Mae Fah Luang University

Mali Shellin Shop

Prepared by

Jamjuree Chaisoda 5131205007

Bodin Techanan 5131205028

Krittawit Muangsakul 5131205090

Jeerawas Yantadilok 5131205101

Chaowarit Wankprakobkul 5131205028

Submit to

Aj. Chaiyawat Thongintr

Project Feasibility Study and Evaluation, 1203302

2nd semester; Academic year 2010

 A

Preface

This Business project conducted from Mali Shellin Shop to perform the small-
business enterprises for proposes by use in operation system and find Co-investor in business.
For this report talks about business information that investor should know about operator in
business of Mali Shellin Shop as well as Introduction, Industry profile, Market feasibility
Study, technical feasibility study, financial analysis, risk management, and summary of
project.
This report present about problem analysis and resolvable include of
recommendations benefit for investors to invest. Mali Shellin Shop hopes this business
project can be build confidence and create a great profit return for the investor.
 B

Acknowledgement

We would like to acknowledge and extend my heartfelt gratitude to the

following persons who have made the completion of this report possible. For their many
helpful suggestions, we would like to thank Aj. Chaiyawat Thongintr the lecturer in School of
Management Business Administration Program, Project Feasibility Study and Evaluation,
1203302. Thank you for being a teacher, consultant and information giver. We also would
like to acknowledge the unique and invaluable contribution for the internet that allows many
specialist accesses to write very useful information on the website, and we can pick some of
them to be rewrite in this report. Special thanks are due to the website that provide about
cloths information. Thanks for all member in our group. Most especially to other group
friends who answer our question and give the advise when we face with problem. We deeply
grateful thank to Mae Fah Luang University for giving us this opportunity. Finally, for their
support and encouragement, a note of thanks goes to all people who involve with this project.
 C

Executive Summary

This project is the study the feasibility of the sea product that will operate at
Hua Hin in names Mali shallin shop. This project study about the background and situation of
the sea product, the market feasibility study that analyzes on the general market, competitors,
customer and competitions, the technical’s feasibility study that including the management
analysis. The financial analysis and the risk management analysis

From the analysis of market, we found that the purchasing of the people in the
Hua Hin is more include the tourist cover all of our targets. And we understand more about
the customer demand, also marketing needs. The core competency of the Mali shallin shop is
can sell the goods that lower than the competitor but still high quality because we will
selective the suppler that offers the low price of product as much as possible. We also provide
the variety ways of purchasing product to the customers, really we advert about the customer
satisfaction. From analyzing the financial analysis, Mali shallin shop has strong in financial
statement which represent in the income statement, cash flow statement, and the balance
sheet statement. From study the risk management in both business and financial risk, there is
low level of risk for Mali shallin shop. We are already prepares for them in the easy way to
consumption and the customer can understand easily.

From study all about this project we confident that this project must be feasible
and we will gain more profits for sure.
 D

Table of Contents

Preface .................................................................................................................................................... A

Acknowledgement .................................................................................................................................. B

Executive Summary ................................................................................................................................ C

Table of Contents ....................................................................................................................................D

Chapter 1 ................................................................................................................................................. 1

1. Introduction ..................................................................................................................................... 1

1.1 Background of the project ......................................................................................................... 1

1.2 Project Objectives ..................................................................................................................... 2

1.3 Benefits of Project ..................................................................................................................... 2

1.4 Activities/Time Frame ............................................................................................................... 3

Chapter 2 ................................................................................................................................................. 5

2. Industry Profile ................................................................................................................................... 6

2.1 Nature of industry ....................................................................................................................... 6

2.2 Situation of industry ..................................................................................................................... 7

2.3 Mission.......................................................................................................................................... 7

2.4 Vision ............................................................................................................................................ 8

2.5 Products and services .................................................................................................................... 8

2.5.1 Products.................................................................................................................................. 8

2.5.2 Service .................................................................................................................................. 12

2.5.3 Uniform of employee ............................................................................................................ 12

2.6 Business Strategy ........................................................................................................................ 12

2.7 Corporate Strategy ...................................................................................................................... 13

2.8 Functional strategy ...................................................................................................................... 16

Chapter 3 ............................................................................................................................................... 18

3. Market Feasibility Study (Marketing Analysis) ................................................................................ 19

3.1 General Information of Hua Hin ................................................................................................. 19

 E

3.2 STEEP Analysis .......................................................................................................................... 21

3.2.1 Social.................................................................................................................................... 21

3.2.2 Technology .......................................................................................................................... 21

3.2.3 Economy .............................................................................................................................. 23

Thailand Economic Monitor 2010 ..................................................................................................... 24

Graph changed in period 3 years( January 2549-October 2551)........................................... 25

3.2.4 Environment ......................................................................................................................... 30

3.2.5 Politic ................................................................................................................................... 32

3.3 Competitor Analysis (3C Analysis) ............................................................................................ 34

3.3.1 Competitor Analysis ............................................................................................................ 34

3.3.2 Customer Analysis ............................................................................................................... 34

3.3.3Competitive Analysis ............................................................................................................ 35

3.4 Marketing strategy (STP analysis ............................................................................................... 35

3.4.1 Segmentation........................................................................................................................ 35

3.4.2 Target market ....................................................................................................................... 36

3.4.3 Position ................................................................................................................................ 37

3.5 Marketing Mix Strategy .............................................................................................................. 38

3.5.1 Product ................................................................................................................................. 38

3.5.2 Place (distribution channel) ................................................................................................. 38

3.5.3 Price ..................................................................................................................................... 39

3.5.4 Promotion ............................................................................................................................. 39

3.6 Sale Forecast ............................................................................................................................... 41

Table 3.6.1 Sale Forecast in 1st year ............................................................................................. 54

Table 3.6.2 Sale Forecast in 2nd year............................................................................................. 55

Table 3.6.3 Sale Forecast in 3rd year ............................................................................................. 56

Table 3.6.4 Sale Forecast in 4th year ............................................................................................. 57

Table 3.6.5 Sale Forecast in 5th year ............................................................................................. 58

 F

Figure 3.6.1 Sales forecast ............................................................................................................ 59

3.7 Marketing Expense ..................................................................................................................... 60

Table 3.7.1 Marketing Expense in 1st year .................................................................................... 60

Table 3.7.2 Marketing Expense 2nd year ....................................................................................... 61

Table 3.7.3 Marketing Expense in 3rd year ................................................................................... 62

Table 3.7.4 Marketing Expense in 4th year ................................................................................... 63

Table 3.7.5 Marketing Expense in 5th year ................................................................................... 64

3.8 Conclusion .................................................................................................................................. 65

Chapter 4 ............................................................................................................................................... 66

4. Technical Feasibility Study............................................................................................................... 67

4.1Production and Operations Analysis ............................................................................................ 67

4.1.1 Product Characteristics ........................................................................................................ 67

4.1.2 Production/Services Process ................................................................................................ 69

4.1.3 Location ............................................................................................................................... 70

4.1.4 Facility Layout ..................................................................................................................... 71

4.1.5 Mali shellin shop’s equipment ............................................................................................. 72

4.1.6 Logistic Management ........................................................................................................... 78

4.1.7 Facility Management............................................................................................................ 78

4.1.8 The Mali Shellin Shop logo ................................................................................................. 82

4.2 Cost of investment ...................................................................................................................... 83

4.2.1 Pre operating cost ................................................................................................................. 83

4.2.2 Source of Fund ..................................................................................................................... 84

4.3 Investment Cost .......................................................................................................................... 84

4.3.1 Building, Equipments, Tools ............................................................................................... 84

4.3.2 Depreciation ......................................................................................................................... 85

4.3.3 Management Analysis .......................................................................................................... 90

Conclusion ...................................................................................................................................... 101

 G

Chapter 5 ............................................................................................................................................. 103

5. Financial Analysis........................................................................................................................... 104

5.1 Profit/ Loss Statement ............................................................................................................... 104

5.1.1 Table of Profit statement in 1st year ................................................................................... 104

5.1.2 Table of Profit statement in 2nd year .................................................................................. 105

5.1.2 Table of Profit statement in 3rd year ................................................................................... 106

5.1.4 Table of Profit statement in 4th year ................................................................................... 107

5.1.5 Table of Profit statement in 5th year ................................................................................... 108

Figure 5.1.1 Profit ...................................................................................................................... 109

5.2 Cash Flow ................................................................................................................................. 110

5.2.1 Table of Statement of Cash Flow in 1st year ...................................................................... 110

5.2.2 Table of Statement of Cash Flow in 2nd year ..................................................................... 112

5.2.3 Table of Statement of Cash Flow in 3rd year...................................................................... 114

5.2.4 Table of Statement of Cash Flow in 4th year ...................................................................... 116

5.2.5 Table of Statement of Cash Flow in 5th year ...................................................................... 118

5.3 Income Statement.................................................................................................................. 120

5.3.3 Table of Income Statement in 3rd year ............................................................................... 122

5.3.4 Table of Income Statement in 4th year ............................................................................... 123

5.3.5 Table of Income Statement in 5th year ............................................................................... 124

5.4 Balance Sheet ............................................................................................................................ 125

5.4.1 Table of Balance Sheet in 1st year ...................................................................................... 125

5.4.2 Table of Balance Sheet in 2nd year ..................................................................................... 127

5.4.3 Table of Balance Sheet in 3rd year ..................................................................................... 129

5.4.4 Table of Balance Sheet in 4th year...................................................................................... 131

5.4.5 Table of Balance Sheet in 5th year...................................................................................... 133

5.5 NPV and IRR ............................................................................................................................ 135

5.6 Break Even Point ...................................................................................................................... 135

 H

Chapter 6 ............................................................................................................................................. 137

6. Risk management ............................................................................................................................ 138

6.1 Business risk ............................................................................................................................. 138

6.2 Malt Shellin Shop risk .............................................................................................................. 138

6.2.1 Economic risk .................................................................................................................... 138

6.2.2 Environment risk ................................................................................................................ 138

6.2.3 Competition........................................................................................................................ 139

6.3 Measuring the impact and likelihood of risk............................................................................. 139

6.3.1 Identify Threats .................................................................................................................. 139

6.3.2 Estimate Risk ..................................................................................................................... 140

6.3.3 Manage Risk ...................................................................................................................... 140

6.4 Appropriate action for risks ...................................................................................................... 140

6.4.1 Risk of purchasing stolen things ........................................................................................ 141

6.4.2 Risk of robbery .................................................................................................................. 141

6.4.2.1 FUJIKO cameras ............................................................................................................. 141

6.4.3 Risk of health and safety of employee and Risk of accident by work ............................... 141

6.4.4 Risk of flood-waters ........................................................................................................... 141

6.4.5 Risk of fire ......................................................................................................................... 142

6.4.6 Risk of accident by logistic ................................................................................................ 144

6.5 Financial risk............................................................................................................................. 144

6.5.1 Expense and cost analysis .................................................................................................. 144

6.6 Conclusion ................................................................................................................................ 150

Chapter 7 ............................................................................................................................................. 151

7. Summary ......................................................................................................................................... 152

Reference ............................................................................................................................................ 154

7. World Bank, n.d. Thailand economic monitor December 2010 (online).................................... 154

http://www.worldbank.or.th ............................................................................................................ 154

 I

8. Bank of Thailand, n.d. GDP growth rate December 2010 (online) ............................................ 154

http://www.bot.or.th/Thai/Statistics/Pages/graph.aspx ................................................................... 154

 1

Chapter 1

Introduction

Mali Shellin Shop

Project Feasibility Study and Evaluation 1203302
Mae Fah Luang Universi
 1

1. Introduction

1.1 Background of the project

The project is under the name of “Mali Shells Shop”. This project is businesses about
selling the sea products are include pearls, shark fins, and shells. The teams of project’s
creators are decided to do business at Hua Hin, because Hua Hin is located in a good
atmosphere. Hua Hin Town is on the coast of Hua Hin District. With an area around
86.36 km², the town has 50,169 inhabitants. It is a popular beach resort getaway for Bangkok
residents. Hua Hin is a popular place for shopping including contemporary art handicrafts,
hand-woven printed cotton, silk fabric silk weaving, embroidery, basket making, pottery,
wood carving, gemstones and jewelry (including sapphires and rubies). There is also a large
shopping mall called Market Village.

There are many parts such as Thai Royal Government, local government support Hua
Hin as the city of travelling by created three important festivals are included Thailand’s
International Kite Festival ,Hua Hin Jazz Festival and Hua Hin Vintage Car Rally. These
three festival can lead the tourists both Thai and foreigners to visit all year round.(1) From the
supporting by the government can lead the tourists visit there and created the tourists
expenditure around 8,000 billion baht. (2) Moreover the World Bank forecast the economy of
Thailand growth 6.2% for 2010. It can be benefit for the opportunity to invest to do the

business, because the popular of Hua Hin is not decrease (Hua Hin is Top 5 of tourist
attraction of Thailand), people have ability to pay. So, the growth of opportunity to do
business will grow as well.

Furthermore, Hua Hin is the great business areas. So, there many companies are set in
there. It creates many jobs, many positions, many working person such as tour companies,
hotel, food industries, sport and willingness industries, Information Technology companies
and also the school (teachers). That is the great opportunity for our business, because the
employees are one of the targets of our product especially for women. Hua Hin also is the
area of Thai- Chinese people as we know that this group very cares their health. So, our
business tries to response them by giving a great product to them.

All the best support from the Thai Royal government to promote tourism, the good
atmosphere of Hua Hin by itself, the great area of business, and the growing of economy can
 2

be the good opportunity for Mali Shellin Shop to do business in the term of selling sea
products (as a souvenir) by standing with the luxury products.

Sources:

http://en.wikipedia.org/wiki/Hua_Hin#Location (1)

http://thai.tourismthailand.org/where-to-go/cities-guide/destination/hua-hin/ (2)

1.2 Project Objectives

1. In order to study the possibility in establishing a new souvenirs (sea products) shop at
Hua Hin.
2. In order to study the trend of sea products business growth especially pearl, shark fin
and shell.
3. In order to study the trend of profit /return on investment for getting highly and
rapidly profit.
4. In order to study sea products (shark fin, pearl, and shell) competitors’ stores or
distribute channels at the area.
5. To study size of sea products (shark fin, pearl, and shell)\ market demand supporting
around the West and Thailand.

1.3 Benefits of Project

1. Able to apply the knowledge into sea products business under the business rapidly
growing.
2. Able to apply the plan for getting high profit/return on investment.
3. The plan is most feasible and high success in real business that able to guide career in
the future.
4. Know the methods for making high volume in sale.
5. Able to plan and manage the business to success.
6. To be a quality businessman.
7. High ability to apply communication skills to business.
8. Able to be the interesting of sea product shop in the Hua Hin (the west of Thailand).
 3

1.4 Activities/Time Frame

Acitities Implementation (week)
November December January February
Group matching and select group
name
Discussion for select business
project and Set a company name
Submit topic to teacher

Chapter 1 Introduction
• Background and Significance
of the Project
• Project Objective(s)
• Benefits of Project
• Activities/Time Frame

Chapter 2 Industry Profile

• Nature of Industry
• Situation of Industry
• Product/Service (in General)
• Vision of your Organization
• Mission
• Business Strategy

Chapter 3 Market Feasibility

Study
• Market Analysis
• STP Analysis
• Marketing Mix Strategy
• Sales Forecast/Profit
Estimation
• Marketing Expenses
• Conclusion

Chapter 4: Technical
Feasibility Study
 Production and
Operations Analysis
-Product
Characteristics (in Detail)
- Specification, Feathers,
Dimension, Life Time, etc.
- Production/Services
Process
- Location
- Facility Layout
-Machine/Tools/
Equipments
 4

- Logistics Management
- Facility Management
- Machine/Tools/
Equipments
 Cost of Investment
- Pre-Operating Cost
 Investment Cost
- Land
- Buildings
- Equipments
- Tools
- Depreciation
 Operating Cost
- Raw material Cost
- Direct Labor Cost
- Overhead
 Management Analysis
Administration Cost
(Electricity, Telephone,
Fax Salary, etc.)
-Conclusion

Chapter 5: Financial Analysis

 Profit/ Loss Statement
 Cash Flow
 Balance Sheet
 Income statement
 Balance Sheet
 IRR
 NPV
 Break Even point

All financial Statements are in

monthly base. Minimum 5 year
statements are required
Chapter 6: Risk Management

Chapter7 : Summary
 5

Chapter 2
Industry Profile

Mali Shellin Shop

Project Feasibility Study and Evaluation 1203302
Mae Fah Luang University
 6

2. Industry Profile

2.1 Nature of industry

Nowadays, shell business has many companies. Shell business has domestic market
and international market. Each country has more competitive and continue to trend in
market’s demand which most shell use the useless to bring as a benefit by making as a
products for add value with natural resource which shell business not separate in Thailand,
because it happen many problem from bad economy, shell have expensive cost. Someone is
no important of shell.

In Asia made more export market which some country have high power buy, so
company have change in production for respond of consumers, exporting of market often
make to know a way of countries market more.

Many company have many competitive which many companies want to think new
idea including material not repetition, so educating method of shell is more important for
changing is many products but education method of shell not easily. Sometimes use a long
term. Nowadays become export product continues because foreign have market’s demand.

Shell’s a product that can use with other products it can decorate in resort, hotel, food
shop which give important with equipment of a dining-table such as spoon. Chopsticks,
plants, picture frame, lamp. These can integrate with nature, then it increase sale with brand
which each product has variety to make happen attraction with consumers. So, first make the
business shell to accept in market are maintaining a good quality of product and has variety
of form for choice with consumers. Moreover, friend or important person suggest new thing
and give helping that make own business growth.

Shell business can growth continues and separate of society. In Thailand receive a
shell from other countries which have a good quality and cheap price which shell can make
many products. It’s popular for consumers to bring these product used in daily life. These
product is thing as a necessary of consumers. So, bring shell create to products not destroy
the environment because shell can breed in nature as quickly which make not happen
problem to lack a material.
 7

2.2 Situation of industry

The sea product industry play role in the Thailand’s economy. It can create the
income to the local communities who are suppliers of these kinds of sea products. Mali
shellin Shop provides high quality of sea shell product in variety kinds of shell and product
from the sea. The situations of industry--- nowadays the industry continue growth and plan
for expand branch cover all country and international. Mali Shellin Shopdo business legally
by learns law of every countries which do business and avoid the illegal. Also, concern the
life cycle of sea life; Mali supported fisher industry department to breeding shell, fish, crab,
etc. Moreover, almost every pieces of shell come from restaurant and hunting of fish man by
collect the growth shell and release baby shell. Mali Shellin Shop establish factory
located near capital where can easy to import and export and hire local communities to
purchase products for us. Product must be perfect as it should be and give the standard price.
This ways help for local communities get the job and better life.

Value of shell someone said “when shellfish die they left shell for make world more
beautiful, how about human what we left for the world” Shell has value more than someone!

Mali Shellin Shop is located in Hua-Hin,Thailand, every product have pass quality
check before sale. Company also sale to many shell shop and export to the America, Europe,
and Asia. Mali has plan to expand shop in many countries to serve service to customer and
expand market for more benefits.

2.3 Mission

Our company is MALI SHELLIN which we consider about to make customer satisfy
by offer quality of sale products. Our company has many shells, and design as a product for
respond of consumers by improvement color of product has bright. We divided staff in
working as a team for facility. Each person has responsible in local communities where we
live in working. Then, Leader help corporate or team goal by helps staff themselves. We
focus improvement, progress and achievement of company and suggest creativity and
innovation of product for wide range of markets which have educate method of shell. Our
company has contact to buy and selling between countries. So, company has many kind of
shell in produce is products.
 8

We commit to work with area business, community, and neighbors by working

together that support a sustainable future and lead social and economic that improvement in
the community we do business.

Our company has trend to maintain the natural resource for people that important of
environment. We worked together with neighbors to improve local environment quality.

2.4 Vision
“Go forward strongly to be number one in Hua Hin”

2.5 Products and services

2.5.1 Products
Mali Shellin shop is the company that sale the sea product Shell Shark fin and pearl
.So the place that company settle is in the Hua hin, so it’s far from the beach just only 500
meters. The Mali shellin shop is decorate to be the sea vintage style to make the customer
interesting our shop and believe about the quality of the product and the shop separate to be 3
floors the first floor is the Shell products , the second floor , is the Shark fin and the last floor
is pearl .

Product of the Mali Shellin shop sale about the product of the sea . Mali Shellin Mali
company product has guarantee about the quality and our product come from the deep south
sea .

For the Shell products we have provide the good quality conch shell and we guarantee
about the beautiful of shape and color of the shell. Customer can buy for bring it to be
souvenir or worship. Who have cumulative or believe in the myth of conch They believe the
line of the conch is the line of god finger and the conch will give the good luck for the people
who be owner and they use it in many sacred ceremony for the example married ceremony.
 9

2.5.1.1 Example of Conch

 10

Second is the pearl .The pearl of our shop is come from the south sea and come from
natural 100 percent and the color of pearl is very beautiful. Mali shellin shop have the
guarantee paper about the quality of the pearl.

2.5.1.2 Example of pearl product

 11

The third product is the Shake fin product. This products customer buy it for bring it
to be the ingredient of the food such as fish maw soup , shake fin soup or the herb medical
for treatment some disease.

2.5.1.3 Example of Shark fin product

 12

2.5.2 Service
Mali Shellin shop sales the sea products such as shell shark fin and pearl .So the place
settle is in the Huahin. So, it is far from the beach just only 500 meters. The Mali shell shop
is decorated to be the sea vintage style to make the customer interesting our shop and believe
about the quality of the product and the shop separate to be 3 floors the first floor is the Shell
product , and the next is the second floor ,so for the second floor is the Shark fin and the last
floor is the pearl .

At the Mali shellin shop we provide relaxation corner for customers such as the
internet for the customers to find the information about our products and there have sofa for
the customer for chill out.

2.5.3 Uniform of employee

For employee, the shop provides them the

uniform 3 set per each. Male and female are the same
from of uniform, because we want to show the unique
of the shop and fluent. Black trousers and yellow shirt
with blue sleeve are the uniform pattern. The day of
weekend can wear the proper dress with whatever dress
they want, because we want them to feel relax during
the day working.

2.6 Business Strategy

This strategy include the following four keys strategies

1. Cost of leadership

The competitive strategies, we are the shop with the specific target market. Our shop has
three kinds of sea products to serve for customer. In the same time leader has to strict cost
control. And try to avoid bad customer that will affect to our feeling. Our shop always
concern about reducing costs to a minimum, such as products, development, marketing and
management. To save the money that we will invests.

2. Differentiation
 13

As a competitive of the shop aimed at a wide target market, and try to focus on wide
target market to attract more customer come to our shop. We have to add some value to our
product for price increase and produce different value the distinctive above the competition.
After our product became the distinctive it can make loyalty customer that good for make
more benefit from the word of different. The principle that our used to produce different
product include the following 6 things such as features should to different from other, next
performance quality we will do it after we finish plan yet, Conformance Quality mean
something that different should match to target market, Durability mean new products will
better than the old one, next repair ability mean when the product have some problem or
cannot work you can repair it, and the last important thing to attract the customer and
motivate them to purchase it is Style. Additional, we have the service about after-sale service
and also used technological innovation to improve our product.

3. Cost focus

We are has ability to reduce costs at the level of production. And also focus on the
narrow market with product quality standards and reliability at a price cheaper than the
competition. Low cost of inventories is one of benefit, because we import from Ranong,
Thailand.

4. Differentiation focus

We are focus on specific group of customer with the kind of product. Find something
that different from center market. However customer service is a special group.

2.7 Corporate Strategy

Mali Shellin Shop expects to gain profit or success in the business. Therefore, we
designed to set three main of strategies which are growth strategies, diversification grow
strategy and stability strategy in the corporate level.

1. Growth strategies

1.1 Concentration growth strategy because our company see that the shells shop has
good opportunity to grow in the market both internal and global market. The products are
different from each other competitors by itself, but however we have to create the way to
maintain our market share as much as possible. The concentration growth strategy is very suit
with the environment of the selling shells at present and also future. The market is growing
 14

rapidly, our business see that the demand of our products more. We will continue to maintain
our market share by; doing the marketing research, develop the quality of products,
marketing, and emphasis on the specific market.

1.1.1 Marketing research; the Mali Shellin Shop focus on two kinds of marketing
research which are quantitative and qualitative. For quantitative, we will random the
representative of customers such as sex, age and behavior. For the qualitative, questionnaire
is one of good way to know about the attitude of customers to our products. We are strong
believe that if we exactly know what is the target group, what are they want, so we will able
to offer them the right ones to them.

1.1.2 Develop the quality of products; many of customers always thought about
shells’ quality is low because of they might think the shells products easy to broke. So, our
shop tries to show the high quality of our products to warranty that we offered good quality
products as we advertised. We using new technology with environment friendly to test the
quality of shells before we order the shell products. We try to make the customers satisfy or
delight with our products under the name Mali Shellin Shop.

1.1.3 Marketing plan; Mali Shelling Shop uses 4 Ps to do marketing plan for maintain
old customers and attract new one. Products, we also ready warranty in our quality of our
products and also the different characteristics by itself from other competitors. We are strong
in the products’ image. Place or distribution channel, we concern about the comfortable of
customers to order or purchase our products. So, we open many ways to contact with us such
as personal to personal, internet via e-mail address; oj_tirawahc@hotamil.com, mobile
phone; 083-3017555. Price as we known the price of shells are expensive because it has
some good characteristic by nature and also effect to Thai’s belief but we are setting price
suit with the quality of products. Promotion is one of the important things to make the
customers know our products. We will advertise products through web site, leaflet, bill board,
giving souvenirs, thanks party and brochures to attract the customer especially foreigners
Thai people who believe in shell, women who love pearl, old people, hotel and restaurant and
high class people who consume shark fin. Not only that we are also launch the sales
promotion to the customers to make them feel like satisfy with our shop.

1.1.4 Emphasis on the specific market; We set the specific market because we need to
reduce cost of advertising.
 15

2. Diversification Growth Strategies

2.1 Concentric diversification; the Mali Shellin Shop will launch the new products
into market because we want to offer the choices of marine products to the customers to
choose with right with their need. Our shop know that making more choices to customers can
reduce cost of advertising, because when customers come to buy shell products and that
moment they will see other marine products. It can make them know our shop not sell only
shells product but also other interesting marine products. The reason why we design to launch
new marine products is selling all of these products no need the new shop because the natures
of products are the same. It can benefit to our shop.

3. Stability strategy; Mali Shellin Shop try to make our business stable in the market
by still run business in the way we are. We concern for two kinds of stable strategy which are
no change strategy and profit strategy.

3.1 No change Strategy, Mali Shellin Shop no need to waste time with rethink about
new strategy because it can create the high cost of edit the strategy often. So, we try to run
business under our strong good strategy, but if there is some new situation that impact to our
shop, we have to set new strategy to up to date.

3.2 Profit strategy, our shop try to cut off the cost of doing marketing research and
also research for developing of product, because will maintain our standard of products. We
want to make the products as the original one to attracts customers under the name Mali
Shellin Shop.
 16

2.8 Functional strategy

Functional strategy consist of 5 levels

1. Marketing is the process of performing market research, selling products and

services to customers and promoting them advertising to further enhance sales. It generates
the strategy that underlies sales techniques, business communication, and business
developments. Marketing is used to identify the customer, to satisfy the customer, and to
keep the customer. With the customer as the focus of its activities, it can be concluded that
marketing management is one of the major components of business management. For our
company used marketing researched to serve consist of observation, interview, and behavior
for customer

2. Logistic

Logistics is the management of the flow of the goods, information and other resources
in a repair cycle between the point of origin and the point of consumption in order to meet the
requirements of customers. Logistics involves the integration of information, transportation,
inventory, and occasionally security. Logistics is a channel of the supply chain which adds
the value of time and place utility.

3. Finance

Finance is the science of funds management. The general areas of finance are business
finance, personal finance, and public finance. Finance includes saving money and often
includes lending money. The field of finance deals with the concepts of time, money, risk and
how they are interrelated. It also deals with how money is spent and budgeted.

4. Human resource

Human resources is term used to describe the individuals who comprise the workforce
of an organization, although it is also applied in labor economics to, for example, business
sectors or even whole nations. Human resources is also the name of the function within an
organization charged with the overall responsibility for implementing strategies and policies
relating to the management of individuals for example the human resources. Manager should
take care all of employee equally.
 17

5. General management

The General Management is concerned with the leadership and management of the
corporation as a whole. This concern about the personal values and qualities of effective
general managers and enterprise leaders, the philosophies, values, and strategies that inform
successful enterprises, and the relation of enterprise to the broader community and other
external constituencies.
 18

Chapter 3
Market Feasibility Study

Mali Shellin Shop

Project Feasibility Study and Evaluation 1203302
Mae Fah Luang University

\
 19

3. Market Feasibility Study (Marketing Analysis)

3.1 General Information of Hua Hin

281 kilometers south of Bangkok, Hua Hin, which literally means stone head in Thai,
is the oldest beach resort of the country and is still very popular. Clean white sand, crystal
clear water and a tranquil atmosphere has continued to attract tourists in search of peaceful
and relaxing holidays.

The town was originally known as Ban Samoe Rieng, or Ban Laem Hin (Stony Point
Village). The construction of a railway station in the city as part of the Southern Railroad in
the reign of King Rama VI resulted in making Hua Hin stand out from many quite fishing
villages. In addition, the construction of a Summer Palace of King Rama VII totally
transformed the village into a high-society resort town for royalty. Even today, the Royal
Family continues to reside at the Palace for part of the year.

Hua Hin's consequence came with the opening of the Railway Hotel (known today as
the Sofitel Central Hotel), an elegant Victorian-style resort hotel, and also the countries first
standard golf course. A cluster of royal and high-society residences gradually became more
visible resulting in the transformation of the whole village into the first seaside resort of the
country, where visitors could enjoy swimming, fishing, and golfing in the country's first
standard golf course.

Hua Hin is a well-established beach destination with word-class facilities coupled

with a true sense of Thai hospitality. Despite its expansive growth and development as a
luxurious destination, the splendor of Hua Hin remains intact. Remaining content in itself,
Thailand's oldest seaside resort has never sought international recognition. It has continued to
provide a peaceful and relaxed sanctuary in a picturesque environment that comes with a true
sense of historical identity.

How To Go to Hua Hin

By car

Drive along Highway No. 35 (Thon Buri-Pak Tho)passing Samut Sakhon and Samut
Songkhram Provinces and then take Highway No. 4 to Hua Hin Total distance is 123
 20

kilometers. Alternatively, it is possible to travel via Nakhon Pathom andRatchaburi

Provinces.

By Air

SGA Airlines provides 3 -4 flights daily to Hua Hin (45 minutes). For more
information, please contact SGA Airport office Bangkok (662) 664 6099 or Hua Hin (6632)
522300. Website : www.sga.co.th

By Bus

Buses from Bangkok's Southern Bus Terminal cost 110 baht for 1st class (air-
conditioned), 85 baht for 2nd class (air-conditioned) and 61bahts (ordinary). The trip takes
about 3 1/2 to 4 hours. Various agencies on Khao San Road in Bangkok operate minivans to
Hua Hin for150 baht per person. The bus leaves for Bangkok from a station next to
Siripetchkasem Hotel. In addition, there are air-conditioned buse sleaving for Chumpon
Province (125 baht, 4 hours), Surat Thani Province(210 baht, 7hours), Phuket Province (305
baht, 10 hours) and KrabiProvince (280 baht, 9 hours)

By Train

The trip takes about 3-3/4 hours from Bangkok; 1st class fare is 202 baht (rapid and
express only), 2nd class is 102 baht (rapid and express only) and 3rdclass is 44 baht. Call
1690 for more details.

Getting Around

Localbuses/ songthaews from Hua Hin to the Hat (beach) of Khao Takiap, KhaoTam and
Suan Son cost 7-10 baht / person. These buses run from around 6a.m. until 5.50 p.m.

Buses to Pranburi are 10 baht and leave from the same area of Chomsin Road.

Samlors may cost 40 baht / trip in to town.

Motorcycle sand bicycles can be rented from a couple of places on Damnoen Kasem
Road near the Jed Pee Nong Hotel. Motorcycle rates are from 150 baht to200 baht per day for
100cc and 250 baht to 300 baht for 125cc.Occasionally larger bikes - 400 to 750cc - are
available for 500 bahtto 600 baht a day. Bicycles are 30 baht to 70 baht per day.
 21

At the fishing pier visitors can charter boats to Ko Singtoh for 800 baht aday. On Hat
Takiap it is possible to get cheaper fares for 700 baht.

3.2 STEEP Analysis

3.2.1 Social
Social changed quickly by having network on modern and expand country by
changing economy more involve changing education, public health. Nowadays, people want
to greed. Neither be continues business or using life in society. Nowadays, improving quality
of life, people take care morality. Each person have enough spend income and opportunity in
education which social have stable and participation to help neighbor as well which make
happen doing business together. Now doing business cooperate with foreign country. Most
emphasis developed economy between country and characteristic of culture, so generate
relationship as well. Thailand is able to communicate with many neighbor countries such as
for contact selling and buying between country. Now Thailand developed on modern.

However, the believable that still stable with Thai people is the believable of conch
shell. Some groups of Thais still believe that conch shell can help them do business
successfully. Moreover they are always with the important ceremony such marry ceremony,
new house ceremony and use for doing some activities that related to the Buddhism.(2) So,
conch shell is one of product that can be penetration for this group of customer.

Source: http://web.nso.go.th/eng/en/stat/ict/pre_south-n.pdf (1)

http://www.amulet.in.th/forums/view_topic.php?t=1158 (2)

3.2.2 Technology
Nowadays, Technology developed as a modern, it can be helped working that quickly
facility and help to solve problem more involve variety process, many system. All of these
help people can be live that facility. Technology have role in development industry such as
computer, communication, medical, building etc, have radio station, television through
satellite, so technology give facility with everyone. Human initial to develop technology
continues.(1)

Doing shell business have contact through franchise, All the world contact by through
network systems that makes quickly coordinate. Nowadays, we use technology increase
 22

communication or sent message radio way, telephone and buying and selling through internet
, so technology’s most important doing business, technology bring knowledge from sciences
to be used produce product. We use these integrate with our products for effective and
efficient, generate as more benefits of consumers. Technology depended on only factor of
economy about trading, technology help many society that be developing economy involve
economy in present too.(2) Technology and science have more relation, We develop the both
together. These generate as a benefit of people, we can bring many shell to invent product for
benefit of consumers who must to choice suitable equipment for all. This business develop
continues growth for wide range of market. Shell Business have more separate, it’s target
market demands, Technology have quickly development that made import and export facility.
Bring technology to be production made that increase effective, help save labor, reduced
capital, save time, can quickly separate product other regions.

Nowadays, Technology developed as a modern, it can be helped working that quickly

facility and help to solve problem more involve variety process, many system. All of these
help people can be live that facility. Technology have role in development industry such as
computer, communication, medical, building etc, have radio station, television through
satellite, so technology give facility with everyone. Human initial to develop technology
continues.

Mali Shellin Shop use technology to help do marketing by using

www.facebook.com/Mali Shellin Shop and the customer can order products via
oj_tirawahc@hotmail.com for mobile phone: 083-3017555. We design to do marketing
trough internet because now we found that many businesses can be success by using of
internet for marketing, purchasing and selling is not much. The major findings are as follow

1) Number of Establishments, there were totally 105,083 establishments. Most of

them were engaged in business trade and services activity, which was about 86.1 percent.
Followed by those engaged in manufacturing activity was about 10.8 percent. Those engaged
in the other land transport and activities of travel agencies, construction and hospital activities
were about 2.0, 0.9 and 0.2 percent respectively. (1)
2) Website used, there was about 3.2 percent. The purposes of using of web site were
marketing the establishment products of about 76.3 percent. The followings were inquiry or
contact facility and receiving purchased order of about 65.3 and 32.0 percent respectively. (1)
 23

Doing sea products business has contact with customers especially for marketing. All
the world contact by through network systems that makes quickly coordinate. Nowadays, we
use technology increase communication or sent message vie internet, telephone. This
business has domestic market, but however technology is most important for doing business,
technology bring knowledge from sciences to be used produce product. We use these
integrate with our products for effective and efficient; generate as more benefits of
consumers. Technology depended on only factor of economy about trading, technology help
many society that be developing economy involve economy in present too. Sometimes,
technology generated much pollution such as destroying environment. Technology and
science have more relation. We develop the both together. These generate as a benefit of
people, we can bring many shell to invent product for benefit of consumers who must to
choice suitable equipment for all. This business develop continues growth for wide range of
market. Sea products Business have more separate, it is target market demands, technology
has quickly development of advertisement to penetration the group of customers. Bring
technology to be production made that increase effective, help save labor, reduced capital,
save time, can quickly separate product other regions.

Sources:
http://th.wikipedia.org/wiki/%E0%B9%80%E0%B8%97%E0%B8%84%E0%B9%82
%E0%B8%99%E0%B9%82%E0%B8%A5%E0%B8%A2%E0%B8%B5(1)

http://www.rmutphysics.com/charud/specialnews/6/science/unit4_12.html(2)

3.2.3 Economy
Nowadays, economy had good growth. We offer opinion in developing economy
growth by using management system and increase process as a modern. Our shell’s business
improved market strategy because This business have wide range of market and high
competition.(1) We improved innovation of products to be made a various. Shell business
developed increase production involved create different of product for increase also value of
product which can respond market’s demand. Economy of Thailand rely trading and
investment because domestic country have increase investment that made high value of
money and have import and export of products that affect value of money strongly, so it
generate profits.(2)In Thailand, many people required shells because everyone began to see
important of natural resource. We focus on market strategy for distribution such as promote
 24

product, advertising. Economy bring concept of tradition, belief, custom, want maintain
environment.

Thailand Economic Monitor 2010

- Despite the slowdown in the advanced economies, political unrest leading to street
battles, and two earlier quarters of robust growth, the Thai economy in the second and third
quarter of 2010 still did not contract by as much as had been expected.
- In the second quarter, the decline was driven largely by a sharp drop in tourism,
which offset growing exports and robust private consumption. Although tourism rebounded
strongly in the third quarter, the overall GDP still contracted due to slowing exports and the
decline in consumption, caused by the loss of farm income during a severe drought.
- The World Bank has revised its 2010 GDP forecasts for Thailand to 7.5% from an
earlier estimate of 6.1%.
- For 2011, growth is expected to slow to 3.2% due to both high base as well as
lackluster demand for Thai exports as the rich countries still grapple with the consequences of
the global financial crisis.
- The medium-term global outlook will be marked by an extended period of slower
but less volatile growth in the advanced economies. Emerging economies will continue to
grow, albeit more slowly as many of them are still highly dependent on demand from the
U.S., Europe, and Japan. For Thailand, exports to emerging markets and domestic
consumption can only offset some of the weaknesses in demand from developed countries.

- The immediate focus of economic policy will be on managing the large influx of
foreign capital arising from interest rates differential with advanced economies and from the
region’s better growth prospects. Despite all the measures taken by the Thai authorities, the
baht has continued its appreciation, raising concerns over Thailand’s export competitiveness.
- In the long-term, however, structural reforms rather than the exchange rate will be
most important in determining the country’s competitiveness.
- Boosting the services sector through regulatory reforms, developing the skills of
Thai workers through improvement of the quality of education, raising agricultural
productivity, and promoting innovation-led growth are each highly recommended.
- Along with these options, strengthening social safety nets to cover informal workers
 25

and those in the agricultural sector could help the government ensure that growth is more
equitable in the long run.(3)

Graph changed in period 3 years( January 2549-October 2551)

From graph of each year will be different, in 2549 value of money will be highest
about 39 baht. In beginning of years to ending of years about 36 baht. In 2550 about 34 baht
and value of money will decrease 31 baht. In March 2551 will increase about 34 baht which it
change in period 3 years.
 26

Economy of Thailand

The economy of Thailand is an newly industrialized economy together with BRIC

,which is heavily export-dependent, with exports accounting for more than two thirds of gross
domestic product (GDP) The exchange rate is Baht 29.00/USD.

GDP growth by 8.0% in year 2010 which was among the highest in Asia.Thailand has a GDP
worth 9.5 trillion Baht (on a purchasing power parity (PPP) basis), or US$584 billion (PPP)
which ranks 24th in world..This classifies Thailand as the 2nd largest economy in Southeast
Asia after Indonesia. Despite this, Thailand ranks midway in the wealth spread in Southeast
Asia as it is the 4th richest nation according to GDP per capita, after Singapore, Brunei and
Malaysia. Thailand's nominal economic output as of June 2010 is $313.8 billion USD, while
holding some $172 billion in foreign exchange assets which ranks 11th in world.Thailand
have strong automobile industry which rose by 63% in year 2010 to 1.6 million produced cars
which ranks 13th in world. By the year 2015 Thailand will be in top 10 automobile
producers.(4)

It functions as an anchor economy for the neighboring developing economies of Laos,

Burma, and Cambodia. Thailand's recovery from the 1997–1998 Asian financial crisis
depended mainly on exports, among various other factors. Thailand ranks high among the
world's automotive export industries along with manufacturing of electronic goods.
 27

Economy of Hua Hin

Although it is generally believed that Hua Hin is coping better with the global
economic crisis than other Thai resorts, it has not totally escaped its brutal impact. The large
Boathouse Hua Hin project has seen a 30 to 40% drop in foreign buyers since the airport
closures in December.

Managing director Praphaisith Tankeyura believes that it will be at least a few years
before foreign buying gets back on track at the huge estate because many buyers have lost 40
to 50% of their investment and they are also seeing their home country currencies
depreciating.

However, there are exceptions. Mr Praphaisith noted that an American-Indian with a

jewellery business recently bought a house at the site for 85 million baht. Some of his friends
have also bought a few condominium units for investment.

While the construction of this huge estate is continuing, with some condominium
towers and several houses and townhouses and facilities completed, Mr Praphaisith remarked
that some developers are suffering right now because banks are not releasing loans after
expected sales targets were not reached.

Generally developers get the first installment of a project loan when they buy the
land, but the second one is released only after 40 to 60% of the units have been sold. With
foreigners unable to buy in difficult times, some developers cannot meet this criterion.

Mr Praphaisith, as a former banker, said he understands the difficulty banks face

because they have to work within acceptable risk levels.

"For new developers it will be very, very difficult, but we have been developing this
project for more than three years now and most everything has already been completed. We
have very low leveraging so it's quite safe."

Hoteliers in Hua Hin are also are heavily affected by the economic storm. Puranee
Chaiyawat, manager of Baan Bayan Hotel, said the occupancy level at her boutique hotel had
dropped from 80 to 90% to just 50%. Because her company also owns hotels in Bangkok and
Chiang Mai, she knows the markets are bad there as well.
 28

Ms Puranee criticised Thai authorities for constantly focusing on short-term gains

when promoting tourism and not creating long-term plans to maintain the industry's strength
and ensure growth. The big fear is that property prices could drop if the economy does not
improve by the fourth quarter of this year as generally hoped.

"Of course the price will drop further, there will be 'hot sales' as those who need cash
will have to sell," said Ms Puranee.

However, Scandinavians with developments up in Hua Hin's hills might not be

affected at all because they generally sell only to their own countrymen. "They don't
advertise, but I heard that houses with swimming pools up on the hills costing around five
million baht are selling well," she said.

These Scandinavian developers are also still buying land a little farther south of Hua
Hin, in the Pran Buri area. "There might be some new launches, but it's only for their
countrymen so we don't hear anything."

While some property players are struggling in these dismal times, landowners are
sitting pretty because the price of land in Hua Hin town itself has not dropped. Prices are
lower in Pran Buri, however.

Boathouse Hua Hin is a special case because the almost 80-rai plot changed hands at
only 3.2 million baht a rai since it was formerly a non-performing asset that Mr Praphaisith
managed to acquire. "That is why we dare to inject 520 million baht to build the
infrastructure and increase the value of the community," he said.

An interesting change in Hua Hin is that Russians are now making their presence felt
after entrenching themselves in Pattaya. Mr Praphaisith mentioned that a Russian restaurant
and a travel agency recently opened in the seaside town.

As the foreign market continues to be weak, Boathouse Hua Hin is going all out to
court Thai buyers, with the current best sellers being condominiums and townhouses. The
starting price of a one-bedroom unit is three million baht, with studios beginning at 2.7
million baht and townhouses going for 5.4 million baht upwards.
 29

The three million baht one-bedroom units are around 50 square metres and on lower
floors, but this does not seem to bother some buyers, especially golfers who don't really care
about the view because they are here to play golf at Hua Hin's numerous fine courses.

Current low bank interest rates of around 1% per year and attractive housing loan
terms offered by some banks could draw buyers to invest in property for the long term.

Mr Praphaisith warned potential buyers to check whether a project they are interested
in has obtained approval of its environmental impact assessment (EIA), because if not it
could lead to a lot of problems.

"On our condos, we spent an extra two to three months to finish the environment
impact study because these are tougher requirements."

Designed by famed architect ML Tridosyuth Devakula, the Boathouse Hua Hin

features some special touches, among them Chinese-themed sculptures placed in two areas of
the spacious landscaped grounds. The sculptures, crafted by award-winning Thai artist Wasin
Buri, portray a teapot, teacups and vases that bring luck because they are constantly filled
with either tea or water.

Growth Oriented Economy

The country with its 64 million people has been characterized by constant and steady
growth. Blessed with plenty of natural resources and skilled, yet cost-effective labor,
industries in Thailand are prospering and growing from strength to strength. One of the most
sought after sectors of growth is Thai property.(7)With beach towns such as Phuket and Hua
Hin, Thailand property investment is a unique offering for both high net worth locals and
foreigners to possess their own slice of paradise in this geographically diverse nation.

Sources:

http://cpe.kmutt.ac.th/wiki/index.php/Currency_exchange_rate_between_Thai_Baht_and_US
dollar_(by_CPE21_Group9)(1)

http://www.oknation.net/blog/print.php?id=318914(2)
http://www.worldbank.or.th
 30

http://www.bot.or.th/Thai/Statistics/Pages/graph.aspx

www.ryt9.com/economy/tag

http://www.bangkokpost.com/news/investigation/15718/(6)

http://thai-real-estate.info/read/thai_property/02_jun_09/if2y9-q/thai_political_stability.htm(7)

3.2.4 Environment
Nowadays, natural resource have more benefit. Many people begin to see important
of environment and develop environment continues. Now, environment in sea have more
clean who help solve problem water pollution. We maintain the environment to revive
environment and protection by giving information about arranging value of resources and
environment in sea as well. Shell product can be produced many products such as spoon,
plant, picture frame, lamp. Many people prefer shell products because shell is useless to bring
more benefits. Fisherman keep the variety of shells for bring that do commercial in the
country and foreigner country which domestic market and international market more demand.

Hua Hin Environment

Hua Hin Environment Day coincides with His Majesty the King's 80th birthday
anniversary on December 5th 2007 and aim to preserve Hua Hin environment and prevent
pollution. Hua Hin beach is a four start beach and Hua Hin Municipality together with Hua
Hin residents with advice of Dr. Somchai Pielsathapornfrom are determined to keep clean
and beautiful.

Dr. Supatana Wangwongwatana and his staff came to Hua Hin to check Hua Hin's air
quality and spot any potential sources of pollution. They have checked many hotels and
restaurants. The results are very encouraging. Hua Hin area is 90% free of pollution.

Hua Hin hotels and restaurants have played their part in preserving Hua Hin
environment. They took part in contest 'Hotel and Restaurant pollution free'.

This year, in the hotel category Wora Bura Resort won 1st prize of 100,000 baht.
Second prize of 70,000 baht was won is Baan Bayan Hotel. Third prize and 50,000 baht was
won by Ussara Hotel.
 31

In the restaurant category Mini Farm won 1st prize of 50,000 baht. Second prize of
30,000 baht was won is Papa John Restaurant. Third prize and 10,000 baht was won by Three
Girls Restaurant.

Governor of Prachuab Khiri Khan Khun Prasong Pitulkitja said in his speed that Hua
Hin Municipality and residents work hard to protect Hua Hin's environment and prevent
pollution. However more still needs to be done if we want to ensure that Hua Hin is a top
tourist destination. One of the top priorities is to build designated parking areas. Province has
a new Police Chief Commander, Pol Maj General Wirat Watcharakajorn. He is a young man
and he knows how to make Hua Hin a safe a pleasant place to visit.(5)

Protection of Hua Hin Environment

There was very interesting exchange of opinion at the seminar on how to protect Hua
Hin environment. This will help the Ministry of Natural Resources & Environment make
adjustments to Environment Act from 2547 (Thai calendar). The necessary changes will be
carried by a working group lead by Dr. Suwaluk Satumanaspanthu who is very experienced
environmentalist. He will be helped by project manager Khun Piset Senawong, training
expert Khun Korbkul Samakki and Khun Oranoot Silpamanipan who will coordinator.

Chief District Officer Khun Prasit Boonlikit has opened the seminar. He has
expressed his gratitude to the Ministry of Natural Resources and Environment for taking part
in the seminar on Protecting Hua Hin Environment. Hua Hin is a famous worldwide
tourist destination and in order to maintain its status it is essential to protect Hua Hin’s and
surrounding provinces of Phetchaburi and Prachuapkhiruikhan environment.

A lot of work will concentrate on the Hua Hin - Pranburi area and the 13 villages
located there. Khun Piset Senawong has spoken about the background of this project and the
criteria how to control the environment and prevent pollution as the villages are located along
the bank, close to the beach where many resorts and hotels are located. Close by there is a
factory supplying building materials.The seminar was very fruitful and many good ideas very
voiced and the working group will study them carefully. (4)

Sources:

www.school.net.th/library/create-web/.../10000-12065.html(1)
 32

http://www.oknation.net/blog/print.php?id=152423(2)

prdnorth.in.th/The_King/conservesea.php(3)

http://www.huahinnews.net/news-2008-08/huahin-environment-seminar.htm(4)

http://www.huahinnews.net/news-2007-12/huahin-environment-day.htm(5)

3.2.5 Politic
Thailand Real-Estate and Political Stability

It has been globally recognized that Thailand is a politically stable country. Why else
would it be such a hot favorite with foreign investors from world over? The real estate
development in any country is directly proportional to the political stability of a country.
Hence, it is not surprising that Thailand property investment in the new developments such as
luxury condominiums, villas, and high rise apartments are the most sought after, especially in
beach resort towns(1) such as Phuket, Samui, Pattaya etc. But a much better investment
opportunity lies in the esteemed town of Hua Hin, which is also the official residence of the
monarchy and the Thai elite. The prices of properties are reasonable while providing the
same infrastructure and facilities as other more tourist friendly and larger sea side resort town
in Thailand.

Hua Hin Property has seen a sales plummet after the political crisis in Thailand. Many
estate agents in Hua Hin state that once the Thai election is over at year end the market will
pick up again as buyers return.(2)
Colliers International in Thailand has stated that the April period in Thailand has
always been the slower part of the year when it comes to property sales. One could also note
that the political turmoil could not have been at a better time as it came at a time when the
market was traditionally slow in any event. With the politics now out of the way one has to
note that still the general elections at year end however this should not affect the property
market. The market even though still soft many say that the bottom end or local market has
not changed as Thais view the political situation as having the ability to blow over and to be
gone. The local market or small low end units have still sold well as the government had also
added an incentive to the market by lowering transfer taxes on all properties. One could view
this as the government attempt to keep the lower end of the market up and hence not affecting
the majority of property developers. The high end market is currently the only real downside
 33

to the market. Most of these purchases tend to be foreigners who buy large high end
properties for investment purposes. Many in Hua Hin see this picking up at year end and right
now they say it is bargain basement time as many developers try and move the property at
lower prices. This for the Bangkok Post:CBRE said some projects under its sales
management in Hua Hin concluded a few transactions for residential units in the past week.
Sales offices in Bangkok resumed operation on Sunday, fielding enquiries without making
sales.Ms Aliwassa said the price of condominium units in Thailand will remain stable for a
while after recovering from the 2008/09 crisis. However, developers launching new projects
in the near future are unlikely to set high prices. "Buyers will continue to have the upper hand
in residential markets. Although developers may not lower prices, they are likely to have
strong promotional campaigns to stimulate sales," she said.Many are waiting to see what the
government offers as part of its recovery plan for the year and many expect to see the reduced
transfer fees extended. This will help the market however many believe that the government
will not give the reduced rates once it expires at month end. If you are looking at buying real
estate in Hua Hin then speak to us at Siam Legal. With offices in Bangkok, Chiang Mai, Hua
Hin, Samui, Phuket and Pattaya we are best able to serve your needs.

Sources:

http://thai-real-estate.info/read/thai_property/02_jun_09/if2y9-q/thai_political_stability.htm(1)

http://www.huahin-
realestatelawyer.com/index2.php?option=com_content&do_pdf=1&id=13(2)
 34

3.3 Competitor Analysis (3C Analysis)

3.3.1 Competitor Analysis

Shellin has three direct competitors include with; Beauty shell and Shell Shell and
Hua-Hin shell shop

Beauty shell shop is not good management. Some of their staff cannot give the
information about their product to the customer and also lack of training for staffs. On
another hand our shop has quite good management and work as team. All of member can
teach each other to work easily. Beauty shell shop set very high price of products so that why
they cannot get customer brand loyalty. They get short time profit

Shell Shell is good management but their product have no quality lowest quality and
high price, every product of them not concern the environment, healthy, clean, and customer.
Pearl was making from plastic and other technique

Hua-Hin shell shop provides sea shell with high quality and low price. Hua-Hin shell
shop provides whole seller prices for many shop around there. Also Hua-Hin shell shop
provide sale to general customer, but the price for general is higher than whole sale. Hua-Hin
shell shop is old company which established in 1992 with famous for local shop around Hua-
Hin and other areas. Other they import and export to many countries in Asia and

So, for the main competitor which concern about the benefits they got the benefits just
short term. From the information competitor can attract our customer just 10% of our
customer. For our company concern about the customer and other so Mali shellin is run on.

3.3.2 Customer Analysis

Nowadays, people concern about the environment and care the sea and the life of
shell. Mali was concern about that too by support the fisher industry department to spread
shell and other marine life, don’t hunt shell fish and other sea product in spawning season,
buy the shell from restaurant and some from fisher only, don’t purchase baby shell. So, mali
show concern to customer and let’s customer know.

Life and quality of people is better they has power to purchase goods every goods
now people love good or best quality money is not the big problem. We provide the greater
quality with acceptable price for this quality.
 35

Customer of company almost is tourist want to buy some souvenir to their friend or
other. For the fish maw we has strong market in China town of Thailand and export to the
China. Pearl was not big market for us but we try to promote and guarantee quality buyer is
our old customer who knew.

3.3.3Competitive Analysis
Sea shell market now is not famous Mali plan to do advertise make people remember
the productions from Mali. Promotions will help to promote shop make Mali shellin be well-
know. Price will decrease to open new market no high market only, Mali plan to hits middle
market.

Mali will create new products from shell; customer can should variety of product and
price. We will contact village to be employee produce the product to reduce costs of produce
and create career for local communities.

3.4 Marketing strategy (STP analysis)

3.4.1 Segmentation
Mali shellin shop used demography segmentation to divide the customer. We are
concern more about age, income, behavior for analyst the customer because our shop sale
shells of rare and expensive. All most of customer focus on hotel, restaurant, women, Thais
and foreigner who love and believe in shell. And some tourist want can buy it as souvenir.
And nowadays there a lot of tourists come to travel in Hua Hin. It means that we can make
sure the number of customer. The important thing our shop have three kinds of sea products
to response their need. We will get long term benefit from them. And also the customer will
be satisfied on product. For timely we concern more in high season because have a lot of
tourist but we are not rely on seasoning, because we can sale for all year round.
 36

3.4.2 Target market

For target market our shop evaluate from age, sex of tourist between that we choose
from demography segmentation to target market.

Shark fin; target is hotels are 84.13 percent, Thai and foreign tourists are 15.87
percent

Sales

hotel
thai and foreigner

Figure 3.4.2.1 target of shark fins

Pearl; target is women, who work in industrial, Pra Chuap Kiri Khun. Age average is
16 years old to 60 years up are 36.36 percent

Thai and foreign tourists are 63.64 percent

 37

Figure 3.4.2.2 target markets of pearls

Shell, conch: target is Thai and foreign tourist. (100 percent for tourist)

Sales

Thai and Foreign tourist who

love shells

Figure 3.4.2.3 target markets of shell

3.4.3 Position
The position of Mali shelline shop after compare between other shops such as shell
shells shop and beauty shell our shop has highest quality and service to serve for customer
that mean better than the other shops.

High quality high price High quality, low price

Mali shelline

Beauty shell

Shell shells

Low quality, high price Low quality, low price

 38

3.5 Marketing Mix Strategy

3.5.1 Product
The product of Mali shellin shop is the product form the deep south sea.We provide
many kind of products for customer to choose . Products in the Mali shellin shop is Shell,
Pearl, Shark fin.

The product of company is the pearl, shark fin and shell .So our products is come from
deep south sea in Ranong, Thailand and it natural.

For the Shell products we have many kind of shell and various prices ,so we
guarantee about the beautiful of shape and color of the shell. Customer can buy for bring it to
be souvenir because lower price is around 30 bath ,so it just a beautiful small shell and the
shell bundle and have the shell to bring to decorate the house of customer ,and about Conch
.In our shop the conch we have kind of on conch and many kind of price ,so for the lower
price is 1000 bate .For the low price ,our product is the small souvenir .For about the high
price in the shop is upper one million bath. This prices is the rare item of conch , The conch
of Mali shellin shop is very popular product because it have a myth .They believe that if they
be the owner of the conch ,they will lucky .

The pearl of Mali shop is come from the south sea and we have many color of pearls.
So, the color and the pearl come from the natural 100 percent and they bring it to produce
many kind of accessories such as necklace earring and rings ,so the customer can design by
yourself.

Shark fin we provide to response the customers with many grades of shark fin,
because of shark fin has high price. That is the reason why we provide many grade of
products.

3.5.2 Place (distribution channel)

Shop

We distribute products through our shop .It around 500 meters from the beach. So the
shop will have many kinds of products. So, customer can come to see the real product at the
shop.
 39

Website

Mali shellin shop have web site show the product in the showroom shop ,so if customer
not comfortable to come to the shop ,so they can visit our website to see the products and
reserve the product through the website. www.facebook.com/ mali shellin shop

E-mail

Customer who is the member can receive the news about the products and reserve the
products through the e-mail. Oj_tirawahc@hotmail.com

3.5.3 Price
Price of shell product:Pearl 30,000 per each, Shark fin 10,000 per kilogram, Shell
10,000 per each

3.5.4 Promotion
methods Way to advertise

leaflet We advertise through leaflet, we give the leaflet to the restaurant,

hotel, tour company to give to the customers who first come to Hua
Hin. Leaflet can be one of the way to promote the shop.

Thanks Party We set 2 times for thanks party held on the end of December.
Thanks party has the objective showing our ability to give back to
customers. It can help the shop to maintain the old customers. We
spend money around 70,000 baht for this party.

Bill board Bill board is one of advertisement the shop to customers, this
advertise we emphasis to attract the local customers, because we will
post it in the local or area where the shop located. Such as leading
the officers, employees who work in that area.

Public relation The shop give the fund to local community 10,000 baht. We will pay
to Hua Hin municipalities for the publication benefit. It can make the
local people have positive thought with our shop.

Souvenir We will give them a small shell to the customers who purchased our
product as a souvenir. It can create the loyalty with our shop.
 40

Brochure We will give the customers a brochure after them buy our products.
the customers will bring it back to their home. So, it can lead others
to read it and lead new one came back to the shop again.

We have advertise in Leaflet, , Thanks customer party, Public relation, Brochure and
the big advertising in Hua-hin city and we have advertise show in the web-site for let the
people know about our shop.
 41

3.6 Sale Forecast

Sales Forecast/Profit Estimation

1. Shark fin

Target: Shark fin for Hotel

According to http://www.prachuapkhirikhan.go.th/data/web%202.htm. The web

creator has record the number of hotel is 42 hotels in Hua Hin. We estimate that 10 percents
of them are interested with our product, because of shark fin soup is the famous Chinese food
which suit for those who love healthy.

The target customer = 42 hotels x 10 %

= 4.2 % is estimated target

~ 2 hotels will be our customers

They had ability to accommodate the customer in hotel around 580 persons a day, and they
estimate that the customer who will order shark fin soup is around 4 percents. In a cup of
soup use 200 grams.

Customer who will order = 580 x 4 %

= 23 customers x 0.2 kg.

Shark fin used = 4.64 kilograms a day

Total for 2 hotels = 9.28 kilograms a day

= 9.28 x 30

= 278.4 kilograms

10,000 per kilogram = 278,400 baht

 42

Target: Shark fin for tourists both Thai and foreigner

According to Guest Arrivals at Hua Hin by

http://www.tourism.go.th/2010/th/statistic/tourism.php?cid=30

January – March April – June July – September October – December

2010
2010 2010 2010

Tourists Number Tourists Number Tourists Number Tourists Number

Thai 160,349 Thai 289,590 Thai 50,687 Thai 160,550

Foreigner 124,454 Foreigner 9,126 Foreigner 1,244 Foreigner 20,000

Total 284,803 Total 298,716 Total 51,931 Total 180,550

We estimate that 0.01 percent of them will be our customer 635,450 and they have ability to
buy 0.5 kilogram.

First quarter

Estimate target = Total number of tourist x 0.01 percent

= 284,803 x 0.01%

= 29 persons

= 29 persons x 0.5 kg.

= 14.5 kilograms

= 14.5 kilograms x 10,000 baht

=145,000 baht
 43

Second quarter

Estimate target = Total number of tourist x 0.01 percent

= 298.716 x 0.01%

= 30 persons

= 30 persons x 0.5 kg.

= 15 kilograms

= 15 kilograms x 10,000 baht

=150,000 baht

Third quarter

Estimate target = Total number of tourist x 0.01 percent

= 180,550 x 0.01%

= 19 persons

= 19 persons x 0.5 kg.

= 9.5 kilograms

= 9.5 kilograms x 10,000 baht

=95,000 baht
 44

Fourth quarter

Estimate target = Total number of tourist x 0.01 percent

= 284,803 x 0.01%

= 29 persons

= 29 persons x 0.5 kg.

= 14.5 kilograms

= 14.5 kilograms x 10,000 baht

=145,000 baht

We estimate that the sales volume will be increase 0.01 percent in each quarter, every
year.
 45

2. Pearls

Target: 1. women, who work in industrial, Pra Chuap Kiri Khun. Age average is 16 years old
to 60 years up.

2. Thai and foreign tourists

According to Social Development centre 28 Pra Chuap Kiri Khun by Ministry of

Social Development and Humen Security.

Total number is 15,437 women

We estimate that 0.013 percent of them will be the customer. They have potential to by 1
piece of pearl neck lace.

Estimate = Total of women who work in industrial / percentage of

estimate

= 15,437 x 0.013%

= 2 persons per month

Source:
http://www.soonpatanasungkom28.com/index.php?option=com_content&task=blogcategory
&id=20&Itemid=37
 46

According to Guest Arrivals at Hua Hin by

http://www.tourism.go.th/2010/th/statistic/tourism.php?cid=30

January – March April – June July – September October – December

2010
2010 2010 2010

Tourists Number Tourists Number Tourists Number Tourists Number

Thai 160,349 Thai 289,590 Thai 50,687 Thai 160,550

Foreigner 124,454 Foreigner 9,126 Foreigner 1,244 Foreigner 20,000

Total 284,803 Total 298,716 Total 51,931 Total 180,550

We estimate that 0.005 percent of them will be our customer 635,450 and they have ability to
buy 1 piece.

First quarter

Estimate target = Total number of tourist x 0.005 percent

= 284,803 x 0.005%

= 15 persons

= 15 persons x 1piece

= 15 pieces

= 15 pieces x 30,000 baht

= 450,000 baht
 47

Estimate for each month ( January – March)

Estimate for each month = Total pieces of each quarter / 3

= 15 pieces / 3

= 5 pieces

= 5 pieces x 10,000 baht

= 150,000 baht per month

Second quarter

Estimate target = Total number of tourist x 0.005 percent

= 298.716 x 0.005%

= 15 persons

= 15 persons x 1piece

= 15 pieces

= 15 pieces x 30,000 baht

= 450,000 baht

Estimate for each month (April – June)

Estimate for each month = Total pieces of each quarter / 3

= 15 pieces / 3

= 5 pieces

= 5 pieces x 30,000 baht

= 150,000 baht per month

 48

Third quarter

Estimate target = Total number of tourist x 0.005 percent

= 51,931 x 0.005%

= 3 persons

= 3 persons x 1piece

= 3 pieces

= 3 pieces x 30,000 baht

= 30,000 baht

Estimate for each month (July - September)

Estimate for each month = Total pieces of each quarter / 3

= 3 pieces / 3

= 1 piece

= 1 pieces x 30,000 baht

= 30,000 baht per month

 49

Fourth quarter

Estimate target = Total number of tourist x 0.005 percent

= 180,550 x 0.005%

= 9 persons

= 9 persons x 1piece

= 9 pieces

= 9 pieces x 30,000 baht

= 270,000 baht

Estimate for each month (October - December)

Estimate for each month = Total pieces of each quarter / 3

= 9 pieces / 3

= 3 pieces

= 3 pieces x 30,000 baht

= 90,000 baht per month

We estimate that the sales volume will be increase 5 percent in each quarter, every year.
 50

3. Shells

Target: Thai and Foreign tourist who love shells

According to Guest Arrivals at Hua Hin by

http://www.tourism.go.th/2010/th/statistic/tourism.php?cid=30

January – March April – June July – September October – December

2010
2010 2010 2010

Tourists Number Tourists Number Tourists Number Tourists Number

Thai 160,349 Thai 289,590 Thai 50,687 Thai 160,550

Foreigner 124,454 Foreigner 9,126 Foreigner 1,244 Foreigner 20,000

Total 284,803 Total 298,716 Total 51,931 Total 180,550

We estimate that 0.02 percent of them will be our customer 635,450 and they have ability to
buy 1 piece.

First quarter

Estimate target = Total number of tourist x 0.02 percent

= 284,803 x 0.02%

= 57 persons

= 57 persons x 1piece

= 57 pieces

= 57 pieces x 10,000 baht

= 570,000 baht
 51

Estimate for each month ( January – March)

Estimate for each month = Total pieces of each quarter / 3

= 57 pieces / 3

= 19 pieces

= 19 pieces x 10,000 baht

= 190,000 baht per month

Second quarter

Estimate target = Total number of tourist x 0.02 percent

= 298.716 x 0.02%

= 60 persons

= 60 persons x 1piece

= 60 pieces

= 60 pieces x 10,000 baht

= 600,000 baht

Estimate for each month (April – June)

Estimate for each month = Total pieces of each quarter / 3

= 60 pieces / 3

= 20 pieces

= 20 pieces x 10,000 baht

= 200,000 baht per month

 52

Third quarter

Estimate target = Total number of tourist x 0.02 percent

= 51,931 x 0.02%

= 11 persons

= 11 persons x 1piece

= 11 pieces

= 11 pieces x 10,000 baht

= 110,000 baht

Estimate for each month (July - September)

Estimate for each month = Total pieces of each quarter / 3 months

= 11 pieces / 3 months

= 4 pieces

= 4 pieces x 10,000 baht

= 40,000 baht per month

 53

Fourth quarter

Estimate target = Total number of tourist x 0.02 percent

= 180,550 x 0.02%

= 37 persons

= 37 persons x 1piece

= 37 pieces

= 37 pieces x 10,000 baht

= 370,000 baht

Estimate for each month (October - December)

Estimate for each month = Total pieces of each quarter / 3

= 37 pieces / 3

= 17 pieces

= 17 pieces x 10,000 baht

= 170,000 baht per month

We estimate that the sales volume will be increase 5 percent in each quarter, every year.
 54

Table 3.6.1 Sale Forecast in 1st year

Annual
YEAR 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 41 41 41 41 41 41 39 39 39 41 41 41 485
Sale price @ 10,000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 408300 408300 408300 410000 410000 410000 391300 391300 391300 408300 408300 408300 4853700

Pearl 7 7 7 7 7 7 3 3 3 5 5 5 66
Sale price @ 30000 per
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Total Sales 210000 210000 210000 210000 210000 210000 90000 90000 90000 150000 150000 150000 1980000

Shell 19 19 19 20 20 20 4 4 4 17 17 17 180
Sale price @10000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 190000 190000 190000 200000 200000 200000 40000 40000 40000 170000 170000 170000 1800000
Monthly total 808300 808300 808300 820000 820000 820000 521300 521300 521300 728300 728300 728300 8633700
 55

Table 3.6.2 Sale Forecast in 2nd year

Annual
YEAR 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 43 43 43 43 43 43 41 41 41 43 43 43 510
Sale price @ 10,000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 428715 428715 428715 430500 430500 430500 410865 410865 410865 428715 428715 428715 5096385

Pearl 7 7 7 7 7 7 3 3 3 5 5 5 69
Sale price @ 30000 per
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Total Sales 220500 220500 220500 220500 220500 220500 94500 94500 94500 157500 157500 157500 2079000

Shell 20 20 20 21 21 21 4 4 4 18 18 18 189
Sale price @10000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 199500 199500 199500 210000 210000 210000 42000 42000 42000 178500 178500 178500 1890000
Monthly total 848715 848715 848715 861000 861000 861000 547365 547365 547365 764715 764715 764715 9065385
 56

Table 3.6.3 Sale Forecast in 3rd year

Annual
YEAR 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 45 45 45 45 45 45 43 43 43 45 45 45 535
Sale price @ 10,000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 450151 450151 450151 452025 452025 452025 431408 431408 431408 450151 450151 450151 5351204

Pearl 8 8 8 8 8 8 3 3 3 6 6 6 73
Sale price @ 30000 per
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Total Sales 231525 231525 231525 231525 231525 231525 99225 99225 99225 165375 165375 165375 2182950

Shell 21 21 21 22 22 22 4 4 4 19 19 19 198
Sale price @10000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 209475 209475 209475 220500 220500 220500 44100 44100 44100 187425 187425 187425 1984500
Monthly total 891151 891151 891151 904050 904050 904050 574733 574733 574733 802951 802951 802951 9518654
 57

Table 3.6.4 Sale Forecast in 4th year

Annual
YEAR 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 47 47 47 47 47 47 45 45 45 47 47 47 562
Sale price @ 10,000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 472658 472658 472658 474626 474626 474626 452979 452979 452979 472658 472658 472658 5618764

Pearl 8 8 8 8 8 8 3 3 3 6 6 6 76
Sale price @ 30000 per
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Total Sales 243101 243101 243101 243101 243101 243101 104186 104186 104186 173644 173644 173644 2292098

Shell 22 22 22 23 23 23 5 5 5 20 20 20 208
Sale price @10000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 219949 219949 219949 231525 231525 231525 46305 46305 46305 196796 196796 196796 2083725
Monthly total 935708 935708 935708 949253 949253 949253 603470 603470 603470 843098 843098 843098 9994587
 58

Table 3.6.5 Sale Forecast in 5th year

Annual
YEAR 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 50 50 50 50 50 50 48 48 48 50 50 50 590
Sale price @ 10,000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 496291 496291 496291 498358 498358 498358 475628 475628 475628 496291 496291 496291 5899703

Pearl 9 9 9 9 9 9 4 4 4 6 6 6 80
Sale price @ 30000 per
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Total Sales 255256 255256 255256 255256 255256 255256 109396 109396 109396 182326 182326 182326 2406702

Shell 23 23 23 24 24 24 5 5 5 21 21 21 219
Sale price @10000 per
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales 230946 230946 230946 243101 243101 243101 48620 48620 48620 206636 206636 206636 2187911
Monthly total 982494 982494 982494 996715 996715 996715 633643 633643 633643 885253 885253 885253 10494316
 59

7000000

5899703
6000000
5618764
5351204
5096385
5000000 4853700

4000000
shark fins
pearl
3000000
shell conch
2406702
2292098
2079000 2182950
1980000
2000000 2187911

1800000 1984500 2083725

1890000

1000000

0
year 1 year 2 year 3 year 4 year 5

Figure 3.6.1 Sales forecast

 60

3.7 Marketing Expense

Table 3.7.1 Marketing Expense in 1st year

Describtion Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Advertising Expense

Leaflet 15,000 10,000 10,000 6,000 6,000 6,000 6,000 6,000 5,000 5,000 5,000 3,000 83,000
bill board 42,500 0 0 0 0 42,500 0 0 0 0 0 0 85,000
Thanks customer
party 0 0 0 0 0 0 0 0 0 0 0 70,000 70,000
Souvenir 0 0 0 0 0 3,000 0 0 0 0 0 3,000 6,000
Public relation 0 0 0 0 0 10,000 0 0 0 0 0 10,000 20,000
Brochure 3,000 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 1,000 31,000
Total 60,500 12,700 12,700 8,700 8,700 64,200 8,700 8,700 7,700 7,700 7,700 87,000 295,000
 61

Table 3.7.2 Marketing Expense 2nd year

Describtion Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Advertising Expense

Leaflet 10,000 10,000 10,000 6,000 6,000 6,000 6,000 5,000 5,000 5,000 5,000 3,000 77,000
bill board 42,500 0 0 0 0 42,500 0 0 0 0 0 0 85,000
Thanks customer
party 0 0 0 0 0 0 0 0 0 0 0 70,000 70,000
Souvenir 0 0 0 0 0 3,000 0 0 0 0 0 3,000 6,000
Public relation 0 0 0 0 0 10,000 0 0 0 0 0 10,000 20,000
Brochure 3,000 3,000 3,000 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 1,000 31,600
Total 55,500 13,000 13,000 8,700 8,700 64,200 8,700 7,700 7,700 7,700 7,700 87,000 289,600
 62

Table 3.7.3 Marketing Expense in 3rd year

Describtion Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Advertising Expense

Leaflet 10,000 10,000 10,000 10,000 6,000 5,000 5,000 5,000 5,000 4,000 4,000 1,000 75,000
bill board 42,500 0 0 0 0 42,500 0 0 0 0 0 0 85,000
Thanks customer
party 0 0 0 0 0 0 0 0 0 0 0 70,000 70,000
Souvenir 0 0 0 0 0 3,000 0 0 0 0 0 3,000 6,000
Public relation 0 0 0 0 0 10,000 0 0 0 0 0 10,000 20,000
Brochure 3,000 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 1,000 31,000
Total 55,500 12,700 12,700 12,700 8,700 63,200 7,700 7,700 7,700 6,700 6,700 85,000 287,000
 63

Table 3.7.4 Marketing Expense in 4th year

Describtion Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Advertising Expense

Leaflet 10,000 10,000 10,000 10,000 5,000 5,000 5,000 5,000 4,000 4,000 4,000 1,000 73,000
bill board 42,500 0 0 0 0 42,500 0 0 0 0 0 0 85,000
Thanks customer
party 0 0 0 0 0 0 0 0 0 0 0 70,000 70,000
Souvenir 0 0 0 0 0 3,000 0 0 0 0 0 3,000 6,000
Public relation 0 0 0 0 0 10,000 0 0 0 0 0 10,000 20,000
Brochure 3,000 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 1,000 31,000
Total 55,500 12,700 12,700 12,700 7,700 63,200 7,700 7,700 6,700 6,700 6,700 85,000 285,000
 64

Table 3.7.5 Marketing Expense in 5th year

Describtion Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Advertising Expense

Leaflet 10,000 10,000 10,000 5,000 5,000 5,000 5,000 5,000 4,000 4,000 4,000 1,000 68,000
bill board 42,500 0 0 0 0 42,500 0 0 0 0 0 0 85,000
Thanks customer
party 0 0 0 0 0 0 0 0 0 0 0 70,000 70,000
Souvenir 0 0 0 0 0 3,000 0 0 0 0 0 3,000 6,000
Public relation 0 0 0 0 0 10,000 0 0 0 0 0 10,000 20,000
Brochure 2,000 2,000 2,000 2,700 2,700 2,700 2,700 2,700 2,700 2,700 2,700 1,000 28,600
Total 54,500 12,000 12,000 7,700 7,700 63,200 7,700 7,700 6,700 6,700 6,700 85,000 277,600
 65

3.8 Conclusion
Hua Hin is a great place for doing business. We try to group the customer by follow

Shark fin; target is hotels, Thai and foreign tourists. Pearl; target is women, who work in
industrial, Pra Chuap Kiri Khun. Age average is 16 years old to 60 years up, Thai and foreign
tourists. Shell, conch: target is Thai and foreign tourist.

Price setting are Pearl 30,000 per each, Shark fin 10,000 per kilogram and Shell
10,000 per each.

We try to advertise by many methods such as leaflet: we give the leaflet to the
restaurant, hotel, tour company to give to the customers who first come to Hua Hin. Leaflet
can be one of the ways to promote the shop. Thanks Party: Thanks party has the objective
showing our ability to give back to customers, Bill board: we emphasis to attract the local
customers, because we will post it in the local or area where the shop located. Such as leading
the officers, employees who work in that area, Public relation: We will pay to Hua Hin
municipalities for the publication benefit, Souvenir: We will give them a small shell to the
customers and Brochure: We will give the customers a brochure after them buy our products

We forecast that shell can be sell 180 pieces per year, pear 66 pieces, shark fin 485
kilograms. For the sale forecast of three products are estimated grow by 1 percent every year.
 66

Chapter 4
Technical Feasibility Study

Mali Shellin Shop

Project Feasibility Study and Evaluation 1203302
Mae Fah Luang University
 67

4. Technical Feasibility Study

4.1Production and Operations Analysis

4.1.1 Product Characteristics

Mali Shellin is products which make
from the shell and concern the environment the
design of the shell are same the natural also,
color is natural. Shell has a curve and
difference shape up to species. When shell
comes we have check the quality and quantity
of every product. We chose the best product
and produce it by not to add the color which
guarantee by our company.

Shells, we clean it and poly it by

technician who has pass the practice from our
company. Every product has to pass the quality
check twice before sale and product must not
change structure from the original (for the shell
that sell by piece )and not to harmful to the
customer. Product was prepare ready to send to
customer from the suppliers which support the
Mali shellin., Mali shellin shop is duty to sale,
promote and take order; Mali shellin Shop is
new branch of shell shop it’s located in Hua-Hin downtown

Shell product is not have a lifetime they can keep it but they can broke or brake when
it fall down. Every kinds of shell has a specific shape by the species so, you can chose shape
that you like.
 68

Pearl, Mali Shellin Shop provides a

nice quality of neck lace which has three colors
such white, pink and black. The products are
70 percent of handmade, 30 percent we use
equipment. However, all the products are from
Ranong Province by the local community near
Saphan Pla. 40 percent of pearl born by the
nature under the Andaman Sea where is very
beautiful of the natural itself. Another 60 percent is feed by the local community.

Our product is dried sharks fin product

from natural that mean without comical and
bleach. For sure our products have high quality
and good for health. We are provided the same
standard by select just only shark fin that have
quality for sell to the customer. Our product
provided to meet the customer needs for attract
more customers and also get the new
customers.
 69

4.1.2 Production/Services Process

Product Order Processing

Customer Ordering

Order to Suppliers ( Ranong)

Prepare and Packaging

Transfer to Mali Shillin Shop

Delivery to customer or get

directly.
 70

4.1.3 Location

Mali Shellin

Mali Shellin Shop is located at Hua-Hin Nad Pob Market store located in Tad saban
intersection it’s opposite to Hua-Hin local government and OTOP 110/1 Phetkasame Rd.,
Hua-Hin Prachubkirikan, Thailand 77110 Room D207- D208 in second floors
 71

Mali Shellin Shop

The reason we select Hua-Hin because this area is the great place to sell our
products to the customers especially foreigners. The area of Mali shellin covers all 1120
square meter. Most of Thais do not know about the worth of shell. So, we hope area will be
made the shells business expand to Thais. Moreover, this business can be lead or inspire
anyone who wants to have their own business.

4.1.4 Facility Layout

 72

4.1.5 Mali shellin shop’s equipment

Mali Shellin Shop does the contact with Assun company’s interior to helps to
decoration and design for our shop. Assun do agreement to decorate and design for our shop
which cost us 150,000 baht but we have to pay for all equipment and furniture. Price was
make agreement we cannot compare with other product because every decorating equipments
are design and make by ordered. In the contract we agree that Assun have to decorate by use
above photo which include; ( currency is Baht)

Equipment and supplies price

45,000

Computers

5,000

printers
 73

70,000

Air conditons

43,000

Chairs

6,500

Fax
 74

4,000

Document file

8,000

Telephone

25,000

Bags
 75

54,000

Counter

70,000

Cabinet

23,000

Sofa
 76

20,000

CCTV camera

5,000

Electric fan

5,000

Television
 77

5,900

Stereo

4,000

Light

3,000

TV cable
 78

4.1.6 Logistic Management

Mali Shellin Shop concerns logistic very much because sending the product to
customer by check and care in every step to send goods to the right person.

Biggest thing that we concern is communications for orders and give the information
of place to sending and the information of goods to send so Mali do call to check every time
before sending. Transportations are also important to transport is up to customer require
which way to send; by road. We provide the drivers for sent products to customers by transfer
from Rayong to direct customers, without stock at our shop. More important thing the car and
truck supported by the suppliers from Saphan Pla.

4.1.7 Facility Management

For the Mali Shellin Shop has three floor we set the facility as;

Floors Facilities

- Provide the 6 electric lights per each floor. The distant is

2m*4m.

- Each one use 40 watt * 6 electic lights*8 hrs a

day/1000= 1.92 unit per day, 1.92 unit*30 days =57.6
units

- 1 Air conditional available for this floor, it uses 1,000

watt and turn on 8 hrs an day, 1000*8hrs*1/1000= 8units
1st
a day. So, 8 units* 30 days= 240 units.

- 1 television available. It uses 100 watt. Turn on 3 hrs a

day. 100*1*3/1000=0.3 unit a day. So, o.3 unit * 30
days= 9 units.

- 1 computer available for this floor. It uses 120 watt. Turn

on 8 hrs a day. 120*1*8/1000=0.96 unit a day. So, 0.96 *
30 days= 28.8 units
 79

- 1 Telephone available. It uses 65 watt. Turn on 24 hrs a

day. 1*65*24/1000=1.56 units a day. So, 1.56*30
days=46.8 units

- 1 fax available. It uses 70 watt. Turn on 24 hrs a day.

1*70*24/1000=1.68 units. So, 1.68*30= 50.4 units.

- 1 stereo available. It 150 watt. Turn on 4 hrs a day. 1*

150* 4/ 1000= 0.6 unit a day. So, 0.6*30adys= 18 units.

- 1 CCTV camera available. It uses 60 watt. Turn on 24 hrs

a day. 1*60*24/1000=1.44 unit a day. So, 1.44*30
days=43.2 units.

- Provide the 6 electric lights per each floor. The distant is

2m*4m.

- Each one use 40 watt * 6 electic lights*8 hrs a

day/1000= 1.92 unit per day, 1.92 unit*30 days =57.6
units

- 1 electric fan available for this floor. It uses 100 watt.

Turn on 5 hrs a day. 100*5/ 1000= 0.5 unit a day. So, 0.5
unit * 30 days=15 units.
2nd
- 1 television available. It uses 100 watt. Turn on 3 hrs a
day. 100*1*3/1000=0.3 unit a day. So, o.3 unit * 30
days= 9 units.

- 1 computer available for this floor. It uses 120 watt. Turn

on 8 hrs a day. 120*1*8/1000=0.96 unit a day. So, 0.96 *
30 days= 28.8 units

- 1 CCTV camera available. It uses 60 watt. Turn on 24 hrs

a day. 1*60*24/1000=1.44 unit a day. So, 1.44*30
days=43.2 units.
 80

- Provide the 6 electric lights per each floor. The distant is

2m*4m.

- Each one use 40 watt * 6 electic lights*8 hrs a

day/1000= 1.92 unit per day, 1.92 unit*30 days =57.6
units

- 1 Air conditional available for this floor, it uses 1,000

watt and turn on 8 hrs an day, 1000*8hrs*1/1000= 8units
a day. So, 8 units* 30 days= 240 units.

- 1 television available. It uses 100 watt. Turn on 3 hrs a

3rd day. 100*1*3/1000=0.3 unit a day. So, o.3 unit * 30
days= 9 units.

- 1 computer available for this floor. It uses 120 watt. Turn

on 8 hrs a day. 120*1*8/1000=0.96 unit a day. So, 0.96 *
30 days= 28.8 units

- 1 CCTV camera available. It uses 60 watt. Turn on 24 hrs

a day. 1*60*24/1000=1.44 unit a day. So, 1.44*30
days=43.2 units.

Total per a month 1026 units

 81

According to the rate of electricity by Energy Policy and Planning Office, Ministry of
Energy, Thailand

Normal Rate

Energy Charge Service Charge

(Baht/Unit) (Baht/Month)
Voltage 22-33 Kv. 2.4649 228.17
Voltage lower than 22 Kv. 40.90
150 First Unit (unit 0 - 150) 1.8047
250 Next Unit (unit 151 - 400) 2.7781
Over 400 (start unit 401) 2.9780

Time of Use Rate : TOU

Energy Charge
Service Charge
(Baht/Unit)
(Baht/Month)
Peak Off Peak
Voltage 22-33 Kv. 3.6246 1.1914 228.17
Voltage lower than 22 Kv. 4.3093 1.2246 57.95
Peak: Monday-Friday 09.00 am. - 22.00 pm.
Off Peak : Monday-Friday 22.00 น. - 09.00 น. Saturday-Sunday (Not include public holiday)

Our shop suit with the Naormal Rate

Source: http://www.eppo.go.th/power/pw-Rate-PEA.html#2
 82

4.1.8 The Mali Shellin Shop logo

The procedures and documentation are copyrighted.

1. Mali shellin will create self-complete a piece of Prince came out, it is a hard copy. Then
sew the completed book form. The glue is put San sewing ribs, or other custom made also
stressed that the form book to use as evidence.

2. Into the web of the Department of Intellectual Property to download the form, which is a
form to fill out to apply for copyright. In the following website.

3. A copy of identity card Signed copies are required by a number of series

4. Send all documents to.

Copyright Office. Department of Intellectual Property

No. 44/100 Sanambin Nam Road.

Bang Kra Sor, Muang.

11000 Thailand.

When the Copyright Office of the story and then leave the matter to the certification number.
By sending to our own company. Then step into the copyright. This will be followed later.
After all, we already patented by the Copyright Bureau, copyright will certify to us the house
looks like the plot of land. This will make our job is to write only one who can replicate a full
suit.
 83

4.2 Cost of investment

4.2.1 Pre operating cost

Billboard of company

Billboard of company is very big billboard ,so it settle on the building of the shop. So
the billboard of the Mali shellin shop is order from D.R. advertising company limited 881
3883 Param 4 rode Bangkok. Tel 02-813-7769. The type of billboard is the ink-jet. So we
choose ink-jet because it’s save cost and easy to change when we have a new billboard. The
D.R advertising company limited uses the new technology to produce beautiful color of
billboard.

We use the English font for 15 letters so, the price is 24500 baht and the small front
19 letters is 18,000.

About the billboard tax

Mali shellin shop use the English front and we have pay the fee for set the billboard
to follow the legal of the billboard tax because the billboard use in the commercial for earn
the revenue. The calculation square centimeter equal 170,000 square centimeters. Calculate
the billboard tax. The billboard has all English font rate 40 Baht/500 square centimeter
(170000 / 500) × 40 equal 13600 Baht

So, the price of this billboard include tax is 7,083 bath per month, 85,000 baht a year.
 84

4.2.2 Source of Fund

We loan from the bank 6,000,000 baht to invest without our equity. We have to pay
9.5 percent of interest rate per year.

interest Monthly Monthly annual

Year principle payment balance 9.5% Payment Interest payment
Year 1 6,000,000 600000 5400000 570000 50000 47500 1170000
Year 2 5400000 600000 4800000 513000 50000 42750 1113000
Year 3 4800000 600000 4200000 456000 50000 38000 1056000
Year 4 4200000 600000 3600000 399000 50000 33250 999000
Year 5 3600000 600000 3000000 342000 50000 28500 942000

4.3 Investment Cost

4.3.1 Building, Equipments, Tools

Office amount
building 3,000,000
computer 45,000
printer 5,000
air condition 70,000
chair 43,000
fax 6,500
document file 4,000
telephone 8,000
bag 25,000
counter 54,000
cabinet 70,000
sofa 23,000
CCTV camera 20,000
electric fan 5,000
television 5,000
stereo 5,900
plastic flowers 4,000
decorations 150,000
TV cable 3,000
Total 3,546,400
 85

4.3.2 Depreciation

4.3.2.1 Table of Depreciation of 1st year

useful
Office amount life Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
6,000,00
building 0 20 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
computer 45,000 5 750 750 750 750 750 750 750 750 750 750 750 750 9,000
printer 5,000 5 83 83 83 83 83 83 83 83 83 83 83 83 1,000
air condition 70,000 10 583 583 583 583 583 583 583 583 583 583 583 583 7,000
chair 43,000 10 358 358 358 358 358 358 358 358 358 358 358 358 4,300
fax 6,500 7 77 77 77 77 77 77 77 77 77 77 77 77 929
document file 4,000 5 67 67 67 67 67 67 67 67 67 67 67 67 800
telephone 8,000 10 67 67 67 67 67 67 67 67 67 67 67 67 800
bag 25,000 5 417 417 417 417 417 417 417 417 417 417 417 417 5,000
counter 54,000 15 300 300 300 300 300 300 300 300 300 300 300 300 3,600
cabinet 70,000 10 583 583 583 583 583 583 583 583 583 583 583 583 7,000
sofa 23,000 10 192 192 192 192 192 192 192 192 192 192 192 192 2,300
CCTV
camera 20,000 10 167 167 167 167 167 167 167 167 167 167 167 167 2,000
electric fan 5,000 8 52 52 52 52 52 52 52 52 52 52 52 52 625
television 5,000 5 83 83 83 83 83 83 83 83 83 83 83 83 1,000
stereo 5,900 5 98 98 98 98 98 98 98 98 98 98 98 98 1,180
plasstic
flowers 4,000 5 67 67 67 67 67 67 67 67 67 67 67 67 800
TV cable 3,000 20 13 13 13 13 13 13 13 13 13 13 13 13 150
Total 6,376,400 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 347,484
 86

4.3.2.2 Table of Depreciation of 2nd year

useful
Office amount life Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
building 5,700,000 19 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
computer 36,000 4 750 750 750 750 750 750 750 750 750 750 750 750 9,000
printer 4,000 4 83 83 83 83 83 83 83 83 83 83 83 83 1,000
air condition 63,000 9 583 583 583 583 583 583 583 583 583 583 583 583 7,000
chair 38,700 9 358 358 358 358 358 358 358 358 358 358 358 358 4,300
fax 5,571 6 77 77 77 77 77 77 77 77 77 77 77 77 929
document file 3,200 4 67 67 67 67 67 67 67 67 67 67 67 67 800
telephone 7,200 9 67 67 67 67 67 67 67 67 67 67 67 67 800
bag 20,000 4 417 417 417 417 417 417 417 417 417 417 417 417 5,000
counter 50,400 14 300 300 300 300 300 300 300 300 300 300 300 300 3,600
cabinet 63,000 9 583 583 583 583 583 583 583 583 583 583 583 583 7,000
sofa 20,700 9 192 192 192 192 192 192 192 192 192 192 192 192 2,300
CCTV
camera 18,000 9 167 167 167 167 167 167 167 167 167 167 167 167 2,000
electric fan 4,375 7 52 52 52 52 52 52 52 52 52 52 52 52 625
television 4,000 4 83 83 83 83 83 83 83 83 83 83 83 83 1,000
stereo 4,720 4 98 98 98 98 98 98 98 98 98 98 98 98 1,180
plasstic
flowers 3,200 4 67 67 67 67 67 67 67 67 67 67 67 67 800
TV cable 2,850 19 13 13 13 13 13 13 13 13 13 13 13 13 150
Total 6,030,916 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 347,483.57
 87

4.3.2.3 Table of Depreciation of 3rd year

useful
Office amount life Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
building 5,400,000 18 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
computer 27,000 3 750 750 750 750 750 750 750 750 750 750 750 750 9,000
printer 3,000 3 83 83 83 83 83 83 83 83 83 83 83 83 1,000
air condition 56,000 8 583 583 583 583 583 583 583 583 583 583 583 583 7,000
chair 34,400 8 358 358 358 358 358 358 358 358 358 358 358 358 4,300
fax 4,643 5 77 77 77 77 77 77 77 77 77 77 77 77 929
document file 2,400 3 67 67 67 67 67 67 67 67 67 67 67 67 800
telephone 6,400 8 67 67 67 67 67 67 67 67 67 67 67 67 800
bag 15,000 3 417 417 417 417 417 417 417 417 417 417 417 417 5,000
counter 46,800 13 300 300 300 300 300 300 300 300 300 300 300 300 3,600
cabinet 56,000 8 583 583 583 583 583 583 583 583 583 583 583 583 7,000
sofa 18,400 8 192 192 192 192 192 192 192 192 192 192 192 192 2,300
CCTV
camera 16,000 8 167 167 167 167 167 167 167 167 167 167 167 167 2,000
electric fan 3,750 6 52 52 52 52 52 52 52 52 52 52 52 52 625
television 3,000 3 83 83 83 83 83 83 83 83 83 83 83 83 1,000
stereo 3,540 3 98 98 98 98 98 98 98 98 98 98 98 98 1,180
plasstic
flowers 2,400 3 67 67 67 67 67 67 67 67 67 67 67 67 800
TV cable 2,700 18 13 13 13 13 13 13 13 13 13 13 13 13 150
Total 5,685,433 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 347,483.57
 88

4.3.2.4 Table of Depreciation of 4th year

useful
Office amount life Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
building 5,100,000 17 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
computer 18,000 2 750 750 750 750 750 750 750 750 750 750 750 750 9,000
printer 2,000 2 83 83 83 83 83 83 83 83 83 83 83 83 1,000
air condition 49,000 7 583 583 583 583 583 583 583 583 583 583 583 583 7,000
chair 30,100 7 358 358 358 358 358 358 358 358 358 358 358 358 4,300
fax 3,714 4 77 77 77 77 77 77 77 77 77 77 77 77 929
document file 1,600 2 67 67 67 67 67 67 67 67 67 67 67 67 800
telephone 5,600 7 67 67 67 67 67 67 67 67 67 67 67 67 800
bag 10,000 2 417 417 417 417 417 417 417 417 417 417 417 417 5,000
counter 43,200 12 300 300 300 300 300 300 300 300 300 300 300 300 3,600
cabinet 49,000 7 583 583 583 583 583 583 583 583 583 583 583 583 7,000
sofa 16,100 7 192 192 192 192 192 192 192 192 192 192 192 192 2,300
CCTV camera 14,000 7 167 167 167 167 167 167 167 167 167 167 167 167 2,000
electric fan 3,125 5 52 52 52 52 52 52 52 52 52 52 52 52 625
television 2,000 2 83 83 83 83 83 83 83 83 83 83 83 83 1,000
stereo 2,360 2 98 98 98 98 98 98 98 98 98 98 98 98 1,180
plasstic
flowers 1,600 2 67 67 67 67 67 67 67 67 67 67 67 67 800
TV cable 2,550 17 13 13 13 13 13 13 13 13 13 13 13 13 150
Total 5,339,949 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 347,483.57
 89

4.3.2.5 Table of Depreciation of 5th year

useful
Office amount life Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
building 4,800,000 16 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300000
computer 9,000 1 750 750 750 750 750 750 750 750 750 750 750 750 9000
printer 1,000 1 83 83 83 83 83 83 83 83 83 83 83 83 1000
air condition 42,000 6 583 583 583 583 583 583 583 583 583 583 583 583 7000
chair 25,800 6 358 358 358 358 358 358 358 358 358 358 358 358 4300
928.571428
fax 2,786 3 77 77 77 77 77 77 77 77 77 77 77 77 6
document
file 800 1 67 67 67 67 67 67 67 67 67 67 67 67 800
telephone 4,800 6 67 67 67 67 67 67 67 67 67 67 67 67 800
bag 5,000 1 417 417 417 417 417 417 417 417 417 417 417 417 5000
counter 39,600 11 300 300 300 300 300 300 300 300 300 300 300 300 3600
cabinet 42,000 6 583 583 583 583 583 583 583 583 583 583 583 583 7000
sofa 13,800 6 192 192 192 192 192 192 192 192 192 192 192 192 2300
CCTV
camera 12,000 6 167 167 167 167 167 167 167 167 167 167 167 167 2000
electric fan 2,500 4 52 52 52 52 52 52 52 52 52 52 52 52 625
television 1,000 1 83 83 83 83 83 83 83 83 83 83 83 83 1000
stereo 1,180 1 98 98 98 98 98 98 98 98 98 98 98 98 1180
plasstic
flowers 800 1 67 67 67 67 67 67 67 67 67 67 67 67 800
TV cable 2,400 16 13 13 13 13 13 13 13 13 13 13 13 13 150
Total 4,994,466 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 28,956.96 347,483.57

Total for 5
144,784.8 144,784.8
yrs 144,784.82 144,784.82 144,784.82 144,784.82 144,784.82 144,784.82 144,784.82 144,784.82 144,784.82 2 2 144,784.82 1,737,417.86
 90

4.3.3 Management Analysis

4.3.3.1 Organization Management

Mali Shellin Shop needs to manage the organization by register Mali Shellin Shop to

a small business. We have to contact with Register Partnership Shop Department, where

located in Office of Commercial Affairs Hua Hin in order to establish the small business

under the name Mali Shellin Shop. After registered a small business, we need to pay tax in

form of small business income tax.

Small business is one kind of business which forms of a capital can divided into

equal shares and the liability of the shareholders. When we establish the small business, we

need to have at least 1 person to sign the contract in order to prepare Memorandum and

register after that. Upon receiving the amount of shares, the director need to register as the

shop within 3 months from the date which company has meeting in the topic of establish the

shop.

The name list of partnerships who set up the business as follows:

1). Mister Chaowarit Wankprakobkul

2). Mister Bodin Techanan

3). Mister Jeerawas Yantadilok

4). Misster Krittawit Muangsakul

5). Miss Jamjuree Chaisoda

All partnerships of Mali Shellin Shop had voted Mister Chaowarit Wankprakobkul to

be Chief Executive Officer of Mali Shellin Shop. He has responsible to register the store to

be small business at Office of Commercial Affairs Hua Hin.

 91

Moreover, he has to control and maintain all quality of the shop and also has an

authority to inspect all of document which related to operations in the Mali Shellin Shop.

4.3.3.2 Organization Chart

Chief Executive Officer

Mister Chaowarit Wankprakobkul

Accounting and financial Sale and Marketing Transportation and House

department department keeping

1 Accountant 3Sale person 4house keeper

5drivers
 92

4.3.3.3 Job field

1. Chief Executive Officer ( 1 position)

Response for

- Response for oversee all department and along with to sign in that

agreement documents and also set goal and evaluate the performance.

Characteristic

- Male age 30 years old up

- Bachelor degree up and work experience must more than 5 years

- Wide range of knowledge

- good management skill and good leader ship

2. Accounting and Financial department ( 1 position )

Response for

- Work that relate to financial and accounting

- To analysis the liquidity of money

- To planning money daily, quarterly, annually

- Manage and control budget of shop

Characteristic

- Female age 25-30 years old

- Graduated bachelor degree in accounting and finance major

- More than 1-2 year of work experience that relate to finance

- Computer skill the especially Excel and Express

- Can analysis the liquidity and finance of company

- Be carefully detailed person and good understanding the principle of

financial and accounting.

 93

- Have patience, enthusiasm and integrity.

3. Sale and Marketing department ( Head 1 position )

Response for

- Do marketing and advertising

- Analysis market trend from seasoning

- Managing for product and service to customer satisfaction

- Continuous to fine new customer

Characteristic

- Male / Female age 25-30

- Bachelor degree with the major is marketing or relate major

- Work experience at least 2 years

- Good personality and relationship

4. Sale and Marketing department ( Sale person 2 position )

Response for

- Sell products at the shop

- Money receive from customer

Characteristic

- Male / Female age 25-30

- High school degree

- Work experience at least 2 years, Good personality and relationship

 94

5. Transportation and House keeping

5.1 House Keeping (1 position)

Response for

- Clean the shop

Characteristic

- Male age 24-30 year

- Pratom Suksa degree

- Love cleanliness

5.2 Driver (2 Positions)

Response for

- Contain the product from Ranong to Hua Hin

Characteristic

- Male age 24-30 year

- Pratom Suksa degree

- Have Driver's license

- Well known the traffic rule

 95

4.3.3.4 Administration Cost

Position number wage rate total

Managing partner position 1 20,000 20,000
Employees in organization
1 Accounting department 1 9,000 9,000
2 Sale and Marketing
department 1 9,000 9,000
3 Sale person 2 8,500 17,000
4 house keeper 1 6,000 6,000
5 driver 2 5,500 11,000
Total 72,000
 96

4.3.3.5 Operating Cost

4.3.3.5.1 Table of Electricity Expense for 1st year

Year 1 Price Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Electricity use
(units) 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 12312
Price
150 First Unit
(unit 0 - 150) 1.8047 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 3248.46
250 Next Unit
(unit 151 - 400) 2.7781 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 7639.775
Over 400 (start
unit 401) 2.978 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 22370.736
Total 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 33258.971
 97

4.3.3.5.2 Table of Electricity Expense for 2nd year

Year 2 Price Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
Electricity use
(units) 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 12312

Price
150 First Unit
(unit 0 - 150) 1.8047 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 3248.46
250 Next
Unit (unit
151 - 400) 2.7781 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 7639.775
Over 400
(start unit
401) 2.978 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 22370.736

Total 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 33258.971
 98

4.3.3.5.3 Table of Electricity Expense for 3rd year

Year 3 Price Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
Electricity use
(units) 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 12312

Price
150 First Unit
(unit 0 - 150) 1.8047 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 3248.46
250 Next
Unit (unit
151 - 400) 2.7781 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 7639.775
Over 400
(start unit
401) 2.978 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 22370.736

Total 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 33258.971
 99

4.3.3.5.4 Table of Electricity Expense for 4th year

Year 4 Price Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
Electricity use
(units) 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 12312

Price
150 First Unit
(unit 0 - 150) 1.8047 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 3248.46
250 Next
Unit (unit
151 - 400) 2.7781 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 7639.775
Over 400
(start unit
401) 2.978 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 22370.736

Total 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 33258.971
 100

4.3.3.5.5 Table of Electricity Expense for 5th year

Year 5 Price Jan Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec Total
Electricity use
(units) 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 1026 12312

Price
150 First Unit
(unit 0 - 150) 1.8047 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 270.705 3248.46
250 Next
Unit (unit
151 - 400) 2.7781 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 694.525 7639.775
Over 400
(start unit
401) 2.978 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 1864.228 22370.736

Total 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 2829.458 33258.971

4.3.3.6 Telephone
TT&T telephone expense/month (500 baht for every month, every year)

Telephone expense 500 baht/month

 101

Conclusion

We provide high quality of three products consists of pearl, shark fin and shell. All of
the products are made by local community at Ranong, Saphan Pla. Especially for pearl, The
products are 70 percent of handmade, 30 percent we use equipment. However, all the
products are from Ranong Province by the local community near Saphan Pla. 40 percent of
pearl born by the nature under the Andaman Sea where is very beautiful of the natural itself.
Another 60 percent is feed by the local community. Shell, Every product has to pass the
quality check twice before sale and product must not change structure from the original.
Dried sharks fin product from natural that mean without comical and bleach.

Product Order Processing consists of Customer Ordering, Order to Suppliers

( Ranong), Prepare and Packaging, Transfer to Mali Shillin Shop, Delivery to customer or get
directly. Transportations are also important to transport is up to customer require which way
to send; by road. We provide the drivers for sent products to customers by transfer from
Rayong to direct customers, without stock at our shop. More important thing the car and
truck supported by the suppliers from Saphan Pla. Mali Shellin Shop has leader and
employees to run the business include with

Chief Executive Officer ( 1 position) Response for all department and along with to

sign in that agreement documents and also set goal and evaluate the performance.

Accounting and Financial department ( 1 position )Response for Work that relate to

financial and accounting, analysis the liquidity of money, planning money daily, quarterly,

annually, Manage and control budget of shop, good understanding the principle of financial and

accounting

Sale and Marketing department ( Head 1 position )

Response for Do marketing and advertising, analysis market trend from seasoning, Managing

for product and service to customer satisfaction

Sale and Marketing department ( Sale person 2 position ) Response for sell products at

the shop, Money receive from customer

 102

House Keeping (1 position) Response for Clean the shop.

Driver (2 Positions) response for driving to bring products from Saphan Pla Ranong to Hua Hin

Mali Shellin Shop try to do the best to make the business success such as provide
effective staff, plan for facility management, and all expenses.
 103

Chapter 5
Financial Analysis

Mali Shellin Shop

Project Feasibility Study and Evaluation 1203302
Mae Fah Luang University
 104

5. Financial Analysis

5.1 Profit/ Loss Statement

5.1.1 Table of Profit statement in 1st year

Annual
YEAR 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 41 41 41 41 41 41 39 39 39 41 41 41 486
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 410000 410000 410000 410000 410000 410000 390000 390000 390000 410000 410000 410000 4860000
costs 2,500 /
kg 102500 102500 102500 102500 102500 102500 97500 97500 97500 102500 102500 102500 1215000
Profits 307500 307500 307500 307500 307500 307500 292500 292500 292500 307500 307500 307500 3645000

Pearl 7 7 7 7 7 7 3 3 3 5 5 5 66
Sale price @
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Sales
@30,000฿ 210000 210000 210000 210000 210000 210000 90000 90000 90000 150000 150000 150000 1980000
costs 15,000 105000 105000 105000 105000 105000 105000 45000 45000 45000 75000 75000 75000 990000
Profits 105000 105000 105000 105000 105000 105000 45000 45000 45000 75000 75000 75000 990000

Shell 19 19 19 20 20 20 4 4 4 17 17 17 180
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 190000 190000 190000 200000 200000 200000 40000 40000 40000 170000 170000 170000 1800000
costs 3,000
per each 57000 57000 57000 60000 60000 60000 12000 12000 12000 51000 51000 51000 540000
Profits 133000 133000 133000 140000 140000 140000 28000 28000 28000 119000 119000 119000 1260000
Total cost 264500 264500 264500 267500 267500 267500 154500 154500 154500 228500 228500 228500 2745000
Total profit 545500 545500 545500 552500 552500 552500 365500 365500 365500 501500 501500 501500 5895000
 105

5.1.2 Table of Profit statement in 2nd year

Annual
YEAR 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 43 43 43 43 43 43 41 41 41 43 43 43 510
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 430500 430500 430500 430500 430500 430500 409500 409500 409500 430500 430500 430500 5103000
costs 2,500 /
kg 107625 107625 107625 107625 107625 107625 102375 102375 102375 107625 107625 107625 1275750
Profits 322875 322875 322875 322875 322875 322875 307125 307125 307125 322875 322875 322875 3827250

Pearl 7 7 7 7 7 7 3 3 3 5 5 5 69
Sale price @
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Sales
@30,000฿ 220500 220500 220500 220500 220500 220500 94500 94500 94500 157500 157500 157500 2079000
costs 15,000 110250 110250 110250 110250 110250 110250 47250 47250 47250 78750 78750 78750 1039500
Profits 110250 110250 110250 110250 110250 110250 47250 47250 47250 78750 78750 78750 1039500

Shell 20 20 20 21 21 21 4 4 4 18 18 18 189
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 199500 199500 199500 210000 210000 210000 42000 42000 42000 178500 178500 178500 1890000
costs 3,000
per each 59850 59850 59850 63000 63000 63000 12600 12600 12600 53550 53550 53550 567000
Profits 139650 139650 139650 147000 147000 147000 29400 29400 29400 124950 124950 124950 1323000
Total cost 277725 277725 277725 280875 280875 280875 162225 162225 162225 239925 239925 239925 2882250
Total profit 572775 572775 572775 580125 580125 580125 383775 383775 383775 526575 526575 526575 6189750
 106

5.1.2 Table of Profit statement in 3rd year

Annual
YEAR 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 45 45 45 45 45 45 43 43 43 45 45 45 536
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 452025 452025 452025 452025 452025 452025 429975 429975 429975 452025 452025 452025 5358150
costs 2,500 /
kg 113006 113006 113006 113006 113006 113006 107494 107494 107494 113006 113006 113006 1339538
Profits 339019 339019 339019 339019 339019 339019 322481 322481 322481 339019 339019 339019 4018613

Pearl 8 8 8 8 8 8 3 3 3 6 6 6 73
Sale price @
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Sales
@30,000฿ 231525 231525 231525 231525 231525 231525 99225 99225 99225 165375 165375 165375 2182950
costs 15,000 115763 115763 115763 115763 115763 115763 49613 49613 49613 82688 82688 82688 1091475
Profits 115763 115763 115763 115763 115763 115763 49613 49613 49613 82688 82688 82688 1091475

Shell 21 21 21 22 22 22 4 4 4 19 19 19 198
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 209475 209475 209475 220500 220500 220500 44100 44100 44100 187425 187425 187425 1984500
costs 3,000
per each 62843 62843 62843 66150 66150 66150 13230 13230 13230 56228 56228 56228 595350
Profits 146633 146633 146633 154350 154350 154350 30870 30870 30870 131198 131198 131198 1389150
Total cost 291611 291611 291611 294919 294919 294919 170336 170336 170336 251921 251921 251921 3026363
Total profit 601414 601414 601414 609131 609131 609131 402964 402964 402964 552904 552904 552904 6499238
 107

5.1.4 Table of Profit statement in 4th year

Annual
YEAR 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 47 47 47 47 47 47 45 45 45 47 47 47 563
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 474626 474626 474626 474626 474626 474626 451474 451474 451474 474626 474626 474626 5626058
costs 2,500 /
kg 118657 118657 118657 118657 118657 118657 112868 112868 112868 118657 118657 118657 1406514
Profits 355970 355970 355970 355970 355970 355970 338605 338605 338605 355970 355970 355970 4219543

Pearl 8 8 8 8 8 8 3 3 3 6 6 6 76
Sale price @
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Sales
@30,000฿ 243101 243101 243101 243101 243101 243101 104186 104186 104186 173644 173644 173644 2292098
costs 15,000 121551 121551 121551 121551 121551 121551 52093 52093 52093 86822 86822 86822 1146049
Profits 121551 121551 121551 121551 121551 121551 52093 52093 52093 86822 86822 86822 1146049

Shell 22 22 22 23 23 23 5 5 5 20 20 20 208
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 219949 219949 219949 231525 231525 231525 46305 46305 46305 196796 196796 196796 2083725
costs 3,000
per each 65985 65985 65985 69458 69458 69458 13892 13892 13892 59039 59039 59039 625118
Profits 153964 153964 153964 162068 162068 162068 32414 32414 32414 137757 137757 137757 1458608
Total cost 306192 306192 306192 309665 309665 309665 178853 178853 178853 264517 264517 264517 3177681
Total profit 631484 631484 631484 639588 639588 639588 423112 423112 423112 580549 580549 580549 6824199
 108

5.1.5 Table of Profit statement in 5th year

Annual
YEAR 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 50 50 50 50 50 50 47 47 47 50 50 50 591
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 498358 498358 498358 498358 498358 498358 474047 474047 474047 498358 498358 498358 5907360
costs 2,500 /
kg 124589 124589 124589 124589 124589 124589 118512 118512 118512 124589 124589 124589 1476840
Profits 373768 373768 373768 373768 373768 373768 355536 355536 355536 373768 373768 373768 4430520

Pearl 9 9 9 9 9 9 4 4 4 6 6 6 80
Sale price @
unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Sales
@30,000฿ 255256 255256 255256 255256 255256 255256 109396 109396 109396 182326 182326 182326 2406702
costs 15,000 127628 127628 127628 127628 127628 127628 54698 54698 54698 91163 91163 91163 1203351
Profits 127628 127628 127628 127628 127628 127628 54698 54698 54698 91163 91163 91163 1203351

Shell 23 23 23 24 24 24 5 5 5 21 21 21 219
Sale price @
unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales
@10,000฿ 230946 230946 230946 243101 243101 243101 48620 48620 48620 206636 206636 206636 2187911
costs 3,000
per each 69284 69284 69284 72930 72930 72930 14586 14586 14586 61991 61991 61991 656373
Profits 161662 161662 161662 170171 170171 170171 34034 34034 34034 144645 144645 144645 1531538
Total cost 321501 321501 321501 325148 325148 325148 187796 187796 187796 277743 277743 277743 3336565
Total profit 663059 663059 663059 671567 671567 671567 444268 444268 444268 609576 609576 609576 7165409
 109

5000000
4430520
4500000 4219543
4018613
4000000 3827250
3645000
3500000

3000000

2500000 shark fins

pearl
2000000
1458608 1531538 shell conch
1500000 1323000 1389150
1260000
1146049 1203351
1000000 1091475
990000 1039500
500000

0
year 1 year 2 year 3 year 4 year 5

Figure 5.1.1 Profit

 110

5.2 Cash Flow

5.2.1 Table of Statement of Cash Flow in 1st year

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Cash Provided From
Operating Activities
Cash Inflow
Sale on cash 808300 808,300.00 808,300.00 820,000.00 820,000.00 820,000.00 521,300.00 521,300.00 521,300.00 728,300.00 728,300.00 728,300.00 8,633,700.00

Total Cash Inflow 808,300.00 808,300.00 808,300.00 820,000.00 820,000.00 820,000.00 521,300.00 521,300.00 521,300.00 728,300.00 728,300.00 728,300.00 8,633,700.00

Cash Outflow
Other Cost of goods sold
Shark fin 102,500.00 102,500.00 102,500.00 102,500.00 102,500.00 102,500.00 97,500.00 97,500.00 97,500.00 102,500.00 102,500.00 102,500.00 1,215,000.00

Pearl 105,000.00 105,000.00 105,000.00 105,000.00 105,000.00 105,000.00 45,000.00 45,000.00 45,000.00 75,000.00 75,000.00 75,000.00 990,000.00

Conch shell 57,000.00 57,000.00 57,000.00 60,000.00 60,000.00 60,000.00 12,000.00 12,000.00 12,000.00 51,000.00 51,000.00 51,000.00 540,000.00

Total 264,500.00 264,500.00 264,500.00 267,500.00 267,500.00 267,500.00 154,500.00 154,500.00 154,500.00 228,500.00 228,500.00 228,500.00 2,745,000.00
General &
Administration 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Interest Expense 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing Expense 60,500.00 12,700.00 12,700.00 8,700.00 8,700.00 64,200.00 8,700.00 8,700.00 7,700.00 7,700.00 7,700.00 87,000.00 295,000.00

Phone expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Total Cash Outflow 712,329.46 651,829.46 651,829.46 657,829.46 657,829.46 657,829.46 431,829.46 431,829.46 431,829.46 579,829.46 579,829.46 579,829.46 7,024,453.50

Net Cash from

Operating Activities 95,970.54 156,470.54 156,470.54 162,170.54 162,170.54 162,170.54 89,470.54 89,470.54 89,470.54 148,470.54 148,470.54 148,470.54 1,609,246.50

Cash Provided From

Investing Activities
Cash Inflow
Sale Equipment - - - - - - - - - - - - -
 111

Total Cash Inflow - - - - - - - - - - - - -

Cash Outflow
Purchased Land &
Building 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Purchased Office Supply 546,400.00 - - - - - - - - - - - 546,400.00

Total Cash Outflow 6,546,400.00 - - - - - - - - - - - 6,546,400.00

Net Cash from
Investing Activities - 6,546,400.00 - - - - - - - - - - - - 6,546,400.00

Cash Provided From

Financing Activities
Cash Inflow
Borrowing Bank 6,000,000.00 - - - - - - - - - - - -

Total Cash Inflow 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Cash Outflow
Principal Payment 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Total Cash Outflow 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Net Cash from

Financing Activities 5,952,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 5,430,000.00
Net Cash Increase or
Decrease - 497,929.46 108,970.54 108,970.54 114,670.54 114,670.54 114,670.54 41,970.54 41,970.54 41,970.54 100,970.54 100,970.54 100,970.54 492,846.50

Cash Beginning of the month - - 497,929.46 - 388,958.92 - 279,988.37 - 165,317.83 - 50,647.29 64,023.25 105,993.79 147,964.34 189,934.88 290,905.42 391,875.96 - 192,144.23

Cash Ending of the month - 497,929.46 - 388,958.92 - 279,988.37 - 165,317.83 - 50,647.29 64,023.25 105,993.79 147,964.34 189,934.88 290,905.42 391,875.96 492,846.50 300,702.28
 112

5.2.2 Table of Statement of Cash Flow in 2nd year

Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Cash Provided From
Operating Activities
Cash Inflow
Sale on cash 848715 848715 848715 861,000.00 861,000.00 861,000.00 547,365.00 547,365.00 547,365.00 764,715.00 764,715.00 764,715.00 9,065,385.00

Total Cash Inflow 848,715.00 848,715.00 848,715.00 861,000.00 861,000.00 861,000.00 547,365.00 547,365.00 547,365.00 764,715.00 764,715.00 764,715.00 9,065,385.00

Cash Outflow
Other Cost of goods sold
Shark fin 107,625.00 107,625.00 107,625.00 107,625.00 107,625.00 107,625.00 102,375.00 102,375.00 102,375.00 107,625.00 107,625.00 107,625.00 1,275,750.00

Pearl 110,250.00 110,250.00 110,250.00 110,250.00 110,250.00 110,250.00 47,250.00 47,250.00 47,250.00 78,750.00 78,750.00 78,750.00 1,039,500.00

Conch shell 59,850.00 59,850.00 59,850.00 63,000.00 63,000.00 63,000.00 12,600.00 12,600.00 12,600.00 53,550.00 53,550.00 53,550.00 567,000.00

Total 277,725.00 277,725.00 277,725.00 280,875.00 280,875.00 280,875.00 162,225.00 162,225.00 162,225.00 239,925.00 239,925.00 239,925.00 2,882,250.00
General &
Administration 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Interest Expense 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 513,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing Expense 55,500.00 13,000.00 13,000.00 8,700.00 8,700.00 64,200.00 8,700.00 7,700.00 7,700.00 7,700.00 7,700.00 87,000.00 289,600.00

Phone expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Total Cash Outflow 729,029.46 673,529.46 673,529.46 679,829.46 679,829.46 679,829.46 442,529.46 442,529.46 442,529.46 597,929.46 597,929.46 597,929.46 7,236,953.50
Net Cash from
Operating Activities 119,685.54 175,185.54 175,185.54 181,170.54 181,170.54 181,170.54 104,835.54 104,835.54 104,835.54 166,785.54 166,785.54 166,785.54 1,828,431.50

Cash Provided From

Investing Activities
Cash Inflow
Sale Equipment - - - - - - - - - - - - -

Total Cash Inflow - - - - - - - - - - - - -

Cash Outflow
Purchased Land &
Building 6,000,000.00 - - - - - - - - - - - 6,000,000.00
 113

Purchased Office Supply 546,400.00 - - - - - - - - - - - 546,400.00

Total Cash Outflow 6,546,400.00 - - - - - - - - - - - 6,546,400.00

Net Cash from
Investing Activities - 6,546,400.00 - - - - - - - - - - - - 6,546,400.00
Cash Provided From
Financing Activities
Cash Inflow
Borrowing Bank 6,000,000.00 - - - - - - - - - - - -

Total Cash Inflow 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Cash Outflow
Principal Payment 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Total Cash Outflow 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00
Net Cash from
Financing Activities 5,952,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 5,430,000.00
Net Cash Increase or
Decrease - 474,214.46 127,685.54 127,685.54 133,670.54 133,670.54 133,670.54 57,335.54 57,335.54 57,335.54 119,285.54 119,285.54 119,285.54 712,031.50

Cash Beginning of the month 492,846.50 18,632.05 146,317.59 274,003.13 407,673.67 541,344.21 675,014.76 732,350.30 789,685.84 847,021.38 966,306.92 1,085,592.47 6,976,788.82

Cash Ending of the month 18,632.05 146,317.59 274,003.13 407,673.67 541,344.21 675,014.76 732,350.30 789,685.84 847,021.38 966,306.92 1,085,592.47 1,204,878.01 7,688,820.32
 114

5.2.3 Table of Statement of Cash Flow in 3rd year

Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Cash Provided From
Operating Activities
Cash Inflow
Sale on cash 891151 891151 891151 904,050.00 904,050.00 904,050.00 574,733.00 574,733.00 574,733.00 802,951.00 802,951.00 802,951.00 9,518,655.00

Total Cash Inflow 891,151.00 891,151.00 891,151.00 904,050.00 904,050.00 904,050.00 574,733.00 574,733.00 574,733.00 802,951.00 802,951.00 802,951.00 9,518,655.00

Cash Outflow
Other Cost of goods sold
Shark fin 113,006.00 113,006.00 113,006.00 113,006.00 113,006.00 113,006.00 107,494.00 107,494.00 107,494.00 113,006.00 113,006.00 113,006.00 1,339,536.00

Pearl 115,763.00 115,763.00 115,763.00 115,763.00 115,763.00 115,763.00 49,613.00 49,613.00 49,613.00 82,688.00 82,688.00 82,688.00 1,091,481.00

Conch shell 62,843.00 62,843.00 62,843.00 66,150.00 66,150.00 66,150.00 13,230.00 13,230.00 13,230.00 56,228.00 56,228.00 56,228.00 595,353.00

Total 291,612.00 291,612.00 291,612.00 294,919.00 294,919.00 294,919.00 170,337.00 170,337.00 170,337.00 251,922.00 251,922.00 251,922.00 3,026,370.00
General &
Administration 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Interest Expense 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 456,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing Expense 55,500.00 12,700.00 12,700.00 12,700.00 8,700.00 63,200.00 7,700.00 7,700.00 7,700.00 6,700.00 6,700.00 85,000.00 287,000.00

Phone expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Total Cash Outflow 752,053.46 696,553.46 696,553.46 703,167.46 703,167.46 703,167.46 454,003.46 454,003.46 454,003.46 617,173.46 617,173.46 617,173.46 7,468,193.50

Net Cash from

Operating Activities 139,097.54 194,597.54 194,597.54 200,882.54 200,882.54 200,882.54 120,729.54 120,729.54 120,729.54 185,777.54 185,777.54 185,777.54 2,050,461.50
Cash Provided From
Investing Activities
Cash Inflow
Sale Equipment - - - - - - - - - - - - -

Total Cash Inflow - - - - - - - - - - - - -

Cash Outflow
 115

Purchased Land &

Building 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Purchased Office Supply 546,400.00 - - - - - - - - - - - 546,400.00

Total Cash Outflow 6,546,400.00 - - - - - - - - - - - 6,546,400.00

Net Cash from

Investing Activities - 6,546,400.00 - - - - - - - - - - - - 6,546,400.00

Cash Provided From

Financing Activities
Cash Inflow
Borrowing Bank 6,000,000.00 - - - - - - - - - - - -

Total Cash Inflow 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Cash Outflow
Principal Payment 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Total Cash Outflow 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00
Net Cash from
Financing Activities 5,952,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 5,430,000.00
Net Cash Increase or
Decrease - 454,802.46 147,097.54 147,097.54 153,382.54 153,382.54 153,382.54 73,229.54 73,229.54 73,229.54 138,277.54 138,277.54 138,277.54 934,061.50

Cash Beginning of the month 712,031.50 257,229.05 404,326.59 551,424.13 704,806.67 858,189.21 1,011,571.76 1,084,801.30 1,158,030.84 1,231,260.38 1,369,537.92 1,507,815.47 10,851,024.82

Cash Ending of the month 257,229.05 404,326.59 551,424.13 704,806.67 858,189.21 1,011,571.76 1,084,801.30 1,158,030.84 1,231,260.38 1,369,537.92 1,507,815.47 1,646,093.01 11,785,086.32
 116

5.2.4 Table of Statement of Cash Flow in 4th year

Year 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Cash Provided From
Operating Activities
Cash Inflow
Sale on cash 935708 935708 935708 949,253.00 949,253.00 949,253.00 603,470.00 603,470.00 603,470.00 843,098.00 843,098.00 843,098.00 9,994,587.00

Total Cash Inflow 935,708.00 935,708.00 935,708.00 949,253.00 949,253.00 949,253.00 603,470.00 603,470.00 603,470.00 843,098.00 843,098.00 843,098.00 9,994,587.00

Cash Outflow
Other Cost of goods sold
Shark fin 118,657.00 118,657.00 118,657.00 118,657.00 118,657.00 118,657.00 112,868.00 112,868.00 112,868.00 118,657.00 118,657.00 118,657.00 1,406,517.00

Pearl 121,551.00 121,551.00 121,551.00 121,551.00 121,551.00 121,551.00 52,093.00 52,093.00 52,093.00 86,822.00 86,822.00 86,822.00 1,146,051.00

Conch shell 65,985.00 65,985.00 65,985.00 69,458.00 69,458.00 69,458.00 13,892.00 13,892.00 13,892.00 59,039.00 59,039.00 59,039.00 625,122.00

Total 306,193.00 306,193.00 306,193.00 309,666.00 309,666.00 309,666.00 178,853.00 178,853.00 178,853.00 264,518.00 264,518.00 264,518.00 3,177,690.00
General &
Administration 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Interest Expense 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 399,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing Expense 55,500.00 12,700.00 12,700.00 12,700.00 7,700.00 63,200.00 7,700.00 7,700.00 6,700.00 6,700.00 6,700.00 85,000.00 285,000.00

Phone expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Total Cash Outflow 776,465.46 720,965.46 720,965.46 727,911.46 727,911.46 727,911.46 466,285.46 466,285.46 466,285.46 637,615.46 637,615.46 637,615.46 7,713,833.50

Net Cash from

Operating Activities 159,242.54 214,742.54 214,742.54 221,341.54 221,341.54 221,341.54 137,184.54 137,184.54 137,184.54 205,482.54 205,482.54 205,482.54 2,280,753.50

Cash Provided From

Investing Activities
Cash Inflow
Sale Equipment - - - - - - - - - - - - -

Total Cash Inflow - - - - - - - - - - - - -

 117

Cash Outflow
Purchased Land &
Building 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Purchased Office Supply 546,400.00 - - - - - - - - - - - 546,400.00

Total Cash Outflow 6,546,400.00 - - - - - - - - - - - 6,546,400.00

Net Cash from
Investing Activities - 6,546,400.00 - - - - - - - - - - - - 6,546,400.00

Cash Provided From

Financing Activities
Cash Inflow
Borrowing Bank 6,000,000.00 - - - - - - - - - - - -

Total Cash Inflow 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Cash Outflow
Principal Payment 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Total Cash Outflow 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00
Net Cash from
Financing Activities 5,952,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 5,430,000.00
Net Cash Increase or
Decrease - 434,657.46 167,242.54 167,242.54 173,841.54 173,841.54 173,841.54 89,684.54 89,684.54 89,684.54 157,982.54 157,982.54 157,982.54 1,164,353.50

Cash Beginning of the month 934,061.50 499,404.05 666,646.59 833,889.13 1,007,730.67 1,181,572.21 1,355,413.76 1,445,098.30 1,534,782.84 1,624,467.38 1,782,449.92 1,940,432.47 14,805,948.82

Cash Ending of the month 499,404.05 666,646.59 833,889.13 1,007,730.67 1,181,572.21 1,355,413.76 1,445,098.30 1,534,782.84 1,624,467.38 1,782,449.92 1,940,432.47 2,098,415.01 15,970,302.32
 118

5.2.5 Table of Statement of Cash Flow in 5th year

Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Cash Provided From
Operating Activities
Cash Inflow
Sale on cash 982494 982494 982494 996,715.00 996,715.00 996,715.00 633,643.00 633,643.00 633,643.00 885,253.00 885,253.00 885,253.00 10,494,315.00

Total Cash Inflow 982,494.00 982,494.00 982,494.00 996,715.00 996,715.00 996,715.00 633,643.00 633,643.00 633,643.00 885,253.00 885,253.00 885,253.00 10,494,315.00

Cash Outflow
Other Cost of goods sold
Shark fin 124,589.00 124,589.00 124,589.00 124,589.00 124,589.00 124,589.00 118,512.00 118,512.00 118,512.00 124,589.00 124,589.00 124,589.00 1,476,837.00

Pearl 127,628.00 127,628.00 127,628.00 127,628.00 127,628.00 127,628.00 54,698.00 54,698.00 54,698.00 91,163.00 91,163.00 91,163.00 1,203,351.00

Conch shell 69,284.00 69,284.00 69,284.00 72,930.00 72,930.00 72,930.00 14,986.00 14,986.00 14,986.00 61,991.00 61,991.00 61,991.00 657,573.00

Total 321,501.00 321,501.00 321,501.00 325,147.00 325,147.00 325,147.00 188,196.00 188,196.00 188,196.00 277,743.00 277,743.00 277,743.00 3,337,761.00
General &
Administration 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Interest Expense 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 342,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing Expense 54,500.00 12,000.00 12,000.00 7,700.00 7,700.00 63,200.00 7,700.00 7,700.00 6,700.00 6,700.00 6,700.00 85,000.00 277,600.00

Phone expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Total Cash Outflow 801,331.46 746,831.46 746,831.46 754,123.46 754,123.46 754,123.46 480,221.46 480,221.46 480,221.46 659,315.46 659,315.46 659,315.46 7,975,975.50
Net Cash from
Operating Activities 181,162.54 235,662.54 235,662.54 242,591.54 242,591.54 242,591.54 153,421.54 153,421.54 153,421.54 225,937.54 225,937.54 225,937.54 2,518,339.50
Cash Provided From
Investing Activities
Cash Inflow
Sale Equipment - - - - - - - - - - - - -
 119

Total Cash Inflow - - - - - - - - - - - - -

Cash Outflow
Purchased Land &
Building 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Purchased Office Supply 546,400.00 - - - - - - - - - - - 546,400.00

Total Cash Outflow 6,546,400.00 - - - - - - - - - - - 6,546,400.00

Net Cash from
Investing Activities - 6,546,400.00 - - - - - - - - - - - - 6,546,400.00

Cash Provided From

Financing Activities
Cash Inflow
Borrowing Bank 6,000,000.00 - - - - - - - - - - - -

Total Cash Inflow 6,000,000.00 - - - - - - - - - - - 6,000,000.00

Cash Outflow
Principal Payment 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Total Cash Outflow 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Net Cash from

Financing Activities 5,952,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 - 47,500.00 5,430,000.00
Net Cash Increase or
Decrease - 412,737.46 188,162.54 188,162.54 195,091.54 195,091.54 195,091.54 105,921.54 105,921.54 105,921.54 178,437.54 178,437.54 178,437.54 1,401,939.50

Cash Beginning of the month 1,164,353.50 751,616.05 939,778.59 1,127,941.13 1,323,032.67 1,518,124.21 1,713,215.76 1,819,137.30 1,925,058.84 2,030,980.38 2,209,417.92 2,387,855.47 18,910,511.82

Cash Ending of the month 751,616.05 939,778.59 1,127,941.13 1,323,032.67 1,518,124.21 1,713,215.76 1,819,137.30 1,925,058.84 2,030,980.38 2,209,417.92 2,387,855.47 2,566,293.01 20,312,451.32
 120

5.3 Income Statement

5.3.1 Table of Income Statement in 1st year

annual
YEAR 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec totals
820000 820000
Sales 808300 808300 808300 820000 521300 521300 521300 728300 728300 728300 8633700
Cost of goods
sold 264500 264500 264500 267500 267500 267500 154500 154500 154500 228500 228500 228500 2745000

Gross profit 543800 543800 543800 552500 552500 552500 366800 366800 366800 499800 499800 499800 5888700

Expenses
Depreciation 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 347484
Marketing 60,500 12,700 12,700 8,700 8,700 64,200 8,700 8,700 7,700 7,700 7,700 87,000 295000
Salary 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 864000
Electricity 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 33953
Phone
Expense 500 500 500 500 500 500 500 500 500 500 500 500 6000
Total
operating
expense 164,786 116,986 116,986 112,986 112,986 168,486 112,986 112,986 111,986 111,986 111,986 191,286 1,546,437

Operating
income (loss) 379,014 426,814 426,814 439,514 439,514 384,014 253,814 253,814 254,814 387,814 387,814 308,514 4342263
Interest
expense 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 570000
EBIT 331514 379314 379314 392014 392014 336514 206314 206314 207314 340314 340314 261014 3772263

Net income 331514 379314 379314 392014 392014 336514 206314 206314 207314 340314 340314 261014 3772263
Beginning
Retain Earnings 0 331514 710827 1090141 1482154 1874168 2210681 2416995 2623309 2830622 3170936 3511249 22252596
Retain earnings 331514 710827 1090141 1482154 1874168 2210681 2416995 2623309 2830622 3170936 3511249 3772263 26024859
 121

5.3.2 Table of Income Statement in 2nd year

annual
YEAR 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec totals
Sales 848715 848715 848715 861000 861000 861000 547365 547365 547365 764715 764715 764715 9065385
Cost of goods
sold 277725 277725 277725 280875 280875 280875 162225 162225 162225 239925 239925 239925 2882250

Gross profit 570990 570990 570990 580125 580125 580125 385140 385140 385140 524790 524790 524790 6183135

Expenses
Depreciation 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 347484
Marketing 55,500 13,000 13,000 8,700 8,700 64,200 8,700 7,700 7,700 7,700 7,700 87,000 289600
Salary 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 864000
Electricity 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 33953
Phone
Expense 500 500 500 500 500 500 500 500 500 500 500 500 6000
Total
operating
expense 159,786 117,286 117,286 112,986 112,986 168,486 112,986 111,986 111,986 111,986 111,986 191,286 1,541,037

Operating
income (loss) 411,204 453,704 453,704 467,139 467,139 411,639 272,154 273,154 273,154 412,804 412,804 333,504 4642098
Interest
expense 42,750 42,750 42,750 42,750 42,750 42,750 42,750 42,750 42,750 42,750 42,750 42,750 513000
EBIT 368454 410954 410954 424389 424389 368889 229404 230404 230404 370054 370054 290754 4129098

Net income 368454 410954 410954 424389 424389 368889 229404 230404 230404 370054 370054 290754 4129098
Beginning
Retain Earnings 3772263 4140717 4551670 4962624 5387012 5811401 6180289 6409693 6640097 6870500 7240554 7610607 69577426
Retain earnings 4140717 4551670 4962624 5387012 5811401 6180289 6409693 6640097 6870500 7240554 7610607 7901361 73706524
 122

5.3.3 Table of Income Statement in 3rd year

annual
YEAR 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec totals
Sales 891151 891151 891151 904050 904050 904050 574733 574733 574733 802951 802951 802951 9518655
Cost of goods
sold 291611 291611 291611 294919 294919 294919 170336 170336 170336 251921 251921 251921 3026361

Gross profit 599540 599540 599540 609131 609131 609131 404397 404397 404397 551030 551030 551030 6492294

Expenses
Depreciation 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 347484
Marketing 55,500 12,700 12,700 12,700 8,700 63,200 7,700 7,700 7,700 6,700 6,700 85,000 287000
Salary 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 864000
Electricity 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 33953
Phone
Expense 500 500 500 500 500 500 500 500 500 500 500 500 6000
Total
operating
expense 159,786 116,986 116,986 116,986 112,986 167,486 111,986 111,986 111,986 110,986 110,986 189,286 1,538,437

Operating
income (loss) 439,754 482,554 482,554 492,145 496,145 441,645 292,411 292,411 292,411 440,044 440,044 361,744 4953857
Interest
expense 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 38,000 456000
EBIT 401754 444554 444554 454145 458145 403645 254411 254411 254411 402044 402044 323744 4497857

Net income 401754 444554 444554 454145 458145 403645 254411 254411 254411 402044 402044 323744 4497857
Beginning 12120323
Retain Earnings 7901361 8303114 8747668 9192222 9646366 10104511 10508155 10762566 11016976 11271387 11673431 12075474 2
12570108
Retain earnings 8303114 8747668 9192222 9646366 10104511 10508155 10762566 11016976 11271387 11673431 12075474 12399218 8
 123

5.3.4 Table of Income Statement in 4th year

annual
YEAR 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec totals
Sales 935708 935708 935708 949253 949253 949253 603470 603470 603470 843098 843098 843098 9994587
Cost of goods sold 306192 306192 306192 309665 309665 309665 178853 178853 178853 264517 264517 264517 3177681

Gross profit 629516 629516 629516 639588 639588 639588 424617 424617 424617 578581 578581 578581 6816906

Expenses
Depreciation 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 347484
Marketing 55,500 12,700 12,700 12,700 7,700 63,200 7,700 7,700 6,700 6,700 6,700 85,000 285000
Salary 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 864000
Electricity 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 33953
Phone Expense 500 500 500 500 500 500 500 500 500 500 500 500 6000
Total operating
expense 159,786 116,986 116,986 116,986 111,986 167,486 111,986 111,986 110,986 110,986 110,986 189,286 1,536,437

Operating income
(loss) 469,730 512,530 512,530 522,601 527,601 472,101 312,630 312,630 313,630 467,595 467,595 389,295 5280469
Interest expense 33,250 33,250 33,250 33,250 33,250 33,250 33,250 33,250 33,250 33,250 33,250 33,250 399000
EBIT 436480 479280 479280 489351 494351 438851 279380 279380 280380 434345 434345 356045 4881469

Net income 436480 479280 479280 489351 494351 438851 279380 279380 280380 434345 434345 356045 4881469
Beginning Retain
Earnings 12399218 12835698 13314978 13794257 14283608 14777960 15216811 15496191 15775572 16055952 16490297 16924642 177365183
Retain earnings 12835698 13314978 13794257 14283608 14777960 15216811 15496191 15775572 16055952 16490297 16924642 17280687 182246652
 124

5.3.5 Table of Income Statement in 5th year

annual
YEAR 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec totals
Sales 982494 982494 982494 996715 996715 996715 633643 633643 633643 885253 885253 885253 10494316
Cost of goods
sold 321501 321501 321501 325148 325148 325148 187796 187796 187796 277743 277743 277743 3336564

Gross profit 660993 660993 660993 671567 671567 671567 445847 445847 445847 607510 607510 607510 7157752

Expenses
Depreciation 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 347484
Marketing 54,500 12,000 12,000 7,700 7,700 63,200 7,700 7,700 6,700 6,700 6,700 85,000 277600
Salary 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 864000
Electricity 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 33953
Phone
Expense 500 500 500 500 500 500 500 500 500 500 500 500 6000
Total
operating
expense 158,786 116,286 116,286 111,986 111,986 167,486 111,986 111,986 110,986 110,986 110,986 189,286 1,529,037

Operating
income (loss) 502,206 544,706 544,706 559,581 559,581 504,081 333,861 333,861 334,861 496,524 496,524 418,224 5628715
Interest
expense 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 342000
EBIT 473706 516206 516206 531081 531081 475581 305361 305361 306361 468024 468024 389724 5286715

Net income 473706 516206 516206 531081 531081 475581 305361 305361 306361 468024 468024 389724 5286715
Beginning
Retain Earnings 17280687 17754393 18270599 18786806 19317886 19848967 20324548 20629909 20935270 21241631 21709654 22177678 238278027
Retain earnings 17754393 18270599 18786806 19317886 19848967 20324548 20629909 20935270 21241631 21709654 22177678 22567402 243564742
 125

5.4 Balance Sheet

5.4.1 Table of Balance Sheet in 1st year

Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Asset
Current
Assets
Cash 766,570.54 1,127,341.08 1,488,111.63 1,861,582.17 2,235,052.71 2,553,023.25 2,740,793.79 2,928,564.34 3,117,334.88 3,439,105.42 3,760,875.96 4,003,346.50 30,021,702.28

Total
Current Assets 766,570.54 1,127,341.08 1,488,111.63 1,861,582.17 2,235,052.71 2,553,023.25 2,740,793.79 2,928,564.34 3,117,334.88 3,439,105.42 3,760,875.96 4,003,346.50 30,021,702.28

Fixed Assets
Land &
Building 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 72,000,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing
Expense 60,500.00 12,700.00 12,700.00 8,700.00 8,700.00 64,200.00 8,700.00 8,700.00 7,700.00 7,700.00 7,700.00 87,000.00 295,000.00

Salary 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Phone
Expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Office
Supply 546,400.00 546,400.00 546,400.00 546,400.00 546,400.00 546,400.00 546,400.00 546,400.00 546,400.00 546,400.00 546,400.00 546,400.00 6,556,800.00

Less :
Accumulated
Depreciation 28,956.96 57,913.92 86,870.88 115,827.84 144,784.80 173,741.76 202,698.72 231,655.68 260,612.64 289,569.60 318,526.56 347,483.52 2,258,642.93

Total Fixed
Assets 6,711,186.42 6,692,343.38 6,721,300.34 6,746,257.30 6,775,214.26 6,859,671.22 6,833,128.18 6,862,085.14 6,890,042.10 6,918,999.06 6,947,956.02 7,056,212.98 82,014,396.43

Total Assets 7,477,756.96 7,819,684.47 8,209,411.97 8,607,839.47 9,010,266.97 9,412,694.47 9,573,921.98 9,790,649.48 10,007,376.98 10,358,104.48 10,708,831.98 11,059,559.49 112,036,098.70

Liabilities &
 126

Owners' Equity
Current
Liabilities
Long-term
debt 6,000,000.00 5,952,500.00 5,905,000.00 5,857,500.00 5,810,000.00 5,762,500.00 5,715,000.00 5,667,500.00 5,620,000.00 5,572,500.00 5,525,000.00 5,477,500.00 68,865,000.00

Less : Loan
Principal 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 47,500.00 570,000.00

Total
Liabilities 5,952,500.00 5,905,000.00 5,857,500.00 5,810,000.00 5,762,500.00 5,715,000.00 5,667,500.00 5,620,000.00 5,572,500.00 5,525,000.00 5,477,500.00 5,430,000.00 68,295,000.00

Owners'
Equity
Own's money 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 12,000,000.00

Retain
Earnings 331,513.58 710,827.16 1,090,140.73 1,482,154.31 1,874,167.89 2,210,681.47 2,416,995.04 2,623,308.62 2,830,622.20 3,170,935.78 3,511,249.35 3,772,262.93 26,024,859.06

Total
Owners' Equity 1,331,513.58 1,710,827.16 2,090,140.73 2,482,154.31 2,874,167.89 3,210,681.47 3,416,995.04 3,623,308.62 3,830,622.20 4,170,935.78 4,511,249.35 4,772,262.93 38,024,859.06

External Needs 193,743.39 203,857.31 261,771.24 315,685.16 373,599.08 487,013.01 489,426.93 547,340.86 604,254.78 662,168.71 720,082.63 857,296.55 5,716,239.64

Total Liabilities
& Owners'
7,477,756.9 7,819,684.4 8,209,411.9 8,607,839.4 9,010,266.9 9,412,694.4 9,573,921.9 9,790,649.4 10,007,376. 10,358,104. 10,708,831. 11,059,559. 112,036,098
Equity 6 7 7 7 7 7 8 8 98 48 98 49 .70
 127

5.4.2 Table of Balance Sheet in 2nd year

Year 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Asset
Current
Assets
Cash 3,529,132.05 3,656,817.59 3,784,503.13 3,918,173.67 4,051,844.21 4,185,514.76 4,242,850.30 4,300,185.84 4,357,521.38 4,476,806.92 4,596,092.47 4,715,378.01 49,814,820.32

Total
Current Assets 3,529,132.05 3,656,817.59 3,784,503.13 3,918,173.67 4,051,844.21 4,185,514.76 4,242,850.30 4,300,185.84 4,357,521.38 4,476,806.92 4,596,092.47 4,715,378.01 49,814,820.32

Fixed Assets
Land &
Building 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 72,000,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing
Expense 55,500.00 13,000.00 13,000.00 8,700.00 8,700.00 64,200.00 8,700.00 7,700.00 7,700.00 7,700.00 7,700.00 87,000.00 289,600.00

Salary 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Phone
Expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Office
Supply - - - - - - - - - - - - -

Less :
Accumulated
Depreciation 376,440.49 405,397.45 434,354.42 463,311.38 492,268.35 521,225.31 550,182.27 579,139.24 608,096.20 637,053.17 666,010.13 694,967.10 6,428,445.51

Total Fixed
Assets 6,507,269.95 6,493,726.91 6,522,683.88 6,547,340.84 6,576,297.80 6,660,754.77 6,634,211.73 6,662,168.70 6,691,125.66 6,720,082.63 6,749,039.59 6,857,296.55 79,621,999.00

Total Assets 10,036,401.99 10,150,544.50 10,307,187.01 10,465,514.51 10,628,142.02 10,846,269.52 10,877,062.03 10,962,354.54 11,048,647.04 11,196,889.55 11,345,132.06 11,572,674.56 129,436,819.33

Liabilities &
Owners' Equity
Current
Liabilities
 128

Long-term
debt 6,000,000.00 5,957,250.00 5,914,500.00 5,871,750.00 5,829,000.00 5,786,250.00 5,743,500.00 5,700,750.00 5,658,000.00 5,615,250.00 5,572,500.00 5,529,750.00 69,178,500.00

Less : Loan
Principal 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 42,750.00 513,000.00

Total
Liabilities 5,957,250.00 5,914,500.00 5,871,750.00 5,829,000.00 5,786,250.00 5,743,500.00 5,700,750.00 5,658,000.00 5,615,250.00 5,572,500.00 5,529,750.00 5,487,000.00 68,665,500.00

Owners'
Equity
Own's money 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 12,000,000.00

Retain
Earnings 4,140,716.51 4,551,670.09 4,962,623.67 5,387,012.24 5,811,400.82 6,180,289.40 6,409,692.98 6,640,096.55 6,870,500.13 7,240,553.71 7,610,607.29 7,901,360.87 73,706,524.25

Total
Owners' Equity 5,140,716.51 5,551,670.09 5,962,623.67 6,387,012.24 6,811,400.82 7,180,289.40 7,409,692.98 7,640,096.55 7,870,500.13 8,240,553.71 8,610,607.29 8,901,360.87 85,706,524.25

- - - - - - - - - - - - -
External Needs 1,061,564.52 1,315,625.59 1,527,186.66 1,750,497.73 1,969,508.80 2,077,519.87 2,233,380.95 2,335,742.02 2,437,103.09 2,616,164.16 2,795,225.23 2,815,686.30 24,935,204.93

Total Liabilities
& Owners'
10,036,401. 10,150,544. 10,307,187. 10,465,514. 10,628,142. 10,846,269. 10,877,062. 10,962,354. 11,048,647. 11,196,889. 11,345,132. 11,572,674. 129,436,819
Equity 99 50 01 51 02 52 03 54 04 55 06 56 .33
 129

5.4.3 Table of Balance Sheet in 3rd year

Year 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Asset
Current
Assets
Cash 257,229.05 404,326.59 551,424.13 704,806.67 858,189.21 1,011,571.76 1,084,801.30 1,158,030.84 1,231,260.38 1,369,537.92 1,507,815.47 1,646,093.01 11,785,086.32

Total
Current Assets 257,229.05 404,326.59 551,424.13 704,806.67 858,189.21 1,011,571.76 1,084,801.30 1,158,030.84 1,231,260.38 1,369,537.92 1,507,815.47 1,646,093.01 11,785,086.32

Fixed Assets
Land &
Building 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 72,000,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing
Expense 55,500.00 12,700.00 12,700.00 12,700.00 8,700.00 63,200.00 7,700.00 7,700.00 7,700.00 6,700.00 6,700.00 85,000.00 287,000.00

Salary 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Phone
Expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Office
Supply - - - - - - - - - - - - -

Less :
Accumulated
Depreciation 723,924.06 752,881.02 781,837.99 810,794.95 839,751.92 868,708.88 897,665.85 926,622.81 955,579.77 984,536.74 1,013,493.70 1,042,450.67 10,598,248.36

Total Fixed
Assets 6,854,753.52 6,840,910.48 6,869,867.45 6,898,824.41 6,923,781.38 7,007,238.34 6,980,695.30 7,009,652.27 7,038,609.23 7,066,566.20 7,095,523.16 7,202,780.13 83,789,201.86

Total Assets 7,111,982.56 7,245,237.07 7,421,291.58 7,603,631.08 7,781,970.59 8,018,810.10 8,065,496.60 8,167,683.11 8,269,869.61 8,436,104.12 8,603,338.63 8,848,873.13 95,574,288.18

Liabilities &
Owners' Equity
Current
Liabilities
 130

Long-term
debt 6,000,000.00 5,962,000.00 5,924,000.00 5,886,000.00 5,848,000.00 5,810,000.00 5,772,000.00 5,734,000.00 5,696,000.00 5,658,000.00 5,620,000.00 5,582,000.00 69,492,000.00

Less : Loan
Principal 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00 456,000.00

Total
Liabilities 5,962,000.00 5,924,000.00 5,886,000.00 5,848,000.00 5,810,000.00 5,772,000.00 5,734,000.00 5,696,000.00 5,658,000.00 5,620,000.00 5,582,000.00 5,544,000.00 69,036,000.00

Owners'
Equity
Own's money 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 12,000,000.00

Retain
Earnings 8,303,114.44 8,747,668.02 9,192,221.60 9,646,366.18 10,104,510.75 10,508,155.33 10,762,565.91 11,016,976.49 11,271,387.06 11,673,430.64 12,075,474.22 12,399,217.80 125,701,088.44

Total
Owners' Equity 9,303,114.44 9,747,668.02 10,192,221.60 10,646,366.18 11,104,510.75 11,508,155.33 11,762,565.91 12,016,976.49 12,271,387.06 12,673,430.64 13,075,474.22 13,399,217.80 137,701,088.44

- - - - - - - - - - - - -
External Needs 8,153,131.88 8,426,430.95 8,656,930.02 8,890,735.09 9,132,540.16 9,261,345.24 9,431,069.31 9,545,293.38 9,659,517.45 9,857,326.52 10,054,135.59 10,094,344.66 111,162,800.26

Total Liabilities
& Owners'
Equity 7,111,982.56 7,245,237.07 7,421,291.58 7,603,631.08 7,781,970.59 8,018,810.10 8,065,496.60 8,167,683.11 8,269,869.61 8,436,104.12 8,603,338.63 8,848,873.13 95,574,288.18
 131

5.4.4 Table of Balance Sheet in 4th year

Year 4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Asset
Current
Assets
Cash 499,404.05 666,646.59 833,889.13 1,007,730.67 1,181,572.21 1,355,413.76 1,445,098.30 1,534,782.84 1,624,467.38 1,782,449.92 1,940,432.47 2,098,415.01 15,970,302.32

Total
Current Assets 499,404.05 666,646.59 833,889.13 1,007,730.67 1,181,572.21 1,355,413.76 1,445,098.30 1,534,782.84 1,624,467.38 1,782,449.92 1,940,432.47 2,098,415.01 15,970,302.32

Fixed Assets
Land &
Building 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 72,000,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing
Expense 55,500.00 12,700.00 12,700.00 12,700.00 7,700.00 63,200.00 7,700.00 7,700.00 6,700.00 6,700.00 6,700.00 85,000.00 285,000.00

Salary 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Phone
Expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Office
Supply - - - - - - - - - - - - -

Less :
Accumulated
Depreciation 1,071,407.63 1,100,364.60 1,129,321.56 1,158,278.52 1,187,235.49 1,216,192.45 1,245,149.42 1,274,106.38 1,303,063.35 1,332,020.31 1,360,977.27 1,389,934.24 14,768,051.22

Total Fixed
Assets 7,202,237.09 7,188,394.05 7,217,351.02 7,246,307.98 7,270,264.95 7,354,721.91 7,328,178.88 7,357,135.84 7,385,092.80 7,414,049.77 7,443,006.73 7,550,263.70 87,957,004.72

Total Assets 7,701,641.14 7,855,040.64 8,051,240.15 8,254,038.65 8,451,837.16 8,710,135.67 8,773,277.17 8,891,918.68 9,009,560.19 9,196,499.69 9,383,439.20 9,648,678.70 103,927,307.04

Liabilities &
Owners' Equity
Current
Liabilities
 132

Long-term
debt 6,000,000.00 5,966,750.00 5,933,500.00 5,900,250.00 5,867,000.00 5,833,750.00 5,800,500.00 5,767,250.00 5,734,000.00 5,700,750.00 5,667,500.00 5,634,250.00 69,805,500.00

Less : Loan
Principal 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 33,250.00 399,000.00

Total
Liabilities 5,966,750.00 5,933,500.00 5,900,250.00 5,867,000.00 5,833,750.00 5,800,500.00 5,767,250.00 5,734,000.00 5,700,750.00 5,667,500.00 5,634,250.00 5,601,000.00 69,406,500.00

Owners'
Equity
Own's money 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 12,000,000.00

Retain
Earnings 12,835,697.66 13,314,977.53 13,794,257.39 14,283,608.47 14,777,959.55 15,216,810.63 15,496,191.12 15,775,571.61 16,055,952.10 16,490,296.96 16,924,641.83 17,280,686.69 182,246,651.53

Total
Owners' Equity 13,835,697.66 14,314,977.53 14,794,257.39 15,283,608.47 15,777,959.55 16,216,810.63 16,496,191.12 16,775,571.61 17,055,952.10 17,490,296.96 17,924,641.83 18,280,686.69 194,246,651.53

- - - - - - - - - - - - -
External Needs 12,100,806.53 12,393,436.89 12,643,267.25 12,896,569.82 13,159,872.39 13,307,174.96 13,490,163.94 13,617,652.93 13,747,141.91 13,961,297.27 14,175,452.63 14,233,007.99 159,725,844.49

Total Liabilities
& Owners'
Equity 7,701,641.14 7,855,040.64 8,051,240.15 8,254,038.65 8,451,837.16 8,710,135.67 8,773,277.17 8,891,918.68 9,009,560.19 9,196,499.69 9,383,439.20 9,648,678.70 103,927,307.04
 133

5.4.5 Table of Balance Sheet in 5th year

Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Asset
Current
Assets
Cash 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Total
Current Assets 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Fixed Assets
Land &
Building 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 72,000,000.00

Electricity 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 2,829.46 33,953.50

Marketing
Expense 60,500.00 12,700.00 12,700.00 8,700.00 8,700.00 64,200.00 8,700.00 8,700.00 7,700.00 7,700.00 7,700.00 87,000.00 295,000.00

Salary 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 864,000.00

Phone
Expense 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 6,000.00

Office
Supply - - - - - - - - - - - - -

Less :
Accumulated
Depreciation 1,418,891.20 1,447,848.17 1,476,805.13 1,505,762.10 1,534,719.06 1,563,676.02 1,592,632.99 1,621,589.95 1,650,546.92 1,679,503.88 1,708,460.85 1,737,417.81 18,937,854.08

Total Fixed
Assets 7,554,720.66 7,535,877.63 7,564,834.59 7,589,791.55 7,618,748.52 7,703,205.48 7,676,662.45 7,705,619.41 7,733,576.38 7,762,533.34 7,791,490.30 7,899,747.27 92,136,807.57

Total Assets 7,555,220.66 7,536,377.63 7,565,334.59 7,590,291.55 7,619,248.52 7,703,705.48 7,677,162.45 7,706,119.41 7,734,076.38 7,763,033.34 7,791,990.30 7,900,247.27 92,142,807.57

Liabilities &
Owners' Equity
Current
Liabilities
 134

Long-term
debt 6,000,000.00 5,971,500.00 5,943,000.00 5,914,500.00 5,886,000.00 5,857,500.00 5,829,000.00 5,800,500.00 5,772,000.00 5,743,500.00 5,715,000.00 5,686,500.00 70,119,000.00

Less : Loan
Principal 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 28,500.00 342,000.00

Total
Liabilities 5,971,500.00 5,943,000.00 5,914,500.00 5,886,000.00 5,857,500.00 5,829,000.00 5,800,500.00 5,772,000.00 5,743,500.00 5,715,000.00 5,686,500.00 5,658,000.00 69,777,000.00

Owners'
Equity
Own's money 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 12,000,000.00

Retain
Earnings 17,754,392.97 18,270,599.25 18,786,805.53 19,317,886.23 19,848,966.94 20,324,547.64 20,629,908.63 20,935,269.61 21,241,630.60 21,709,654.38 22,177,678.16 22,567,401.94 243,564,741.87

Total
Owners' Equity 18,754,392.97 19,270,599.25 19,786,805.53 20,317,886.23 20,848,966.94 21,324,547.64 21,629,908.63 21,935,269.61 22,241,630.60 22,709,654.38 23,177,678.16 23,567,401.94 255,564,741.87

- - - - - - - - - - - - -
External Needs 17,170,672.31 17,677,221.63 18,135,970.94 18,613,594.68 19,087,218.42 19,449,842.16 19,753,246.18 20,001,150.20 20,251,054.22 20,661,621.04 21,072,187.85 21,325,154.67 233,198,934.30

Total Liabilities
& Owners'
7,555,220.6 7,536,377.6 7,565,334.5 7,590,291.5 7,619,248.5 7,703,705.4 7,677,162.4 7,706,119.4 7,734,076.3 7,763,033.3 7,791,990.3 7,900,247.2 92,142,807.
Equity 6 3 9 5 2 8 5 1 8 4 0 7 57
 135

5.5 NPV and IRR

Information Description
9.50% Interest Rate
-7,000,000.00 Initial Cost
4,003,346.50 Cash flow Year 1
4,715,378.01 Cash flow Year 2
1,646,093.01 Cash flow Year 3
2,098,415.01 Cash flow Year 4
2,566,293.01 Cash flow Year 5
NPV
4,504,327.04
IRR 38.9057683496554%

5.6 Break Even Point

Shark Fin

Variable cost of shark fin

Raw material cost/Annual
sale 0.006859
Direct labour/ Annual sale 0.197531
Total Variable cost of shark
fin 153.2922

Shark Fin
Total Fix cost 1768954
Price per unit 10000
Variable cost per unit 153.2922
Break even point 179.6492
Occupency Rate 0.369649
% 36.96487
 136

Pearl

Variable cost of Pearl

Raw material cost/Annual
sale 0.015152
Direct labour/ Annual sale 0.072727
Total Variable cost of Pearl 131.8182

Pearl
Total Fix cost 1768954
Price per unit 30000
Variable cost per unit 131.8182
Break even point 59.22535
Occupency Rate 0.897354
% 89.7354

Shell

Variable cost of shell

Raw material cost/Annual
sale 0.005556
Direct labour/ Annual sale 0.133333
Total Variable cost of Shell 76.38889

Shell
Total Fix cost 1768954
Price per unit 3000
Variable cost per unit 76.38889
Break even point 605.0577
Occupency Rate 3.361433
% 336.1433
 137

Chapter 6
Risk Management

Mali Shellin Shop

Project Feasibility Study and Evaluation 1203302
Mae Fah Luang University
 138

6. Risk management

6.1 Business risk

Business risk can be the result of internal conditions, as well as some external factors
that may be evident in the wider business.(3) When a company’s risk factor should consider to
be increased due to outside factors that are beyond the control of the company to correct and
chances of attracting new investors is severely limited. So, you examine the risks that your
organization faces. It is based on a structured approach to thinking through threats, followed
by an evaluation of the probability and cost of events occurring. Company will emphasis on
cost effectiveness.(2) Risk management involves adapting the use of existing resources,
should plan and use benefits from new resources. Almost everything we do in today's
business world involves a risk of some kind: customer habits change, new competitors
appear, and factors outside your control could delay your project. (1)

6.2 Malt Shellin Shop risk

6.2.1 Economic risk

Economy happen many conflict, so it generate a critical the economy, it impact the
many businesses. However, Mali Shellin Shop happen that impact continues. Most
international market has more target market’s demand, but In Thailand, someone not
important of shells. Other market, shell have more expensive. Foreigner would like order
shell in Thailand because there bring shell produce many products. Now, many problems
such as employing rate below, product’ s expensive, labor’s high cost, so impact high capital
of product and problem more competition. Mali Shellin Shop emphasis increase production
for export that gets high profit, made to have natural resources for production quickly.
Sometimes, generate not only royalty spread. Economy of Thailand rely trading and
investment of foreigner. We rely less domestic markets involve problem about resources,
spend income to be made Thai people have low income.

6.2.2 Environment risk

Natural resources and environment destroyed came from developing country more in
the industry. Nowadays, Thai people not important of environment, so this environment
destroyed continues, generate short resources who affect the shell shorted. Now, environment
in sea only more dirty that have not help solve problem to generate water pollution that made
didn’t facility in keeping shells. Sometimes, it made as conflict in businesses because not
enough product in production, not enough target market’s demand. So, it effect to be made
 139

lose capital. The Shell’s no good quality. Nowadays, natural resource has more benefits bring
natural resource to use more benefits, but short managed as suitable to generate affect of
environment. Project about maintain and revive the environment in sea tried to revive
environment and continue in protection by give information about arranging value of
resources and environment in sea as well.

6.2.3 Competition
Nowadays, Shell business has high competition. Mali Shellin Shop improves market
strategy that made facility in business where have wide range of market. Shell’s a useless can
be bring to use benefits in daily life. In the markets demand more. Important is made the shell
to accept in market, so how do people attraction products. So, if we improve innovation of
products to be made a variety of products which brand product popular involve try a new
experience. We comment the creative economy for developing economy growth by design
product for increase productivity about integrated between innovation and design. Especially,
when structure of each countries give important with creative in business that bring design
and creative in developing growth of country, these is increasing value of products. Creative
economy is bring concept of tradition, belief, custom, want maintain environment involve
create different of integrate product for increase also value of products which can respond of
markets.

6.3 Measuring the impact and likelihood of risk

6.3.1 Identify Threats

1. Human – from individuals or organizations, illness, death, etc.
2. Operational – from disruption to supplies and operations, loss of access to essential
assets, failures in distribution, etc.
3. Reputational – from loss of business partner or employee confidence, or damage to
reputation in the market.
4. Procedural – from failures of accountability, internal systems and controls,
organization, fraud, etc.
5. Project – risks of cost over-runs, jobs taking too long, of insufficient product or
service quality, etc.
6. Financial – from business failure, stock market, interest rates, unemployment, etc.
7. Technical – from advances in technology, technical failure, etc.
 140

8. Natural – threats from weather, natural disaster, accident, disease, etc.

9. Political – from changes in tax regimes, public opinion, government policy, foreign
influence, etc.

6.3.2 Estimate Risk

Mali Shellin Shop have identified the threats of face, the next step is to work out the
likelihood of the threat being realized and to assess impact. One approach to this is made
your best estimate of the probability of the event occurring.

6.3.3 Manage Risk

Mali Shellin Shop have worked out the value of risks where can start to look at ways
of managing them. When you are doing this, it is important to choose cost effective
approaches, there is no point in spending more to eliminating a risk than the cost of the event
if it occurs. It may be better to accept the risk than to use excessive resources to eliminate it.

Sources: http://en.wikipedia.org/wiki/Risk_analysis(1)

http://en.wikipedia.org/wiki/Ris(2)

http://www.stickyminds.com/sitewide.asp?Function=edetail&ObjectType=ART&Obj
ectId=9379(3)

6.4 Appropriate action for risks

We uses generally the four main ways of dealing with risks are grouped as
follows:

Accept
Transfer (usually via insurance)
R e d u c e / ma n a g e
Eliminate
 141

6.4.1 Risk of purchasing stolen things

Risk of purchasing stolen things will relate with customer bring old product for discount new
product. We cannot eliminate this risk by when customers buy new product.

6.4.2 Risk of robbery

Risk of robber, we can reduce it by set up FUJIKO cameras inside our shop and we set
up the product there’re high price on upper floor to make it hard to rob.

6.4.2.1 FUJIKO cameras

We use FUJIKO CCTV cameras and we use be packaging as follow:
Name of Package: FK-608.NET
C o mp o n e n t
- FUJIKO CCTV cameras 8 pieces
- Speed recording 50 Fleming
- Epson's hardware can support 2 pieces
- Freedom to adjust the camera to the camera Fleming
- High definition recording on a MJPEG system
- Display Popup system when unusual events occur
- Free hard disk 500 GB
- Monitor and remote control
Price: 20,000 Baht

6.4.3 Risk of health and safety of employee and Risk of accident by work
In the shop we have 8 employee and our job just only sale the products not have
adventure or risk work ,so we did not give the insurance to employee.

6.4.4 Risk of flood-waters

Huahin settle at western of Thailand is near sea, so it may be flood-waters from

storm. Our company is located Huahin province which near sea. Our company eliminate this
risk by establish company on elevation land and choose the location that has a rode cross
between the shop and a sea if our company flooded-waters, so if our shop has flood it’s mean
every shop around the beach flood too.
 142

6.4.5 Risk of fire

Most of furniture come from the wood and that is the rick fuel and around Mali
Shelling Shop has many others shop and make fire easy to burn. So, fire problem is the most
take damage to much in store. Therefore, we will find the ways for protect or reduce damage
which happens. The best way to reduce risk of fire is insurance about fire. We will to do
insurance with Deves Thai Insurance Company.

6.4.5.1 Location insured property

The insurance company only a floor area of the city equivalen to Bangkok or only
isolated disaster housing and building projects only and the type of building is a semi-
detached town house Town House Suit (flats / condominiums), and the outside walls are
brick or concrete.

6.4.5.2 Asset insurance

Edifice or building (excluding foundation and land prices) and renovation of the
building Furniture and furnishings installed appliances and electrical equipment, and various
appliances. Stock is if the insured need to protect buildings with capital insurance refund
Property value. That is new (New Replacement Value Cost) insured must be quote the
buildings under construction in the current value. As well as adjust the sum insured on
buildings price that changes in construction each year. If the insurance capital is lower than
actual value when the happen the damage. Insured must be average insured damages.

6.4.5.3 Threats of protect.

1. Fire.
2. Lightning.
3. Building Collapse
4. Product loss

6.4.5.4 Buildings
It can calculate the cost of insurance. Total area is square meters multiplied by
Construction value per square meter, following formula to calculate
 143

Size of store = width (m) x Long (m) number of units x number of booths
35 x 32 x 1 x 1= 1120 square meters

6.4.5.5 Cost estimate

Type of building
1st Class: building (all made of concrete walls) Cost is 8,000 baht / square meters

2nd Class building (made of half concrete wall and half of wood) Cost is 6,000 baht/ square
meter
So, Mali Shellin Shop selects 1st class, because building of Mali Shellin Shop made
by concrete for durability and we will calculate of sum insurance premium by
Sum insured= Size of store (m) x type of store (฿)

1,120x 8,000 = 8,960,000 Baht

6.4.5.6 Insurance premium

Table of insurance premiums of the fire insurance

Shop building
1st class building 2nd class building
Sum insure Insurance premium Sum insure Insurance premium
8,000,000 20,197.32 8,000,000 47,268.32
9,000,000 22,721.45 9,000,000 53,176.86

From the table of insurance premiums of the fire insurance, you can see that Mali
Shellin Shop is small shops and select class 1 building insurance type. From calculate sum
insured of Mali Shellin Shop equal 8,960,000 baht so, when we compare zone between
8,000,000 with 9,000,000 of insurance in table which can calculate as follow:
 144

Insurance premium of Mali Shellin Shop = Sum insured of Erawan furniture x Insurance
premium of table

Sum insured of table

= 8,960,000 x 20,197.32

8,000,000

= 22,620.998 baht per year

So, we will pay 22,620.998 baht per year for Fire insurance

6.4.6 Risk of accident by logistic

Mali Shellin Shop do the contact with the suppliers in Ranong. They have to provide
the cars for transportation. In case of accident they will response for all, but Mali Shellin
Shop has to response for the salary of drivers instead of other expense of logistics.

6.5 Financial risk

6.5.1 Expense and cost analysis

We suppose that scenarios that can be occur in our business. There are 2 scenarios include
with

1. Sale decrease 5 percent but the cost and expense still not the same, not increase or
decrease. It effects to the first year based and 5% for the next year until 5th year.
 145

6.5.1.1 Table of sale in case of sale decrease 5%

Annual
YEAR 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 41 41 41 41 41 41 39 39 39 41 41 41 485
Sale price @ 10,000
per unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales Normal 408300 408300 408300 410000 410000 410000 391300 391300 391300 408300 408300 408300 4853700
Sale decrease 5% 387885 387885 387885 389500 389500 389500 371735 371735 371735 387885 387885 387885 4611015

Pearl 7 7 7 7 7 7 3 3 3 5 5 5 66
Sale price @ 30000
per unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Total Sales Normal 210000 210000 210000 210000 210000 210000 90000 90000 90000 150000 150000 150000 1980000
Sale decrease 5% 199500 199500 199500 199500 199500 199500 85500 85500 85500 142500 142500 142500 1881000

Shell 19 19 19 20 20 20 4 4 4 17 17 17 180
Sale price @10000
per unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Total Sales Normal 190000 190000 190000 200000 200000 200000 40000 40000 40000 170000 170000 170000 1800000
Sale decrease 5% 180500 180500 180500 190000 190000 190000 38000 38000 38000 161500 161500 161500 1710000

Monthly total
Normal 808300 808300 808300 820000 820000 820000 521300 521300 521300 728300 728300 728300 8633700
Total sale decrease
5% 767885 767885 767885 779000 779000 779000 495235 495235 495235 691885 691885 691885 8202015
Loss 40415 40415 40415 41000 41000 41000 26065 26065 26065 36415 36415 36415 431685
 146

6.5.1.2 Income statement in case of sale decrease

annual
YEAR 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec totals
Sales 767885 767885 767885 779000 779000 779000 495235 495235 495235 691885 691885 691885 8202015
Cost of goods sold 264500 264500 264500 267500 267500 267500 154500 154500 154500 228500 228500 228500 2745000

Gross profit 543800 543800 543800 552500 552500 552500 366800 366800 366800 499800 499800 499800 5888700

Expenses
Depreciation 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 347484
Marketing 60,500 12,700 12,700 8,700 8,700 64,200 8,700 8,700 7,700 7,700 7,700 87,000 295000
Salary 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 864000
Electricity 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 33953
Phone Expense 500 500 500 500 500 500 500 500 500 500 500 500 6000
Total operating
expense 164,786 116,986 116,986 112,986 112,986 168,486 112,986 112,986 111,986 111,986 111,986 191,286 1,546,437

Operating income
(loss) 379,014 426,814 426,814 439,514 439,514 384,014 253,814 253,814 254,814 387,814 387,814 308,514 4342263
Interest expense 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 570000
EBIT 331514 379314 379314 392014 392014 336514 206314 206314 207314 340314 340314 261014 3772263

Net income 331514 379314 379314 392014 392014 336514 206314 206314 207314 340314 340314 261014 3772263
Beginning Retain
Earnings 0 331514 710827 1090141 1482154 1874168 2210681 2416995 2623309 2830622 3170936 3511249 22252596
Retain earnings 331514 710827 1090141 1482154 1874168 2210681 2416995 2623309 2830622 3170936 3511249 3772263 26024859

That can be acceptable by there is no negative in the net income for each month and has the principal enough for pay to other expenses.
 147

For the scenario 1, it shows the highest of sales that can be decrease by there is no effect to the investor and the whole of business. It can
still on positive side that has liquidity enough to pay for anything in the business.

In this case the sale is decrease 5, but however Mali Shellin Shop can accept bt did not adjust anything, because we still gain high gross
margin.

However, if this scenario occurs in our business Mali Shelin Shop needs to find out the strategy to sole the bad scenario by try to reduce
cost and increase sale.

2. Cost of goods sold increase 5 percent but the sale and expense still the same
 148

6.5.2.1 Table of case of cost increase 5%

Annual
YEAR 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Shark fin 41 41 41 41 41 41 39 39 39 41 41 41 486
Sale price @ unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales @10,000฿ 410000 410000 410000 410000 410000 410000 390000 390000 390000 410000 410000 410000 4860000
costs 2,500 / kg 102500 102500 102500 102500 102500 102500 97500 97500 97500 102500 102500 102500 1215000
cost increase 5% 107625 107625 107625 107625 107625 107625 102375 102375 102375 107625 107625 107625 1275750
Profits 307500 307500 307500 307500 307500 307500 292500 292500 292500 307500 307500 307500 3645000

Pearl 7 7 7 7 7 7 3 3 3 5 5 5 66
Sale price @ unit 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000 30000
Sales @30,000฿ 210000 210000 210000 210000 210000 210000 90000 90000 90000 150000 150000 150000 1980000
costs 15,000 105000 105000 105000 105000 105000 105000 45000 45000 45000 75000 75000 75000 990000
cost increase 5% 110250 110250 110250 110250 110250 110250 47250 47250 47250 78750 78750 78750 1039500
Profits 105000 105000 105000 105000 105000 105000 45000 45000 45000 75000 75000 75000 990000

Shell 19 19 19 20 20 20 4 4 4 17 17 17 180
Sale price @ unit 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000 10000
Sales @10,000฿ 190000 190000 190000 200000 200000 200000 40000 40000 40000 170000 170000 170000 1800000
costs 3,000 per each 57000 57000 57000 60000 60000 60000 12000 12000 12000 51000 51000 51000 540000
cost increase 5% 59850 199500 199500 210000 210000 210000 42000 42000 42000 178500 178500 178500 1750350
Profits 133000 133000 133000 140000 140000 140000 28000 28000 28000 119000 119000 119000 1260000
Total cost 264500 264500 264500 267500 267500 267500 154500 154500 154500 228500 228500 228500 2745000
Total cost incrase 5% 277725 417375 417375 427875 427875 427875 191625 191625 191625 364875 364875 364875 4065600
Total profit 545500 545500 545500 552500 552500 552500 365500 365500 365500 501500 501500 501500 5895000
 149

6.5.2.2 Table of income statement in case of cost increase 5%

annual
YEAR 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec totals
Sales 808300 808300 808300 820000 820000 820000 521300 521300 521300 728300 728300 728300 8633700
Cost of goods sold 277725 417375 417375 427875 427875 427875 191625 191625 191625 364875 364875 364875 4065600

Gross profit 530575 390925 390925 392125 392125 392125 329675 329675 329675 363425 363425 363425 4568100

Expenses
Depreciation 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 28,957 347484
Marketing 60,500 12,700 12,700 8,700 8,700 64,200 8,700 8,700 7,700 7,700 7,700 87,000 295000
Salary 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 72000 864000
Electricity 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 2,829 33953
Phone Expense 500 500 500 500 500 500 500 500 500 500 500 500 6000
Total operating
expense 164,786 116,986 116,986 112,986 112,986 168,486 112,986 112,986 111,986 111,986 111,986 191,286 1,546,437

Operating income
(loss) 365,789 273,939 273,939 279,139 279,139 223,639 216,689 216,689 217,689 251,439 251,439 172,139 4342263
Interest expense 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 47,500 570000
EBIT 318289 226439 226439 231639 231639 176139 169189 169189 170189 203939 203939 124639 3772263

Net income 318289 226439 226439 231639 231639 176139 169189 169189 170189 203939 203939 124639 3772263
Beginning Retain
Earnings 0 331514 710827 1090141 1482154 1874168 2210681 2416995 2623309 2830622 3170936 3511249 22252596
Retain earnings 318289 557952 937266 1321779 1713793 2050306 2379870 2586184 2793497 3034561 3374874 3635888 26024859
 150

The risk for increasing in cost of goods sold is low according to our estimated. This
scenario is hard to occur the real life. This scenario effects on the income of Mali Shellin
Shop but it is not too much. So, we can accept this scenario.

6.6 Conclusion
For all risks level that can be occur in the duration of the business run which are both
internal and external risks such as economics risk, environment risk, fire risk and others. But
Malihellin shop tries to control the risk and also prevent the assets by prepare for the
insurance to protect the assets. We are strong in effective management, because we have the
good plan to prevent very well.
 151

Chapter 7
Summary

Mali Shellin Shop

Project Feasibility Study and Evaluation 1203302
Mae Fah Luang University
 152

7. Summary

The Mali Shellin Shop is the sea products shop which sell pearls, shells and shark
fins that operates in the Hua Hin. Our shop provide three main types for products to response
to customer need. Mali Shellin Shop is possible business that can make high profit and easy
to growth in Hua Hin as our vision “Go forward strongly to be number one in Hua Hin”
In the market feasibility study we found that there are many supporters in the market
to be feasible. For example the growth rate of Hua Hin econmics, the good place (natural by
itself) and the growth rate of tourist both Thai and foreigner in the Hua Hin. Mali Shellin
Shop has the core competency about the high quality of product, because we have good
contact with the local community in Ranong (Saphan Pla) to support the products to the shop.
Mali Shellin Shop also provides the variety promotion for the customer to know more
about the Mali Shellin Shop products such as leaflet, brochure, thanks party. As we sell three
kind of sea products, we have set the target for each product which are; pearl, we set the
women who works in industry, age 16-60 years old. And both Thai and foreign tourists.
Shells, a hundred percent target are Thai and foreign tourists. Shark fin, we have two main
target include with hotels in the business area (Hua Hin) , Thai and foreign tourists.
For the sale forecast from feasibility of the potential market, the target market of Mali
Shellin Shop, as well as strategy and core competency of Mali Shellin Shop, we are strong in
do business, we can generate the sale of the potential market about 5,895,000 baht that at the
first year and increase by 5% every year.
Mali Shellin Shop is registered as a small business. We bought the building with
price 3,000,000 THB. The space of the building is total 1120 square meters, divides into 3
floors to separate the products in the same category. We also provide the technology to
comfort to customers such internet corner, CCTV camera.
We find out the source of funding from borrow from the bank amount of money is
not too much. It is 6,000,000 THB with 9.5% for interest rate to the bank. And owner capital

1,000,000 THB
For the risk the mainly of risk for Mali Shellin Shop in both business risk and
financial risk is quite be and can be acceptable. However, we have provided the plan to
prevent risk by using the effective risk management.
 153

So, we are strong believe that, Mali Shellin Shop can be reach the goal and meet with
the vision “Go forward strongly to be number one in Hua Hin” not too difficult, because of
we have effective and efficient human resources, and also a good financial plan provided for.
For the most important one that we can differentiate from other competitors is the long term
contact with the suppliers who support us the high quality product, and low cost for us. It can
give us profit and success in the business.
 154

Reference
1. Nakhon Si Thammarat Rajabhat University, faculty of Science, n.d., Science and
Technology, December 2010(online)

http://www.rmutphysics.com/charud/specialnews/6/science/unit4_12.html1.

2. Preliminary Report of the 2005, Information and Communication Technology Survey

(Establishment), internet use (online)
http://web.nso.go.th/eng/en/stat/ict/pre_south-n.pdf

3. AMULET, n.d, history of shell conch, December 2010 (online)

http://www.amulet.in.th/forums/view_topic.php?t=1158

4. Tourism Thailand, n.d. Hua Hin December 2010 (online)

http://thai.tourismthailand.org/where-to-go/cities-guide/destination/hua-hin/

5. CPE21 Group9,n.d. Currency exchange December 2010(online)

http://cpe.kmutt.ac.th/wiki/index.php/Currency_exchange_rate_between_Thai_Baht_a
nd_USdollar

6. Akhom, n.d. Thailand economic analysis2008 December 2010 (online)

http://www.oknation.net/blog/print.php?id=318914

7. World Bank, n.d. Thailand economic monitor December 2010 (online)

http://www.worldbank.or.th

8. Bank of Thailand, n.d. GDP growth rate December 2010 (online)

http://www.bot.or.th/Thai/Statistics/Pages/graph.aspx
9. RYT9, n.d., Thailand economy, December 2010 (online)

www.ryt9.com/economy/tag

10. Bangkok post, n.d. Hua Hin feeling economic impact December 2010 (online)

http://www.bangkokpost.com/news/investigation/15718/

11. Thai real estate, n.d. Thai political stability December (online)

http://thai-real-estate.info/read/thai_property/02_jun_09/if2y9-
q/thai_political_stability.htm

12. Hua Hin News, n.d, Protection of Hua Hin Environment seminar December (online)
 155

http://www.huahinnews.net/news-2008-08/huahin-environment-seminar.htm

13. Hua Hin News, n.d, Hua Hin Environment Day December 2010 (online)

http://www.huahinnews.net/news-2007-12/huahin-environment-day.htm

14. Department of tourism, n.d. statistic of tourist December 2010(online)

http://www.tourism.go.th/2010/th/statistic/tourism.php?cid=30

15. Social Development centre 28 Pra Chuap Kiri Khun by Ministry of Social Development
and Humen Security, n.d. statistic of wowen work in industry December 2010(online)

http://www.soonpatanasungkom28.com/index.php?option=com_content&task=blogca
tegory&id=20&Itemid=37

16. Yamini Munipalli, n.d. Measuring the Risk Factor December 2010 (online)

http://www.stickyminds.com/sitewide.asp?Function=edetail&ObjectType=ART&Obj
ectId=9379

17. Marketing Association of Thailand (2006), crisis of economy, Novemberber31, 2010

(online)

http://www.marketingthai.or.th/?page_id=291

18. No author, n.d. hotel in Hua Hin, November 3, 2010 (online)

http://www.prachuapkhirikhan.go.th/data/web%202.htm

19. The planning Center, n.d. Environmental risk, December 2, 2010 (online)

http://environmentalrisk.org/

20. Bangs,Jr., David H. The Marketing Planing Guide: Creating a Plan to Successfully
Marketing your business, product, or service

21. Quick MBA, n.d. Marketing, December 2010 (online)

http://www.quickmba.com/marketing/plan/

22. Business Resource Software, Inc. n.d. Marketing Plan, November 2010 (online)
 156

http://www.businessplans.org/market.html

23. Group of marketing lecturers from southern England, based in Chichester n.d. Marketing
Mix, December 2010 (online)

http://www.marketingteacher.com/lesson-store/lesson-marketing-mix.html

24. Laura Lake, n.d. Developing Your Marketing Mix. December 2010 (online)

http://marketing.about.com/od/marketingplanandstrategy/a/marketingmix.htm
157
158
159