season (March to May), this season is moderate sale but in April has SongKran festival. This festival can be attracting tourist to visit but it is a short period. We still advertise our Bill Board and Brochure to continue our sale revenue. We believe that we can increase sale from Song-Kran festival as much as possible. Rainy season (June to September), the sale revenue of this season is rarely low. The sale is decline. So we offer the 20% sale discount in rainy season for influence customer demand and sustain the level of sale not too decrease sharply. Moreover, we plan to deal with travel agency to increase and expand the market.

     

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Chapter 4 Technical Analysis

Chapter 4 Technical Analysis

     

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4.1 Production and Operation Analysis 4.1.1. Product Characteristic Stone Number Picture Description Ruby 1 Cubic zirconia sphere 24 sphere 24 1,450 Cutting Stone pieces Price

Ruby 2 Cubic zirconia

sphere

18 1,300

sphere

18

Ruby 3 Cubic zirconia

square

5 850

sphere

3

4

Blue topaz

sphere

1

1,600

5

Blue topaz

Drop

2

1,500

6

topaz

sphere

11

950

     

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Turquoise 7 Cubic zirconia

sphere

1 1,600

sphere

12

Amethyst 8 Cubic zirconia

Drop

1 1,100

sphere

12

9

Garnet

sphere

3

1,600

10

Sapphire

sphere

11

1,150

11

Ruby

Square

28

1,700

Sapphire 12 Cubic zirconia

Drop

2 1,550

sphere

4

13

Cubic zirconia

Square

14

1,800

     

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14

Cubic zirconia

Square

2

1,200

Turquoise 15 Cubic zirconia

Fancy

4 2,200

Sphere

32

16

Topaz

Square

12

1,700

Blue topaz 17 Cubic zirconia

Drop

2 1,750

Sphere

36

18

Peridot

Sphere

2

1,350

19

Amethyst

Sphere

2

1,350

20

Cubic zirconia

Sphere

18

1,750

     

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21

Cubic zirconia

Sphere

24

2,200

22

Cubic zirconia

Sphere

64

2,700

Amethyst Blue topaz Citrine 23 Garnet Peridot Cubic zirconium Ruby 24 Cubic zirconium

Egg shape Egg shape Egg shape Egg shape Egg shape Sphere Egg shape

2 2 2 2,860 2 2 9 1 3,160

Sphere

42

Natural 25 Turquoise shape 2,050

26

Cubic zirconium

Sphere

4

2,200

     

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Egg Peridot sphere 27 Peridot Pink marine Amethyst 28 Cubic zirconium Sphere 7 Square Sphere Egg shape 2 6 3 4,500 2,700 1

29

Ruby

Egg shape

40

4,700

Table 4.1 Product Characteristic

     

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Figure :4.1 service process

4.1.2. Service process Service mind is our heart. To customers satisfaction and make customer royalty. We service to customer before sale to advice to customers. During the sale we talking friendly with customer and pay correct information and the last after sale service we think this most important because make customers impress. We emphasize in dressing of sale person because make customers feel good in first sight; we have Lan-na style dressing. We train our sale person to respect, give value and take care customer always we have clean service for customer who are buy jewelry form our shop customer can clean your jewelry free. • Step of process service Before sale service a. When the customer come to the shop. customer assistant welcome and invite to

customers.

     

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During sale service Sale assistant ask customer about “what kind of product do you want” a. Customer asks about product detail.

- Talking friendly with customer and give correct information to customer. - Customer assistant advise to customer about the product when customer don’t clear about it. - When customers agree and satisfy in product. - Customer purchase product. After sale service. - When after purchased, customers have a problem about the product, they can return to consult with customer assistant. - We focus on service mind - Customer will return to purchase our product.

4.1.3. Location Soul of Beauty situated on Kalare Night Bazaar, Chang Klan Road Chiang Mai. It is a trading center and meeting point for both Thai and foreigners as well as to show arts and culture and main road for business in Chiang Mai, surrounded by many big projects and five star hotels.

     

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Figure 4.2 Soul of Beauty location

Figure 4.3 Soul of beauty shop

     

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4.1.4. Facility Layout

Figure 4.4 Plan of shop ●Structure of store

Figure 4.5 3D layout of the shop
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Figure 4.. 3Dlayout in front of shop

Figure 4.7 3Dlayout from side of shop Store building has 1 floor size 4X4 meters. The front of the shop decorates with clear glass and integrates Lanna style. The door made by wood and clear glass. The billboard of the company made by acrylic name “Soul of Beauty”
     

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●Inside of store

Figure 4.8 3Dlayout from be hind shop There are 3 parts of space, first the space for show the product in front of the shop for the customer passes or enters the shop and they can see the product. It made by glass cabinet. Second customer service zone for entertain the customer. This zone has sofa, air conditioner, television and other convenience tool. And the last zone is kitchen for staff. 4.1.5 Machine/Tools/Equipment Computer set HP MS238L: • • • • • • •
     

19150 ATHLON II Dual Core250U,1.6GHz Memory RAM 2048MB,DDR2,FSB 800MHz Hard Disk 750GB,7200RPM DVD-RW,Lightscribe,DL,6XUSB2.0 Graphic on Board,1.3M Webcam & Mic 18.5" Widescreen LCD Operation System DOS

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• • • •

10/100 Wireless 802.11B/G/N Power 450 Watts Price: 19,150 baht

BROTHER MFC-J220

Convenient Built-in Fax. No PC required sending and receiving documents.

1.9’ Color LCD Display. For viewing images and easy menu navigation.

Direct Photo Printing on Demand. Print photos on demand directly from your media cards.

• •

Fast Color Printing. With speeds up to 33ppm black and 27ppm color. Versatile Scanning Capabilities. Easy to use scanning software and ability to scan directly to your media cards.

Flatbed Copying and Scanning. Flatbed copier allows you to copy bound, thick or odd shaped documents

Professional Printing Resolutions. With droplet sizes as small as 1.5 picoliters and high resolutions up to 6000 x 1200dpi.

• • •

4-Cartridge Ink System. Only change the cartridge that needs to be replaced. Energy Star Qualified. Price: 3,590 baht

     

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Chair ADDA BI-CAST/WT • • Size: 45 * 61.5 * 93.6 CM Price: 2,990 baht

Computer Table PROVENCE • • Size 120 * 60* 75 cm Price: 4,990 baht

FAX BROTHER -235S • • • • • • Auto cut paper (fax, photocopying, and answering machine) send a time sheet 10 bit Automated calls to 64 numbers Protection bent paper Splitters Tel / Fax: automatically Price 3,290 baht

Sofa BICAST • Seat and back covered with BI-CAST as cariesfree storage. Easy to clean. • • • The comfortable design is ergonomic. Use a sponge, standard export quality. Price: 15,900 baht

     

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Coffee Table • • Size: 80 * 45 * 40 cm. Price: 2,790 Baht

Air- Conditioner HITACHI RAS- RAS-S18CZT • Size 20142 BTU • Disinfection of bacteria with light & UV • Nano Titanium filter discs eliminate bacteria and odor quickly • Speed Cool cooling system, accelerate faster • Silent Cool system noise reduction • 2-way air distribution system • Panel cooling large increases in thermal efficiency • Label low fiber 5 • Power 2,000 watts • Price 30,990 baht

     

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Electrical fan Hatari HA-P18M1 • • • • • • • Fan Type Floor Color Dove Gray 18-inch blade Adjust the wind has 3 levels System Thermo Fuse Power 78 Watts Price 1,858 baht

Drinking water machine SANYO SWC-591CS • • • • • • • • • To drink hot and cold water Cooling with compressor of high quality Automatic temperature control system Containing water volume Electrical short-circuit protection Beautiful shape, easily installed Power cooling 125 watts Power 450 watts of heat Price 4,990 baht

     

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Refrigerator TOSHIBA GR-B183ZPP • • • • • • • • • • Refrigerator 1 door, size 6.5 queue Cooling System No Frost Dispatch cooler Cool Air Wrap. Odor removal system, a Hybrid Plasma Freezer capacity 31 liters Type of safety glass shelves Defrost System Automatic Power 220 watts Size 56x125x57cm. Price 4,994baht

Phone SIEMENS GI A490 SIG • Price: 1,590 baht

Safe Prosafes Platinum PMS-601 • • Safe secure extra thick steel Size: Outside: 581 x 631 x 835 mm. Inside: 438 x 425.5 x 695 mm. • • Net weight: 380 kgs. Price: 24,900 baht

     

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SONY LCD TV KLV-32EX500 • • • • • LCD TV 32 " Motionflow100Hz for smoother motion picture without interruption Resolution screen Full HD 2 million pixels (1920x1080) Dynamic Contrast 150,000:1 BRAVIA Engine 3 to improve the quality of the image is always sharp • Intelligent Picture Plus noise reduction. For viewing TV sharper • • • Scene Select System Preferences by automated video and audio types of items to watch Power 112 Watts Price: 16,990 baht

Set of FUJIKO CCTV • • • • FK-8880 FK-NEW204YO FK-600 Price of set 13,500 baht

CASIO 130CR-S 5500 • • • • Journal or receipt printing selection Received on account/Paid-out functions Error correction Refund mode for recording of the returned goods

     

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• • • • • • •

Percentage and discount amount Battery backed up for memory protection Time and date display Lockable cash drawer Security system Easy and quick programming Price 5,500 baht

Portable Dry Chemical Fire Extinguisher SATURN "SATURN" is available online. Easy to use and safe to all types of fire • Price 1500 baht

Calculator SHARP EL-330A • • • Display size 8 primary Tax calculations Price 219 baht

Chandelier Emperor • Metal + glass tube Champa burning candles or E14 Max 40 watt • Price: 9,900 baht

     

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Stapler Aroma HD-10NR • Price: 50 baht

Stapler Max • Price: 45 baht

Punch machine DP-500 • • Price: 139 baht

Cutter • • Size of blade 18 mm Price: 34 baht

Blade • • Size of blade 18 mm Price: 21 baht

     

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Scissors • Price: 27 baht

Ruler • Price: 6 baht

Bill spit • • Size: 8 cm. Price: 20 baht

A4 Paper • Price: 545 baht for 3 each

Adding paper Thermal • Price: 120 baht

     

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Clip file • • Size 240 x 350 mm Price: 40 baht

Plug • • • • Channel 4 slot Cable length 2 m. Supports 2500 watts load The plug is made of plastic rail PC (Poly Carbonate) and ABS heat resistant non-combustible • Price: 365 baht

Liquid paper • Price: 53 baht

Pen • Price: 20 baht

Table • • Size 121x61x74.3 cm Price: 1960 baht

     

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4.1.6 Logistics Management Logistics is the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements." Note that this definition includes inbound, outbound, internal, and external movements, and return of materials for environmental purposes. -- (Reference: Council of Logistics Management, http://www.clm1.org/mission.html, 12 Feb 98) Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software. -- (Wikipedia 2011) • Our product Transportation Our company choose Thai Post as a delivery way. By the way we set date and time with the shop that we have been engaged in jewelry design and delivery on time. The service that we choose from Thai Post is a special register which safety for our product. We get our order by deal directly to the shop if the product is very high value or sensitive.

Figure 4.9 Transportation Postal services and related business continuity. Good quality fast time in the appropriate fee. Marketing is focused on aggressive marketing to create satisfaction with Customers at all levels. Financial and investment Committed to the self-reliant in terms of

     

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financial and investment expansion in the future. Human resource personnel to effectively manage and promote the welfare of various appropriate. Administration and management. Aspect that facilitates the operation in terms of business. We have selected two types of transportation is via EMS delivery is Postal items will be sent via an express delivery system. With our special and separate EMS system, you can be confident that your mail will be delivered to recipients speedily and safely. Thailand Post is pleased to repay service fees if we can’t meet our mail delivery standard. In case there is any loss or damage caused by Thailand Post, we will provide compensation, and Domestic Parcel delivery is a package of items, products or product samples addressed to domestic recipients.

     

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Transportation rate

Rate of Product in Thailand Weight 100 g. 200 g. 300-500 g. 600-1000 g. 1100-1500 g. 1600-2000 g. 2100-2500 g. 2600-3000 g. 3100-4000 g. 4100- 4500g. 4600-5000 g. 5100-5500 g. 5600-6000 g. 6100-6500 g. 6600-7000 g. 7100-7500 g. 7600-8000 g. 8100-8500 g. 8600-9000 g. 9500-10000 g. 10000-15000 g. 16000-20000 g. 21000-25000 g. 26000-30000 g. EMS 32 37 47 62 77 92 107 122 142 182 202 227 252 277 302 327 352 382 412 472 487 562 Parcel post 20 20 20 25 45 45 50 50 65 80 80 65 95 110 110 125 125 140 140 155 180 245 385 460

Table 4.2 Rate of product in Thailand

     

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4.1.7 Machine/Tools/Equipment Jewelry cleaner Equipment • Digital Ultrasonic Cleaner CMT-2385

 

CMT-2385 the Ultrasonic cleaning is faster, more thorough, and safer than any other cleaning method. It is powerful enough to remove heavy oils, waxes, or proteins, penetrating deep enough to de-flux circuit boards, yet gentle enough to clean delicate precision assemblies. It is leak-proof, easy to handle, and safe to fill. The new degas feature is especially helpful at start-up and the mechanical timer models allow you to set a full cleaning cycle with one quick twist. The advanced digital models will feature a microprocessor controlled thermostat and digital readout which offers you maximum control of the cycle time and temperature all in one setting. With a touch of the control you can set and monitor exact cleaning cycles for up to 99 minutes. Each of the models is available with the following features allowing you to choose the unit that best suits your needs:

     

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· Tightened lid design for effective noise reduction · Improved products durability and safety by water resistance capability enhancement · Cleans discs such as CDs, VCDs, DVDs, etc. · Use only plain tap water to clean · Remove dirt effectively; results can be seen with bare eyes! · Articles to shine just like new Dimensions Tank Size Standard plug* Power Supply Timer setting 90s Power Individual packing 50W (220V) Color box 210x158x125mm 750 ml A AC 220V 50/60Hz 5 cycles: 180s, 280s, 380s, 480s,

Applications: · Discs Cleaning CDs, DVDs, VCDs, etc. · Jewelry and Watches Necklaces, Earrings, Rings, Bracelets, Coins, Watches Straps and Bands etc. · Eye Care Glasses, Sunglasses, Contact Lens Accessories

     

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· Daily Personal Care Dentures, Combs, Toothbrushes, Table Wares . Price 5,280.00 Bath • Jewelry Cleaner

De Bois is high Quality Product for cleaning of diamond, gold and precious gems ornaments and watches. It dissolves dirt without damaging the jewelry. Add shine and sparkle to the jewelry with refreshing fragrance. No ammonia or any acidic ingredients that may cause skin irritation. Environmentally friendly De Bois jewelry cleaner Weight: 100 grams Price 200 Bath • Jewelry boxe

s A & D Package and card Ltd.

     

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Made and designed cards, box jewelry, Standard display products, the price tag, plastic molding, etc. made with PVC, PP, paper, leather, velvet, foam, sponge printing with hot stamp, silkscreen, offline. Set manufacturers and made to order package. And jewelry display Chi Jewelry and Hair Accessories. 28/166-8 Soi 34 Ekachai Road, Bang Khun Thian District, Chom Thong, Bangkok 10150. Tell: 02-8932546-7, 02-3338960-2 Fax: 02-8932135. E-mail: aanddpackage@hotmail.com. URL: http://www.aanddpackage.co.th Ring velvet boxes

5.2 cm x5.8cm x4.5 cm [length x width x height] Price 450Bath per/1dozen

     

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Bracelet/Necklace/ Claspvelvet boxes .13.7 cm x12.5cm x4.5 cm [length x width x height] . Price 650 Bath per/1dozen

Pouches .12 cm x14cm [length x width] . Price 90 Bath per/1dozen .10 cm x10cm [length x width] . Price 75 Bath per/1dozen .7 cm x 8 cm [length x width] . Price 54 Bath per/1dozen 4.2 Cost of investment 4.2.1. Pre-Operating cost ●Prepaid for Rent The rental cost of store is about 30,000 baht per month and has to prepaid 3 month so the company has to pay 90,000 baht

     

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●Billboard of Company The Billboard of company made by acrylic and English character “SOUL OF BEAUTY” the size of billboard about 1x0.3 meter and the cost of Billboard is about 5,000 baht Organization Contact: BOSS Creative & Organizer Email: kangboss9999@hotmail.com Tel.081-8850384

Figure 4.10. Billboard of the shop ●Billboard tax The Billboard of Soul of Beauty is English font and pay for English Billboard at 40 Baht per 500 square centimeters. Soul of Beauty Billboard size 1X0.3 meters or 3,000 square centimeters so the company has to pay 240 baht. Organization contact: Chiang Mai municipality Document for tax payment; -Copy of rent contract -Copy of personal identification card -Certificate -License to set Billboard

     

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●Registration Company limited registration under the name Soul of Beauty Company Limited and the business registration is 2,000,000 so the registration fee is 10,000 baht. Organization contact: Department of Business Development Chiang Mai province. -Document fee (Commercial registration50 Baht) -Copy of Identity Card -Company address -Contract of rent ●Mark of Company Soul of Beauty is a company limited so the company has to create the mark or sign of company. A sign of company is SB. It means Soul of beauty and order on online shop (www.trayang-online.com). The cost is 300 baht (Free transportation fee) E-mail: trayang_on_line@hotmail.com ●Cost of clear glass door The door made by clear glass. The size of door is 1.6X2.0 meter so the cost of door is about 6,400 baht. ●Cost of clear glass (Front of store) The size of glass in front of the store is 1.8X2 meter 2 pieces. The cost of clear glass in the front of store is about 12,800 baht ●Cost of build in of glass cabinet

     

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The glass cabinet for show the products, we hire the interior to build and design the cabinet. The cost of build in is about 18,000 baht per each. ●Cost of setting telephone and internet (3,700 baht) The document for setting telephone as follow: copy of identification card, certificate of company limited and all of document need to company sign. No 1 2 3 4 5 6 7 8 9 10 Description Billboard Company sign Company limited registration Billboard tax Doors Clear glass Glass cabinet Telephone and internet setting Prepaid for rent Meter of electricity Total Price 5,000 300 10,050 240 6,400 12,800 72,000 3,700 60,000 2,140 172,630

Table 4.3 Pre-Operation cost

     

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4.3 Investment cost 4.3.1. Equipment and Tools No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Description No. Product Price/Unit Computer 1 19,150 Printer 1 3,590 Chair 4 2,990 Computer table 1 4,990 Fax 1 3,290 Sofa 1 15,900 Coffee table 1 2,790 Air conditioner 1 30,990 Fan 1 1,858 Drinking water machine 1 4,990 Refrigerator 1 4,990 Phone 1 1,590 Safe 1 24,900 Television 1 16,990 TV table 1 4,590 Computer Chair 1 1,550 Camera CCTV 2 13,500 cash register 1 5,500 Portable dry chemical fire 1 1,500 Chandelier 1 9,900 Total Table 4.4 : Total of office element Description Ring size Mirror Finger size Platform necklet Total No. Product 1 2 1 10 Price/Unit 450 1,000 150 150 Total 19,150 3,590 11,960 4,990 3,290 15,900 2,790 30,990 1,858 4,990 4,990 1,590 24,900 16,990 4,590 1,550 27,000 5,500 1,500 9,900 198,018

No 1 2 3 4

Total 450 2,000 150 1,500 4,100

Table 4.5: Total of Equipment No 1 2 Description Digital Ultrasonic Cleaner Jewelry clener Total No. Product 1 2 Table 4.6: Total of Machine Price/Unit 5,280 200 Total 5,280 400 5,680

     

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4.3.2 Depreciation
Table 4.7: Total Depreciation Year 2011 Operating
Cleaner Machine Digital Ultrasonic Cleaner Jewelry cleaner Total Amount 5,280 200 5,480 JAN 88 3 91 FEB 88 3 91 MAR 88 3 91 APR 88 3 91 MAY 88 3 91 JUN 88 3 91 JUL 88 3 91 AUG 88 3 91 SEP 88 3 91 OCT 88 3 91 NOV 88 3 91 DEC 88 3 91 Total 1,056 36 1,092

Equipment Ring size Mirror Finger size Platform necklace Total Total operating depreciation

Amount 450 1,000 160 150 1,760 7,240

JAN 7 17 3 2 29 120

FEB 7 17 3 2 29 120

MAR 7 17 3 2 29 120

APR 7 17 3 2 29 120

MAY 7 17 3 2 29 120

JUN 7 17 3 2 29 120

JUL 7 17 3 2 29 120

AUG 7 17 3 2 29 120

SEP 7 17 3 2 29 120

OCT 7 17 3 2 29 120

NOV 7 17 3 2 29 120

DEC 7 17 3 2 29 120

Total 84 204 36 24 348 1,440

Administration

Amount

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

Pre-investment cost Billboard Mark of company Clear glass door Clear glass at front of store Build in of glass cabinet Total 5,000 300 6,400 12,800 72,000 96,500 83 5 107 214 1,20 0 1,60 9 83 5 107 214 1,20 0 1,60 9 83 5 107 214 1,200 1,609 83 5 107 214 1,20 0 1,60 9 83 5 107 214 1,200 1,609 83 5 107 214 1,20 0 1,60 9 83 5 107 214 1,20 0 1,60 9 83 5 107 214 1,200 1,609 83 5 107 214 1,20 0 1,60 9 83 5 107 214 1,20 0 1,60 9 83 5 107 214 1,200 1,609 83 5 107 214 1,20 0 1,60 9 996 60 1,284 2,568 14,400 19,308

Office Computer Printer Chair Computer table Fax Sofa Coffee table Air conditioner Fan Drinking water machine Refrigerato r

Amount 19,150 3,590 2,990 4,990 3,290 15,900 2,790 30,990 1,858 4,990 8,190

JAN 531 60 50 83 55 265 47 516 31 83 136

FEB 531 60 50 83 55 265 47 516 31 83 136

MAR 531 60 50 83 55 265 47 516 31 83 136

APR 531 60 50 83 55 265 47 516 31 83 136

MAY 531 60 50 83 55 265 47 516 31 83 136

JUN 531 60 50 83 55 265 47 516 31 83 136

JUL 531 60 50 83 55 265 47 516 31 83 136

AUG 531 60 50 83 55 265 47 516 31 83 136

SEP 531 60 50 83 55 265 47 516 31 83 136

OCT 531 60 50 83 55 265 47 516 31 83 136

NOV 531 60 50 83 55 265 47 516 31 83 136

DEC 531 60 50 83 55 265 47 516 31 83 136

Total 6,372 720 600 996 660 3,180 564 6,192 372 996 1,632

     

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Phone Safe Television TV table Computer Chair Camera CCTV cash register Portable dry chemical fire Chandelier Total Total admin depreciatio n

1,590 24,900 16,990 4,590 1,550 13,500 5,500

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

27 415 283 76 26 225 92

324 4,980 3,396 912 312 2,700 1,104

1,500 9,900 178,748

25 165 3,19 1

25 165 3,191

25 165 3,191

25 165 3,191

25 165 3,191

25 165 3,191

25 165 3,191

25 165 3,191

25 165 3,191

25 165 3,191

25 165 3,191

25 165 3,191

300 1,980 38,292

275,248

4,80 0

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

57,600

Table 4.8: Total Depreciation Year 2012 Operating Cleaner Machine Digital Ultrasonic Cleaner Jewelry clener Total Amount 4,224 164 4,388 JAN 88 3 91 FEB 88 3 91 MAR 88 3 91 APR 88 3 91 MAY 88 3 91 JUN 88 3 91 JUL 88 3 91 AUG 88 3 91 SEP 88 3 91 OCT 88 3 91 NOV 88 3 91 DEC 88 3 91 Total 1,056 36 1,092 Total 84 204 36 24 348 a Total

Equipment Ring size Mirror Finger size Platform necklet Total Total operating depreciation
Administration Pre-investment cost Billboard Mark of company Clear glass door Clear glass at front of store Build in of glass cabinet Total

Amount 366 796 124 126 1,412

JAN 7 17 3 2 29

FEB 7 17 3 2 29

MAR 7 17 3 2 29

APR 7 17 3 2 29

MAY 7 17 3 2 29

JUN 7 17 3 2 29

JUL 7 17 3 2 29

AUG 7 17 3 2 29

SEP 7 17 3 2 29

OCT 7 17 3 2 29

NOV 7 17 3 2 29

DEC 7 17 3 2 29

5,800 Amount

120 JAN

120 FEB

120 MAR

120 APR

120 MAY

120 JUN

120 JUL

120 AUG

120 SEP

120 OCT

120 NOV

120 DEC

4,004 240
5,116 10,232 57,600 77,192

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

83 5
107 214 1,200 1,609

996 60
1,284 2,568 14,400 19,308

     

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Amount Computer Printer Chair Computer table Fax Sofa Coffee table Air conditioner Fan Drinking water machine Refrigerator Phone Safe Television TV table Computer Chair Camera CCTV
cash register Portable dry chemical fire

JAN 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

FEB 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

MAR 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

APR 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

MAY 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

JUN 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

JUL 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

AUG 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

SEP 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

OCT 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

NOV 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

DEC 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

Total 6,372 720 600 996 660 3,180 564 6,192 372 996 1,632 324 4,980 3,396 912 312 2,700 1,104 300 1,980 38,292

12,778 2,870 2,390 3,994 2,630 12,720 2,226 24,798 1,486 3,994 6,558 1,266 19,920 13,594 3,678 1,550 13,500 5,500 1,200 9,900 146,552

Chandelier Total Total admin depreciation

223,744

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

57,600

Table 4.9: Total Depreciation Year 2013
Operating Cleaner Machine Digital Ultrasonic Cleaner Jewelry clener Total Amount 3,168 128 3,296 JAN 88 3 91 FEB 88 3 91 MAR 88 3 91 APR 88 3 91 MAY 88 3 91 JUN 88 3 91 JUL 88 3 91 AUG 88 3 91 SEP 88 3 91 OCT 88 3 91 NOV 88 3 91 DEC 88 3 91 Total 1,056 36 1,092

Equipment Ring size Mirror Finger size Platform necklet Total

Amount 282 592 88 102 1,064

JAN 7 17 3 2 29

FEB 7 17 3 2 29

MAR 7 17 3 2 29

APR 7 17 3 2 29

MAY 7 17 3 2 29

JUN 7 17 3 2 29

JUL 7 17 3 2 29

AUG 7 17 3 2 29

SEP 7 17 3 2 29

OCT 7 17 3 2 29

NOV 7 17 3 2 29

DEC 7 17 3 2 29

Total 84 204 36 24 348

Total operating depreciation

4,360

120

120

120

120

120

120

120

120

120

120

120

120

1,440

     

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Administration Pre-investment cost Billboard Mark of company Clear glass door Clear glass at front of store Build in of glass cabinet Total

Amount

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

3,008 180 3,832 7,664 43,200 57,884

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

996 60 1,284 2,568 14,400 19,308

Office Computer Printer Chair Computer table Fax Sofa Coffee table Air conditioner Fan Drinking water machine Refrigerator Phone Safe Television TV table Computer Chair Camera CCTV cash register Portable dry chemical fire Chandelier Total

Amount 6,406 2,150 1,790 2,998 1,970 9,540 1,662 18,606 1,114 2,998 4,926 942 14,940 10,198 2,766 1,550 13,500 5,500 900 9,900 114,356

JAN 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

FEB 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

MAR 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

APR 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

MAY 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

JUN 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

JUL 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

AUG 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

SEP 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

OCT 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

NOV 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

DEC 531 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 3,191

Total 6,372 720 600 996 660 3,180 564 6,192 372 996 1,632 324 4,980 3,396 912 312 2,700 1,104 300 1,980 38,292

Total admin depreciation

172,240

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

4,800

57,600

Table 4.10: Total Depreciation Year 2014
Operating Cleaner Machine Digital Ultrasonic Cleaner Jewelry clener Total Amount 2,112 92 2,204 JAN 88 3 91 FEB 88 3 91 MAR 88 3 91 APR 88 3 91 MAY 88 3 91 JUN 88 3 91 JUL 88 3 91 AUG 88 3 91 SEP 88 3 91 OCT 88 3 91 NOV 88 3 91 DEC 88 3 91 Total 1,056 36 1,092

Equipment

Amount

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

     

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Ring size Mirror Finger size Platform necklet Total

198 388 52 78 716

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

7 17 3 2 29

84 204 36 24 348

Total operating depreciation

2,920

120

120

120

120

120

120

120

120

120

120

120

120

1,440

Administration Pre-investment cost Billboard Mark of company Clear glass door Clear glass at front of store Build in of glass cabinet Total

Amount

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

2,012 120 2,548 5,096 28,800 38,576

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

996 60 1,284 2,568 14,400 19,308

Office Computer Printer Chair Computer table Fax Sofa Coffee table Air conditioner Fan Drinking water machine Refrigerator Phone Safe Television TV table Computer Chair Camera CCTV cash register Portable dry chemical fire Chandelier Total

Amount 1,430 1,190 2,002 1,310 6,360 1,098 12,414 742 2,002 3,294 618 9,960 6,802 1,854 1,550 13,500 5,500 600 9,900 82,126

JAN 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

FEB 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

MAR 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

APR 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

MAY 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

JUN 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

JUL 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

AUG 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

SEP 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

OCT 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

NOV 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

DEC 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92 25 165 2,660

Total 720 600 996 660 3,180 564 6,192 372 996 1,632 324 4,980 3,396 912 312 2,700 1,104 300 1,980 31,920

Total admin depreciation

120,702

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

51,228

     

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Table 4.11: Total Depreciation Year 2015
Operating Cleaner Machine Digital Ultrasonic Cleaner Jewelry clener Total Amount 1,056 56 1,112 JAN 88 3 91 FEB 88 3 91 MAR 88 3 91 APR 88 3 91 MAY 88 3 91 JUN 88 3 91 JUL 88 3 91 AUG 88 3 91 SEP 88 3 91 OCT 88 3 91 NOV 88 3 91 DEC 88 3 91 Total 1,056 56 1,112

Equipment Ring size Mirror Finger size Platform necklet Total

Amount 114 184 16 54 368

JAN 7 17 3 2 29

FEB 7 17 3 2 29

MAR 7 17 3 2 29

APR 7 17 3 2 29

MAY 7 17 3 2 29

JUN 7 17 3 2 29

JUL 7 17 3 2 29

AUG 7 17 3 2 29

SEP 7 17 3 2 29

OCT 7 17 3 2 29

NOV 7 17 3 2 29

DEC 7 17 3 2 29

Total 114 184 16 54 368

Total operating depreciation

1,480

120

120

120

120

120

120

120

120

120

120

120

120

1,480

Administration Pre-investment cost Billboard Mark of company Clear glass door Clear glass at front of store Build in of glass cabinet Total

Amount

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

1,016 60 1,264 2,528 14,400 19,268

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

83 5 107 214 1,200 1,609

1,016 60 1,264 1,528 14,400 18,268

Office Computer Printer Chair Computer table Fax Sofa Coffee table Air conditioner Fan Drinking water machine Refrigerator Phone Safe Television TV table Computer Chair Camera CCTV cash register

Amount 710 590 1,006 650 3,180 534 6,222 370 1,006 1,662 294 4,980 3,406 942 1,550 13,500 5,500

JAN 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

FEB 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

MAR 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

APR 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

MAY 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

JUN 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

JUL 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

AUG 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

SEP 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

OCT 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

NOV 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

DEC 60 50 83 55 265 47 516 31 83 136 27 415 283 76 26 225 92

Total 710 590 1,006 650 3,180 534 6,222 370 1,006 1,662 294 4,980 3,406 942 1,550 13,500 5,500

     

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Portable dry chemical fire Chandelier Total

300 9,900 56,302

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

25 165 2,660

300 9,900 56,302

Total admin depreciation

75,570

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

4,269

75,570

4.4 Management Analysis 4.4.1. Organization Management Soul of beauty we are family work. We have activities among employees in each department. In each department is high responsibility to work. Every day we have meeting before and after work. Chairman must talk with employees for make relationship in organization. We train employee by we think they are one in our family. In every monday employees ware company shirts.

Figure: 4.11. Shirt of staff

     

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4.4.2. Organization chart

Figure 4.12. Organization chart • Position and character Soul of beauty shop have total of employee amount 7 people and the below is show descript the Position and character 1. CEO CEO is more important for organization. They are will be high responsible in the organization. Administration who has good human relation, good management, more intelligence and experiences, good vision and good in strategy. Character - Male or Female - More than 26 years old - Bachelor degree up - Work experience more than 2 year - High responsibility, good skill in Microsoft office.
     

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- Good relationship and good skill in management. 2. General Manager Have more skill in training the employee and can control work of employee to be system and effective. Prepare for company working plan and selection new employees into the appropriate position. Character - Male or female - Age 24 - 30 years - Graduate bachelor degree in school of management. - Have computer skill - Can do many works in the same time. - High responsibility in work and good relationship. - Good communicate to work with other person. 3. Marketing manager Managing for product and service to customers satisfaction and analysis market trend form seasoning. Do marketing and advertising and continuous to fine new customer. Character - Male or Female. - Age 24 - 30 years. - Bachelor degree with the major is marketing or relate major. - Work experience more than 2 years. - Have computer program skill. - Good personality and relationship. - Have negotiation skill.

     

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4. Financial Financial have a responsible for revenue and expense of Soul of beauty. High skill of financial and high responsibility. Managing the budget for make a finance spending complies with regulation. Character - Male or Female. - More than 24 years old. - Bachelor degree up in accounting. - Work experience more than 2 years - Good experience in financial. - Good skill on account program in computer. - Can analysis the liquidity and financial of company. - High responsibility. - Have patience, enthusiasm and integrity. - To be honest on work. 5. Sale manager For increase sale sale manager do marketing and make advertising to promote the shop. Analysis market trend from seasoning and managing for product and service to customers satisfaction. Character - Male or Female - Age 24 - 30 - Bachelor degree in marketing major or relate major.

     

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- Work experience more than 2 years. - Computer program skill. - High negotiation skill and relationship skill. - Good personality. 6. Customer assistant We focus on service mind. Sale person is important because they make customer royalty in our products. So sale person need to good relationship with customers, this is important. Character - Female - Age more than 20 years. - Secondary school degree or Vocation education level up with relate to the major was learn. - Work experience more than 1 year. - Friendly personality can speak English. - High responsibility, body active and calculate skill.

     

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4.4.3. Administration cost

     

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4.5 Technical feasibility conclusion “Soul of Beauty” is Soul of beauty has several products and categorize in 3 big groups that offer to customer selection that different life style and preferred. Creating image of quality products and customer can order product by their own design. Soul of Beauty jewelry has created a new jewelry design up to date fashionable and still keep quality, identity and valuable and have service mine for make our customer satisfy and respond our customer’s want. We give attention to every detail of services for both during sale and after sale services. We select high skill salesperson and they can speak several languages to service foreign tourists. We have clean jewelry service to customers, whether they buy from anywhere. We are pleased to advice and fain for customers in any time. Our shop have credit card service, this service is high security to offer confidence to our customers. And create an atmosphere in the shop that our customer can feel good and know how they impotent because we take care to customer and we try to make convenience to customers to satisfaction and feel happily. By create beautifully and modern decoration all equipment and utility in the shop we concern about quality and convenience for customer. Our shop building on Kalare Night Bazaar is located on 7 raise piece of land in night bazaar area in zone G this area for souvenir jewelry and handicrafts. We choose this area because it is the main road for business in Chiang Mai, surrounded by many big projects and five star hotels and trading center and meeting point for both Thai and foreigners. Moreover, this area is convenience to our customer to shop several of shops and products. In the part of management divide in to pre-operation period and operation period, first we select standard construction material because we concern about safety. Moreover, we try to create good atmosphere to attract the customer and build the brand image tend to be modern. The interior aims to dark tone for enhance our product saliently. Second we set the internet for

     

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communicate with supplier or customer and fast up date information. Then any facilities all invest for create the best things for customer and support our operation run smoothly.

 

     

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Chapter 5 Financial Analysis

     

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Chapter 5 Financial Analysis
Interest 60 month Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Principle 2,000,000 1,973,483 1,946,768 1,919,852 1,892,734 1,865,413 1,837,887 1,810,154 1,782,213 1,754,063 1,725,702 1,697,128 1,668,340 1,639,336 1,610,114 1,580,673 1,551,012 1,521,127 1,491,019 1,460,685 1,430,124 1,399,333 1,368,311 1,337,057 1,305,568 1,273,843 1,241,880 1,209,677 1,177,233 1,144,546 1,111,613 1,078,434 1,045,005 1,011,326 977,394 943,208 908,765 874,064 839,103 803,880 768,392 732,638 696,616 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 15,000 14,801 14,601 14,399 14,196 13,991 13,784 13,576 13,367 13,155 12,943 12,728 12,513 12,295 12,076 11,855 11,633 11,408 11,183 10,955 10,726 10,495 10,262 10,028 9,792 9,554 9,314 9,073 8,829 8,584 8,337 8,088 7,838 7,585 7,330 7,074 6,816 6,555 6,293 6,029 5,763 5,495 26,517 26,716 26,916 27,118 27,321 27,526 27,733 27,941 28,150 28,361 28,574 28,788 29,004 29,222 29,441 29,662 29,884 30,108 30,334 30,562 30,791 31,022 31,254 31,489 31,725 31,963 32,203 32,444 32,687 32,933 33,180 33,428 33,679 33,932 34,186 34,443 34,701 34,961 35,223 35,488 35,754 36,022 15,000 29,801 44,402 58,801 72,996 86,987 100,771 114,347 127,714 140,869 153,812 166,540 179,053 191,348 203,424 215,279 226,912 238,320 249,503 260,458 271,184 281,679 291,941 301,969 311,761 321,315 330,629 339,701 348,530 357,115 365,452 373,540 381,377 388,962 396,293 403,367 410,183 416,738 423,031 429,061 434,823 440,318 41,517 83,033 124,550 166,067 207,584 249,100 290,617 332,134 373,650 415,167 456,684 498,201 539,717 581,234 622,751 664,267 705,784 747,301 788,817 830,334 871,851 913,368 954,884 996,401 1,037,918 1,079,434 1,120,951 1,162,468 1,203,985 1,245,501 1,287,018 1,328,535 1,370,051 1,411,568 1,453,085 1,494,602 1,536,118 1,577,635 1,619,152 1,660,668 1,702,185 1,743,702 Payment Interest (9%) Principle payment Accu interest Total

     

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43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

660,324 623,760 586,922 549,807 512,414 474,740 436,784 398,543 360,015 321,199 282,091 242,690 202,993 162,999 122,705 82,109 41,208 0

41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517 41,517

5,225 4,952 4,678 4,402 4,124 3,843 3,561 3,276 2,989 2,700 2,409 2,116 1,820 1,522 1,222 920 616 309

36,292 36,564 36,839 37,115 37,393 37,674 37,956 38,241 38,528 38,817 39,108 39,401 39,697 39,994 40,294 40,596 40,901 41,208

445,543 450,495 455,173 459,575 463,699 467,542 471,103 474,378 477,368 480,068 482,477 484,592 486,413 487,935 489,157 490,078 490,694 491,003

1,785,219 1,826,735 1,868,252 1,909,769 1,951,285 1,992,802 2,034,319 2,075,836 2,117,352 2,158,869 2,200,386 2,241,902 2,283,419 2,324,936 2,366,452 2,407,969 2,449,486 2,491,003

Table 5.1 Interest 60 statement

     

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Income Statement (2011)

Jan Sale Cost of goods sold Gross income Operating expense Selling General & Administrative Pre-investment expense Depreciation Total operating expenses 4,505 50,994 1,609 120 61,883 200,250 60,075 140,175

Feb 200,250 60,075 140,175

Mar 100,750 30,225 70,525

Apr 100,750 30,225 70,525

May 75,475 22,643 52,833

June 67,225 20,168 47,058

Jul 75,475 22,643 52,833

Aug 100,750 30,225 70,525

Sep 100,750 30,225 70,525

Oct 183,750 55,125 128,625

Nov 213,000 63,900 149,100

Dec 213,000 63,900 149,100

Total 1,631,425 489,428 1,141,998

4,505 46,440 1,609 120 57,329

2,515 46,440 1,609 120 55,339 15,039 14,601 39

2,515 46,440 1,609 120 55,339 15,039 14,399 39

13,331 46,440 1,609 120 66,155 35,965 14,196 20,965

11,928 46,440 1,609 120 64,752 37,862 13,991 22,862

13,331 46,840 1,609 120 66,555 36,365 13,784 21,365

17,428 46,440 1,609 120 70,252 29,952 13,576 14,952

17,428 46,440 1,609 120 70,252 29,952 13,367 14,952

3,975 46,440 1,609 120 56,799

4,760 46,440 1,609 120 57,584

4,760 46,440 1,609 120 57,584

100,980 562,234 19,308 1,440 739,822 87,252 166,540 92,748

Income before interest and tax Interest expense (2,000,000)(9%) Net income(loss) for the year

18,217 15,000 3,217

22,771 14,801 7,771

16,701 13,155 1,701

27,616 12,943 12,616

27,616 12,728 12,616

Table 5.2 Income statement in Y2011

     

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Income Statement(2012)
Jan Sale Cost of goods sold Gross income Operating expense Selling General & Administrative Pre-investment expense Depreciation Total operating expenses 4,170 49,894 1,609 120 55,793 4,170 45,340 1,609 120 51,239 2,156 45,340 1,609 120 49,225 2,156 45,340 1,609 120 49,225 2,156 45,340 1,609 120 49,225 2,156 45,340 1,609 120 49,225 2,368 45,740 1,609 120 49,837 2,368 45,340 1,609 120 49,437 2,368 45,340 1,609 120 49,437 4,170 45,340 1,609 120 51,239 4,425 45,340 1,609 120 51,494 4,935 45,340 1,609 120 52,004 37,597 549,034 19,308 1,440 607,379 208,500 62,550 145,950 Feb 208,500 62,550 145,950 Mar 107,800 32,340 75,460 Apr 107,800 32,340 75,460 May 107,800 32,340 75,460 June 107,800 32,340 75,460 Jul 118,375 35,513 82,863 Aug 118,375 35,513 82,863 Sep 118,375 35,513 82,863 Oct 208,500 62,550 145,950 Nov 221,250 66,375 154,875 Dec 246,750 74,025 172,725 Total 1,879,825 563,948 1,315,878

Income before interest and tax Tax (20%) Interest expense (2,000,000)(9%) Net income(loss) for the year

90,157 18,031 12512.55 59,613

94,711 18,942 12295.02 63,474

26,235 5,247 12075.86 8,912

26,235 5,247 11855.05 9,133

26,235 5,247 11632.59 9,355

26,235 5,247 11408.46 9,580

33,026 6,605 11182.64 15,238

33,426 6,685 10955.14 15,786

33,426 6,685 10725.93 16,015

94,711 18,942 10495 65,274

103,381 20,676 10262.33 72,442

120,721 24,144 10027.93 86,549

708,499 141,700 135,428 431,371

Table 5.3 Income statement Y2012

     

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Income Statement (2013)

Jan Sale Cost of goods sold Gross income Operating expense Selling General & Administrative Pre-investment expense Depreciation Total operating expenses 6,438 49,894 1,609 120 58,061 321,875 96,563 225,313

Feb 321,875 96,563 225,313

Mar 171,000 51,300 119,700

Apr 171,000 51,300 119,700

May 166,500 49,950 116,550

June 166,500 49,950 116,550

Jul 166,500 49,950 116,550

Aug 199,000 59,700 139,300

Sep 199,000 59,700 139,300

Oct 290,250 87,075 203,175

Nov 321,875 96,563 225,313

Dec 321,875 96,563 225,313

Total 2,817,250 845,175 1,972,075

6,438 45,340 1,609 120 53,507

3,420 45,340 1,609 120 50,489

3,420 45,340 1,609 120 50,489

3,330 45,340 1,609 120 50,399

3,330 45,340 1,609 120 50,399

3,330 45,740 1,609 120 50,799

3,980 45,340 1,609 120 51,049

3,980 45,340 1,609 120 51,049

5,805 45,340 1,609 120 52,874

6,438 45,340 1,609 120 53,507

6,438 45,340 1,609 120 53,507

56,345 549,034 19,308 1,440 626,127

Income before interest and tax Tax (20%) Interest expense (2,000,000)(9%) Net income(loss) for the year

167,252 33,450 9,792 124,010

171,806 34,361 9,554 127,891

69,211 13,842 9,314 46,055

69,211 13,842 9,073 46,296

66,151 13,230 8,829 44,092

66,151 13,230 8,584 44,337

65,751 13,150 8,337 44,264

88,251 17,650 8,088 62,513

88,251 17,650 7,838 62,763

150,301 30,060 7,585 112,656

171,806 34,361 7,330 130,114

171,806 34,361 7,074 130,371

1,345,948 269,190 101,398 975,360

Table 5.4 Income statement Y2013

     

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Income Statement(2014)

Jan Sale Cost of goods sold Gross income Operating expense Selling General & Administrative Pre-investment expense Depreciation Total operating expenses 8,098 49,894 1,609 120 59,721 404,875 121,463 283,413

Feb 354,750 106,425 248,325

Mar 242,500 72,750 169,750

Apr 242,500 72,750 169,750

May 199,000 59,700 139,300

June 144,000 43,200 100,800

Jul 199,000 59,700 139,300

Aug 242,500 72,750 169,750

Sep 242,500 72,750 169,750

Oct 339,500 101,850 237,650

Nov 367,500 110,250 257,250

Dec 404,875 121,463 283,413

Total 3,383,500 1,015,050 2,368,450

7,095 45,340 1,609 120 54,164

4,850 45,340 1,609 120 51,919

4,850 45,340 1,609 120 51,919

3,980 45,340 1,609 120 51,049

2,880 45,340 1,609 120 49,949

3,980 45,740 1,609 120 51,449

4,850 45,340 1,609 120 51,919

4,850 45,340 1,609 120 51,919

6,790 45,340 1,609 120 53,859

7,350 45,340 1,609 120 54,419

8,098 45,340 1,609 120 55,167

67,670 549,034 19,308 1,440 637,452

Income before interest and tax Tax (20%) Interest expense (2,000,000)(9%) Net income(loss) for the year

223,692 44,738 7,074 171,879

194,161 38,832 6,816 148,513

117,831 23,566 6,555 87,709

117,831 23,566 6,293 87,972

88,251 17,650 6,029 64,572

50,851 10,170 5,763 34,918

87,851 17,570 5,495 64,786

117,831 23,566 5,225 89,040

117,831 23,566 4,952 89,312

183,791 36,758 4,678 142,355

202,831 40,566 4,402 157,863

228,246 45,649 4,124 178,473

1,730,998 346,200 3,843 1,380,955

Table 5.5 Income statement Y2014

     

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Income Statement (2015)

Jan Sale Cost of goods sold Gross income Operating expense Selling General & Administrative Pre-investment expense Depreciation Total operating expenses 8,733 49,890 1,609 120 60,352 436,625 130,988 305,638

Feb 428,375 128,513 299,863

Mar 307,625 92,288 215,338

Apr 242,500 72,750 169,750

May 242,500 72,750 169,750

June 204,750 61,425 143,325

Jul 242,500 72,750 169,750

Aug 242,500 72,750 169,750

Sep 307,625 92,288 215,338

Oct 391,000 117,300 273,700

Nov 412,000 123,600 288,400

Dec 433,325 129,998 303,328

Total 3,891,325 1,167,398 2,723,928

8,568 45,340 1,609 120 55,637

6,153 45,340 1,609 120 53,222

4,850 45,340 1,609 120 51,919

4,850 45,340 1,609 120 51,919

4,095 45,340 1,609 120 51,164

4,850 45,740 1,609 120 52,319

4,850 45,340 1,609 120 51,919

6,153 45,340 1,609 120 53,222

7,820 45,340 1,609 120 54,889

8,240 45,340 1,609 120 55,309

8,667 45,340 1,609 120 55,736

77,827 549,030 18,268 1,480 646,605

Income before interest and tax Tax (20%) Interest expense (2,000,000)(9%) Net income(loss) for the year

245,286 49,057 3,561 192,668

244,226 48,845 3,276 192,105

162,116 32,423 2,989 126,704

117,831 23,566 2,700 91,565

117,831 23,566 2,409 91,856

92,161 18,432 2,116 71,613

117,431 23,486 1,820 92,125

117,831 23,566 1,522 92,742

162,116 32,423 1,222 128,470

218,811 43,762 920 174,129

233,091 46,618 616 185,857

247,592 49,518 309 197,765

2,077,323 415,465 23,461 1,638,398

Table 5.6 Income statement in Y2015

     

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Balance Sheet (2011)

Asset Current asset Cash Total current asset Fixed Asset Machine Equipment Office equipment Total fixed asset Total asset Liability and Equity Liability Long term note payable Total liability Equity Owner equity Total equity Total liability and equity

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

200,250 200,250

200,250 200,250

100,750 100,750

100,750 100,750

75,475 75,475

67,225 67,225

75,475 75,475

100,750 100,750

100,750 100,750

183,750 183,750

213,000 213,000

213,000 213,000

1,631,425 1,631,425

5,680 4,100 196,728 206,508 406,758

200,250

100,750

100,750

75,475

67,225

75,475

100,750

100,750

183,750

213,000

213,000

5,680 4,100 196,728 206,508 1,837,933

2,000,000 2,000,000

-

-

-

-

-

-

-

-

-

-

-

2,000,000 2,000,000

2,000,000 162,067 1,837,933

-

-

-

-

-

-

-

-

-

-

-

2,000,000 162,067 1,837,933

Table 5.6 Balance sheet Y2011

     

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Balance Sheet (2012)

Asset Current asset Cash Total current asset Fixed Asset Machine Equipment Office equipment Total fixed asset Total asset Liability and Equity Liability Long term note payable Total liability Equity Owner equity Total equity Total liability and equity

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

208,500 208,500

208,500 208,500

107,800 107,800

107,800 107,800

107,800 107,800

107,800 107,800

118,375 118,375

118,375 118,375

118,375 118,375

208,500 208,500

221,250 221,250

246,750 246,750

1,879,825 1,879,825

208,500

208,500

107,800

107,800

107,800

107,800

118,375

118,375

118,375

208,500

221,250

246,750

1,879,825

1,639,336 1,639,336

-

-

-

-

-

-

-

-

-

-

-

1,639,336 1,639,336 -

240,489 240,489 1,879,825

-

-

-

-

-

-

-

-

-

-

-

240,489 240,489 1,879,825

Table 5.7 Balance sheet Y2012

     

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Balance Sheet (2013)

Asset Current asset Cash Total current asset Fixed Asset Machine Equipment Office equipment Total fixed asset Total asset Liability and Equity Liability Long term note payable Total liability Equity Owner equity Total equity Total liability and equity

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

321,875 321,875

321,875 321,875

171,000 171,000

171,000 171,000

166,500 166,500

166,500 166,500

166,500 166,500

199,000 199,000

199,000 199,000

290,250 290,250

321,875 321,875

321,875 321,875

2,817,250 2,817,250

321,875

321,875

171,000

171,000

166,500

166,500

166,500

199,000

199,000

290,250

321,875

321,875

2,817,250

1,639,336 1,639,336

-

-

-

-

-

-

-

-

-

-

-

1,639,336 1,639,336 -

1,177,914 1,177,914 2,817,250

-

-

-

-

-

-

-

-

-

-

-

1,177,914 1,177,914 2,817,250

Table 5.8 Balance sheet Y2013

     

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Balance Sheet (2014)

Asset Current asset Cash Total current asset Fixed Asset Machine Equipment Office equipment Total fixed asset Total asset Liability and Equity Liability Long term note payable Total liability Equity Owner equity Total equity Total liability and equity

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

404,875 404,875

354,750 354,750

242,500 242,500

242,500 242,500

199,000 199,000

144,000 144,000

199,000 199,000

242,500 242,500

242,500 242,500

339,500 339,500

367,500 367,500

404,875 404,875

3,383,500 3,383,500

404,875

354,750

242,500

242,500

199,000

144,000

199,000

242,500

242,500

339,500

367,500

404,875

3,383,500

1,639,336 1,639,336

-

-

-

-

-

-

-

-

-

-

-

1,639,336 1,639,336 -

1,744,164 1,744,164 3,383,500

-

-

-

-

-

-

-

-

-

-

-

1,744,164 1,744,164 3,383,500

Table 5.9 Balance sheet Y2014

     

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Balance Sheet (2015)

Asset Current asset Cash Total current asset Fixed Asset Machine Equipment Office equipment Total fixed asset Total asset Liability and Equity Liability Long term note payable Total liability Equity Owner equity Total equity Total liability and equity

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Total

436,625 436,625

428,375 428,375

307,625 307,625

242,500 242,500

242,500 242,500

204,750 204,750

242,500 242,500

242,500 242,500

307,625 307,625

391,000 391,000

412,000 412,000

433,325 433,325

3,891,325 3,891,325

436,625

428,375

307,625

242,500

242,500

204,750

242,500

242,500

307,625

391,000

412,000

433,325

3,891,325

1,639,336 1,639,336

-

-

-

-

-

-

-

-

-

-

-

1,639,336 1,639,336 -

2,251,989 2,251,989 3,891,325

-

-

-

-

-

-

-

-

-

-

-

2,251,989 2,251,989 3,891,325

Table 5.10 Balance sheet Y2015

     

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Cash flow statement (2011)

JAN Capital Investment (own) Working capital Loan repayment revenue Cost-variable selling cost Sale promotion cost cost of good sold Total variable cost Cost-fixed Equipment & Machine cost Marketing expense Administration cost Total fixed cost Interest Tax (20%) Cash flow Discounted cash flow Cumulative discounted cash flow 60,075 64,580 100,000 26,517 200,250 4,505 -

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

-

26,716 200,250

-

26,916 100,750

-

27,118

-

27,321 75,475

-

27,526 67,225

-

27,733 75,475

-

27,941

-

28,150 100,750

-

28,361 183,750

28,574 213,000 63,900 68,660 4,760

-

28,788 213,000

100,750 30,225 32,740 2,515 -

100,750 17,428 15,113 30,225 62,765 -

-

4,505 -

-

2,515

13,331 11,321 22,643 47,295

-

11,928 10,084 20,168 42,180

-

13,331 11,321 22,643 47,295

17,428 15,113 30,225 62,765

-

3,975

-

4,760

-

60,075 64,580

-

30,225 32,740

55,125 59,100

63,900 68,660

-

206,508 500 50,994 258,002 15,000 263,849 -฿20,171.93 -฿20,171.93

-

500 46,440 46,940 14,801 47,213 ฿3,609.58 -฿16,562.35

-

500 46,440 46,940 14,601 -

-

500 46,440 46,940 14,399

-

500 46,440 46,940 14,196

-

500 46,440 46,940 13,991

-

500 46,840 47,340 13,784

-

300 46,440 46,740 13,576

-

300 46,440 46,740 13,367

-

300 46,440 46,740 13,155

500 46,440 46,940 12,943 -

-

500 46,440 46,940 12,728

-

20,447 -฿1,563.20 -฿18,125.56

20,447 -฿1,563.20

-

60,276 -฿4,608.27

-

63,411 -฿4,847.95

-

60,676 -฿4,638.85

50,272 -฿3,843.40 -฿37,627.24

50,272 -฿3,843.40

36,393 ฿2,782.36 -฿38,688.28

55,883 ฿4,272.42 -฿34,415.86

55,883 ฿4,272.42 -฿30,143.44

-฿19,688.76

-฿24,297.03

-฿29,144.99

-฿33,783.84

-฿41,470.65

Table 5.11 Cash flow Y2011

     

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Cash flow statement (2012)

JAN Capital Investment (own) Working capital Loan repayment revenue Cost-variable selling cost Sale promotion cost cost of good sold Total variable cost Cost-fixed Equipment & Machine cost Marketing expense Administration cost Total fixed cost Interest Tax (20%) Cash flow Discounted cash flow Cumulative discounted cash flow 55,521 208,500 4,170 62,550 66,720

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

55,937 208,500 4,170 62,550 66,720

56,357 107,800 2,156 32,340 34,496

56,779 107,800 2,156 32,340 34,496

57,205 107,800 2,156 16,170 32,340 50,666

57,634 107,800 2,156 16,170 32,340 50,666

58,067 118,375 2,368 17,756 35,513 55,636

58,502 118,375 2,368 17,756 35,513 55,636

58,941 118,375 2,368 17,756 35,513 55,636

59,383 208,500 4,170 62,550 66,720

59,828 221,250 4,425

- 60,277 246,750 4,935

66,375 70,800

- 74,025 78,960

500 50,994 51,494 12,513 73,747 5,638 -฿24,505.32

-

500 46,440 46,940

-

500 46,440 46,940

-

500 46,440 46,940

-

500 46,440 46,940

-

500 46,440 46,940 11,408 11,909 910

-

500 46,840 47,340 11,183 6,511 498

-

300 46,440 46,740 10,955 6,719 514

-

300 46,440 46,740 10,726 6,928 530

-

300 46,440 46,740

-

500 46,440 46,940

-

500 46,440 46,940

12,295 73,548 5,623 -฿18,882.41

12,076 4,871 372 -฿18,509.98

11,855 4,669 357 -฿18,152.99

11,633 - 11,704 - 895 -฿19,047.78

10,495 71,902 5,497 -฿16,002.21

10,262 80,359 6,144 -฿9,858.53

- 10,028 97,485 7,453 -฿2,405.54

-฿19,958.24

-฿20,455.99

-฿20,969.64

-฿21,499.31

Table 5.12 Cash flow Y2012

     

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Cash flow statement (2013)

JAN Capital Investment (own) Working capital Loan repayment revenue Cost-variable selling cost Sale promotion cost cost of good sold Total variable cost Cost-fixed Equipment & Machine cost Billbroad Marketing expense Administration cost Total fixed cost Interest Tax (20%) Cash flow Discounted cash flow Cumulative discounted cash flow 125,864 9,623 7,217 31,725 321,875 6,438 96,563 103,000

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

-

31,963

-

32,203

-

32,444

-

32,687

-

32,933

-

33,180

-

33,428

-

33,679

-

33,932

-

34,186

-

34,443

321,875 6,438

171,000 3,420 51,300 54,720

171,000 3,420 51,300 54,720

166,500 3,330 - 24,975 - 49,950 - 78,255

166,500 3,330 24,975 49,950 78,255

166,500 3,330 24,975 49,950 78,255

199,000 3,980 29,850 59,700 93,530

199,000 3,980 - 29,850 - 59,700 - 93,530

290,250 5,805 87,075 92,880

321,875 6,438 96,563 103,000

321,875 6,438

96,563 - 103,000

- 96,563 - 103,000

500 50,994 51,494 9,792 -

130,418 9,971 17,188 - 80,000 300 46,440 - 126,740 7,838 - 141,700 612 47 17,213 1,316 22,679 - 204,486 15,634

500 46,440 46,940 9,554

-

500 46,440 46,940 9,314

-

500 46,440 46,940 9,073

-

500 46,440 46,940 8,829

500 - 46,440 - 46,940 8,584 -

-

500 46,840 47,340 8,337

-

300 46,440 46,740 8,088

-

300 46,440 46,740 7,585

-

500 46,440 46,940 7,330

-

500 46,440 46,940 7,074

27,823 2,127 19,315

27,823 2,127 21,442

212 16

21,410

212 16

21,363

109,113 8,342 15,388

130,418 9,971 25,358

130,418 9,971 35,329

21,426

7,046

Table 5.13 Cash flow Y 2013

     

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Cash flow statement (2014)

JAN Capital Investment (own) Working capital Loan repayment revenue Cost-variable selling cost Sale promotion cost cost of good sold Total variable cost Cost-fixed Equipment & Machine cost Billbroad Marketing expense Administration cost Total fixed cost Interest Tax (20%) Cash flow Discounted cash flow Cumulative discounted cash flow 34,701 404,875 8,098 121,463 129,560 500 50,994 51,494 6,816

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

-

34,961 354,750

-

35,223 242,500

-

35,488 242,500

-

35,754 199,000

- 36,022 144,000 - 2,880 - 21,600 - 43,200 - 67,680

-

36,292

-

36,564

-

36,839

-

37,115

-

37,393

-

37,674

199,000 3,980 29,850 59,700 93,530

242,500 4,850 36,375 72,750 - 113,975

242,500 4,850 - 36,375 - 72,750 - 113,975

339,500 6,790

367,500 7,350 110,250 117,600

404,875 8,098

-

7,095 106,425 113,520 -

-

4,850 72,750 77,600

-

4,850 72,750 77,600

-

3,980 29,850 59,700 93,530

- 101,850 - 108,640

- 121,463 - 129,560

-

500 46,440 46,940 6,555

-

500 46,440 46,940 6,293

-

500 46,440 46,940 6,029

-

500 46,440 46,940 5,763

500 - 46,440 - 46,940 - 5,495

-

500 46,840 47,340 5,225

-

300 46,440

-

80,000 300 46,440

46,740 4,952 - 269,190 40,268 3,079 77,357

- 126,740 4,678

300 46,440 46,740 4,402

-

500 46,440 46,940 4,124

-

500 46,440 46,940 3,843

182,304 13,938 49,267

152,773 11,680 60,947

76,443 5,844 66,791

76,443 5,844 72,635

17,013 1,301 73,936

- 12,137 928

16,613 1,270 74,278

- 39,732 3,038 74,319

142,603 10,902 85,222

161,443 12,343 97,564

186,858 14,286 111,850

73,008

Table 5.14 Cash flow Y 2014

     

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Cash flow statement (2015)

คอลัมน1 Capital Investment (own) Working capital Loan repayment revenue Cost-variable selling cost Sale promotion cost cost of good sold Total variable cost Cost-fixed Equipment & Machine cost Billbroad Marketing expense Administration cost Total fixed cost Interest Tax (20%) Cash flow Discounted cash flow Cumulative discounted cash flow

JAN -

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

37,956

-

38,241

-

38,528

-

38,817

- 39,108 242,500 4,850 - 36,375 - 72,750 - 113,975

-

39,401

-

39,697

-

39,994

-

40,294

-

40,596

-

40,901

- 41,208 433,325 8,667

436,625 8,733

428,375 8,568

307,625 6,153

242,500 4,850

204,750 4,095 - 30,713 - 61,425 - 96,233

242,500 4,850 - 36,375 - 72,750 - 113,975

242,500 4,850 36,375 72,750 113,975

307,625 6,153 - 46,144 - 92,288 - 144,584

391,000 7,820

412,000 8,240 123,600 131,840

- 130,988 - 139,720

- 128,513 - 137,080

- 92,288 - 98,440

- 72,750 - 77,600

- 117,300 - 125,120

- 129,998 - 138,664

500 50,990 51,490 3,561 500 46,440 46,940 3,276 500 - 46,440 - 46,940 2,989 - 500 - 46,440 46,940 2,700 500 - 46,440 - 46,940 2,409 500 - 46,440 - 46,940 2,116 500 46,840 47,340 1,820 300 46,440 46,740 1,522 346,200 - 80,000 300 - 46,440 - 126,740 1,222 300 46,440 46,740 920 500 46,440 46,940 616 500 - 46,440 - 46,940 - 309

241,854 18,490 130,341

241,079 18,431 148,772

159,256 12,176 160,947

115,260 8,812 169,759

79,176 6,053 175,812

59,462 4,546 180,358

79,365 6,068 186,426

80,263 6,136 192,562

35,079 2,682 195,244

218,220 16,683 211,928

232,604 17,783 229,711

247,412 18,915 248,626

Table 5.15 Cash flow Y2015

     

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-

NPV (0.09) = 248,626 IRR = 113.36%

The rate of return of this investment project is 113.36%. The net worth of this project is 248,626. Net present value is positive so we will accept the project Internal rate of return exceeds cost of capital, project is worthwhile. Return on Investment Ratio = net profits before tax / shareholders equity.

Y 2011 ROI = 87,252/162,067 = 0.538 So return on investment is 53.8 %

     

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Chapter 6 Risk Management

     

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Chapter 6 Risk Management 6.1 Risk analysis 6.1.2 Internal Forces • Political Government is a key leadership role in creating prosperity to occur. Across all regions of the country and create a quality of life of Thai people have always been and also has incentives to accelerate the tax support. Developing export tourism industry is affect the economy, Country’s growth and people have a job with more income and poverty. Most of the Thai people exhausted. Local government must take measures and rights, benefits tax. To support, modifying growth business investment of private sector in Chiang Mai, Rights and benefits of tax Chiang Mai Municipality will use the tool. Promote the changes in the jewelry business. In a separate principle, 2 way is to tax and tax breaks that are in jurisdictions. Operators interested in investing or expanding investment. The financial cost is lower by the tax exemption or modification to specific types of activities will support the development of business and tourist markets of Chiang Mai achieve goals. . Political weakness may affect. The weak economy, tourist city of Chiang Mai, which mainly economic is aimed at tourists. The country has political problems would affect the audience. To come here, which means consumers are sensitive to news or news that is concerned with the general public. Before consumption products and services Political and smog problems that occur in the North now. Impact on tourism Mon. Chiang Mai Foreign tourists, particularly Europe, has decreased significantly. Because tourists are not confident in the situation to deflect see neighbors instead. The Thai visitors were reduced as well.

     

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Political policies could affect business. If the government has promoted the jewelry business may increase the economic growth of the business. Government policy should promote tourism both at the local level and national level.

Economic Selling ceramic affected continued problems and other political and economic burden

of adjustment costs increase and affect the confidence of consumers. It makes real estate in distress and make hard decisions in purchasing power of consumers has also reduced severe competition from goods produced in both countries, together own and imported products, especially from China. Make available ceramic used as construction materials. Bush and flagstone walls and a bathroom down is sales personnel flagstone wall in 2009 is 147.16 million square meters of volume. Sanitary and sales volume down from 3.89 million units last year 2.43 percent and 12.74 respectively, which is subject to market conditions of flagstone. Bush sided with the market based on the old home while repairs to sanitary ware based on the new home market. Jewelry production and distribution in 2010 was affected by economic problems. Politics and the burden of adjustment cost increases. Affect the confidence of consumers. Real estate business in the slow hard and the power to make buying decisions of consumers are down. Some of these products expand to export markets. Resulting in production growth this year also increased. But the growth rate decreased from the previous year.

Jewelry design is based on the needs in each period. Severe distress is affected directly. Making Manufacture ware production decreased significantly. If buying a good economy people are buying. It is another factor. That the jewelry businesses grow. In addition to the

     

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severe competition from goods produced in countries with friendly and imported products, especially from China. In neighboring countries and major competitors like China.

business must be developed to compete with a country. For jewelry production and distribution in 2011 are likely to grow up a little. The economic situation in the country in the recovery stage and Operations in 2011 with a budget to stimulate the economy, the Thai government's program will be strong. From the practical results which will cause more flow in the economy. And people are buying more in the export of jewelry products in 2010 was affected by the financial crisis that occurred in the United States and progression to the European Union. Cause the world economic slowdown. Resulting in export products, jewelry products decreased in all major markets including the United States Union America, Europe and Japan for export products, jewelry flat trend in 2010, Because of exports to key markets including the United States, European Union and Japan also can not grow much. • Technology Department of Science Service is research and Experiments in ceramic technology to be develop manufacturing processes and Quality of raw materials and products and also broadcast to the audience. This action of the Department of Science Service helps reinforce basic science and technology performance of the country strong. The Department of Science Service has set guidelines for the research and development, industry and agriculture industries, the stone size and medium-sized (SME) for sustainable development and new knowledge to use in developing and industrial. Rural economies and societies of the country flourish.

     

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Internet We used to communicate information within and outside agencies to reduce the steps at

work cause convenience correct operation of the organization. Working with the Internet is part of the organization will be successful in operating high. It can be used to contact customers directly but on the other hand is the cost higher. If you want a quality system cost will upward with. • Transportation Used in moving and transporting goods from factory to customer. The implementation of computer and technology help to convenient and Speed of the transport. Affect the transportation is efficient. The company has won the trust and confidence of customers. When the move, Transportation and good and on schedule. • Infrastructure Because of the company are components of the electronic system Infrastructure technology is worth more. Costs in procurement are more maintenance, respectively. But the part that God will have advantages in advanced manufacturing. Meet customer needs • Social Social includes the belief, value, and attitude of person in the social. The social is reflected by culture, education, religious, and other social environments of other social. The social condition is continuously changed because of person in the social need to control and adapt you with the environment. When the social condition is changed, the need of person is also changed such as dressing, hobby, even requirement of goods and service. There have effect to our business if social condition changes that it is risk, business have to improve and
     

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develop for suitable about social condition. The company is located within the source business. There are also other companies located nearby and neighboring provinces also. Factors include the cultural aspects that are the same culture and they have good health consciousness, population has growth rate, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products are high and company can operates as well. Furthermore, companies may change various management strategies to adapt to these social trends • Customer The need of customer in the purchase of product and service of Soul of Beauty is may change the cause to different such as the trend of customer demand is changes to the era which there are attitudes and lifestyle are different and want the jewelry form is unique because the customer will pay attention with jewelry for the work out is best. Moreover there are a lot of competitor’s businesses it is choice for customer choose. In this cause are the direct risk to the business that may occur which will affect to sales and revenue etc. From above the reasons is risk that affects to changes the demand of buying behavior of customer. Soul of Beauty must to risk management for consideration customer demand is important. So we should using the Marketing strategy is focuses on customer intimacy by through talking until can attractive of customer demand for focus on service is expertise, decoration, image with a professional and give consultants include pay attention to detail, customer satisfaction with our services. Furthermore we can create the variety design for respond the customer demand.

     

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6.1.2 Internal Forces Internal risk had effected to the company as the company can control and protect to reduce risk include Human resource risk, forecasting risk and stolen. • Human Resource Risk The Soul of Beauty Company’s employees are very importance because employees work with customer closely and have to introduce product and communicate with customer directly. Employee need to have interpersonal skill, communication skill, language skill and negotiation skill. These skills are basic employee qualification for company. The company have a risk in hiring employee to organization such as employee skill, performance and honest. So the company resolves these risks by - Resume checking and background scanning for recruitment good employee to the organization -The company determines qualification and duty of each position -Training employee before work to reduce mistake during work • Demand Forecasting Risk

The company holds risks in forecasting demand, in high season generally many tourists flow to Chiang Mai and rich trade so the company order big amount of product. It risk to over inventory and increase cost of holding inventory. So our company has promotion for inventory to reduce risk in holding and fashionable trend risk and aware the level of inventory for planning demand forecast. Shortage in low season, because forecasting lower demand and order in less amount. It risks losing opportunity to sell products, customer switch to competitor, customer unsatisfied and lose customer. Then our company have to deal with supplier

     

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immediately and order for customer as soon as possible. Moreover, we have to concern, follow the product and answer the customer immediately for customer satisfied. • Stolen

Jewelry is valuable product so it may be stolen and lose. The company risk to fail and hold the cost. Then company has policy in security system to protect losing product and stolen. Our company’s design the plan of shop systematically and can see in every point and setting closed-circuit television and the valuable product is kept in strongbox. Increase in interest rate If interest rate increases by 1%, that is 10%, the payback period is 2 years and 6 months If interest rate increases by 2%, that is 11%, the payback period is 2 years and 7 months If interest rate increases by 3%, that is 12%, the payback period is 2 years and 8 months Hence, if interest rate increases by 10%, 11% and 12%, it doesn’t have effect to our company payback period.

Increase in interest rate
2.85 2.8 2.75 2.7 2.65 2.6 2.55 2.5 Increase by 1% Increase by 2% Increase by 3%

     

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If interest rate increases by 5%, that is 14%, the payback period is 3 years and 2 months If interest rate increases by 7%, that is 16%, the payback period is 3 years and 7 months If interest rate increases by 10%, that is 19%, the payback period is 4 years and 4 months Hence, if interest rate increases by 14%, 16% and 19%, it has affect to our company payback period then investment decreases due to the higher cost of borrowing. It takes longer time in payback of investment. Longer terms have more risk of default and inflation because the near future is easier to predict. Finance Risk - If the company decrease by 2% in sale , It will be affect to company sale revenue as follow . Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 2,005,050 2,308,000 2,657,375 3,188,625 3,823,000 sale revenue is sale revenue is sale revenue is sale revenue is sale revenue is 1,964,949 2,261,840 2,604,228 3,124,853 3,746,540

- If the company sale revenue decreases 2% in sale, it will affect on net income as follow. Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 489,681 673,919 923,753 1,277,090 1,697,145 Net income is Net income is Net income is Net income is Net income is 479,887 660,441 905,278 1,251,548 1,663,202

So, if the company decrease 2% in sale, it will affect to our company's payback period is 2 years 347 days.
     

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- If the company decreases by 3% in sale, it will be effect to company sale revenue as follow. Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 2,005,050 2,308,000 2,657,375 3,188,625 3,823,000 sale revenue is sale revenue is sale revenue is sale revenue is sale revenue is 1,944,899 2,238,760 2,577,654 3,092,966 3,708,310

- If the company sale revenue decrease 3% in sale ,it will affect on net income as follow. Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 489,681 673,919 923,753 1,277,090 1,697,145 Net income is Net income is Net income is Net income is Net income is 474,990 653,702 896,041 1,238,777 1,646,231

So, if the company decrease 3% in sale, it will affect to our company's payback period is 2 years 355 days.

-If the company decrease by 4% in sale, It will be affect to company sale revenue as follow. Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 2,005,050 2,308,000 2,657,375 3,188,625 3,823,000 Sale revenue is Sale revenue is Sale revenue is Sale revenue is Sale revenue is 1,924,848 2,215,680 2,551,080 3,061,080 3,670,080

     

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- If the company sale revenue decreases 4% in sale, it will affect on net income as follow. Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 489,681 673,919 923,753 1,277,090 1,697,145 Net income is Net income is Net income is Net income is Net income is 470,094 646,963 886,803 1,226,006 1,629,259

So, if the company decrease 3% in sale, it will affect to our company's payback period is 2 years 363 days.

Decrease in Total Sales between year 2011-2015

4,000,000  3,500,000  3,000,000  2,500,000  2,000,000  1,500,000  1,000,000  500,000  2% 3% 4%

Y 2011 Y 2012 Y 2013 Y 2014 Y 2015

2% Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 1,964,949 2,261,840 2,604,228 3,124,853 3,746,540

3% 1,944,899 2,238,760 2,577,654 3,092,966 3,708,310

4% 1,924,848 2,215,680 2,551,080 3,061,080 3,670,080

So, if company's total sale continuing to decrease more than 4%,it will effect to our company's payback period will be longer.

     

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Increase in cost/expense - If the company's cost/expense increases by 2%,it will affect to pur company's net income as follow Expense Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 730,345 758,612 866,453 913,359 962,215 net income is net income is net income is net income is net income is 475,074 658,747 792,893 1,109,010 1,491,919

So,if company's cost/expense increase by 2% it will affect to our company's payback period is 3 years and 24 days

- If the company's cost/expense increases by 4%,it will affect to pur company's net income as follow Expense Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 730,345 758,612 866,453 913,359 962,215 net income is net income is net income is net income is net income is 460,467 643,575 775,564 1,090,743 1,472,675

So,if company's cost/expense increase by 4% it will affect to our company's payback period is 3 years and 40 days

     

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- If the company's cost/expense increases by 6%,it will affect to pur company's net income as follow Expense Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 730,345 758,612 866,453 913,359 962,215 Net income is Net income is Net income is Net income is Net income is 445,860 628,403 758,235 1,072,476 1,453,431

So,if company's cost/expense increase by 6% it will affect to our company's payback period is 3 years and 57 days Decrease in Total Sales between year 2011-2015
1,600,000  1,400,000  1,200,000  1,000,000  800,000  600,000  400,000  200,000  2% 4% 6% Y 2011 Y 2012 Y 2013 Y 2014 Y 2015

2% Y 2011 Y 2012 Y 2013 Y 2014 Y 2015 475,074 658,747 792,893 1,109,010 1,491,919

4% 460,467 643,575 775,564 1,090,743 1,472,675

6% 445,860 628,403 758,235 1,072,476 1,453,431

So, if company's total sale continuing to increase more than 6%,it will affect to our company's payback period will be longer.
     

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6.2 Conclusion of Risk Management Company risk means opportunities for Soul of Beauty can not operate successfully according to plan, loss or not follow goals. Our company’s risk can divide to 2 parts. First is risk from external factor. Second is risk from internal factor. The external factor risk is hard to predict and can not to control, such as Technology risk, economic risk, changing in demand of customer risk and have competitor risk. The internal factor risk is we often to confront in the organization, and it is the risk that we can control it, such as Human Resource Risk, Demand Forecasting Risk, and Stolen. Finally, financial risk, such as if our income have to reduce it is directly effect to our company’s income also reduce too, in the same time, if our company expense increase, it will effect to our company’s pay back period will have long time. About interest rate is not more effect to our company, because it effect a little on our income statement, so financial risk is important to our company. We must always to maintain and control cost, in addition we should to development.    

     

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Chapter 7 Summary

     

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Summary Nowadays, Fashion of jewelry is change by daily life, life style, social, globalization, culture, believe and so on. People are attracted to follow the trend. There are many jewelry businesses in Thailand. Those do for export and sale in the country. Jewelry has many price ranges depend on material, quality and design. Jewelry’s Thailand made from gems, color stones, pearl and zirconium so customer can choose as needed. Customers buy jewelry for wearing or colleting. Design of jewelry is important to attract customer’s want but depend on preference of each individual too. Jewelry shop must be having many design of jewelry if other shops have more design that is attract customers to buying. In this business trusting is important because most customers are concern about quality. Many companies try hardly to create their own strategies to compete with each other such as competition in price, quality of service and the special promotion in discount or premium to motivate the customers and aftersales service. Jewelry making is an old craft that has been in existence since ancient times. Many centuries men and women both liked to adorn themselves with jewelry items. Thailand in recent years has extended its range and scope of traditional handicraft products. Thai handcraft jewelry is saliently because Thailand is famous in handcraft and art. It is special identity and differentiation and the products which made by handcraft are attract foreigners. Thai handmade products are now being made to cater for western tastes and to a much higher western quality. Therefore Soul of Beauty jewelry offer the Thai handcraft jewelry which is salient, special identity and various designs to customers. For the jewelry business, it has some competition. The competitors in the market try to create their own identities for their brands and trust for customer. By emphasize the quality of products and services and design of product. And tries hardly to create and design of product.

     

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They are all having many interesting and attractive design and concern identity of product to promote their brands. Most of our competitors have good locations and many of them are the stores which were opened for a long time. So, they are well known for market and customer’s want because of their have more experiences. Sale forecasting of Soul of Beauty, the sale revenue has increase in every year because an effect of political factor, economic, political, technology and social factor. Moreover tourist season and festival in Chiang Mai is also affecting to sale revenue because many tourists trend to high on high season or Chiang Mai festival and the Tourism Department promote and attract tourist to visit Chiang Mai. So this is an opportunity to increase the sale and make a profit of our company. Winter season (Octobers to February), this is high season of Chiang Mai there are many place and festival on winter such as mountain for touch cold weather, Loy Kra Tong festival, Christmas and New year festival. So the sale revenue on this period is highest because many tourists visit to Chiang Mai. Summer season (March to May), this season is moderate sale but in April has Song-Kran festival. This festival can be attracting tourist to visit but it is a short period and Rainy season (June to September), the sale revenue of this season is rarely low. “Soul of Beauty” has several products and categorize in 3 big groups that offer to customer selection that different life style and preferred. Our company has created a new jewelry design up to date fashionable and still keep quality, identity and valuable and have service mine for make our customer satisfy and respond our customer’s want. Our shop pleased to advice and fain for customers in any time. Our shop has credit card service. An atmosphere is created in the shop that our customer can feel good and make convenience to customers to satisfaction and feel happily. Our shop building on Kalare Night Bazaar, the main road for business in Chiang Mai, surrounded by many big projects and five star hotels and trading

     

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center and meeting point for both Thai and foreigners located on 7 raise piece of land in night bazaar area in zone G this area for souvenir jewelry and handicrafts. Moreover, this area is convenience to our customer to shop several of shops and products. In the part of management divide in to pre-operation period and operation period, first we select standard construction material because we concern about safety. Moreover, we try to create good atmosphere to attract the customer and build the brand image tend to be modern. The interior aims to dark tone for enhance our product saliently. Second we set the internet for communicate with supplier or customer and fast up date information. Then any facilities all invest for create the best things for customer and support our operation run smoothly. Risks are effect to the company both external and internal risk. First is risk from external factor. Second is risk from internal factor. The external factor risk is hard to predict and can not to control, such as Technology risk, economic risk, changing in demand of customer risk and have competitor risk. The internal factor risk is we often to confront in the organization, and it is the risk that we can control it, such as Human Resource Risk, Demand Forecasting Risk, and Stolen. Finally, financial risk, such as if our income have to reduce it is directly effect to our company’s income also reduce too, in the same time, if our company expense increase, it will effect to our company’s pay back period will have long time. About interest rate is not more effect to our company, because it effect a little on our income statement, so financial risk is important to our company.

     

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Reference

     

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Reference • High-End Jewellers & Luxury Jewellery & Diamonds, <http://www.worldwatch.org/node/1060> . • • • • • • • • • • • Diamond Gemstone meaning, <http://crystal-cure.com/diamond-gem.html>. Ruby Gemstone meaning ,<http://crystal-cure.com/ruby-gem.html>. Emerald Gemstone meaning,< http://crystal-cure.com/emerald.html>. Opal Gemstone meaning , <http://crystal-cure.com/opal-gem.html>. Sapphire Gemstone meaning ,<http://crystal-cure.com/sapphire-gem.html>. Aquamarine Gemstone meaning, <http://crystal-cure.com/aquamarine.html>. Turquoise Gemstone meaning ,<http://crystal-cure.com/turquoise.html>. Topaz,<http://www.kacha-stones.com/topaz.htm>. Garnet Gemstone meaning ,<http://crystal-cure.com/garnet.html>. Amethyst Gemstone meaning ,<http://crystal-cure.com/amethyst.html>. มิติใหมธุรกิจจิวเวลรี่'กาวาง' โชวคอนเซ็ปตแขงอินเตอร ,<http://www.gotomanager.com/news/details.aspx?id=49902>. • ครม.ไฟเขียวยกเวนภาษีมูลคาเพิ่มนําเขาอัญมณี, <http://news.impaqmsn.com/articles.aspx?id=275187&ch=ec1>. • สมาคมผูคาอัญมณีไทยและเครื่องประดับ โดยการสนับสนุนจากกรมสงเสริมการสงออก กระทรวงพาณิชย จัดงานบางกอกเจมส แอนด จิวเวลรี่ แฟร ครั้งที่ 46, <http://www.git.or.th/thai/news/events/2010/09_september/event_20100911.html>.

     

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นางสมจินต เปลงขํา,เครื่องประดับเงิน Silver Jewelry มาแรง ,<http://www.depthai.go.th>.

จังหวัดเชียงใหมศูนยเศรษฐกิจภาคเหนือ <http://gotoknow.org/blog/export/111495?class=yuimenuitemlabel>.

Chiang Mai Infrastructure <http://chiangmai-info.prdnorth.in.th/chiang-mai-info-infrastructure.php>.

Thailand : Tourist Arrivals from 1998 till 2010. Quarterly Data 2007-2010, <http://www.thaiwebsites.com/tourism.asp>.

Thailand’s Economic Projection for 2010 and 2011, <http://www.fpo.go.th/FPO/index2.php?mod=Content&file=contentview&contentID= CNT0006204&categoryID=CAT0000028>.

Guest Arrivals at Accommodation Establishments IN THAILAND <http://tourism.go.th/2010/upload/filecenter/file/stat_2554/febuary/New_Q1/North.xle ; Q2;Q3;Q4>.

Guest Arrivals at Accommodation Establishments IN THAILAND, <http://tourism.go.th/2010/upload/filecenter/file/stat_2554/febuary/New_Guest_haft/No rth.xls>.

• •

Council of Logistics Management, http://www.clm1.org/mission.html, 12 Feb 98. NPV and IRR formula, http://www.datadynamica.com/irr.asp.

     

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Appendix

     

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Resume

Miss Nattida Bua-ngam

ID:5031203025

Major: Business Administration, Mae Fah Luang University Tel.089-5338884 E- mail:bbblluuee@hotmail.com

Miss Nartnarin Suksao

ID:5031203037

Major: Business Administration, Mae Fah Luang University Tel. 0871896457 E-mail:cream_go@hotmail.com

     

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Miss Nopphawan Klabdi

ID:5031203120

Major: Business Administration, Mae Fah Luang University Tel. 0875907797 E-mail:annjung_nk@hotmail.com

Miss Piyaporn Nojit

ID: 5031203160

Major: Business Administration, Mae Fah Luang University Tel. 082-1935368 E-mail:minniegirl_cutie@hotmail.com

     

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Miss Ulaikorn Singsook

ID: 5031203177 Tel. 0848850923

Major: Business Administration, Mae Fah Luang University E-mail:God_army_kak@hotmail.com

     

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Scribd Link http://www.scribd.com/doc/48969055/Soul-ofBeauty-Co-Ltd

     

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