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La Gioia coffee shop

Present
Aj.Chaiyawat Thongintr

By
Miss Yanika Eiamsupan Miss Napapan Apiwong-ngam Miss Manaschana Chawanuntachot Miss Aruntip Ampaikitpanich (Group Vip1..Section 2) School of Management Mae Fah Luang University ID 4931205041 ID 5131205132 ID 5231205114 ID 5231205171

Preface
This project was concerning with a past of 1203302 Project feasibility and Evaluation subject in the second semester of 2011. In this project is study about feasibility of coffee shop business in Chaing Rai, located near Mae Fah Luang University. The content of this report consist of Introduction, Industry Profile, Market Feasibility Study, Technical Feasibility Study, Financial Analysis, Risk Management, and Summary This project can makes everyone who interested to get knowledge and information about coffee shop business before make decision to investment, including preoperational process and operation process of coffee shop business, for the benefit to investment and profit of doing this business. We are hoping that our report will be utility and helpful for everybody who is interested as much as possible. If there are any mistakes in this reporting, we will apologize at this opportunity. Lagioia Coffee Shop

Content
Page

Preface..2 Content.2-3

Chapter 1: Introduction . ..4


1.1 Back ground and significance of project......6-7 1.2 Project Objective(s)..8 1.3 Benefits of Project.. 8 1.4 Activities/Time Frame9-10

Chapter 2: Industry Profile.11


2.1 Nature of Industry 12-23 2.2 Situation of Industry...24-25 2.3 Product/service.26-28 2.4 Vision Mission29 2.6 Strategy..30-32 - Corporate Level30 - Business Level..31 - Functional Level32 Chapter 3: Marketing Feasibility Study.33 3.1 Marketing Analysis.34 - General Environment Analysis.34 - Competition Analysis (3C Analysis)35-39 3.2 STP Analysis.40

3.3 Marketing mix strategy.41


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Page 3.4 Sale forecast .42-43 3.5Profit estimate..44-45 3.6 Marketing Expense..46-47 Chapter 4: Cost of Investment..48 4.1Pre-operating49 4.2 Location50 4.3Machines / Tools / Equipments.51-54 4.4Cost of investment...55-56 - Investment cost of equipment.57 - Depreciation of equipment....58-62 - Investment cost of machine..63 - Depreciation of tool and machine..64-68 Chapter 5: Operating Cost.69-72 Chapter 6: Organization and Administration..73-74 Chapter 7: Financial Analysis.75 -Income statement.76-81 -Cash flow.82-92 -Balance sheet.93-113 Chapter 8: Risk Management..114-116 Chapter 9: Conclusion ..117-119 Reference.120
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Chapter 1
Introduction

Background and significance of the project


Coffee originated in tropical Africa, from where it has since been introduced to most tropical countries throughout the world. Coffee was introduced to Southeast Asia and the West Indies in the 17th and 18th centuries. Nowadays coffee consumption market is more expand that we can observe the coffee products in the market which are coffee bean, ground coffee, instant coffee and instant coffee canned and there are many coffee drink manufactures in Thailand which hare famous brand names, regular shops and instant coffee that sell in convenience shop or store regular shop and etc. Prices of fresh coffee are higher than instant coffee that sell with the feature of cans, bottles and plastics bag because the costs are expensive; it is 10 to more hundred baht and they are better tastes. Thai Coffee Consumption Trend in year 2009 was increased because it is good taste and high quality so the premium coffee shop is spread in Thailand widely because Thai people change their behavior. In each main regions of Thailand which are North, Central, Northern East and South, there are many coffee shops that provide for public so the customers have many choices for them. The famous coffee shops in Thailand are Starbucks, Black Canyon, Blue Mountain, Coffee World, Doi tung,Wawee, Doi Chang and etc. There are 2 type of market segmentation that foreign brand name is 60% and Thai brand name is 40%. The main consumers of premium are business man, tourists, officers and student that they have power to buy because they almost of them are middle class and they want to consume the taste and quality of coffee. They do not concern much with higher price. We chose open the coffee shop because coffee marketing trend in Thailand will increased by trend coffee consumption is 7 cups per week from 3-4 cups per week and coffee consumptions in Thailand will increase in future.

(Source:http:// http://www.coffeeresearch.org/)

We should to open coffee shop in Chiang Rai province. Because, nowadays the number of tourist come to travel in chiang rai increase every year. Our coffee shop set from inspiration of investors who love in flavor and smell of coffee. Our coffee shop concept will be the garden style coffee shop in addition to flavor and smell of coffee can made other feel relax involving fresh environment that full of trees all of this its will make customer feel fresh more.

Number of traveller in Chiang Rai (Year 2007-2011)


Number of traveller in Chiang Rai

1,741,246 1,332,518 1,436,435

1,680,248

2006

2007

2008

2009

(Source: http://www.chiangrai.net/dashboard19/?PID=VG91cmlzdC9Ub3VyaXN0MS5hc2N4)

We already consider to selected the place to set coffee shop is near the Fah Thai Market which located beside the Mae Fah Luang University at Chiang Rai province because Mae Fah Luang University is a new university and increase number of students and staffs every year.

Number of student in MFLU (Year 2007-2011)


Number of student in MFLU 9678 9623

8950 8008 7054

2007

2008

2009

2010

2011

Number of staff who work in MFLU (Academic year 2007-2011)


Number of staff who work at MFLU 1148

994 820 895

1083

2007

2008

2009

2010

2011

(Source: https://reg.mfu.ac.th/registrar/statistics/main_m.htm) 9

Project objectives
To study about the situation of coffee shop in nowadays. To study about technical and management process in the coffee shop business. To study possibility of coffee shop business trend in the future. To analyze the marketing in this business. To analyze the financial risk feasibility. To analyze demand of people who drink coffee. To summary the feasibility of coffee shops business.

Benefits of project
Understanding about the situation of coffee shop. Understanding behavior of customer to select and identify the right customer. Understanding to calculate profits and expenses, and find the way to get profits. To learned about market in the business and financial risk feasibility. To learn about technical and management process in the coffee shop business.

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Activities/Time Frame

Time Frame

Date and time

Designations To study about coffee shop in Chiang Rai To study about coffee shop at Mae Fah Luang University

Problems/Events

18-25Nov 2011

25Nov-2Dec 2011

To study about how to manage coffee shop business To study about competition analyze and marketing feasibility To study about technical process in coffee shop business To study about financial feasibility of coffee business To study about financial feasibility of coffee business To study and analyze about risk of coffee shop business in Chiang Rai To summary the business of coffee shop in Chiang Rai

2-9Dec 2011

9 Dec -20 Jan 2011/2012

20-27 Jan 2012

27Jan-3 Feb 2012

3-10 Feb 2012

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Gantt chart

No

Activities

November w w W E E E E E E K K K 1 2 3 W E E K 4 W E E K 1

December W E E K 2 W E E K 3 W E E K 4 W E E K 1

January W E E K 2 W E E K 3 W E E K 4 W E E K 1

February W E E K 2 W E E K 3 W E E K 4

-To study about coffee shop in Chiang Rai 1 - To study about coffee shop at Mae Fah LuangUniversity -To study about how to manage coffee shop business -To study about competition analyze and marketing feasibility -To study about technical process in coffee shop business -To study about financial feasibility of coffee business -To study about financial feasibility of coffee business -To study and analyze about risk of coffeeshop business in Chiang Rai -To summary the business of coffee shop in Chiang Rai

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Chapter 2
Industry profile

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Nature of industry

History of coffee World coffee In the Ethiopian highlands, where the legend of Kaldi, the goatherd, originated, coffee trees grow today as they have for centuries. Though we will never know with certainty, there probably is some truth to the Kaldi legend.

It is said that he discovered coffee after noticing that his goats, upon eating berries from a certain tree, became so spirited that they did not want to sleep at night.

Kaldi dutifully reported his findings to the abbot of the local monastery who made a drink with the berries and discovered that it kept him alert for the long hours of evening prayer. Soon the abbot had shared his discovery with the other monks at the monastery, and ever so slowly knowledge of the energizing effects of the berries began to spread. As word moved east and coffee reached the Arabian Peninsula, it began a journey which would spread its reputation across the globe.

Today coffee is grown in a multitude of countries around the world. Whether it is Asia or Africa, Central or South America, the islands of the Caribbean or Pacific, all can trace their heritage to the trees in the ancient coffee forests on the Ethiopian plateau.

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The Arabian Peninsula The Arabs were the first, not only to cultivate coffee but also to begin its trade. By the fifteenth century, coffee was being grown in the Yemeni district of Arabia and by the sixteenth century it was known in Persia, Egypt, Syria and Turkey. Its popularity was perhaps due, in part, to the fact that Muslims, forbidden alcoholic drink by the Koran, found coffee's energizing properties to be an acceptable substitute.

Coffee was not only drunk in homes but also in the many public coffee houses -- called qahveh khaneh -- which began to appear in cities across the Near East. The popularity of the coffee houses was unequaled and people frequented them for all kinds of social activity. Not only did they drink coffee and engage in conversation, but they also listened to music, watched performers, played chess and kept current on the news of the day. In fact, they quickly became such an important center for the exchange of information that the coffee houses were often referred to as 'Schools of the Wise.'

With thousands of pilgrims visiting the holy city of Mecca each year from all over the world, word of the 'wine of Araby' as the drink was often called, was beginning to spread far beyond Arabia. In an effort to maintain its complete monopoly in the early coffee trade, the Arabians continued to closely guard their coffee production.

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Coffee Comes to Europe

European travellers to the Near East brought back stories of the unusual dark black beverage. By the 17th century, coffee had made its way to Europe and was becoming popular across the continent. Opponents were overly cautious, calling the beverage the 'bitter invention of Satan.' With the coming of coffee to Venice in 1615, the local clergy condemned it. The controversy was so great that Pope Clement VIII was asked to intervene. Before making a decision however, he decided to taste the beverage for himself. He found the drink so satisfying that he gave it Papal approval.

Despite such controversy, in the major cities of England, Austria, France, Germany and Holland, coffee houses were quickly becoming centers of social activity and communication. In England 'penny universities' sprang up, so called because for the price of a penny one could purchase a cup of coffee and engage in stimulating conversation. By the mid-17th century, there were over 300 coffee houses in London, many of which attracted patrons with common interests, such as merchants, shippers, brokers and artists. Many businesses grew out of these specialized coffee houses. Lloyd's of London, for example, came into existence at the Edward Lloyd's Coffee House.

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The New World In the mid-1600's, coffee was brought to New Amsterdam, a location later called New York by the British.

Though coffee houses rapidly began to appear, tea continued to be the favored drink in the New World until 1773 when the colonists revolted against a heavy tax on tea imposed by King George. The revolt, known as the Boston Tea Party, would forever change the American drinking preference to coffee.

Plantations Around the World

As demand for the beverage continued to spread, there was tense competition to cultivate coffee outside of Arabia. Though the Arabs tried hard to maintain their monopoly, the Dutch finally succeeded, in the latter half of the 17th century, to obtain some seedlings. Their first attempts to plant them in India failed but they were successful with their efforts in Batavia, on the island of Java in what is now Indonesia. The plants thrived and soon the Dutch had a productive and growing trade in coffee. They soon expanded the cultivation of coffee trees to the islands of Sumatra and Celebes.

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The Dutch did a curious thing, however. In 1714, the Mayor of Amsterdam presented a gift of a young coffee plant to King Louis XIV of France. The King ordered it to be planted in the Royal Botanical Garden in Paris. In 1723, a young naval officer, Gabriel de Clieu obtained a seedling from the King's plant. Despite an arduous voyage -- complete with horrendous weather, a saboteur who tried to destroy the seedling and a pirate attack -- he managed to transport it safely to Martinique. Once planted, the seedling thrived and is credited with the spread of over 18 million coffee trees on the island of Martinique in the next 50 years. It was also the stock from which coffee trees throughout the Caribbean, South and Central America originated.

Coffee is said to have come to Brazil in the hands of Francisco de Mello Palheta who was sent by the emperor to French Guiana for the purpose of obtaining coffee seedlings. But the French were not willing to share and Palheta was unsuccessful. However, he was said to have been so handsomely engaging that the French Governor's wife was captivated. As a going-away gift, she presented him with a large bouquet of flowers. Buried inside he found enough coffee seeds to begin what is today a billion-dollar industry.

In only 100 years, coffee had established itself as a commodity crop throughout the world. Missionaries and travellers, traders and colonists continued to carry coffee seeds to new lands and coffee trees were planted worldwide. Plantations were established in magnificent tropical forests and on rugged mountain highlands. Some crops flourished, while others were short-lived. New nation's were established on coffee economies. Fortunes were made and lost. And by the end of the 18th century, coffee had become one of the world's most profitable export crops.
Source: http://www.ncausa.org/i4a/pages/index.cfm?pageid=68

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Thai coffee The real start of the Thai coffee industry is relatively young. According to governmental statistics, the total coffee plantation area in 1960 was only about 19,000 rai (approximately 7,600 acres), producing a mere 750 tons of coffee. In the same year, Thailand had to import almost 6,000 tons of coffee. To improve the trade balance, the Thai government started a successful campaign promoting Robusta coffee growth in Southern Thailand. This campaign was further cemented when opium crop replacement became an official Thai Government program in the 1970s. Supported by the Royal Family, the UN and many other governmental and non-governmental organizations, the hill tribe farmers in the Golden Triangle and along the borders of Burma and Laos started to grow Arabica coffee. In 1976, Thailand officially became a coffee exporting nation, selling 850 tons of Robusta coffee in the world market. Helped by strong world market prices in the 1980s, exports thrived in the following years and culminated in 1991-2 at almost 60,000 tons. The collapse of the "International Coffee Agreement" in July 1989 and the following slump in world coffee prices has since hurt the coffee farmers hard. Facing the threat of an oversupply situation, the Thai government made a turnaround and, under a 5-year-plan (1992-1997), began to encourage the coffee farmers to switch to other crops in an effort to reduce the total coffee planting area from a level of almost 500,000 rai (approximately 200,000 acres).

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Thailand is a coffee nation, ranked third (after Indonesia and Vietnam) in Southeast Asia in annual raw coffee production. While there are many species of coffee trees in the world, only Arabica and Robusta have major economic significance, both of which are grown in Thailand.

At present, Thailand produces approximately:

50,000 - 80,000 tons of Robusta coffee, of which 40% (ca. 30,000 tons) are processed locally and about 60% (ca. 50,000 tons) is exported.

A few thousand tons of Arabica coffee, which are almost entirely processed locally

Source: http://www.boncafe.co.th/thai-coffee/origin-history.html http://www.boncafe.co.th/thai-coffee/thai-coffee.htm

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Coffee Shop in Chiang Rai Doi Tung

The creation of Caf DoiTung allows locals to capture the top value in coffee growing, which is a replacement crop for opium. Caf DoiTung uses only the Project's highquality aromatic Arabica coffee beans harvested from trees grown at approximately 1,000 meters above sea level. The coffee cherries are hand-picked and selected before being carefully roasted and ground. The process lends every cup at Caf DoiTung its great taste. Another product offered at Caf DoiTung is macadamia nuts, another cash crop replacing opium. Pangkhon Coffee

Slogan of Pangkhon is one cup save one tree Located at downtown of Chiang Rai, opposite with the clock tower of Chiang rai . Pangkhon have to provide a delivery service to customer. Contact 053-712-878.
Source: http://www.pangkhoncoffee.com/index.php?option=com_content&view=article&id=12&Itemid=1

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Doi Chaang

Doi Chaang coffee house is proud to present Pride of Thailand a rave world-class, single-estate special coffee premium bean. Its roasted to a full medium to produce a fruity, sweet cup with pleasant flowery fragrance.
Source: http://doichaangcoffee.com/

Wawee coffee

First coffee business of Wawee coffee open at the Maesa Elephant Camp in 2001, expanding coffee branches and continuously distributing franchise of the first Wawee Co., Ltd--all trademarked with the now-familiar logo of the Akha lady in an orange-brown dress. In Chiang rai wawee coffee located Address: 634/2 Wiang, Muang, Chiang Rai 57000 Tel: 0-5474-4465.
Source: http://www.waweecoffee.com/intro.php

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History of ice cream The origin of ice cream can be traced back to 62 A.D in the time of the Roman emperor Nero who invent chilled delicacies made from snow and flavored with honey and mixed fruits. This dessert was usually served to the emperor and his great warriors before battles. As time went by, the dessert was developed to a type of ice-cream called Sherbet.

There is also another view that the creation of ice cream first happened in China before spreading to India then Persia. Around 2,000 BC the Chinese accidentally created milk ices as they usually buried milk, which was very expensive, under snow to preserve it. From then, the Chinese developed many ice concoctions such as fruit juices mixed with honey and ice. In the Mokul dynasty, the Chinese created a recipe called Kulfi which was milk ice mixed with pistachio. It was believed to be the archetype of todays ice-cream. In the 13th century, Marco Polo visited China and fell in love with the frozen desert, so he took the technique of making ice cream back to Italy. During his journey, Marco Polo created his own recipe by adding a few ingredients such as yak milk with snow. After he introduced the delicacy to the Italians, it became very popular and soon spread to France and England. The Italians are very famous for their ice cream recipe known as Gelati. They have developed the technique of making Gelati and they have become known as the original ice cream maker and they also claim to be the inventors as well. In 1670, the Franesco caf was the first parlor to sell this tasty treat which became a top hit dish and the talk of the town. The popularity of gelato among the general population however only developed in 1846 when Mrs. Nancy Johnson invented an ice cream making machine. Source: http://inventors.about.com/od/foodrelatedinventions/a/ice_cream.htm 23

Ice cream in Thailand Ice cream was first imported from Singapore to Thailand in late King Rama IV- King Rama V era. It was brought in a few years after ice first appeared. At that time, the Thais called ice cream I-Tim and they were amazed by its chilled making process. It has been said that at first, I-Tim was not actually an ice cream mixture as we would recognize today but instead was syrup mixed with ice. After that, the Thais developed their I-Tim blend into popsicles. By adding color such as red, green, pink and orange mixed with many tasty flavored syrups, I-Tim became a top hit desert for sweet-toothed consumers, especially young children. Today not only does the Thais I-Tim Popsicle come with a great sweet taste, but it also is great fun. I-Tim popsicle makers always put a red dot on some of the popsicle sticks and whoever has one gets a second free I-Tim popsicle.

Source: http://www.highlightthailand.com/main/detail_content/The-history-of-ice-cream/22.html

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Happy plus Ten years ago, office worker Soraya Printrakul spent her free time making ice cream for her kids and her friends. Seven years ago, she decided to turn her hobby into a career, resigning from her job and opening a cafe she named Happy Plus offering aromatic coffee, smoothies and lots of home-made ice creams. Located in front of Mae Fah Luang University Chiang Rai, Happy Plus is popular with students as well as families. The ambience is warm and friendly with white wooden tables, chairs and comfy sofas and green walls painted with lovely cartoons. Its open daily from 10.30am to 9.30pm. Call (081) 764 6768.

Source: http://worldfilmbkk.com/life/Ice-cream-with-a-fruity-flavour-30167125.html

Swensens

Swensens was established by Earle Swensen. The first Swensen's Ice Cream Store opened at the corner of Union & Hyde in San Francisco in 1948. The Minor Food Group is a franchise company of Swensen's in Thailand. In downtown of Chiang Rai have 3 branch of swensens : big c, night bazaar and central plaza. Source: http://www.swensens.com/our-story/

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Situation Analysis
During the last 3-4 years, coffee shop business has obviously high growth rate. Nowadays many people pay attention and invest to coffee business. Investors trust this business can refund more benefit and stable. At the same time, consumers behavior for drinking coffee of Thai people has changed. Because In the past, they drink instant coffee, but now they changed to drink fresh roasted coffee which has shop. The decoration, pleasant atmosphere and comfortable in the shop can make them to drink more coffee. The coffee shop businesses had to adjust their marketing strategies to handle the situation and attract more customers. The strategies like membership and promotions make the customers feel that their cups of coffee are more valuable, thus, more enjoyable. The rate of drinking coffee per person in Thai is still low .The average each 200 glasses per person per year, compared with people in Asia such as Japanese, They drink coffee average 500 glasses per person per year or 3-4 cups per week. While Americans drink coffee, the average 700 glasses per person per year, so the market trend in Thailand will be increased by trend coffee consumption is 7 cups per week from 3-4cups per week and coffee consumptions in Thailand will increase in future. Because of this, many investors both Thai and foreigners are interested to invest in a coffee shop. Market competitions seem to be high. However most of the coffee shop today will focus on selling products and other value added services such as cakes, cookies, and sandwiches, some of them have internet access to customers. When each shop has strength points with many options for consumer to choose. Entrepreneurs must need to standardize their products and services that meet the needs of consumers.

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Current Worldwide Annual Coffee Consumption per capita

(Source: http://chartsbin.com/view/581)

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Product/Service
In our coffee shop, we choose a coffee is a main product and in the shop also have soft drink, Food, bakery, homemade ice-cream and Special homemade ice-cream. Coffee Products

Espresso Only black coffee serve both ice and hot

Latte

Americano

Cappuccino

Mocha

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Soft Drink

Ice Tea, Ice Milk Tea, Ice Lemon Tea, Green Tea

Italian Soda (Kiwi, Apple, Blueberry and Strawberry)

Smoothies Strawberry, Blueberry, Raspberry, Kiwi, Banana, Pineapple

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Bakery Brownie, Blueberry cheese cake, Blueberry cheese pie, Strawberry cheese cake, Coconut cake, Green tea cake

Home Made Ice-cream

Cookie & Cream, Thai Tea, Mocha Almond Fudge Strawberry Yogurt, Blueberry Yogurt, Yakult Special - Passion fruit, Tamarind Sorbet, Lychee, Santol Sherbet, Chao-guai

Service
Establishing a customer base of regular customers and must take care regular customers continuously and then, always find for new customer. Business should be development by raising the point that is unique and has special charm, developed taste. To make customer gets a good impression and keep customers coming back to our shop. Our shop provide a restroom, non-smoking area, safety area for children whos come with parents, an internet Wi-Fi, and open soft music for customer feel relax.
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Vision of our organization


Our vision is we want to serve and bring good Thais coffee to Thai customers with low price. To make customers are happy and impressed with the product as much as possible. We have many style of coffee taste that customer can choose by themselves.

Mission of our organization


We try to develop taste of coffee to serve and make customer satisfy. In the marketing, our main target group is students at MFLU and traveler. We try to provide comfortable atmosphere to customer needs and the customer can receive high quality of coffee with low price.

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Strategy
Corporation level Coffee shop being very popular for people who looking for business. Thus, market competition is quite high. But with the way our shop has invented a formula that is unique coffee shop. Our shop is a small business use few budgets to launch by target is students and traveler who pass through our shop. And we also serve produce with low price. 1. Vision We want to become famous and number 1 coffee shop in front of university with low price but high quality

2. Policy Our shop is center of student for meeting or relaxing.

3. Objective Serve coffee and ice cream with low price to student who has less money.

4. Process project team Our employee in our shop is student who wants to work for part time because its easy to connect with our customer.

5. Individual job performance Well train our employee how to sever good service to our customer.

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Business level Our shop has highly competition environment and increase continuously. It affects directly to our shop because the customer will use service with the shop that give the highest return then we will concern about competitive strategy that can help us to have more advantages competition than the competitor, so we will use competitive strategies in order to make competitive advantage for our company that we created some special for different from others. Service Our shop will make the customers loyalty by creating the impression to the customer by services such as service satisfaction over quickly, clean and good workplace such as we provide open soft music, our concept is garden that we should to maintenance the environment. Price We have to provide low price to meet the customer satisfaction. Because the target of our shop are students and staff in Mae Fah Luang University. Quick-responses Take a feedback from customer and improve our service and product Ask employee and discussion how to make customer satisfaction

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Function level The functional level strategy will give the detail of the strategy for each function of our shop represent in the function of marketing, production and service, organization, management information system, and financial and accounting. 1. Marketing Support all of target group. Our marketing is aimed at students. For that reason, our shop is close to the Mae Fah Luang University. This makes our store accessible to customers easily. There are also people who drive through can park and visit our coffee and bakery shop to relax as well.

2. Financial Recruit expert financial personal for financial statements to systematic, clear, and accurate in every month and improving the accounting system and financial standard form. Financial evaluate systematic and controlling within organization.

3. Human resource management We have to select good staff. Good staff here is going to be people who speak good, cleaning, good manners, friendly with customers and ethics. For working together in the shop are not focus on the boss to employee, we will focus on work like friends and brothers. To create intimacy makes it easy to work. Employee of our shop will come from students who study at Mae Fah Luang University because they know what their friends want from our service.

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Chapter 3
Market Feasibility study

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Market analysis
General environment analysis Political analysis

country rule require food supplier provide everything is health and safe .Public Healthy research indicates coffee can reduction many kinds of disease risk like Heart disease, cirrhosis and gout. Our shop have safe rule make sure our product havent any harmful. Economy analysis

National economy condition average income per person, unemployment condition, growth/slow down of GDP, inflation, deflation, all of these affect directly to purchasing power of customers who are target group. Tax rate that government determine for business and product will affect to advantages/disadvantages in determining price selling and cost of competition including import tax and specific business tax.

Social analysis

In Thai culture got some cultures from the western, so many socials such as office worker, students, like to drink coffee after work or class because it can help them fresh. A coffee becomes a part of life for modern social. They drink coffee as a fashion. Technological analysis

Use of technology can improve operational efficiencies. Provide E-Marketing is the two way communication activity that marketers can connect with customers around the world and all time.

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Competition Analysis (3C Analysis)


Competitor Analysis We identify competitors that provide service and product same as us which are around Mea Fah Luang University and famous place that MFUs students often to visit. Then, we divide competitors with products for local coffee shop and decoration, atmosphere; homemade bakery and ice cream, fresh coffee. Black canyon, Starbuck, Wavee etc. are high brand which strong group of competitor so we might sell our product with more cheaper price, we will identify with local competitors we think they will become a high performance competition will be:

Happy Plus

Happy plus located Mea Fah Luang University flyover opposite Hui Phu School. They open their shop for longtime and they focus on homemade ice cream and also serve with some beverages and some of bakeries; there are have a few of menus. Happy plus has a nice decoration with small sofa and relax atmosphere. They also hired Mea Fah Luang student is employee.

I use studio

I use coffee lactated opposite Fah Thai market but no have enough parking lot. They present Vittoria coffee to make coffee and also have cakes, foods. They focus on coffee than everything, I use is small coffee shop that open till late.
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Chiang Rai in love

Chiang Rai in love located opposite Doi Aob near Mea Fah Luang University, they have beautiful scenery with field in the front and mountains in back they are have inside and outside zone. They provide coffee, bakery and foods but they not have enough staffs for service, and they also use normally design and furniture with white shade. They have a big Chiang Rai in love name of shop to attract customers.

Banoffee

Banoffee prefer Arabica coffee from Doi Pha Hee, they roast and grind coffee by them self, they have Banoffee coffee shop 3 brunches around Chiang rai at MFU brunch located at 2nd floor of Chit Chat shopping place. They also have banoffee cake and a lot of menus of bakery but they dont have food. Theme color of them is orange that strike the eyes. All of employee is student part time job.

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Sa Wat Dee Chiang Rai

Sa Wat Dee Chaing Rai has good location that improves the shop to be good look for high customer. Because the shop decoration invest by the modern furniture, big signboard make a attraction customer who is traveler (the most) go to buy a coffee and take some of picture a big windmill like they stay in Netherlands About the performance Sa Wat Dee Chaing Rai going to use a good coffee machine Brazign duels and cook a new food every time they have an order. The most interesting is food that never see in the coffee shop is Tim Sum, the Chinese stream food, because only open table coffee shop in the old town at south of Thailand do this.As the reasons that why Sa Wat Dee Chaing Rai attract both old customer and new customer to come.In the other way, Sa Wat Dee Chaing Rai always take care customer well and almost waiter is MFUs student path time job that have train to have a good service mind.

Le petit caf

Le petit located San kong noi road, Chiang Rai downtown. Le petit is fantastic atmosphere with natural and a cute style of decoration also has a big menu of coffees, fruit shakes, pastries and the standard Thai fare. The furniture was modern and comfortable. Le petit is popular coffee shop that has homemade bakery and ice cream and also set up in downtown which comfortable for customers in downtown.
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Parabola

Parabola is popular place for student and tourist located at Mea Chan, Chiang Rai where nice place have and also provide full option menus; coffee, beverages, Japanese cake style, a lot of bakery and Thai and international foods, they have to bake at least 10 kinds of cake every day. The favorites are banana chocolate cake, white chocolate cheesecake and squidgy chocolate cake. They have many customers both of tourists and students because Parabola an ideal place to take a break as they make their way to destinations along the border. This is, after all, the route to Doi Mae Salong, Mae Sai, Chiang Saen, Chiang Khong and the Golden Triangle. Parabola have red box which is symbol and easy to find and they also have beautiful decoration with luxury style with high price of coffee and food but they still have a lot of customers

Customer Analysis We found customer who is students and teenager focus on demand first of all, then taste of coffee, food, decorations because they want to take a photo with beautiful scenery and also share on social network we understand their behavior by survey and study so we would like to have a lots of promotions, they will be can touch nice atmosphere and comfortable with power of buying that they can and we should focus on everything taste, location, atmosphere, parking lot .Our coffee shop will be first choice in the customers information search. We sure that our brand must be in all stages of customers buying decision process, final choice or decision.
40

Competitive Analysis

It is true that the level of competition among various coffee shops is high. In order for a particular coffee shop to retain its loyal customers and to attract more potential coffee drinkers, it is vital for it to employ some sales promotion every once in a while, especially coffee shop that set up around Mae Fah Luang University; big target is students. Parabola have high price but still have a lots of customer because they have difference signature menu so our shop might be noticeable menu and sell with cheaper price. Each coffee shop always has style for them, they focus on taste and atmosphere and they also have difference decoration style, good atmosphere and good decorations. , we found customer want to drink fresh high quality coffee and low cost. But no have any coffee shop that talking about baristas, Baristas are the most important people in a coffee shop. As we all know, they are the ones responsible for providing customers with the various coffee treats that they would love to enjoy we will trainings are essential for baristas because of a variety of reasons, the standards that we have developed for the making of your drinks. Most importantly, with trainings, baristas will be able to improve their coffee-making skills, making sure that they provide only high-quality, aromatic coffee drinks to customers, so we provide our coffee shop has a good taste, I use is low cost business and can pull more customers but they not important about decorate shop same as Phuvaree but they have unique menu for attract customer We have many competitors that open same coffee shop but shop that buy homemade bakery and ice cream just have some shop; happy plus and parabola provided homemade ice cream, Happy plus not focus on coffee and bakery and still located in unnoticeable. Parabola even set up far away from community but taste of coffee can pull customer with location in clearly place and has a nice display that noticeable and menu of foods, beverages and homemade cakes. Le petit caf also popular and buy homemade bakery and ice cream, located in downtown where far from Mea Fah Luang University. Everything information we will use to improve and developing our coffee business then we set plan and strategy about sell coffee, pull customers, promotion. When we can success business, we will develop next mission and try to leader coffee business in province.

41

STP Analysis

Like we said about the Strategy that I targeted on student and teenage, so most of customer would be people who free and have a time to relax or small meeting even date. The segmentation we divide in to 4-5 segments for service suitable in each:

Mean target will be teenager, why? Because teenagers love to drive they life freely without any rules, provide a free time for them so they can spend the time in the shop, they also spend money for food that they want and almost teenager can get money easily from their parents every month. Teenager love in low price and also need comfortable once of strategy that set the price lower for this kind because I point that low price will attract people more. But we didnt say that low price with less quality.

42

Marketing mix strategy

Product We provide to make coffee shop for relaxing and meeting and sell with homemade ice-cream, bakery and soft drink. Price We set the price of coffee and other product in our shop with low price for motivate customer and want to earn market segment from competition. Even though we sell with low price but we still use with good ingredient to serve coffee and other product to customer. Place Our place is in front of Mae Fah Luang University. We build in small shop with garden theme. Customer can satisfy our product and our place together. Promotion We plan to set promotion every month as much as we can because this way is good for motivation customer come to our shop and after customer satisfy with our service and know us then they will tell to other and another tell to another that would be great and we will gain more income.

43

Sale forecast/Profit estimate


Sale forecast We estimate that first we start and not much sales. But then people will know us more from word of month because good service and service mind on employee. However we can make more sales and more customers in the second year and next year. In every year we gain income in October-January because this time is high season in Chiang Rai province. And this time we will gain income from traveler the one of our target group. This time help us more to increase sales in our shop from coffee, homemade ice-cream, homemade bakery etc.

Month
1 2 3 4 5 6 7 8 9 10 11 12

Sales
90100 85550 63250 62200 62200 71100 71750 84850 78750 78500 71100 103700

sales forecast year 1


150000 100000 50000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month Revenue

Month 1 2 3 4 5 6 7 8 9 10 11 12

Sales 106800 98900 89700 84850 78750 78750 85500 87600 89700 85500 98900 103700

Sales forecast year 2


150000 100000 50000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month Revenue

44

Month 1 2 3 4 5 6 7 8 9 10 11 12

Sales 106300 100600 98900 89700 80250 83100 85500 89700 98900 83100 98900 106800

Sales forecast year 3


150000 100000 50000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month Revenue

Month
1 2 3 4 5 6 7 8 9 10 11 12

Sales
103500 100200 98900 87600 85500 85500 89700 98900 89700 85500 98900 101750

Sales forcast year 4


150000 100000 50000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month Revenue

Month 1 2 3 4 5 6 7 8 9 10 11 12

Sales 106800 98900 89700 84850 78750 85500 85500 87600 89700 85500 98900 103700

Sales forcast year 5


150000 100000 50000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month Revenue

45

Profit estimation We estimate that the first semi-annual has less profit because customer dont know our shop and this is a good way for us to try to promote our shop to customer by word of mouth and make brochure to introduce our shop and set promotion for customer.

Month 1 2 3 4 5 6 7 8 9 10 11 12

Income 48640 45840 43740 43230 42890 44310 46380 55640 54900 54460 56730 64390

Profit estimation year 1


80000 60000 40000 20000 0 1 2 3 4 5 6 7 8 9 10 11 12

Month

Profit

Month 1 2 3 4 5 6 7 8 9 10 11 12

Income 59670 57990 54610 53920 55370 54670 55530 57990 54630 54490 61500 67890

Profit estimation year 2


80000 60000 40000 20000 0 1 2 3 4 5 Month 6 7 8 9 10 11 12

Profit

46

Month 1 2 3 4 5 6 7 8 9 10 11 12

Income 66090 66110 58940 62350 57970 56520 57830 55880 56940 58090 64770 72840

Profit estimation year 3


80000 60000 40000 20000 0 1 2 3 4 5 Month 6 7 8 9 10 11 12

Profit

Month Income 1 67560 2 64290 3 62240 4 60700 5 60270 6 60270 7 58340 8 58340 9 59970 10 57090 11 68790 12 71090

Profit estimation year 4


80000 60000 40000 20000 0 1 2 3 4 5 Month 6 7 8 9 10 11 12

Profit

Month Income 1 59670 2 57990 3 54610 4 53920 5 55370 6 54670 7 55530 8 57990 9 54630 10 54490 11 61500 12 67890

Profit estimation year 5


80000 60000 40000 20000 0 1 2 3 4 5 6 7 8 9 10 11 12

Month

Profit

47

Marketing Expense
Our coffee shop has Expense as follow many advertise. The first advertising we choose Radio advertises. In short spot tell about the name of our shop, place, sale promotion and slogan. The second advertising we provide website for customer to find information of our shop easily. The third we make brochure for given to people in many places and make billboard for the people know about our shop. We always change billboard every year before high season. Because in high season has many tourist come to Chiang Rai. We think new billboard must attract more customers into our shop.

Month 1 2 3 4 5 6 7 8 9 10 11 12

Sales 5000
6000 4000 2000 0

Marketing Expense year 1

1 2 3 4 5 6 7 8 9 10 11 12

3000

Month

Sales

Month
1 2 3 4 5 6 7 8 9 10 11 12

Sales

Marketing Expense year 2


3000 2000 1000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month Sales

3000

48

Month 1 2 3 4 5 6 7 8 9 10 11 12

Sales

Marketing Expense year 3


6000 4000 2000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month Sales

3000 5000

Month
1 2 3 4 5 6 7 8 9 10 11 12

Sales

Marketing Expense year 4


3000 2000 1000 0 1 2 3 4 5 6 7 8 9 10 11 12

3000 3000

Series1

Series2

Month 1 2 3 4 5 6 7 8 9 10 11 12

Sales

Marketing Expense year 5


30000 20000 10000 0 1 2 3 4 5 6 7 8 9 10 11 12 Month Sales

30000 3000

49

Chapter 4
Cost of Investment

50

Pre-operating
Stand-alone pattern (Area of 50 square meters) around Mae Fah Luang University

Construction cost, Design cost and Decoration cost

800,000

Electrical system cost Water supply system cost Telephone system cost Electronic cash register calculators system

50,000 15,000 5,000 50,000

Total

920,000

51

Location
Our Coffee shop is locating in front of Mar Fah Luang Univerisy on the street near a local market and residential areas. Our shop is about 9 meters wide and 16 meters deep. We bought this location 2500000 Baht.

52

Machines / Tools / Equipments

Table and Chair (octagonal)

Wicker Swing 1

Table and Chair modern

Table and Chair wood *2

Table and Chair (Wicker)

Coffee Table *2

Sofa

Armchair(Nina)*2

53

Chandelier

Bookshelf

Stool bar chair *2

Glass

Plate

MP4 Player Pioneer

Air-conditioner LG

54

TV LG Plasma

Ice cream display

Cake Display Cabinet

Tools & Machine

Coffee Machine & Grinder

Fruit blender

55

Ice cream Machine

Refrigerator A

Refrigerator B

Computer A&B

Electronic Cash Register Calculator

56

Cost of investment
Pre operating cost Land 25000000

Investment cost
Building Environment structure Structure Build in Total 90000 220000 150000 460000

Equipment
Table & chair & Sofa (Outdoor) Table and Chair (octagonal) Wicker Swing 1 Table and Chair modern Table and Chair wood *2 (indoor) Table and Chair (Wicker) Coffee Table *2 Sofa Armchair(Nina)*2 Stool bar chair *2 Total 25,000 4,400 22,900 9980 1,180 99560 4600 8,500 15,000 8,000

57

Chandelier Bookshelf Glass Plate Counter DVD Player Pioneer Air-conditioner LG TV LG Plasma Ice cream display Cake Display Cabinet Total

5900 2,990 3650 1950 140000 12990 30980 26990 89000 45200 359650

Tools & Machine Coffee Machine & Grinder Fruit blender Ice cream Machine Refrigerator A Refrigerator B Computer A&B Electronic Cash Register Calculator Total Etc Miscellaneous Total 150000 150000 99000 9900 177000 15000 53400 41800 10,990 887690

58

Investment cost
Equipment

Investment Table & Chair Outdoor

Amount 36100

Depreciation 3 Years

Annual Dep. 12024

Monthly Dep. 1002

Table & Chair Indoor

63460

5 Years

12684

1057

Chandelier

5900

10 Years

588

49

Bookshelf

2990

10 Years

288

24

Glass & Plate

5600

5 Years

1116

93

DVD Player Pioneer

12990

5 Years

2592

216

Air-conditioner LG

30980

5 Years

6192

516

TV LG Plasma

26990

5 Years

5388

449

Ice cream display

8900

5 Years

1776

148

Cake Display Cabinet

45200

5 Years

9036

753

Counter

140000

10 Years

1392

116

59

Depreciation

First Year
Investment Table & Chair Outdoor Table & Chair Indoor Chandelier Amount 36100 Jan 1002 Feb 1002 Mar 1002 Apr 1002 May 1002 Jun 1002 Jul 1002 Aug 1002 Sep 1002 Oct 1002 Nov 1002 Dec 1002 Total 12024

63460

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

12684

5900

49

49

49

49

49

49

49

49

49

49

49

49

588

Bookshelf Glass & Plate DVD Player Pioneer Airconditioner LG TV LG Plasma

2990 5600 12990

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

288 1116 2592

30980

516

516

516

516

516

516

516

516

516

516

516

516

6192

26990

449

449

449

449

449

449

449

449

449

449

449

449

5388

Ice cream display Total

8900

148

148

148

148

148

148

148

148

148

148

148

148

1776

193910

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

42648

60

Second Year
Investment Table & Chair Outdoor Table & Chair Indoor Chandelier Amount 36100 Jan 1002 Feb 1002 Mar 1002 Apr 1002 May 1002 Jun 1002 Jul 1002 Aug 1002 Sep 1002 Oct 1002 Nov 1002 Dec 1002 Total 12024

63460

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

12684

5900

49

49

49

49

49

49

49

49

49

49

49

49

588

Bookshelf Glass & Plate DVD Player Pioneer Airconditioner LG TV LG Plasma

2990 5600 12990

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

288 1116 2592

30980

516

516

516

516

516

516

516

516

516

516

516

516

6192

26990

449

449

449

449

449

449

449

449

449

449

449

449

5388

Ice cream display Total

8900

148

148

148

148

148

148

148

148

148

148

148

148

1776

193910

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

42648

61

Third Year
Investment Table & Chair Outdoor Table & Chair Indoor Chandelier Amount 36100 Jan 1002 Feb 1002 Mar 1002 Apr 1002 May 1002 Jun 1002 Jul 1002 Aug 1002 Sep 1002 Oct 1002 Nov 1002 Dec 1002 Total 12024

63460

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

12684

5900

49

49

49

49

49

49

49

49

49

49

49

49

588

Bookshelf Glass & Plate DVD Player Pioneer Airconditioner LG TV LG Plasma

2990 5600 12990

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

288 1116 2592

30980

516

516

516

516

516

516

516

516

516

516

516

516

6192

26990

449

449

449

449

449

449

449

449

449

449

449

449

5388

Ice cream display Total

8900

148

148

148

148

148

148

148

148

148

148

148

148

1776

193910

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

42648

62

Fourth Year
Investment Table & Chair Outdoor Table & Chair Indoor Chandelier Amount 36100 Jan 1002 Feb 1002 Mar 1002 Apr 1002 May 1002 Jun 1002 Jul 1002 Aug 1002 Sep 1002 Oct 1002 Nov 1002 Dec 1002 Total 12024

63460

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

12684

5900

49

49

49

49

49

49

49

49

49

49

49

49

588

Bookshelf Glass & Plate DVD Player Pioneer Airconditioner LG TV LG Plasma

2990 5600 12990

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

288 1116 2592

30980

516

516

516

516

516

516

516

516

516

516

516

516

6192

26990

449

449

449

449

449

449

449

449

449

449

449

449

5388

Ice cream display Total

8900

148

148

148

148

148

148

148

148

148

148

148

148

1776

193910

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

42648

63

Fifth Year
Investment Table & Chair Outdoor Table & Chair Indoor Chandelier Amount 36100 Jan 1002 Feb 1002 Mar 1002 Apr 1002 May 1002 Jun 1002 Jul 1002 Aug 1002 Sep 1002 Oct 1002 Nov 1002 Dec 1002 Total 12024

63460

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

1057

12684

5900

49

49

49

49

49

49

49

49

49

49

49

49

588

Bookshelf Glass & Plate DVD Player Pioneer Airconditioner LG TV LG Plasma

2990 5600 12990

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

24 93 216

288 1116 2592

30980

516

516

516

516

516

516

516

516

516

516

516

516

6192

26990

449

449

449

449

449

449

449

449

449

449

449

449

5388

Ice cream display Total

8900

148

148

148

148

148

148

148

148

148

148

148

148

1776

193910

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

3554

42648

64

Investment Cost
Tools & Machines

Investment Coffee machine + Grinder

Amount 99000

Depreciation 5 Years

Annual Dep. 19800

Monthly Dep. 1650

Fruit blender

9900

5 Years

1980

165

Ice cream machine

177000

5 Years

35400

2950

Computer A

20900

3 Years

6960

580

Computer B

20900

3 Years

6960

580

Electronic Cash Register Calculator Refrigerator A

10990

5 Years

2196

183

15000

5 Years

3000

250

Refrigerator B

53400

5 Years

10680

890

65

Depreciation Tools

First Year
Investment Coffee machine + Grinder Amount 99000 Jan 1650 Feb 1650 Mar 1650 Apr 1650 May 1650 Jun 1650 Jul 1650 Aug 1650 Sep 1650 Oct 1650 Nov 1650 Dec 1650 Total 19800

Fruit blender

9900

165

165

165

165

165

165

165

165

165

165

165

165

1980

Ice cream machine

177000

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

35400

Computer A

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Computer B

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Electronic Cash Register Calculator Refrigerator A

10900

183

183

183

183

183

183

183

183

183

183

183

183

2196

15000

250

250

250

250

250

250

250

250

250

250

250

250

3000

Refrigerator B

53400

890

890

890

890

890

890

890

890

890

890

890

890

10680

Total

407000

7248

7248

7248

7248

7248

7248

7248

7248

7248

7248

7248

7248

86976

66

Second Year
Investment Coffee machine + Grinder Amount 99000 Jan 1650 Feb 1650 Mar 1650 Apr 1650 May 1650 Jun 1650 Jul 1650 Aug 1650 Sep 1650 Oct 1650 Nov 1650 Dec 1650 Total 19800

Fruit blender

9900

165

165

165

165

165

165

165

165

165

165

165

165

1980

Ice cream machine

177000

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

35400

Computer A

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Computer B

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Electronic Cash Register Calculator Refrigerator A Refrigerator B Total

10900

183

183

183

183

183

183

183

183

183

183

183

183

2196

15000 53400 407000

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

3000 10680 86976

67

Third Year
Investment Coffee machine + Grinder Amount 99000 Jan 1650 Feb 1650 Mar 1650 Apr 1650 May 1650 Jun 1650 Jul 1650 Aug 1650 Sep 1650 Oct 1650 Nov 1650 Dec 1650 Total 19800

Fruit blender

9900

165

165

165

165

165

165

165

165

165

165

165

165

1980

Ice cream machine

177000

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

35400

Computer A

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Computer B

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Electronic Cash Register Calculator Refrigerator A Refrigerator B Total

10900

183

183

183

183

183

183

183

183

183

183

183

183

2196

15000 53400 407000

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

3000 10680 86976

68

Fourth Year
Investment Coffee machine + Grinder Amount 99000 Jan 1650 Feb 1650 Mar 1650 Apr 1650 May 1650 Jun 1650 Jul 1650 Aug 1650 Sep 1650 Oct 1650 Nov 1650 Dec 1650 Total 19800

Fruit blender

9900

165

165

165

165

165

165

165

165

165

165

165

165

1980

Ice cream machine

177000

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

35400

Computer A

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Computer B

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Electronic Cash Register Calculator Refrigerator A Refrigerator B Total

10900

183

183

183

183

183

183

183

183

183

183

183

183

2196

15000 53400 407000

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

3000 10680 86976

69

Fifth Year
Investment Coffee machine + Grinder Amount 99000 Jan 1650 Feb 1650 Mar 1650 Apr 1650 May 1650 Jun 1650 Jul 1650 Aug 1650 Sep 1650 Oct 1650 Nov 1650 Dec 1650 Total 19800

Fruit blender

9900

165

165

165

165

165

165

165

165

165

165

165

165

1980

Ice cream machine

177000

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

2950

35400

Computer A

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Computer B

20900

580

580

580

580

580

580

580

580

580

580

580

580

6960

Electronic Cash Register Calculator Refrigerator A Refrigerator B Total

10900

183

183

183

183

183

183

183

183

183

183

183

183

2196

15000 53400 407000

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

250 890 7248

3000 10680 86976

70

Chapter 5
Operating cost

71

Operating cost
Inventory Coffee and Bakery Hot Espresso 30 Ice 35 Frap 45

Latte

40

45

55

Americano

40

50

60

Cappuccino

30

35

45

Mocha

30

35

45

72

Brownie 20/piece

Blueberry cheese cake

55/piece

55/piece Blueberry cheese pie

55/piece

Strawberry cheese cake

55/piece

Strawberry cheese pie

Coconut cake

35/piece

Green tea cake

35/piece

73

Raw material: Coffee bean from Doi Chaang Pea berry Organic Premium 1600/kg 1400/kg 1080/kg 170/500g 1150/500g 210/500g 23/kg 45/450g 60/405g 130/700ml 315/700ml 6/325ml 40/50g 1250/kg 500/2500g 420/kg 350/kg 205/5kg 370/7500g 15/100g 75/kg

Cocoa powder Green tea powder (Matcha) Tea powder (Ceylon) Sugar Cream Carnation milk Fruit juice smoothie (Sun up) Syrup Soda Ground cinnamon Yoghurt Skim milk powder Lime powder Sodium carboxymethy cellulose gum Dextrose Malt dextrin Citric acid Shortening

74

Chapter 6
Organization And Administration

75

Administration cost

Labor per month

28,000

Water supply per month

450

Electronic supply per month

5500

Internet per month

690

Telephone per month

500

Other expense; such as, dishwashing liquid, clean water surface, Knitting liquid cleaner

Total

35,140

76

Chapter 7 Financial

77

Income Statement

78

Income Statement 1st year

Jan Revenue Cost of revenue 90100 41460

Feb 85550 39710

Mar 63250 19510

Apr 62200 18970

May 62200 19310

June 71100 26790

July 71750 25370

Aug 84850 29210

Sep 78750 23850

Oct 78500 24040

Nov 71100 14370

Dec 103700 39310

Gross profit Expense


*Selling expense

48640 5000

45840 -

43740 -

43230 -

42890 -

44310 -

46380 -

55640 -

54900 -

54460 3000

56730 -

64390 -

Administration cost
*Labour *Electric supply *Water supply *Telephone *Internet

28000 5000 400 500 690 34590

28000 5000 400 500 690 34590 11250

28000 5200 450 500 690 34840 8900

28000 6000 480 500 690 35670 7560

28000 6200 480 500 690 35870 7020

28000 6000 480 500 690 35670 8640

28000 5000 400 500 690 34590 11790

28000 5000 450 500 690 34640 21000

28000 5000 400 500 690 34590 20310

28000 5000 400 500 690 34590 16870

28000 5000 400 500 690 34590 22140

28000 5000 400 500 690 34590 29800

Net income (loss)

9050

79

Income Statement 2nd year

Jan Revenue Cost of revenue 106800 47130

Feb 98900 40910

Mar 89700 35090

Apr 84850 30930

May 78750 23080

June 78750 24080

July 85500 29970

Aug 87600 29610

Sep 89700 35070

Oct 85500 31010

Nov 98900 37400

Dec 103700 35810

Gross profit Expense


*Selling expense

59670 -

57990 -

54610 -

53920 -

55370 -

54670 -

55530 -

57990 -

54630 -

54490 3000

61500 -

67890 -

Administration cost
*Labour *Electric supply *Water supply *Telephone *Internet

28000 5000 400 500 690 34590

28000 5000 400 500 690 34590 23400

28000 5200 450 500 690 34840 19770

28000 6000 480 500 690 35670 18250

28000 6200 480 500 690 35870 19500

28000 6000 480 500 690 35670 19000

28000 5000 400 500 690 34590 20940

28000 5000 450 500 690 34640 23400

28000 5000 400 500 690 34590 20040

28000 5000 400 500 690 34590 16900

28000 5000 400 500 690 34590 26910

28000 5000 400 500 690 34590 33300

Net income (loss)

25080

80

Income Statement 3nd year

Jan Revenue Cost of revenue 106300 40210

Feb 100600 34490

Mar 98900 39960

Apr 89700 27350

May 80250 22280

June 83100 26580

July 85500 27670

Aug 89700 33820

Sep 98900 41960

Oct 83100 25010

Nov 98900 34130

Dec 106800 33960

Gross profit Expense


*Selling expense

66090 -

66110 -

58940 -

62350 -

57970 -

56520 -

57830 -

55880 -

56940 -

58090 3000

64770 -

72840 5000

Administration cost
*Labour *Electric supply *Water supply *Telephone *Internet

28000 5000 400 500 690 34590

28000 5000 400 500 690 34590 31520

28000 5200 450 500 690 34840 24100

28000 6000 480 500 690 35670 22680

28000 6200 480 500 690 35870 22100

28000 6000 480 500 690 35670 20850

28000 5000 400 500 690 34590 23240

28000 5000 450 500 690 34640 21240

28000 5000 400 500 690 34590 22350

28000 5000 400 500 690 34590 20500

28000 5000 400 500 690 34590 30180

28000 5000 400 500 690 34590 33250

Net income (loss)

31500

81

Income statement 4th year

Jan Revenue Cost of revenue 103500 35940

Feb 100200 35910

Mar 98900 36660

Apr 87600 26900

May 85500 25230

June 85500 25230

July 89700 31360

Aug 98900 40560

Sep 89700 29730

Oct 85500 28410

Nov 98900 30110

Dec 101750 30660

Gross profit Expense


*Selling expense

67560 -

64290 -

62240 -

60700 -

60270 -

60270 -

58340 -

58340 -

59970 -

57090 3000

68790 -

71090 3000

Administration cost
*Labour *Electric supply *Water supply *Telephone *Internet

28000 5000 400 500 690 34590

28000 5000 400 500 690 34590 29700

28000 5200 450 500 690 34840 27400

28000 6000 480 500 690 35670 25030

28000 6200 480 500 690 35870 24000

28000 6000 480 500 690 35670 24600

28000 5000 400 500 690 34590 21680

28000 5000 450 500 690 34640 23700

28000 5000 400 500 690 34590 25380

28000 5000 400 500 690 34590 19500

28000 5000 400 500 690 34590 34200

28000 5000 400 500 690 34590 33500

Net income (loss)

32970

82

Income statement 5th year

Jan Revenue Cost of revenue 106800 47130

Feb 98900 40910

Mar 89700 35090

Apr 84850 30930

May 78750 23080

June 78750 24080

July 85500 29970

Aug 87600 29610

Sep 89700 35070

Oct 85500 31010

Nov 98900 37400

Dec 103700 35810

Gross profit Expense


*Selling expense

59670 -

57990 -

54610 -

53920 -

55370 -

54670 -

55530 -

57990 -

54630 -

54490 3000

61500 -

67890 -

Administration cost
*Labour *Electric supply *Water supply *Telephone *Internet

28000 5000 400 500 690 34590

28000 5000 400 500 690 34590 23400

28000 5200 450 500 690 34840 19770

28000 6000 480 500 690 35670 18250

28000 6200 480 500 690 35870 19500

28000 6000 480 500 690 35670 19000

28000 5000 400 500 690 34590 20940

28000 5000 450 500 690 34640 23400

28000 5000 400 500 690 34590 20040

28000 5000 400 500 690 34590 16900

28000 5000 400 500 690 34590 26910

28000 5000 400 500 690 34590 33300

Net income (loss)

25080

83

Cash Flow

84

Cash Flow 1st year

Jan

Feb 686828

Mar 663583

Apr 647452

May 628625

June 620632

Cash be. balance

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 9050 10802 12080 15000 13500 6272 11250 10802 12080 1000 1000 9972 8900 10802 12080 1000 1000 7622 6282 7560 10802 12080 5742 7020 10802 12080 8640 10802 12080 1000 1000 9362

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

460000 459210 887690 1806900

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment

2500000 2500000 686828 -

3250 21750 25000 23245 -

3196 21804 25000 16131 -

3141 21859 25000 18827 -

3086 21914 25000 7993 -

3032 21968 25000 10869

Total cash flow from financing Change in cash

Net cash flow

686828

663583

647452

628625

620632

609763

85

1st year (Cont.)

July

Aug 610538

Sep 617527

Oct 622390

Nov 626217

Dec 637718

Cash be. balance

609763

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 10512 11790 10802 12080 19722 21000 10802 12080 20310 10802 12080 1000 1000 9032 15592 16870 10802 12080 20862 22140 10802 12080 29800 10802 12080 1500 1500 28522

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

2977 22023 25000 775 -

2922 22078 25000 6989 -

2867 22133 25000 4863 -

2811 22189 25000 3827 -

2756 22244 25000 11501 -

2700 22300 25000 21585

Total cash flow from financing Change in cash

Net cash flow

610538

617527

622390

626217

637718

659303

86

Cash Flow 2nd year

Jan

Feb 681548

Mar 700797

Apr 720770

May 741677

June 761928

Cash be. balance

659303

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 25080 10802 12080 2500 2500 23802 23400 10802 12080 4000 4000 22122 18492 19770 10802 12080 16972 18250 10802 12080 18222 19500 10802 12080 17722 19000 10802 12080

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

2,644 22,356 25000 22245 -

2,588 22,412 25000 19249 -

2,532 22,468 25000 19973 -

2,476 22,524 25000 20907 -

2,420 22,580 25000 20251 -

2,363 22637 25000 23555

Total cash flow from financing Change in cash

Net cash flow

681548

700797

720770

741677

761928

785483

87

2nd year ( Cont. )

July

Aug 815092

Sep 844625

Oct 876262

Nov 906563

Dec 949278

Cash be. balance

785483

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 20940 10802 12080 23400 10802 12080 20040 10802 12080 1500 1500 16900 10802 12080 500 500 26910 10802 12080 2000 2000 33300 10802 12080 7500 7500

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

2,307 22,693 25000 29609 -

2,250 22,750 25000 29533 -

2,193 22,807 25000 31637 -

2,136 22,864 25000 30301 -

2,079 22,921 25000 42715 -

2022 22978 25000 52139

Total cash flow from financing Change in cash

Net cash flow

815092

844625

876262

906563

949278

1001417

88

Cash flow 3rd year

Jan

Feb 1051156

Mar 1095289

Apr 1143626

May 1191727

June 1242082

Cash be. balance

1001417

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 31500 10802 12080 6500 6500 23802 31520 10802 12080 1500 1500 22122 18492 24100 10802 12080 16972 22680 10802 12080 22100 10802 12080 3500 3500 18222 17722 20850 10802 12080

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

1,964 3,036 25000 49739 -

1,907 23,093 25000 44133 -

1,849 23,151 25000 48337 -

1,791 23,209 25000 48101 -

1,733 23,267 25000 50355 -

1,675 23,325 25000 51079

Total cash flow from financing Change in cash

Net cash flow

1051156

1095289

1143626

1191727

1242082

1293161

89

3nd year ( Cont. )

July

Aug 1349494

Sep 1405771

Oct 1465562

Nov 1528037

Dec 1600466

Cash be. balance

1293161

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 21962 23240 10802 12080 19962 21240 10802 12080 21072 22350 10802 12080 19222 20500 10802 12080 30180 10802 12080 2000 2000 28902 33250 10802 12080 4000 4000 31972

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

1,617 23,383 25000 56333 -

1,558 23,442 25000 56277 -

1,500 23,500 25000 59791 -

1,441 23,559 25000 62475 -

1,382 23,618 25000 72429 -

1323 23677 25000 68243

Total cash flow from financing Change in cash

Net cash flow

1349494

1405771

1465562

1528037

1600466

1668709

90

Cash flow 4th year

Jan

Feb 1746332

Mar 1822549

Apr 1899490

May 1976675

June 2056084

Cash be. balance

1668709

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 32970 10802 12080 2000 2000 21962 29700 10802 12080 200 200 19962 27400 10802 12080 200 200 21072 19222 25030 10802 12080 28902 24000 10802 12080 31972 24600 10802 12080

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

1,264 23,736 25000 77623 -

1,204 23,796 25000 76217 -

1,145 23,855 25000 76941 -

1,085 23,915 25000 77185 -

1,025 23,975 25000 79409 -

966 24034 25000 81363

Total cash flow from financing Change in cash

Net cash flow

1746332

1822549

1899490

1976675

2056084

2137447

91

4th year ( Cont. )

July

Aug 2218204

Sep 2303385

Oct 2392650

Nov 2478239

Dec 2581222

Cash be. balance

2137447

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 24600 10802 12080 200 200 23322 20402 21680 10802 12080 23700 10802 12080 500 500 22422 25380 10802 12080 1000 1000 24102 19500 10802 12080 1500 1500 18222 32922 34200 10802 12080

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

905 24,095 25000 80757 -

845 24,155 25000 85181 -

785 24,215 25000 89265 -

724 24,276 25000 85589 -

664 24,336 25000 102983 -

603 24397 25000 105017

Total cash flow from financing Change in cash

Net cash flow

2218204

2303385

2392650

2478239

2581222

2686239

92

Cash Flow 5th year

Jan

Feb 2793096

Mar 2895427

Apr 2997702

May 3099591

June 3205264

Cash be. balance

2686239

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 25080 10802 12080 2000 2000 23802 22122 23400 10802 12080 18492 19770 10802 12080 16972 18250 10802 12080 18222 19500 10802 12080 17722 19000 10802 12080

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

542 24,458 25000 106857 -

481 24,519 25000 102331 -

419 24,581 25000 102275 -

358 24,642 25000 101889 -

296 24,704 25000 105673 -

235 24765 25000 108317

Total cash flow from financing Change in cash

Net cash flow

2793096

2895427

2997702

3099591

3205264

3313581

93

5th year ( Cont. )

July

Aug 3446412

Sep 3584687

Oct 3725846

Nov 3863179

Dec 3878801

Cash be. balance

3313581

Cash flow from operating


Net income (loss) Depreciation Pre operating cost Change in inventory Change in account payable 17722 19000 10802 12080 19662 20940 10802 12080 22122 23400 10802 12080 20040 10802 12080 300 300 18762 16900 10802 12080 300 300 15622 26910 10802 12080 200 200 25632

Total cash flow from operating Cash flow from investing


Building Equipments Tools -

Total cash flow from investing Cash flow from financing


Borrowing Interest Repayment -

173 24,827 25000 132831 -

111 19,318 19,429 138275 -

62 19,318 19,380 141159 -

14 5571 5,585 137333

15622

25632

Total cash flow from financing Change in cash

Net cash flow

3446412

3584687

3725846

3863179

3878801

3904433

94

Balance sheet

95

Balance sheet 1st year

Jan Asset
Cash 686828

Feb

Mar

Apr

May

June

663583

647452

628625

620632

609763

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander 177000 9900 99000 177000 9900 99000 177000 9900 99000 177000 9900 99000 177000 9900 99000 177000 9900 99000

96

Computer Electronic cash register cal. Refrigerator

50800 10990 68400

50800 10990 68400

50800 10990 68400

50800 10990 68400

50800 10990 68400

50800 10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 1964982 2000 1500 10000 10000 460000 1942283 2000 1500 10000 10000 460000 1926152 2000 1500 10000 10000 460000 1907325 2000 1500 10000 10000 460000 1899332 2000 1500 10000 10000 460000 1888463

Building Total asset

97

1st year (Cont.)


July Aug Sep Oct Nov Dec

Asset
Cash 609763 610538 617527 622390 626217 637718

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

98

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 1888463 2000 1500 10000 10000 460000 1889238 2000 1500 10000 10000 460000 1896227 2000 1500 10000 10000 460000 1901090 2000 1500 10000 10000 460000 1904917 2000 1500 10000 10000 460000 1916418

Building Total asset

99

Balance sheet 2nd year


Jan Feb Mar Apr May June

Asset
Cash 659303 681548 700797 720770 741677 761928

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

100

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 1938003 2000 1500 10000 10000 460000 1960248 2000 1500 10000 10000 460000 1979497 2000 1500 10000 10000 460000 1999470 2000 1500 10000 10000 460000 2020377 2000 1500 10000 10000 460000 2040628

Building Total asset

101

2nd year (Cont.)


July Aug Sep Oct Nov Dec

Asset
Cash 785483 815092 844625 876262 906563 949278

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

102

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 2064183 2000 1500 10000 10000 460000 2093792 2000 1500 10000 10000 460000 2123325 2000 1500 10000 10000 460000 2154962 2000 1500 10000 10000 460000 2185263 2000 1500 10000 10000 460000 2227978

Building Total asset

103

Balance sheet 3rd year


Jan Feb Mar Apr May June

Asset
Cash 1001417 1051156 1095289 1143626 1191727 1242082

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

104

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 2286117 2000 1500 10000 10000 460000 2329856 2000 1500 10000 10000 460000 2373989 2000 1500 10000 10000 460000 2422326 2000 1500 10000 10000 460000 2470427 2000 1500 10000 10000 460000 2520782

Building Total asset

105

3rd year (Cont.)


July Aug Sep Oct Nov Dec

Asset
Cash 1293161 1349494 1405771 1465562 1528037 1600466

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

106

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 2571861 2000 1500 10000 10000 460000 2628194 2000 1500 10000 10000 460000 2684471 2000 1500 10000 10000 460000 2744262 2000 1500 10000 10000 460000 2806737 2000 1500 10000 10000 460000 2879166

Building Total asset

107

Balance sheet 4th year


Jan Feb Mar Apr May June

Asset
Cash 1668709 1746332 1822549 1899490 1976675 2056084

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

108

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 2947409 2000 1500 10000 10000 460000 3025032 2000 1500 10000 10000 460000 3101249 2000 1500 10000 10000 460000 3178190 2000 1500 10000 10000 460000 3255375 2000 1500 10000 10000 460000 3334784

Building Total asset

109

4th year (Cont.)


July Aug Sep Oct Nov Dec

Asset
Cash 2137447 2218204 2303385 2392650 2478239 2581222

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

110

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 3416147 2000 1500 10000 10000 460000 3496904 2000 1500 10000 10000 460000 3582085 2000 1500 10000 10000 460000 3671350 2000 1500 10000 10000 460000 3756939 2000 1500 10000 10000 460000 3859922

Building Total asset

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Balance sheet 5th year


Jan Feb Mar Apr May June

Asset
Cash 2686239 2793096 2895427 2997702 3099591 3205264

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

112

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 3964939 2000 1500 10000 10000 460000 4071796 2000 1500 10000 10000 460000 4174127 2000 1500 10000 10000 460000 4276402 2000 1500 10000 10000 460000 4378291 2000 1500 10000 10000 460000 4483964

Building Total asset

113

5th year (Cont.)


July Aug Sep Oct Nov Dec

Asset
Cash 3313581 3446412 3584687 3725846 3863179 3878801

Equipment
Table & Chair (indoor) Table & Chair (outdoor) Counter Chandelier Bookshelf Dvd player Tv Air conditioner Ice-cream display Cake display Glass & plate 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600 63460 36100 140000 5900 2990 12990 26990 30980 8900 45200 5600

Tools
Ice-cream machine Coffee grinder + machine Fruit blander Computer 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800 177000 9900 99000 50800

114

Electronic cash register cal. Refrigerator

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

10990 68400

Inventory
Coffee product Soft drink product Bakery product Ice-cream product 2000 1500 10000 10000 460000 4592281 2000 1500 10000 10000 460000 4725112 2000 1500 10000 10000 460000 4863387 2000 1500 10000 10000 460000 5004546 2000 1500 10000 10000 460000 5141879 2000 1500 10000 10000 460000 5157501

Building Total asset

115

Chapter 8 Risk Management

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Risk Management
The analyzing of business risk factors we will use our business as a set. Then look environment around business and business itself that what is the important point. If this point is very important and adverse impact occur to this point, our business may get some problem Identify of risk Political Analyze of risk Politic is external out of control by business. Many competitors have to face with this too. Politic might positively affect to business investment or negatively affect as obstacle in business success. HR factor risk Inefficient employees who are lack of performance and cannot satisfy customers. In Chaing Rai many of employees are from Myanmar Employee risk Some employee who are students cant work in long vacation Environmental risks pollution in the air, water harmful to the atmosphere We started to adopt new ways that will not adversely affect the environment and start to employ eco-friendly processes Season and whether In raining season we might use less outside zone Prepare splashier above outside zone
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Resolve of risk We always follow political news and apply in our business.

Hired only Thais in both of full-time and par-time job; especially MFUs students who want to work in part time job and train them essential Hire student who study in summer course

Low season

Low season will be drop of customer

Set a attractive promotion

Fire Raw material

We have kitchen, its fire risk Some period might be effect to some raw material have high price

insurance Have Connection with wholesaler and stock some raw material which can keep long time

Equipment

Coffee shop use a lots of machine to make product, if one of machine out of order we cant sell our product

reserve equipment

Quality

Our shop buy roast coffee, we need high quality of coffee to make good coffee

Buy good quality roast coffee from Doi Chang

Competitors

Around MFU have a lots of coffee shop

We provide difference of menus, low price, good service, professional, comfortable

Financial Risk

Financial risk is associated with the financial structure of the business. The transactions the business makes, and the financial systems that already have in place.

- Examining daily financial operation. - Watching the cash flow management

Being in business involves risks. Some youll be aware of, but there may also be others that have escaped your attention.

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Chapter 9 Conclusion

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Conclusion Thailand coffee consumption is worth more than 4,000 million baht (US$130million) in 2007, with an annual growth rate of 25% so hundreds of new coffee shops, both chains and non-chains, are open every year, reflecting a continued increase in demand for new coffee machine equipment and supplies. Thailand Coffee, Tea &Drinks 2010 and Thailand Bakery & Ice Cream 2010 are currently the BEST and LARGEST coffee bakery & ice cream show in the country, signifying a golden opportunity for manufacturers/distributors of equipment and supplies for coffee, tea, drinks, bakery, and ice cream wishing to penetrate the 80 million people market (66million Thais and 14 million tourists). Thailand Coffee, Tea and Drinks 2010 and Thailand Bakery & Ice Cream 2010 aims to attract more than 30,000 buyers from all over Thailand and neighboring countries to meet entrepreneur. More than US$100,000(three million baht) marketing and promotion budget is set to draw buyers. The show is well supported by both local and regional trade publications, thus ensuring publicity tothe target group. Full supports from Thailand Barista Association and related government agencies. A comprehensive coffee and bakery activities i.e. National Thailand Barista Champion ship, Bakery Competition. We can see many opportunities why this project should launch this project From my study of project feasibility study and evaluation that show me about the process of coffee shop is running on small business and planning for providing good service with low price. Even coffee shop just small businesses and use less budget to launch. Coffee shops not clear level of command because everyone can be every level. So we confirm that no one study this business seriously before and if we know this business clearly every one can build this kind of carrier. When we set up coffee business, we must thinking and planning about objective that clear, reliable and make high profit to business. We must understand customer and what demand while study competitor, find out the way to make profit from customer and try to do anything that customers are satisfied. We take the feedback to improve our service or make a new product. We choose right strategies to adapt with the situation. We can manage risk and take advantage on competitors. Timeframe, tell about period of time in processing business.

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In market analysis we must know about political analysis. Politic is out of control by business. Many competitors have to face with this too. Politic might positively affect to business investment or negatively affect as obstacle in business success. So, we always follow political news and apply in our business. Economy analysis, it is out of control from business and others competitors must face as same as politic. Social and environment analysis, business in different industry, market, and region might face with risk. It has different business feasibility because business operation environment and market environment that is different. Technology analysis, changed rapidly today that is called the digital age. Marketing is the same. Result of technology change make marketing change too. E-Commerce has grown continuously and force marketing must adapt following trade system. So, E-Marketing happens. It helps to operate marketing activity by using electronic equipment. Competition analysis [3c analysis] such as competitor analysis, we define the competitors who provide service as same as us.

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Reference
http://www.coffeeresearch.org/ http://www.chiangrai.net/dashboard19/?PID=VG91cmlzdC9Ub3VyaXN0MS5hc2N4 https://reg.mfu.ac.th/registrar/statistics/main_m.htm) http://www.pangkhoncoffee.com/index.php?option=com_content&view=article&id=12&Itemid=1 http://inventors.about.com/od/foodrelatedinventions/a/ice_cream.htm http://www.waweecoffee.com/intro.php http://doichaangcoffee.com/ http://chartsbin.com/view/581 http://worldfilmbkk.com/life/Ice-cream-with-a-fruity-flavour-30167125.html http://www.swensens.com/our-story/ http://www.highlightthailand.com/main/detail_content/The-history-of-ice-cream/22.html

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