Project Feasibilty Study and Evaluation

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Preface
Project Feasibility Study and Evaluation course is use of mathematical analysis to

assist in project. It can analyze the returns of investment analysis to assist in decision making.
It learns how to evaluate projects using case studies to analyze and evaluate projects. We can
apply the knowledge for solving and analyzing the project’s situation to be feasible more.
We get new experiences and we can apply the knowledge for use in the real life in the future.
We would like to thanks many people for helping in this project and for giving the
suggestion to do this project. Moreover, we thank Aj. Chaiyawat Thongintr for helping in
many part of this project and thank for a good suggestion. And we thank Aj. Noraset Polsin
the lecturer in Management School for a good suggestion for this project. And we thank Yai
and Namice that helping in financial part.
The project is smooth as member group attend to do this project for helping and
solving the problem together, so every member group have the harmony to do the project.
Finally, this project will help other people who want to study about Project Feasibility
Study and Evaluation course and wish other people can get the knowledge from this.
Yours truly
February 18, 2010
Phithakchai Somjai
Thunyalak junthiboon
Pattamaporn Prommee
Krongkan Temjai
Chatmanee Kaewplang
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Exclusive summary
In the present, the competitions are strongly. They used promotion or packaging to
attractive the customer for make more profit. Nowadays, economic of Thailand is growing
continually. Then it has affective to the investor who interest to invest in Thailand. The
interest business is handmade bedding because handmade products are quite expensive. It is
telling about Thai culture.
The most people prefer to buy finished goods bedding when compare with qualities,
handmade product is stronger than finished goods bedding. Handmade product can be
souvenir such as new house party, wedding, or birth day gift.
We will assemble come in to order, to start a shop sell the craft of bedding by use the
name that Fun Wan , we establish to the company limited , and we will start a shop at the
Chiang Rai , the area is adjoin , Thai airways office , and night Bazaar Chiang Rai because
of , Chiang Rai is tourism province then makes to have both of Thai tourist , and foreign
come in travel greatly then have money circulates very much then make people in the area
have money buy , and craft competition still have less , the majority is will the craft from a
hill tribes mostly , and the competition of walking street person , we hope foresee the aim
that the Chiang Rai is will a place at can make a profit to give us very much compare with
Chiang Mai , which the Chiang Mai has more competition , because be the big city , by our
work goods that make of the craftsmanship , no the machine , be elaborate craft , and
beautiful , suit old the lead goes to have interior decoration your bedroom are livable. This is
good opportunities to invest in Chiang Rai province. Therefore we will be investing
handmade bedding business in this province.
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Content
Page
Preface i
Exclusive Summary ii
Chapter 1: Introduction 1
Background and significance of the project 1
Project Objectives 3
Benefits of Project 3
Activities/Time Frame 4
Chapter 2: Industry Profile 5
Nature of Industry 5
Situation of Industry 8
Product 10
-Bedcover 10
-Blanket 11
-Backrest pillow (Cushion) 12

-Pillow cover 13
-Child bedding 14
-Wall hanging 15
Vision 16
Mission 16
Strategy 16
-Corporate Level 16
-Business Level 16
-Functional Level 17
Marketing 17
Financial and sales 18
Chapter 3: Market Feasibility Study 19

Market Analysis 19
-General Environment Analysis 19
Political factor 19
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Economic factors 20
Social factors 21
Technological factors 22
-Competition Analysis (3C Analysis) 23

Competitor Analysis 23
Direct Competitor 23
Indirect Competitor 24
Customer Analysis 26
Competitive Analysis 26
STP Analysis 27
-Market Segmentation 27
-Market target 28
-Product positioning 28
Marketing Mix Strategy 29

-Product 29
-Price 30
-Place 30
-Promotion 30
Sales Forecast/Profit Estimation 33

-Cash receipt 37
-Marketing Expenses 40
-Exhibition 40
-Leaflet 43
Conclusion 49
Chapter 4: Technical Feasibility Study 50
Production and Operations Analysis 50
-Product Characteristics 50
Bedcover 50
Blanket 51
Backrest pillow (Cushion) 52
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Pillow cover 53
Baby’s bedding 54
Wall hanging 56
-Services Process 57
Customer’s greeting process 57
Purchase order process 57
Reparation process 57
-Location 58
-Facility Layout 59
-Equipment 67
-Logistics Management 82
-Facility Management 84
Cost of Investment 85
-Pre- operating cost 85
Investment Cost 93
Depreciation 95
Management Analysis 98
-Organization Management 98
Organization Chart 99
-Administration cost 103
-Other expenses 110
Conclusion 117
Chapter 5: Financial Analysis 118

Income Statement 119
Statement of cash flow 124
Statement of Balance Sheet 129
Chapter 6: Risk Management 134

Risk from Fire 134
Risk from New competitor 134
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Risk from Theft 135
Risk from Supplier 135
Risk from Obsolete Design 135
Chapter7: Summary 136

Appendix 144
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CHAPTER 1
Introduction
1.1 Background and significance of the project
Human desire to get many things that does not end. They need to be a good physical
and also good in their mind but usually they are not satisfied in all that they have. They
always seek something new. When we looking back to the past, human being is very simple
and they create more things to use with the need of them. And the next human use their brain
that they have got it much more above all animal to create of many things for concern the
basic needs of living of the human. They were fighting with any things to survive. So, it’s
cause of many things that we can see in the present times. Creation is the result of creativity.
It’s implemented in a various characteristics to be occurring the new things that have never
been shown before. Human only that has to think creatively. Creative is a high of ideas and is
the ability to understand and think in variety directions with no boundaries into the process of
thinking to create something new or for to develop the original to be better. Cause the works
that have self-confident particularities , a human is the living things just one kind in the world
that thinks to create , because of in the past preceding have only a human only that can build
the innovation upward for use assemble in the living , and can develop the thing differs and
improve originally more , include have the ability in self development , develop the social ,
develop the country , and include develop the world to have the character that are
appropriate a human most , while kind animal differs ,have the evolution comes to like , we
still are alive the being like originally not change.
Art especially contemporary art have to create more variation. However, every types
of art can give the value for people in the performance of emotional expression feelings and
thoughts. Art is the performance that shows big story or impressible event. It cans response
for the satisfaction in both of minds and the benefit of artifact using. The successful creation
work will have creative thinking for determine the way and pattern and it will use the perfect
ability of artist. It is the individual talent that happens from the practice and effort. Because of
the perfect ability can make the perfect performance. Furthermore, the best performance will
use more equipment to make them.
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The equipment for create the art have two types. Materials use as media of expression
and the tools use to create a work based on the expertise of each artist. The way that each
artist uses to create performance has different way. Some artist have inspire from the beauty,
thinking, feeling or impression. But some artists create the performance to show ability of
them and they don’t interest in detail of the performance. And some artists create the
performance with concern about material and don’t focus on pattern and concept.
Around 3400 BC Egyptian pharaohs had their beds moved off the ground and slept on
a raised surface. Roman mattresses were stuffed with wool, feather, reeds or hay. The beds
were decorated with paint, bronze, silver, jewels and gold. During the Renaissance,
mattresses were stuffed with straw and feathers and then covered with silks, velvets or satin
material. The arrival of the 18th century brought bed frames made from cast iron, and
mattresses that were made of cotton. The 19th century saw the invention of the bed spring,
also called the box spring. The 20th century brought the inner spring mattress, futon, water
bed (starting in the 1960s), air mattresses, foam rubber mattresses and pillows.
Bedding refers to the materials laid above the mattress of a bed for warmth and
decorative effect. Bedding does not include the mattress, box spring or bed frame. Down
materials are often used for warmth in bedding. Bedding is made from a variety of materials,
including cotton, flannel, down, pulsating, polyester, satin, silk, wool and latex. Bedding
sizes usually are made with the dimensions of the bed and mattress for which it is to be used
in mind. Bed sizes vary considerably around the world, with most countries having their own
standards and terminology. Furthermore, mattresses have different thicknesses, which must
be kept in mind when designing bedding for a particular bed, especially if they are to be
fitted. Each component part of the overall bedspread is sized specifically to accommodate the
individual specifications; from duvet covers to fitted sheets, everything needs to be produced
with the appropriate dimensions to avoid excessive overhanging or, worse still, being too
small to fit.
We think bedding is necessary in daily life. The general production needs of the
market, then the production focused on the novelty pulchritude and meticulousness. Moreover,
there are emphasis on natural materials is not dangerous to health, such as hand woven
cotton. In the current art of patchwork has an important role in the sewing by using a variety
of fabrics. It makes the features, more beautiful, and adding value to products. There also
used patchwork’s techniques and applied techniques to decorate clothing. Today, the
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patchwork is very popular especially the sewing by decorated with Thai fabrics. We are a
retailer as well as make follow the order by customer requirement. We focus on the quality of
raw materials within domestic like 100% cotton and synthetic fabrics. We have a wide range
of products to such beautiful sweet blanket handmade which has a variety of sizes, most
elaborate coverlet’s quilting and variety of pillowcase.
1.2 Project Objectives
1. To study feasibility of operational management.

2. For support the handicraft groups.
3. For maintains the Thai handicraft.
4. For expand the products base around Northern Region.
1.3 Benefits of Project
1. To everyone know Thai handicraft.

2. To get more profit from handicraft.
3. Everyone knows our company.
4. Can be promotion Thailand.
5. Our products will be famous.
6. We can export our products to aboard.
7. This project can help who would like to do handicraft.
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1.4 Activities/Time Frame
Time frame of the study since November 2009 - November 2010
Activities Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1. Study and analysis about bedding
2. Study and analysis about STP
3. Competitor analysis
4. Survey shop building
5. Contract with building own
6. Sales forecast
7. Contracting with bedding
procedures
8. Decorating own shop
9. Set up prices of our products
10. Making advertising for promote
our shops
11. Making promotion
12. Opening our shop
13. Sumarize expense, income per
week and also collect together by
monthly
Table 1.1 Time frame of the study since November 2009- November 2010
Remark: For one week For two week
For three week For a month
More than one month
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CHAPTER 2
Industry Profile
2.1 Nature of Industry
In the beginning man slept on the cold hard ground. But it did not take long until he
fashioned a mound of leaves, straw, and twigs to create a more comfortable sleeping surface.
He soon placed an animal skin over the mound as a sheet and another as a cover. Later he
formed mattresses by sewing skins or fabrics together and filling it with cushioning materials.
To raise the mattress off the floor crude wooden frames were built, some cross-strung with
rope to support the mattresses. This rope would eventually sag and need to be tightened. This
is where the expression "sleep tight" comes from. This basic bed was called the pallet, and
little changed for thousands and thousands of years. The Egyptians, Greeks, and Romans
ornate beds were used by the upper classes but the basic mattress was still filled with organic
materials such as straw, animal hair, cotton, or feathers. From early civilizations through the
Middle Ages ornate beds were a symbol of wealth and power. But the basic mattresses were
still not very good. With the industrial revolution came the steel coil spring. It was first
patented for use in a chair seat in 1857. Heinrich Westphalia was credited with inventing the
innerspring mattress in 1871. Heinrich lived in Germany and never profited from his
invention dying in poverty. During this time manufactured mattresses were filled with cotton,
hair, or feathers. Variations of cotton were the best sellers. Raw cotton was filled into a sewn
mattress ticking and beaten out with a stick to make it flat. The ticking was then closed and
hand or machine tufted to help hold its shape. Foundations were usually open coil box springs
but sometimes flat metal springs.
In the early 1900's the bedding industry got together and fought for sanitary bedding
laws and eventually got them. It was not uncommon to have vermin-infested mattresses, even
new off the production lines. Organic mattresses fillings of the time were subject to all sorts
of attack by bugs, bacteria, and mildew. Cotton mattresses were popular even into the 1950's
and 1960's. Cotton would mildew easily in hot humid climates before the advent of air
conditioning. Cotton mattresses differentiate themselves in price points by using
combinations of raw cotton and cotton felt. Cotton felt is cotton that is run through a garnet
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machine which combs the cotton into a fine and fully layer. Medium price mattresses had a
layer of cotton felt on the outside portions with raw cotton stuffed in the center. Higher priced
mattresses were all cotton felt. Cotton mattresses tended to compact and become harder with
age, and innerspring mattresses tend to become softer with age. Innerspring mattresses started
gaining some market share in the late 1920's but it took until after World War II for them to
really start catching on. In the late 40's and through the 50's there was a rash of patents issued
on different innerspring mattress designs.
In the 1950''s marked the rapid development of licensee groups like Sealy, Simmons,
Spring Air and King Coil. King and Queen super-size bedding made its first serious impact
on the market. In an effort to sell higher priced bedding manufacturers promoted more and
heavier steel coils as firmer is better. The "firm is best" concept caught on and is still largely
accepted today. In the late 50's and early 60's quilted ticking became popular. Instead of
simple flat surfaces of striped ticking, mattress covers are now multi-needle quilted in fashion
ticking colors and designs. Today, this style dominates the market. The major bedding brands
sell strictly on people’s emotion. They make the beds pretty and people think that if it is a
major brand it must be good. In reality it is very old technology and much better alternatives
exist. In the early 1970's waterbeds made their debut into the market. Unlike spring beds
water displaces to conform to the exact shape of your body and actually pushes up to support
recessed areas of your body such as the small of your back. The result is even all over
support, an even distribution of pressure, much greater comfort, less backaches, a better
night's sleep, and feeling better the next day. Waterbeds were the only real innovation in
bedding in over 100 years. From that time up through the early 20th century, bedding evolved
into basic flat white sheets. For years we were satisfied with the basics.
According to bedding market survey in Thailand found that Thai consumers are buying their
bedding from an average 2 times per year. Especially fashion decoration style hotel set has a
maximum growth because the current lifestyle of many people changes from the past. They
must take on more work when their rests to sleep less as well as they have a less time to buy
bedding. Which these groups turned to focus on bedding to help their sleep easily in the
limited time and helps relax tension from work.
Potential market of bedding in the direction of Thailand is better because the economy and
real estate background will return to conditions that result in better overall market trends in bedding
with growth of around 10-15 percent. Owners and brand name products from overseas in Thailand
and began working toward a plan to increase market distribution channels and product development,
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product design, to create a brand with a variety of new beddings to cover all customer groups.
Because the behavior of the Thai people tends to buy novelty is always popular. Bedding's
competitive market of Thailand as follow by current competitive market of bedding a global strategy
is to use price and promotion increased the price of bedding and softening 40-60 percent.
Today when shopping for bedding the choices are vast and for some the terms are
confusing. Among the bedding selections today are:
Sheets: flat and fitted
Tailored: fitted bedding that keeps the sheet in place, often wrinkle free
Quilts: thicker than a blanket yet relatively flat, top stitched often by hand
Comforter: a thick puffy cover designed for warmth, often reversible
Bed Spread: a cover that adds warmth over the top of the sheets, often reaches
the floor
Shams: pillows primarily used for decorative purposes, with covers that can
be removed
This list is not complete. It is only a sample of the names and words one must
consider when shopping. While bedding was once designed solely designed for utility
purposes, today it has found its place in home decor. The colors and patterns available today
can add ambiance to any bedroom. Bedding ensembles are available that take the guesswork
out of buying.
Children's bedding now comes with cartoon character designs. Toddlers bedding for
cribs has been created in soft pastel colors with special attention to a proper fit for
safety. Some bedding comes with the sheets sewn together on one side, assisting in making
up a bed that is next to a wall. The attached sheets are a favorite among families with bunk
beds and for kids going to camp. With so many choices available in today, it is important that
we know exactly what we are looking for when we go shopping and what we can afford. The
prices of sheets today can vary from less than $10 per sheet to hundreds of dollars.
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2.2 Situation of Industry
Nowadays Thailand is famous in travel country. You can see from rate of travel will
be growing 12% in 2553. (Fiscal Policy Office)
Figure 2.1 Situation of foreigner
It has affected to handmade market. The most of tourist prefer to travel in the north part of
Thailand. Then the municipal of each province are promoted their province by exhibition and
used their identity to attract tourist such as Chiang Rai has walking street.
Figure 2.2 Chiang Rai walking street
For the situation of bedding decorate in Thailand Market. The big brands of bedding
in Thailand are TOTO, TULIP, and SATIN etc. They are compete by use only promotion.
Potential market of bedding in the direction of Chiang Rai is better because the economy and real
estate background will return to conditions that result in better overall market trends in bedding with
growth of around 10-15 percent. Owners and brand name products from overseas in Chiang Rai and
began working toward a plan to increase market distribution channels and product development,
product design, to create a brand with a variety of new beddings to cover all customer groups.
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Because the behavior of the Chiang Rai people tends to buy novelty is always popular. Bedding's
competitive market of Chiang Rai as follow by current competitive market of bedding a global
strategy is to use price and promotion increased the price of bedding and softening 40-60 percent.
Those days have passed. Today when shopping for bedding the choices are vast and
for some the terms are confusing. With so many choices available in today, it is important
that we know exactly what we are looking for when we go shopping and what we can
afford. The prices of sheets today can vary from less than $10 per sheet to hundreds of
dollars.
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2.3 Product
Every products of Fun Wan Company are made by hand and we use natural 100%
cotton that has a good quality. The pattern of products is exhaustively elaborate. So, the price
of products will be high follow quality of value and elaborate of products and then we can
gain a lot of profit. It makes our customers feel smooth and think it’s rationally for their
paying. There are variety beautiful patterns of products that very elegant. And we also pack
the products into the nice packaging of Fun Wan Company. Our products compose of six
kinds as follows:
Bedcover
Bedcover of Fun Wan Company uses the cotton 100%. Behind is a beautiful striped of
cotton 100% and very elaborate work. We made it from high quality material, durable and
there are many color and sizes.
Bedcover size:
 King size (6.5 x 6.5 foot)

 Queen Size (5 x 6.5 foot)
 Twin Size (3.5 x 6.5 foot)
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Blanket
Blanket handmade of Fun Wan Company made from the cotton 100%. In the front
side will be stitch in a different pattern by use hand. We use only good quality materials to
produce Blanket, durable materials, and unbreakable.
Blanket size:
 King size (100x92 inch)

 Queen Size (84x92 inch)
 Twin Size (78x87 inch)
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Backrest pillow (Cushion)
Backrest pillow of Fun Wan Company are made from highly quality materials, variety
of color and many design. And it made from the cotton 100%. It is very cute design, soft and
comfortable. It can washable mattress, pillow and narrow pillow
Backrest pillow size:
 Small Size (15x15 inch)

 Large Size (30x30 inch)
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Pillow cover
The pillow cover is designed for use with all standard pillows. It’s easy to clean. We can
remove the pillow cover for washing as needed. It made from the cotton 100%.
Pillow covers size:
 normal size (80x130 cm)
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Child bedding
Set of Child Bedding is important accessories so Fun Wan Company made the
bedding from high quality materials for baby’s deep sleep.
Fun Wan Company has a beautiful design and colorful. And our products also
develop hand and eye co-ordinates and gain a sense of size and shape through grasping and
holding. Our products will focus on the lovely pattern. And it also helped children to develop
the learning. And it also makes children sleep comfortably and feeling smooth with our
products that safety and quality.
Baby bedding size:
 Baby size
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Wall hanging
Wall hanging of Fun Wan Company will make you enjoy with the exploring these
breathtaking fabrics and designs. Clearly it defined by style and origin, our tapestry feature
historic, cultural and modern themes.
Wall hanging size:
 small size
 large size
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2.4 Vision
“The best handmade bedding retailer in Chiang Rai”
2.5 Mission
Fun Wan Company’s mission is to increase bedding market share that we believe that
advertising can promote our shop and attract come to our shop. We plan to make sales growth
by improve ability to increase sales for our company for will have more value than it is now.
We believe our products have success with high quality.
2.6 Strategy
 Corporate Level
Fun Wan Company is a retail shop that brings the products from Nakhon Sawan
province where is a head quarter to sell products at Chiang Rai. The appropriate strategy
of Fun Wan is Intensive strategies in the level of market development. We will introduce
and present the products that already have in many provinces into the new market at
Chiang Rai.
 Business Level
Fun Wan Company is a shop that has less direct competitors. It effects that many
of customers can choose to buy products in only our shop. The appropriate strategy of our
shop is Focus strategy. We will focus on the interest of customers. Fun Wan Company
will be always designed and created new products all the time and also have a strategy to
penetrate customers that have demand to choose bedding always. Including to studying of
consumer behavior and studying the changes that occur all the time for make our shop
can serve the customer’s needs and wants. Fun Wan Company always pay attention to
present a distinguish products for customers who has high income level. And we focus to
design variety pattern of handmade to serve the customer’s needs.
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 Functional Level
Functional level of our store is divided into 2 parts that are marketing and
financial and sales. The details of each strategy as follow:
 Marketing
Strategy of marketing that important can be summary as follow:
- Target market
Fun Wan Company is the people who have average salary or high salary more
than this because these groups have enough power to buying products. And they also
like the handmade products and the products also different from other brand in the
market.
- Positioning
Fun Wan Company is a shop that sells handmade bedding that has several of
patterns that can make customers interest on it. Fun Wan Company is the only one
shop in Muang district, Chiang Rai that sells handmade bedding. Fun Wan Company
is a new shop in the market although the products in our shop have a high price but
our products are high quality and the price is appropriate with the customers will pay.
Customers will be located the brand of Fun Wan Company in their minds when they
want to buy a high quality of handmade bedding.
- Marketing mix
Fun Wan Company is the shops that sell variety kind of products about
blanket, cover bed, cover pillow, picture’s wall, baby bedding and etc. Fun Wan set
the moderate prices for general products for our shop can be competing in the market.
Fun Wan is located near Night Bazaar where many people around here. And it’s
comfortable and easy for customers to come to our shop. We will give our customers
for discount, gift voucher and etc. Advertise of our shop will be used leaflet, radio.
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 Financial and sales
Strategy of financial and sales can be summary as follow:
- Sales products
1. Inviting customers to view our products within our shop as a satisfaction. To let’s
our customers know that our shop have a wide variety of products it effects to
make the benefit of our shop when customers will be buy products for the next
time they will be think about Fun Wan Company before other stores.
2. If our shop has no products within the store, our shop has a service for customers
can be order.
3. For set up price, we can reduce the price for customers slightly. It’s for create the
awareness of customers to recognize Fun Wan Company.
- Financial
1. Compare the cost of purchasing goods with cash for purchase the product at the
low cost.
2. Sell products by cash to maintain the liquidity of the shop. And prevent the
problem of collect dept.
3. Provide the sufficient of working capital for purchasing of products at the low
cost.
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CHAPTER 3
Market Feasibility Study
3.1 Market Analysis
3.1.1 General Environment Analysis
For firms that effectively compete in an organization, an analysis of its specific

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

The political situation is very important that can effect for every organization
anywhere in this world. The political situation always changes. So the organization should be
get the political information for avoid bad situation that can effect for the organization. In
Thailand, the political situation is changing dramatically.
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Since Mr. Thaksin Shinawatra was coup d’état the political situation is very stress. Until now
that Mr. Abihisit Vejjajiva is the prime minister of Thailand. Although ,political situation is
very stress because the people have no harmony and the people divided to each parties. But
the government creates the policy for make people feel good and creates the confidence to
people. The important policy that the government created as follow: create the confidence
and urge the economy of the country for give the confidence to private sector and people to
invest and consume, the government will increase the income, the government help people to
decrease cost of living. Especially, economic policy that the government changes the
structure in agricultural sector, adjust quality of product, produce the good worker to support
labor market, promote free trade agreement (FTA) for expand new export market. Although,
the situation in Thailand changes. Thai government finds the way for help and supports the
people.
 Economic factors
The economy of Thailand in 2009 and 2010 are likely to adapt better than anticipated
was a 2.8 percent and will enter a positive growth rate in 2010 at 3.5 percent per year because
of the efficiency causes of government sector policy and the recovery of private sector
spending including with global economy.
Thailand Gross Domestic Product (GDP) contracted 2.80% over the last 4 quarters.
The Thailand Gross Domestic Product is worth 261 billion dollars or 0.42% of the world
economy, according to the World Bank. The economy of Thailand is an emerging economy
which is heavily export-dependent, with exports accounting for more than two thirds of gross
domestic product (GDP). Well-developed infrastructure, a free-enterprise economy, and
generally pro-investment policies, made Thailand one of East Asia's best performers.
However, overall economic growth has fallen sharply in 2008 and 2009 as global downturn
and persistent political crisis stalled infrastructure mega-projects, eroded investor and
consumer confidence.
After, we consider the positive factors and negative factors that have the effect for
economy in 2010. We found that the positive factors will push the economy in 2010 as
follow: The economy of country’s partner recovers continuously. So, the export business may
increase in the next year. By the economic growth rate during the second quarter compare
with the third quarter shows that the recovery of US economy grows up to 0.9 percent. Japan
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economy grows up to 1.2 percent. And the China economy continues to grow up to 8.9
percent in the third quarter when compared with same period at the last year. The government
policies can help economy process to drive. The government set 2010 fiscal year budget is
basement about 3.5 billion in Thai Kham Kang Project. Moreover, Thai government has other
project such as solve the debt problem that can help Thai people to decrease debt. And it
effects for increase the consumption and the investment is better.
 Social factors
Figure 3.2 Social Factor
The Office of the National Economic and Social Development Board has issued a
report on Thailand’s social outlook in the second quarter of 2009. The report, which was
acknowledged by the Cabinet, covers four major areas, namely the quality of human
resources, social security, people’s behaviour and living conditions, and the environmental
situation. The report presents interesting facts and figures, which may be used as indicators
for a broad picture of Thailand in terms of social aspects. For instance, criminal cases in the
country were on the decline during the second quarter. About 8,100 sexual assault cases were
reported, a drop of 5.7 percent against the same period of 2008. Assaults related to theft fell
by 15 percent. The decline in criminal cases was a result of better surveillance carried out by
officials in various areas at risk. Employment during the period expanded by 2-3 percent.
Because of economic uncertainties, the number of educated workers in the agriculture sector
was on the rise. The unemployment rate stood at 1.8 percent, a drop from 2.1 percent
recorded in the first quarter of this year.
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 Technological factors
The Thai IT market is the largest market in the South East Asia region and despite
current economic headwinds is projected to grow at a CAGR of 9% over the 2009-2013
periods. The total value of Thai domestic spending on IT products and services should reach
US$4.9bn in 2009 and US$7.0bn by 2013. However, BMI’s view is that the fundamentals of
growing affordability and low PC penetration, supported by government ICT initiatives, will
keep the market in positive territory during the forecast period. In early 2009, a number of
underlying indicators offered encouragement for overall IT spending, and there should be
areas of opportunity, despite prevailing economic and political uncertainties. Industry
Developments In 2009 Thailand’s government has outlined a number of projects to help close
the digital divide. One potentially significant initiative from the ICT Ministry is to offer a
special tax reduction to companies that donate their used computers to local communities.
Meanwhile, the government is also making plans to offer computers, as well as software
applications, bundled with broadband services from government telecoms operators CAT and
TOT. The ICT Ministry is currently negotiating with state-owned banks to offer special loans
to users who participate in the programme. SIPA (Software Industry Promotion Agency) has
led ‘Buy Thai First’ campaigns to persuade local SMEs to buy Thai developed software, and
has lobbied government to endorse tax incentives for local developers. Competitive
Landscape International vendors dominate the Thai brand PC market, with Acer and HP the
leaders in terms of shipments, ahead of Dell, Lenovo and Toshiba. Unbranded ‘white boxes’
still claim up to 50% of the local PC market, although this share has fallen from around 70%
a couple of years ago. The sales of these generic products have received a boost from
government-subsidised PC programmes. Locally produced software vendors claimed around
20% of the Thai market in 2008. With the economic and political crisis having an impact in
both public and private sectors, some vendors and their local partners are likely to see a
further slowdown in some business in 2009. However, growing PC penetration, and new
technologies and business models, including 3G mobile, WiMAX, and industry trends, such
as software-as-a-service, Green IT and virtualisation, will represent growth areas in 2009.
There is a growing emphasis on cost efficiency as enterprises look to enhance productivity
through automating these and other functions.
Figure 3.3 Technological factors
23
3.1.2 Competition Analysis (3C Analysis)
We can classify the competition analysis to 3 part, Competitor Analysis,

Customer Analysis, and Competitive Analysis (3C Analysis). In Chiang Rai Province is a
biggest province in the north part of Thailand and has more population about
1,248,242persons (Department of Internal Trade, October2552). The most important thing
Chiang Rai is a travel province so many people want to invest business in Chiang Rai. Then
many business was become invest in Chiang Rai such as tour agency, super store, or
handicraft shop. So Chiang Rai has high competition handmade products because Chiang Rai
has more minorities. They can use their design to create product for sale in Chiang Rai for the
travelers. Therefore we use 3C analysis to analyze the competition in Chiang Rai.
 Competitor Analysis
We will open handmade bedding shop in Muang District of Chiang Rai. It is close to
Night Plaza. Then we can divided competitors into 2 groups are direct and indirect.
 Direct competitor
Therefore the indirect competitors

compose with “A and Ann Towel Shop”. They
sale products are seminar our products.The
located is close to Mengrai Farther statue. It is.
The most of product are Lanna handmade and
some cloth handmade. It can be compete with
our product.
Figure 3.4 A and Ann Towel Shop
24
 Indirect Competitor
Big C super center store sells bedding of SATIN, TOTO and TULIP. Big C super
center store is a biggest store in Chiang Rai. Many people come to Big C for buying a lot of
goods. And Big C also has many brand of bedding for serve the customers want. Many
bedding products of SATIN, TOTO and TULIP brand name are already in the shelf of Big C
for customers can choose and compare price with other brand name. Big C always have a
promotion for attract people come to buy products. So Big C can earn a lot of money from
customers.
Figure 3.5 Big C logo
Tesco Lotus also sells bedding of SATIN, TOTO, and TULP. Tesco Lotus is located
in Meachan district and Measai district. People are close to Tesco Lotus will come to buying
goods. And Tesco Lotus also has many brand of bedding for serve the customers want.
People can chose and compare with other brand in that shelf of Tesco Lotus. Tesco Lotus
always have a promotion for attract people come to buy products. So Tesco Lotus can earn a
lot of money form customers.
Figure 3.6 Tesco Lotus logo
25
Pi Nang (Baan Duu, Chiang Rai) sells bedding of SATIN and TOTO brand name.
Many people in Chiang Rai like to look for bedding in Pi Nang for selecting bedding of
TOTO and SATIN’s products. We know that TOTO bedding sets are produced with
advanced machinery and technology that is considered the most modern in Asia. The
weaving machinery is capable of weaving a cloth as width as 110 inches. The Airjet weaving
system maintains smoothness in between weaves, additionally controlling the temperature
and humidity and filtering dust.
Figure 3.7 Pi Nang
Shop in Mae Sai District, they sale the bedding cover and blanket from China. It has
not brand name but price is cheaper than our products. Many people love to shop there. And
in the winter that shop will have many design of blanket for attract customers and price will
be increase too.
Figure 3.8 Shop in Mae Sai District
26
 Customer Analysis
From our survey questionnaire, we got information of customer behavior in Chiang

Rai. Our customers is officers and get salary about 15,000 – 20,000 baths up. They chosen go
to shopping at shops or stores rather than buy products on internet or catalog. They would
like to pay money buy cash and credit cards. Each they spend money about 1,000 – 3,000
baths per time for shopping bedding decorates. The most of customers in Chiang Rai like to
change their bedding decorate one time per year. The behavior of shopping is survey by them
slave and they design their bed room by themselves too.
 Competitive Analysis
We are study about competitive handicraft bedding in Chiang Rai by using five force
to analyze the possibilities of our business and other factor for competitive with competitors.
1. Rivalry Among Current Competitors
In Chiang Rai are less handicraft shop but you can buy handicraft on night day at
Night Plaza. We have the indirect competitors in Chiang Rai such as PhreeNuan, Ruan Tong
etc. They sale bedding decorate for factory but we are handicraft bedding decorate. Tend of
handicraft are growing.
2. Bargaining Power of Suppliers
We received products from suppliers. So suppliers have more bargaining because they
are the one supplier for Fun Wan Shop. We don’t have bargain with suppliers. Then new
shop cannot bargain with supplier.
3. Bargaining Power of Customers
Bedding decorate is not necessaries products. So the buyers do not more power to
bargain this product but buyer have more choice to choose other handicraft shop and the
productsubstitutes. So buyers will change to buy other handicraft shop.
4. Threat of Substitute Products
In the bedding decorate market has many substitute products. Many people have more
choice to buy bedding decorate such as blanket, bed cover, or pillowcase. The bedding
decorate are easy to buy.
27
5. Threat of New Entrance
This business is quite hard to open because cost of invest and price are expensive. The
most think the building and rent the building are expensive and this business quite difficult to
invest in Chiang Rai. If invest in the big province, it can be entrance to the market.
3.2 STP Analysis
 Market Segmentation
Marketing Teacher Ltd 2000 – 2010 said that segmentation is essentially the
identification of subsets of buyers within a market that share similar needs and demonstrate
similar buyer behavior. The world is made up of billions of buyers with their own sets of
needs and behavior. Segmentation aims to match groups of purchasers with the same set of
needs and buyer behavior. Such a group is known as a 'segment'. Think of your market as an
orange, with a series of connected but distinctive segments, each with their own profile. For
market segmentation of Fun Wan company set the segmentation from customers who come
to buy the product and the unique of product. The first segmentation is the customers who
come to buy the product. Our company can divide into three groups. First, people who prefer
in handmade products. They like in art and value of the nice things that make by hand.
Because they think it’s be worthwhile for their payment and handmade products are fineness
and neatly. Second, people who prefer in machine production products as a machine fiber
production are a domestic consumption mainly to 85.0 percent. Such as SATIN, TOTO that
are strong brand which consumers prefer to use it. They think the products that produce by
machine has a good quality and not have a high price. Last, people who prefer in mix with
handmade and machine. Sometimes, some group of customers likes to change their style. So,
they will be switch from production of machine to be handmade. Next segmentation is about
the unique of products. The majority of customer want to buy product that have unique and
have different from other product and handmade product is one choice of customer. And
handmade product expected to be increasingly popular. Because of technology in production
of manufactured goods has virtually none Homogeneous. Moreover, handmade product can
create selling points of difference and the unique product produced over time by many.
(Business research division of EXIM Bank)
28
 Market target
Target of Fun Wan Company is the people who prefer in handmade products. Our
company divided target into two groups. The first group is people who have high income and
prefer in products that have a high value nice and neatly. It trends to continue increasing
every year in which there is many factors to affect them such as unemployment rate is
decreasing, general trading conditions to start growing in a better direction after slowing from
World economic crisis in the past. Investors are confident start economic activities in
Thailand and turned to increase investment in Thailand. The second group is the foreigner
who like handmade product. The product of our company is the unique product that the
foreigner prefers to buy and the tourism continues growing because Chiang Rai is the
province that is interested from the tourist. More than 200,000 foreigners come to Chiang
Rai. It is the opportunity for the foreigner come to Fun Wan company. (Office of Commercial
Affairs Chiangrai and Office of Tourism Development)
 Product positioning
High quality
FunWan
 A & Ann
 PiNang
Low Unique High Unique
 Chiang Rai Night

Bazaar
 Mae sai market
Low quality
Figure 3.9 Product positioning
29
The positioning of Fun Wan company is base on high quality and high unique that
make the customer come to our shop. The product of the company produces from 100 percent
cotton and does not use any machine. It is a 100 percent handmade and the design of product
is very unique that other does not have. Nowadays, customer want to buy the product that
have high quality because the high quality product can use very long time and can save the
maintenance cost. The product of our company is high value because of the loyal family use
this product. These products that make the customer feel good as aristocracy agree. So, Fun
Wan Company provided many quality products to increase satisfaction to our customers. And
our company gives the best thing to our customer. And we are the new choice for the
customers who love handmade bedding products.
3.3 Marketing Mix Strategy
 Product
“Fun Wan” is the bedding shops that sell variety kind of handmade bedding about
blanket, cover bed, cover pillow, wall hanging, baby bedding and etc. under the brand name
of “Fun Wan” The features of our products are all types of bedding are Handmade with
beautiful and modern design.
Handmade bedding of Fun Wan has the best quality and has a sufficient quantity to
serve the customers want and our shop always has service for our customers. Customers can
design or choose pattern of the fabric that they want, it causes to make them satisfy of our
services. Inside the shop has a point of sitting for customers who waiting to receive their
handmade bedding products and have lounges for customers who come to purchase our
products.
30
 Price
“Fun Wan” set the moderate prices for general products for our shop can be
competing in the market. Including to set up price to promote in some period of time for
stimulate our net sales such as, in the New Year or other important day. And if customers buy
many of products we will give them for discount. And the setting price of our products we
will select the pricing strategy in the sales promotion that appropriate for each group of
customer.
 Place
“Fun Wan” shop is located near Night Bar Za Chiang Rai where has many people
around here. It’s comfortable and easy for customers to come to Fun Wan shop. Fun Wan is
focused on expanding of distribution channels to increase base of consumers and give the
facilitation to customer who comes to our shop. It is a good channel of distribution.
Inside of “Fun Wan” shop will be available space and box shelf for show handmade
bedding products for customers can view and purchase more easily. We will be selling
directly to consumers who want to purchase our products.
 Promotion
“Fun Wan” has a strategy to promote our sales and marketing that can reach
consumers as well as follow:
 Giving them for 15% discount if they buy many quantities of products.
 And also has a 500 baht gift vouchers when they buy 3,000 baht of our products.
By focus to do this activities in the time that people are spending a lot of money
like a new year, father’s day, mother’s day, valentine’s day and etc.
 When they buy 2 pieces of our product, in the third piece they will get a half price
and we will gift premium for customers who come to buy our products.
 Advertise of our shop will be used leaflet. In this advertise will be inform of news
promotion of our shop that can make customers to remember “Fun Wan” through
that advertising.
31
 Fun Wan will be exhibiting for show our products at shopping malls or in the
events by regular to increase net sales of our shop.
32
Promotion
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Y1 1,5 1,3 1 2 3 3 2 5 2
Y2 5 3 2 3 3 5 2 2
Y3 5 3 2 3 3 2 5 2
Y4 5 3 2 3 3 5 2 2
Y5 5 3 2 3 3 5 2 5 2
Table 3.1 Promotion

Remark:
1. Giving them for 15% discount if they buy many quantities of products.
2. And also has a 500 baht gift vouchers when they buy 3,000 baht of our products.
3. When they buy 2 pieces of our product, in the third piece they will get a half price and we will gift premium for customers who come
to buy our products.
4. Advertise of our shop will be used leaflet. In this advertise will be inform of news promotion of our shop that can make customers to
remember “Fun Wan” through that advertising.
5. Fun Wan will be exhibiting for show our products at shopping malls or in the events by regular to increase net sales of our shop.
33
3.4 Sale forecast and profit estimation
Figure 3.10 Rate of household
According to statistics, rate of household in Chiang Rai between 2004 to 2008. We found
that the trend of household has increased but has decreased a few number of household in year 2008.
From the statistics, rate of household in 2004 has number of household about 334,042 families; in
2006 has number of household 386,135 families; and in 2008 has decreased to 384,000 families.
(Department of provincial, 2009). From our survey questionnaire, we found that behavior of people in
Chiang Rai would like to change their bedding for 1 time per years. It means that we can increase sale
volume in every year that related with our promotion. For high season in December to February
which the weather is cold and many people usually buy our product to be present for New Year
festival and low season in September to November that the period of time has a few of festival which
affect our sale volume.
34
Sales forecast Year1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Description Cost Price
Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale
Bedcover
6,333.0 8,323.0 1,261,600 1,605,673 1,032,218 917,528 688,146 688,146 573,455 1,146,909 573,455 573,455 573,455 1,835,055 11,469,094
Blanket
6,333.0 8,323.0 1,261,600 1,605,673 1,032,218 917,528 688,146 688,146 573,455 1,146,909 573,455 573,455 573,455 1,835,055 11,469,094
Wall hanging 2,500.0 3,490.0 289,845 368,893 237,146 210,796 158,097 158,097 131,748 263,495 131,748 131,748 131,748 421,592 2,634,950
Baby's
bedding 2,400.0 3,290.0 23,885 30,400 19,543 17,371 13,028 13,028 10,857 21,714 10,857 10,857 10,857 34,742 217,140
Bolster
250.0 400.0 33,220 42,280 27,180 24,160 18,120 18,120 15,100 30,200 15,100 15,100 15,100 48,320 302,000
Pillowcase
400.0 490.0 37,137 47,265 30,385 27,009 20,257 20,257 16,881 33,761 16,881 16,881 16,881 54,018 337,610
Total
2,907,288 3,700,184 2,378,690 2,114,391 1,585,793 1,585,793 1,321,494 2,642,989 1,321,494 1,321,494 1,321,494 4,228,782 26,429,888
Sale forecast Year2
Bedcover
6,333 8,323 1,605,673 1,605,673 917,528 802,837 573,455 573,455 688,146 1,146,909 573,455 458,764 688,146 1,835,055 11,469,094
Blanket
6,333 8,323 1,605,673 1,605,673 917,528 802,837 573,455 573,455 688,146 1,146,909 573,455 458,764 688,146 1,835,055 11,469,094
Wall hanging 2,500 3,490 368,893 368,893 210,796 184,447 131,748 131,748 158,097 263,495 131,748 105,398 158,097 421,592 2,634,950
Baby's
bedding 2,400 3,290 30,400 30,400 17,371 15,200 10,857 10,857 13,028 21,714 10,857 8,686 13,028 34,742 217,140
Bolster
250 400 42,280 42,280 24,160 21,140 15,100 15,100 18,120 30,200 15,100 12,080 18,120 48,320 302,000
Pillowcase
400 490 47,265 47,265 27,009 23,633 16,881 16,881 20,257 33,761 16,881 13,504 20,257 54,018 337,610
Total
3,700,184 3,700,184 2,114,391 1,850,092 1,321,494 1,321,494 1,585,793 2,642,989 1,321,494 1,057,196 1,585,793 4,228,782 26,429,888
35
Sale forecast Year3
Bedcover
6,333 8,323 1,926,808 1,806,382 1,083,829 722,553 602,127 481,702 602,127 1,083,829 722,553 602,127 842,978 1,565,531 12,042,549
Blanket
6,333 8,323 1,926,808 1,806,382 1,083,829 722,553 602,127 481,702 602,127 1,083,829 722,553 602,127 842,978 1,565,531 12,042,549
Wall hanging 2,500 3,490 442,672 415,005 249,003 166,002 138,335 110,668 138,335 249,003 166,002 138,335 193,669 359,671 2,766,698
Baby's
bedding 2,400 3,290 36,480 34,200 20,520 13,680 11,400 9,120 11,400 20,520 13,680 11,400 15,960 29,640 227,997
Bolster
250 400 50,736 47,565 28,539 19,026 15,855 12,684 15,855 28,539 19,026 15,855 22,197 41,223 317,100
Pillowcase
400 490 56,718 53,174 31,904 21,269 17,725 14,180 17,725 31,904 21,269 17,725 24,814 46,084 354,491
Total
4,440,221 4,162,707 2,497,624 1,665,083 1,387,569 1,110,055 1,387,569 2,497,624 1,665,083 1,387,569 1,942,597 3,607,680 27,751,382
Sale forecast Year4
Bedcover
6,333 8,323 1,806,382 1,565,531 963,404 722,553 722,553 602,127 481,702 1,324,680 842,978 722,553 602,127 1,685,957 12,042,549
Blanket
6,333 8,323 1,806,382 1,565,531 963,404 722,553 722,553 602,127 481,702 1,324,680 842,978 722,553 602,127 1,685,957 12,042,549
Wall hanging 2,500 3,490 415,005 359,671 221,336 166,002 166,002 138,335 110,668 304,337 193,669 166,002 138,335 387,338 2,766,698
Baby's
bedding 2,400 3,290 34,200 29,640 18,240 13,680 13,680 11,400 9,120 25,080 15,960 13,680 11,400 31,920 227,997
Bolster
250 400 47,565 41,223 25,368 19,026 19,026 15,855 12,684 34,881 22,197 19,026 15,855 44,394 317,100
Pillowcase
400 490 53,174 46,084 28,359 21,269 21,269 17,725 14,180 38,994 24,814 21,269 17,725 49,629 354,491
Total
4,162,707 3,607,680 2,220,111 1,665,083 1,665,083 1,387,569 1,110,055 3,052,652 1,942,597 1,665,083 1,387,569 3,885,194 27,751,382
36
Sale forecast Year5
Bedcover
6,333 8,323 2,018,561 1,766,240 883,120 756,960 630,800 630,800 756,960 1,135,440 756,960 504,640 756,960 2,018,561 12,616,003
Blanket
6,333 8,323 2,018,561 1,766,240 883,120 756,960 630,800 630,800 756,960 1,135,440 756,960 504,640 756,960 2,018,561 12,616,003
Wall hanging 2,500 3,490 463,751 405,782 202,891 173,907 144,922 144,922 173,907 260,860 173,907 115,938 173,907 463,751 2,898,445
Baby's
bedding 2,400 3,290 38,217 33,440 16,720 14,331 11,943 11,943 14,331 21,497 14,331 9,554 14,331 38,217 238,854
Bolster
250 400 53,152 46,508 23,254 19,932 16,610 16,610 19,932 29,898 19,932 13,288 19,932 53,152 332,200
Pillowcase
400 490 59,419 51,992 25,996 22,282 18,569 18,569 22,282 33,423 22,282 14,855 22,282 59,419 371,371
Total
4,651,660 4,070,203 2,035,101 1,744,373 1,453,644 1,453,644 1,744,373 2,616,559 1,744,373 1,162,915 1,744,373 4,651,660 29,072,877
37
3.4.1 Cash receipt
Year 1
Year2
38
Year 3
Year 4
39
Year 5
40
3.5 Marketing expense
 Exhibition
 King
MengRai
and
Chiangrai Red Cross Fairson January 26 – February 4
Figure 3.11 Exhibition
For King MengRai and Chiangrai Red Cross Fairs is the fairs that occur for Chiangrai
province people and other province people to remember the great king who established
Chiangrai province on January 26, 1262. And the fairs want to promote culture native
tradition of Lanna. As well as present the progress of government services, present product
booth and show the exhibition of government agency, Red Cross, educational institution,
charity and sell the consumer product. For Fun Wan company will use this fair to promote
bedding product. The rate of rental for 1 booth (4x4m) is 16,000 baht via the company rent 2
booths and the company pays for electricity charge about 1,000 baht.
41
 Amazing Thailand Grand Sale Fair on July – August
Figure 3.12 Amazing Thailand Grand Sale Fair logo

Amazing Thailand Grand Sale Fair is
the great fair that collects many products, services and activities from every part of Thailand.
It located at Plenary Hall 1-3, Zone C 1-2, Queen Sir kit National Convention Center,
Bangkok Thailand. The Tourism Authority of Thailand, cooperate with N.C.C. Exhibition
Organizer, company limited are the organizer.
Event objectives:
 for imagine good words gives with Thai tourism

 for special activity supports the project , "Amazing Thailand Grand Sale"
 for great festival expo , be the good quality in special price
 for support give the marketing activity to the entrepreneur , and encourage develop
both of tourism and the foreign countries to that know to is well-known more and
more
 for something the public relations and support production part and export of Thailand
, give Thai is the center , the business and the tourism in provincial the South-east
Asia
Space Rental Rate:
42
Table 3.13 Space Rental Rate
Note:
1. Corner area must pay 3,000 again a baht / arched space

2. The price still don't total up 7% vat
3. Arched standard space compose of , 3 space side walls , company label , 2 light tube
bulbs , 1 table , 2 chairs , a carpet within the space , 15 ampere plugs , and 1 dust
basket
4. Special especial zone food space composes of , 3 space side ( do not total up the
wall ), company label only
5. Person attend show the work in Plenary Hall , at reserve empty area , must prepare a
carpet within your space comes to by oneself
6. Person attend show goods will must discount goods specially more usual 10 - 80% for
attends the project , Amazing Thailand Grand Sale
 Thailand best buys on November - December
43
Figure 3.10 Thailand best buys logo
The great annual exhibition organized for the eighth consecutive year. The event will
bring together scores of quality gifts, souvenirs, accessories and home decorative items, plus
Thailand’s leading brand names. It located at Plenary Hall, Zone C1-2, Meeting Room 1-4,
Main Foyer, Atrium, Plaza Queen Sirikit National Convention Center, Bangkok, Thailand.
Event objectives:
 To create retail sales opportunities for small-sized manufacturers and retailers.

 To serve as a platform for the promotion of companies and new products ready
for the market.
 To serve as a prime location for varied and high quality products, offering
shoppers a wide selection of gifts for the New Year and other special occasions.
Space Rental Rate / 9 Sq.m.:(price are excluded VAT 7%)
Table 3.3 Space Rental Rate

Note:
1. The above prices are excluding any bank charges or bank transactional fee
2. Standard Shell Scheme includes 3 sides of white partition, fascia name, 2 fluorescents, 1
socket (5 amp.), 1 basket, 1 table, 2 chairs and booth carpet
 Leaflet
44
In this advertise will be inform of news promotion of our shop that can make
customers to remember “Fun Wan” through that advertising.
Front Back
Figure 3.14 Leaflet
45
46
47
48
49
50
3.7 Conclusion
“Fun Wan” is a handmade bedding company which sells various beautiful kinds and
also has high quality and high unique products. Fun wan is located near Night Bazaar Chiang
Rai where have many people come to travels every day. Chiang Rai is a province that has
many people come to travel so there are many investors interest to invest business in Chiang
Rai. Fun Wan have a lot of indirect competitors that sells bedding decorate such as Big C,
Phree Nuang Furniture which have many promotion for attract customers. So, we have to do
a lot of promotion for promote our shop. And Fun Wan has a few direct competitors in Mae
Sai district and some from minority at Night Bazaar Chiang Rai. But some of products of our
direct competitors are not the same with our shop. Our target group of Fun Wan is a person
who has high income and prefer in handmade product. So, they have an ability to pay for
handmade bedding from Fun Wan Company.
51
CHAPTER 4
Technical Feasibility Study
4.1 Production and Operations Analysis
We divided the production and operations analysis into 6 parts including product
characteristics, services process, location, Facility layout, logistics management, and facility
management.
4.1.1 Product Characteristics
If you are looking for gift, present, or bedding for decorate your bedroom which is
handmade products and high quality, beautiful design as well as appropriate price. Our
products have a long life time. Customers can choose to buy at Fun Wan Shop. Fun Wan
Shop will be updated new products regularly and also change the design to be new style and
especially unique than other competitor. As our slogan “Reach good slumber by Fun Wan”
And about the pricing, we focus on a fair price and the most rationally price to customers
have enough power to purchase products in Fun Wan Shop. At all events are subject to
preference, love and like in the handmade products about home decorations of target group.
From the survey data of our group, people in Chiang Rai interested in blanket, bolster case,
pillow cover and also they have to buy handmade bedding every year.
We can identify the characteristics, details, price, size, and dimension of all goods that
Fun Wan Shop has sold as the following:
1. Bedcover: Use the Cotton fabric

100% all parcels. Behind is a
beautiful striped of Cotton fabric and
very elaborate work. It helps a
bedroom has a distinctive identity
and adds charm to your bedroom.
Fabrics that use are durable, away
Figure 4.1 Bedcover
52
from dust and waterproof. Sophistication to our customers especially.
We made it from high quality material, durable and there are many color and sizes. It
is a maximum satisfaction.
There are three types of Bedcover that are

Bedcover for King Size, Bedcover for
Queen Size and Bedcover for Twin Size.
Figure 4.1 Bedcover
 Price of Bedcover for King Size is9,990baht

 Price of Bedcover for Queen Size is 7,990 baht
 Price of Bedcover for Tween Size is 6,990 baht
2. Blanket: It’s a blanket

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

that are Blanket for King Size, Blanket
for Queen Size, and Blanket for Twin
Size.
Figure 4.2 Blanket

 Price of Blanket for King Size is 9,990 baht
 Price of Blanket for Queen Size is 7,990 baht
 Price of Blanket for Twin Size is 6,990 baht
3. Backrest pillow (Cushion): It’s made

from 100% Cotton fabrics. Stitch a variety
pattern by hand. It has variety options for
select. We have available in various
patterns to choose. We can use it to be
relaxed.
Figure 4.3 Backrest pillow (Cushion)

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

are made from highly quality materials, variety
of color and many design. It is very cute design,
soft and comfortable. It can washable mattress,
pillow and narrow pillow
Figure 4.3 Backrest pillow (Cushion)
There are two types of Bolster case that are Small Size and Large Size.
 Price of Backrest pillow for small size is 450 baht

 Price of Backrest pillow for normal size is 350 baht
4. Pillow cover: The pillow cover is

use for wear the pillow before wearing the
pillowcase. This prevents the spot of dirty.
And the pillow cover is designed for use
with all standard pillows. It’s easy to clean.
We can remove the pillow cover for
washing as needed.
Figure 4.4 Pillow cover
To sleeping very well it beginning from your bed and also you pillow. Your
body wants the convenience, supporting weight that appropriate, and your body will
tell you that, your bed cannot meet that need of you already.
55
To choose to buy pillow cover that appropriate for you, you must understand the
requirement for your sleeping before initial to seek to buy in the many stores, give a little
time and think of way of your life. Your lifestyle, how is it changes to? , when you compare
with the last time that you buy the bedding, and how is it different go to?
There is one type of Pillow cover that is

Pillow cover for normal size.
 Price of Pillow cover for

normal size is 490 baht
5. Baby’s bedding: Fun Wan Shop

understands the type of energy and
attention required to the daily tasks of
parenting. So, we developed our
products to fulfill parent’s need. Set
of Child Bedding is important
accessories so Fun Wan Shop made
the bedding from high quality
materials for baby’s deep sleep.
Figure 4.5 Baby’s bedding
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We developed all articles continuously to adjusted the wishes and

requirements of the nowadays parents. We always remain a challenge to our people to
make beautiful things for new parents and their children. Therefore we are always
open for good ideas and suggestions from future mothers and fathers.
Figure 4.5 Baby’s bedding

Child bedding helps baby to improve their skill and can increase EQ
(Emotional Quotient) and PQ (Play Quotient). Colorful bedding of child can attract all
children. So, we should understand the nature of children that which types of bedding
is suitable for them to avoid the unexpected accident.
Fun Wan Shop has a beautiful design and colorful.

And our products also develop hand and eye co-ordinates
and gain a sense of size and shape through grasping and
holding.
Our products will focus on the lovely pattern. And

it also helped children to develop the learning. And it also
makes children sleep comfortably and feeling smooth with
our products that safety and quality.
There is one type of Baby’s Bedding that is Baby Size.
Figure 4.5 Baby’s bedding  Price of Baby’s

Bedding is 3,290 baht
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6. Wall hanging: A flat decorative

object, such as a tapestry, rug, or antique map,
hung against a wall. And decoration is hung (as
a tapestry) on a wall or over a window. It will
enjoy exploring these breathtaking fabrics and
designs. Clearly it defined by style and origin,
our tapestry feature historic, cultural and
modern themes. We also offer a collection of
elegant.
Figure 4.6 Wall hanging
There are two types of Wall

hanging that are Wall hanging for small
size and Wall hanging for large size.
 Price of Wall hanging for

small size is 2,990 baht
 Price of Wall hanging for
Large size is 4,290 baht
Figure 4.6 Wall hanging
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4.1.2 Services Process
Our shop open on Tuesday to Sunday, 10a.m. to 10p.m. and close on Monday. We
divided services process into 3 parts that are customer’s greeting process, purchase order
process, and reparation process.
 Customer’s greeting process
- When customer comes in to our shop, workers will greeting “SawadeeKa”
- Workers will advise about our products to customers.
- Workers will take care of customers until they get what they want.
- When customers leave from our shops, workers will deliver a speech the thank “Thank you
and welcome to next time”
 Purchase order process
In case of products sold out or customers would like to buy special product. They can order
from our catalog or can give special design to our shop then we will contact with
headquarter.Customers can take product within 1 - 2 week which depends on easy or
difficulty of production process and also customer must put up money of their product’s
orders in half price of product. If customers want to create new design that design is out of
the catalog, a customer must pay for transportation expense that follow by the rate of NTC
Overnight Express Co., Ltd.
 Reparation process
Our shop has reparation service by depend on the damage If be a little damage the
shop will repair the product by myself and if be more damages, we will send the product to
repair at headquarter which do not pay for expenses in the reparation process.
59
4.1.3 Location
Figure 4.7 Location
Fun Wan Co., Ltd. Located at 596/7 TambonRobViang, Muang District, Chiang Rai
Province 57000. Reason for locate at that there because there is business area of ChaiangRai
as well as there is center of the city. Our shop located near to Night Bazaar and Chiang Rai
bus terminal. There is opposite Top Charoen Optical and Edison Department Store.
Moreover, there are hotel, guesthouse and many shop located near to our shop.
Figure 4.7 Location
Our shop has 3rd floors (width 4 meter and deep 28 meter) that the 1st floor we are the
store, by the front and the side are the glass. For 2nd floors is the reparation area and stock
area and 3rd floors is the stock area too.
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Figure 4.7 Location
Our shop has many parking area that in front of our shop, beside our shop, and
opposite our shop has comfortable for customer.
4.1.4 Facility Layout
Decoration of shop is very important for the development shop that intent to all the
details within the shop. Because of the first thing that customers can see before other one else
are the display of our products in our shop and entrance of our shop. From observe we can
see that if these things are good and interesting design it can motivate many customers come
to our shop. Our shop should to assess the flexibility of traffic in the store and also allocate
space in the store to be more efficient. We are not designed just to make it be beauty shop but
we also plan to make our shop to be sold more effectively. Because to arranged the layout of
our shop to be good enough we will cover all areas in the shop. We need to set the plot of
products in our shop to be appropriate for serve the comfortable to our customers can walk to
see products all over. And also have adequate lighting and good weather in the shop.
References (from the http://namchiang.com/smf/index.php?topic=3612.0) tell that to

decorate our shop, we consider the points that appeal in the shop. When customers walk into
our shop, they will be often thinking about various things in addition to buying products. To
placing the table or have an exhibition to show our products nears the door of entrance it can
make customers stop to thinking stories of them and thinking about what is the thing that our
shop wants to showing.
61
 Pattern of store building Structure

Shop building of Fun Wan Shop has 3rd floors. It’s width about 4 meters and deep
about 20 meters. That are the 1st floor of our shop is the store. In the front and the side near
street are the glasses. And the one side that next to the other one building is a screen of
cement. For the 2nd floor is the reparation area and stock area. And the 3rd floor is the stock
area too.
 Pattern inside of store
Figure 4.8 Pattern inside of store
First floor
When we start from the left hand side we will see the door, we will catch sight of
many decorate things in our shop.
Layout of “Fun Wan Shop” is arranging our products systematically. For make
customers can walk in and walk out easily. And easily to access to the products that they are
looking for. Because Fun Wan Shop has to organize the layout of shop to customers can wall
throughout the shop. It’s very convenient. From observe we can see that from the entrance,
customers can walk to both the left and right side. When they are inmost of the shop, they can
turn back to another side so as to comfortable for looking the products.
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Signage of "Fun Wan Shop" is installed in the prominent positions in the front of the
shop. We also made a handmade signage and also have blinker around to it for appeal from
the customers in the night.
We divided area in the shop into 6 sections are section 1 which is bedroom show case
zone, section 2 which are six multipurpose boxes, section 3 which is show wall hanging in
the both side of wall of our shop, section 4 which is products zone and section 5 which is
corner of living for customers, and section 6 which is area of counter for payment. All of
these will be explain as the following.
Section 1 - showcase of bedding zone
We focus on providing a feeling of bedroom. “Shop is the first thing that customers
see and feel the brand and personality of our organization. Therefore to arrange the shop have
to present both of performance and our personality. It must to go together with other details
for create a strong image.”
Showcase of bedding zone will be changes every month. And plan to promote
products every month for let customers to see the new things always. To promote new
promotion by change the set of pattern of the bedding will be attracting customers to interest
more.
Section 2 - six multipurpose boxes
It’s easy to set up and also has other benefits, such as can be move as appropriate. We
will see that the use of the multipurpose box can be usable all sides of the multipurpose box.
Section 3 - show wall hanging in the both side of wall of our shop
To show the wall hanging in our shop is a Contact Point that has more important in
the key process to building Brand Experience.
Section 4 - Products zone
To show the distinguish products that can be attract appeal from the customers.
Because of this zone is set up in the heart center of our shop. It effects to make customers see
our products clearly.
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Section 5 - corner of living for customers
Corner of living composes of 1 modern table and 4 modern chairs. For serve our
customers to sit while waiting to receive their products or ask some information. In this
corner of living have catalogs and brochures of Fun Wan Shop for serve customers.
Section 6 - area of counter for payment
Areas of counter for payment should be clean, customers can easily to get in and ask
some information. And also has well management of traffic systems. To set the cashier
counter as a U shape that can allocate zone to work clearly. We divided into information
services and payment service because to provide a convenience and flexibility work.
Equipments of first floor
- Light bulbs. We use chopsticks tube, economize number five because it’s cheap
and help us to save cost. Or use the various kinds of orange light bulbs because it
is the best way to highlight the colors to be outstanding. And it also makes the
atmosphere in the shop look at more warmth.
- Chandelier. It will highlight the products to have more found out.
- Air conditioner. We will be set up it in the top of the wall which near the back of
shop. For distribute the cooling throughout the shop.
- Cashier counter. In the zone of cashier counter compose of one table and two
chairs. We use cashier counter for to a zone of estimate the price of products for
our customers. And this point is also give information for customers when they
need some information from us.
- Fax and Telephone. We need to use Fax machine and telephone to connect and
exchange information with customers who want to order products from Fun Wan
Shop.
- Computer. We use it to keep information of customers who come to purchase

products from our shop. And also keep information about products that already
sell.
64
- Calculator. We use calculator for estimate the price for our customers. And the
reason that why we need to use calculator instead use program on computer
because it’s easy when we walk to give some details for customers in the zone of
products. And then it’s easy that we can bring calculator together with us for
estimate price for customers.
- Twin bed (3.5 foot). We use twin bed in the zone of Showcase. We will have a set
of handmade bedding decorate and also change in each month to show on the twin
bed. Twin bed in the zone of Showcase will be set on behind of the door when we
come to the shop. It’s for attracts customers who come to our shop and make an
eye catching of them.
- Multipurpose box. Six multipurpose boxes will be in our shop. It use for put the
products into it for make customers can see it easily in over all side.
- Table set. Table set compose of one modern chair and one modern table. We use
table set for serve the comfortable for our customers when they need to sit for
waiting their products.
- Fujiko CCTV. We use Fujiko CCTV for the security camera because we need to
have secured from any thief. It’s all to the good save for our shop. And also
prevent the damage that can be on us.
- Drinking water machine. We use it for serve the convenience to customer when
they need some drinking.
Our shop need to have more space for comfortable to walk. And don’t have much
more cabinet in the shop because we think it will not be easy for customers to walk to looking
for the products. We provide catalogs for our customers to select products depend on their
satisfaction. And there are many products in our shop and it has a moderate large size. We
resolve this problem by use the multipurpose boxes placed to both side of room wall to
reduce the area in other parts. And we will be allocated the area to be in order and also
increase the space that is suitable to sales our products mostly. And many products of us will
be stock in the second floor and the third floor.
65
Second Floor
Figure 4.9 Second Floor

Second floor of our shop divided into three sections that are the section of the stock,
office and the section of the repair products that customers bring it to repair caused by a little
damage such a break of thread and etc.
Stock room is the important room. Fun Wan Company will be separate 6 of stock
cabinets. By divided into the type of products that are bedcovers, pillow covers, backrest
pillow (Cushion), blankets, wall hanging and baby bedding and also identify in the front of
the box about what is the type of each products. It effects to search and pick up to use easily
and safety. And it’s comfortable for employees can find the products easily. Stock cabinets
should to be in the position that easy to access and should not be very mysterious. And also in
the front of the entrance of stock room should not be having something hamper it’s for bring
the products in and out from the stock room easily.And in the second floor also is an office of
Fun Wan Company that is zone of manager, accounting department and marketing
department are in the second floor.
Zone of manager is the set of desk for manager to work and manage about Fun Wan
Company. The next is zone of marketing department. The person who works in the part of
marketing will be look at all of works about marketing, sales, customers and also
competition. The next is zone of accounting department. The cost of equipment or the tax or
the benefits from selling will be concluded in this department.
66
We understand the importance of after sales service. So, we establish the part of after
sales service provider which services the customers to repair products that caused by a little
damage by without charge from our customers. The benefit that our customers will receive is
fast service. And the other one part of cabinets is storage of the finished repair products. It’s
easy to find the products when customers come to receive their products. If the damaged of
product is very much, we will send it to repair in a head company and the customers will be
receive reports of damaged of their products before. And Head Company must to receive
confirmation from the customers before repair the products. This is for help to support and
recommend the customers in the appropriate price.
Equipments of second floor
- Electronic fan. We use 2 electronic fans for installation ventilate in the stock room
for not too hot weather.
- Light bulbs. We use 4 light bulbs for have enough light. Stock room need to have
enough light to emit thoroughly. For easy to storage and take the products. If stock
room have a little light it may cause to damage to the person who come into the
stock room. Because our stock room in the second floor have some sharp tools
such as scissors or needles that we use to repair the products and etc. So, if we
can’t see what is in the stock room because it does not have enough light, it could
be dangerous to us.
- Stock cabinet. We have to use six stock cabinets for keep the products. We
separate to be six boxes because we think it will be easy when we storage each
type of products to each stock cabinet. When we come to find the products it easy
for us.
- Table. In the zone of repair products on the second floor. There are one chair and
one table. We have to use table for place the products and the equipment that use
in the process of fixing it.
- Multi functional cabinet. This cabinet uses for keep the products that already
repair finish. We will keep it in the cabinet and when the customers come to
receive their products, it easy to find the products for them.
67
- Small plastic drawer. We use it for put the equipments that need to use on the
process of fixing products such as eraserScissors Cutter needles
Third Floor
Figure 4.10 Third Floor
In fact there are many types of stock room and each type has different advantage and
obligation. Third floor of our shop is particular stock room. We have to divide this area of the
stock room. The particular stock room of our shop is quite being large. This stock room is
designed to work to the full. And also have the full of utility. First of all, all of products that
we bring it to storage in the stock room will be at the third floor. And the next step will
quietly move to storage in the stock room in the second floor for prepared to distribute to
customers next.
Equipment of third floor
- Light bulbs. We use 4 light bulbs for have enough light. Stock room need to have
enough light to emit thoroughly. For easy to storage and take the products. If stock room have
a little light it may cause to damage to the person who come into the stock room and will not
be comfortable for find the products.
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4.1.5Equipment
1. Cashier counter
 Price 3,550 Baht.

 Office desk size 120*60*75 cm. price 1,750
Baht.
 Computer table size 80*60*70 cm. price 950
Baht.
 Corner table size60*60*75 cm. price 1,050
Baht.
2. Work table
 Price 2,660 baht
 Size150*80*75 cm
3. Manager table
 Price 13,900 Baht
 830*1600*760 mm.
69
4. Chair
 price890 Baht
 Chair staff
 size63x63x96-107 cm
5. Chair

 Size67(width)*73(length)*115-127(high)
6. Twin bed (3.5 foot)
 Price3,900 Baht.
 Twin bed 3.5 feet
70
7. Multipurpose box
 Price999 Baht.
 Multipurpose box
 Size 35x94x123 cm
8. Table set
 Price 2,490 Baht.
9. Bin
 Price 45 Baht.
71
10. Light bulb
 Price 55 Baht.
 Light bulb number 5
11. Air condition
 Price: 17,990 Bath.
 MitsubishiMS-56E18UV-T1
 Power Source : 1Phase, 220V,

 50Hz
 Capacity : 5.2kW
 Input : 1,490W
 Current : 7.4A
 Exterior dimensions (H x W x D) [Indoor unit] : 318 x 1,098 x 248mm
 Exterior dimensions (H x W x D) [Outdoor unit] : 640 x 850 x 290mm
 Net weight [Indoor unit] : 15kg
 Net weight [Outdoor unit] : 47kg
 Refrigerant : R22 : 1.30kg
 Air flow [Indoor unit] : Cooling : 20m³/min
 Air flow [Outdoor unit] : Cooling : 38m³/min
 Compressor motor [Outdoor unit] : 1.3kW
 Refrigerant piping [Liquid line] :6.35 (1/4 in.)mm
 Refrigerant piping [Gas line] :15.88 (5/8 in.)mm
 Connecting wiring : 1.5mm² x 4cores (including earth cable)
 Connecting method : Terminal block (screw fixing type)
 Noise level [Indoor unit] : 45dB(A)
 Noise level [Outdoor unit] : 49dB(A)
72
12. Calculator
 Price 345 Baht.
 CitycalCalculator
13. Eletrical fan
 Price739 baht
 Imarflex
 screen size 16 inch blade
14. Fax
 Price 2,970 baht.

 Sharp
 Model: GQ-12
Time to send in 15 seconds * per plate.
 Definition of landscape images: 8 points / mm
 Vertical: 15.4 lines / mm
 in the Super Fine 7.7 lines / mm
 in the Fine / Halftone 3.85 lines / mm
 in the Standard.
 Page width of the original 216 mm maximum
 Page width of 210 mm recorded the highest
73
 Page width of 210 mm maximum reading

 Paper size 216 mm x 30 m
 Enter the original document continuous sheet 5.
 Power 220 volt + 10%, 50/60 Hirsch matches.
 Maximum power consumption 115 watts.
 Machine size (width x length x H) 304 x 236 x 122 mm
 Weight approximately 2.6 kg.
15. Chandelier
 Measurements: 22 W x 27 T
16. Computer Set
 Code: KY781AA # AKL.
 Brand: HP-Compaq.
 Model: Compaq Presario CQ3072L (KY781AA #

AKL).
 Brief Details:.
• Intel Pentium Dual Core Processor E5400 (2.7GHz). • RAM 1GB DDR2 up to 4GB.
• Hard Drive 320GB SATA at 7200rpm.
• Intel GMA 3100 Graphics with 128MB.
74
• DVD + /-RW / + /-R Super multilayer.
17.Desk
 MTF-18-24-30
 Brand: TOKAI
 Size: 1220x450xhigh737 mm.

18. Multi functional cabinet

 CB-78B-01-furniture
 Brand: TAIYO-Fe’
 Size: 915x457x1980 mm.

19. Chair
 Price: 390 Baht

 Brand: Unicorn Furniture
75
20. Document cabinet

 M-481- Furniture
 Brand: TUM
 Size: 800x400x850mm. Black color

21. Drawer
 Price 70 Baht.
 Model: CUL15
 Size: W190 x D300 x H77 mm.
 Price 70 Baht.
22. Drinking water machine
 Size (wide x deep x high) 300 x 300 x 900 millilitre
 Materail : Stainless
 Compresso 70 Watt (1/8 HP)
 Temperature 5-10 Degree Celsius
76
23. Plug
 Price 135 baht.
24. Vacuum cleaner
 1,600 Watt
 Power 440 Watt
 Capacity 3 Liters
 Warranty 1 year.
 Size 20 x 13 x 12 cm.
 Weigh 4 Kg.
25. Fujiko CCTV

 FK-8880
 FK-NEW204YO
 FK-600
26. Multipurpose Dry Chemical Fire Extinguisher
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 Price 4,000 baht
Multipurpose Dry Chemical Fire Extinguisher in red bucket.

This fire extinguisher is dry chemical. When you use it push
chemical to fire and fire will extinguisher a fire. It is easy to use
(guarantee by TISI). It is speedily extinguishes fires of all types,
(wood, paper-textile, rubber, oil gas and electric)
27. Rubber stamp of company
 Price 140 baht per piece (include with freight cost is 30

baht)
The rubber stamp of company is very important for company

limited registration. Our company uses the rubber stamp when we
are sending the registration document. The company can submit
the document at Provincial Department of Business Development
in Chiangrai. It located at commercial building Autrakit rd. Wiang
sub-district, Mueng, Chiangrai 57000. The rubber stamp of
company makes order from Pt Studio Graphic Design. It is an
online shop and located at BangSue, Bangkok 10800. Telephone number is 089- 5893579.
Website of this shop is http://ptstudio.tarad.com. Size of rubber stamp is 3x3 cm.
78
Stationary
1. Pen
 Price 150 baht.
2. Pencil
 Price 75 baht.
3. Eraser
 Price 15 baht
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4. Ruler
 Price 7 baht.
5. Liquid paper
 Price 50 baht.
6. Scotch tape
 Price 99 baht. (Per pack).
7. Stapler
 Price 75 baht.
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8. Scissors
 Price 55 baht.
9. Cutter
 Price 30 baht.
10. Document file
 Price 40 baht.
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11. Cash bill
 Price 135 baht.
12. A4 paper
 Price 430 baht.
13. Highlighter
 Price 15 baht.
14. Stamp pad ink
 Price 9 baht
 Size 28 CC
 Two Colors red and blue
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15. Stamp pad
 Price 17 baht
 Size 7.9x12.6 cm
 Two colors red and blue
16. Punch machine
 Price 269 baht.
17. Blade
 Price 110 baht (per box)
18.Staple
 Price 130 baht (per dozen)
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19. Bin
 Price 45 baht.
4.1.6 Logistics Management
Logistics is the management of the flow of goods, information and other resources,
including energy and people, between the point of origin and the point of consumption in
order to meet the requirements of consumers. Logistics management is that part of the supply
chain which plans, implements and controls the efficient, effective forward and reverse flow
and storage of goods, services and related information between the point of origin and the
point of consumption in order to meet customer and legal requirements. Nowadays, our world
is the economic world of competition. So, the logistics activities is the strategic that very
important for distribute our product.
For Fan Wan company use the logistics which is inland transportation for distribute
our product. Our company will use the transportation every month because our company will
order handmade bedding from headquarter in Nakornsawan province for stock the product.
By use
NTC
84
Overnight Express Co., Ltd.
Figure 4.11 Logistics Management

NTC Overnight Express established in 1995 October 10th with the inspiration of
company’s director who used to work for Railway department which is responsible as a
delivery. During working for railway department our director also have an idea about
changing the service system to satisfy our customer. After resignation from Railway
department the director bring his philosophy “Get a package within 24 hrs” to impress the
customer with our service and responsible for customer’s property and merchandise these
will be our first priority as you can see our standard “Comfortable Accessible Reliable
Guarantee” Nowadays NTC deliver the merchandise to 4 divisions of Thailand Northern,
Central, North-East, and east of Thailand including 150 districts 36 provinces with more 20
branches to provide the merchandise to its destination. NTC Overnight Express got more 200
large and small container cars standby and ready to serve in the service area.
 Transportation rates
In the North part of Thailand, freight charge that collect from the customer.
Rate of the North part of Thailand

30x38x44 46x60x30
Province
1-10 kg. 11-20 kg. 1-10 kg. 11-20 kg.
1 Nakornsawan 35 55 55 85
2 Phitsanulok 35 55 55 85
3 Phichit 55 75 75 95
4 Phetchabun 55 75 75 95
5 Uttaradit 35 55 55 85
6 Sukhothai 67 82 82 115
7 Phrae 35 55 55 85
8 Nan 55 75 75 95
9 Phayao 55 75 75 95
10 ChiangRai 55 75 75 95
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11 Lampang. 35 55 55 85
12 ChiangMai 35 55 55 85
13 Lamphun 55 75 75 95
Table 4.1Rate of the North part of Thailand
4.1.7Facility Management
Facility management is an interdisciplinary field primarily devoted to the

maintenance and care of commercial or institutional buildings, such as hotels, resorts,
schools, office complexes, sports arenas or convention centers. Duties may include the care
of air conditioning, electric power, plumbing and lighting systems; cleaning; decoration;
grounds keeping and security. Some or all of these duties can be assisted by computer
programs. These duties can be thought of as non-core or support services, because they are
not the primary business (taken in the broadest sense of the word) of the owner organization.
We can divided our facility management into 4 groups; electricity system, water system,
telephone, and security camera.
 Electricity system
Figure 4.12 Electricity systems
We rent the building in the center of city. So they provided the electricity included the
building when they build the building. Then we did not contract with the government for
install electricity in the building that we rent.
86
 Water system
Figure 4.13 Water systems
The owner of building also provided within the building. Then we did not contract
with the government for install water from the main.
 Telephone system
Telephone the owner did not provided it. So

we need to contract with telephone offices to come
install the telephone for us. We contract with the
TT&T Public Company Limited to install the Figure 4.14 Telephone system
telephone. Currently, they do not have promotion
yet. Then the rate to install is 4,005 baths. In 4,005 baths, they provide one telephone
machine, 500 meter of main line, and one point in house.
 Security Camera systems
We used security camera of Fujiko because they have

warranty for lose products. They pay 300,000 baths for lose
products. The security camera series is FK-NEW 204YO. They
provided 2 camera, control machine, and hard disk 250 GB.
Figure 4.15 Security Camera systems
4.2 Cost of Investment
4.2.1 Pre- operating cost
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 Establishment of Company Limited
To establish the company limited, shall process according to the following:
1. Must have at least 3 persons signing together in order to prepare Memorandum and then
register. Upon receiving the amount of shares, the director must register as the company
within 3 months from the date of company’s meeting to establish the company.
The promoters must have the following qualifications:

- Be ordinary person, not juristic person
- Be 12 years old or more
- Must reserve to buy at least 1 share
Information used to register the Memorandum
- Company’s name (the same as the name reserved)
- Location of head office (located at which province)
- Objective of the company
- Registered capital must be divided into each share with the same value (share’s
value must be at least 5 Baht)
- Name, address, age, occupation and number of shares that persons who start up the
company reserve to buy the shares)
- Name, address, age of 2 witnesses
2. When the Memorandum has been registered, shall perform the following:
- Every promoter manages to reserve and buy all the shares
- When all the shares are reserved, the promoters must with out delay hold a general
meeting of subscribers which shall be called the statutory meeting.
3. Meeting agenda.
- The adoption of the regulations of the company, if any.
- The ratification of any contracts entered into and any expenses incurred by the
promoters in promoting the company.
- The fixing of the amount, if any, to be paid to the promoters.
- The fixing of the number of preference shares, if any, to be issued, and the nature
and extent of the preferential rights accruing to them.
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- The fixing of the number of ordinary shares or preference shares to be allotted as

fully or partly paid-up otherwise than in money, if any, and the amount up to whice they shall
be considered as paid-up.
- The description of the services or property in return for which such ordinary shares
or preference shares shall be allotted as paid-up shall be expressly laid down before the
meeting
- The appointment of the first directors and auditors and the fixing of their respective
powers.
- No resolutions of the statutory meeting are valid unless passed by a majority
including at least one half of the total number of subscribers entitled to vote, and representing
at least one half of the total number of shares to such subscribers.
4. The promoters shall over the business to the directors.
5. The directors shall the reopen because the promoters and subscribers to pay forth with
upon each share payable in money such amount, not less than twenty-five percent of the
share's value.
6. When the collection of share’s price is complete, the authorized director shall prepare the
request for the registration of company’s establishment and submit to the registrar.
Regarding the submission for registration, the authorized director shall sign the name
on the request and must submit to register within 3 months from the date of company
statutory meeting. If not registered within the specified period, the company statutory
meeting shall be void and if would like to register to establish the company, shall arrange the
meeting for persons who reserve to buy the shares again.
Regarding the company establishment, if can perform every step as follows within the
same day that the promoters prepare the Memorandum, and the director can request to
register the Memorandum and register the company within the same day. Shall have the
persons reserve to buy all the shares that the company can be registered. Arrange the meeting
to establish the company to consider various affairs according to the Civil and Commercial
Code, section 1108, and all the persons who start up the company and all the persons who
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reserve to buy the shares shall attend the meeting, and all of them shall agree in the affairs in
the meeting. Persons who start up the company assign all the affairs to the director. The
director call the person who reserves to buy the shares to pay the shares according to the Civil
and Commercial Code, section 1110, section 2 and such share’s price has already been paid.
 Fee Rate for Registering Company Limited
Registration Company Limited Baht

1. Registering the memorandum of association 500.-
1.1 Registered capital of no more than 1,000,000 Baht 50.-
1.2 Every 100,000 Baht of the increase of registered
capital
50.-
(fraction of 100,000 Baht shall be counted as
100,000 Baht)
1.3 Registered capital of more than 50,000,000 Baht 25,000.-
2. Register for company limited’s establishment 5,000.-
2.1 Registered capital of no more than 1,000,000 Baht 500.-
2.2 Every 100,000 Baht of the increase of registered
capital
500.-
(fraction of 100,000 Baht shall be counted as
100,000 Baht)
2.3 Registered capital of more than 50,000,000 Baht 250,000.-
3. Registering the company’s merger 5,000.-
4. Registering the medication 250,000.-
4.1 Registering the extraordinary resolution
(capital increase / capital decrease / company’s 400.-
merger)
4.2 Registering the capital increase
(calculate according to every 100,000 Baht of the 500.-
increase)
(Increase for more than 50,000,000 Baht) 250,000.-
4.3 Registering the capital decrease 400.-
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4.4 Registering the modification of every clause of

the memorandum 400.-
of association
4.5 Registering the modification of every clause of
400.-
the regulation
per
4.6 Registering for new directors 400.-
person
4.7 Registering for partners’ resignation (no limit) 400.-
4.8 Registering the modification of directors’
400.-
authority
4.9 Registering the change of location of head office
400.-
and / or branches
4.10 Registering the modification of seal 400.-
4.11 Register other transactions that should be
400.-
publicized
5. Registering the company’s liquidation 400.-
6. Registering the change of liquidators 400.-
7. Registering the modification of liquidator’s power
400.-
and authority
8. Registering the modification of liquidation office 400.-
9. Registering the completeness of liquidation 400.-
Table 4.2 Fee Rate for Registering Company Limited
Description for investment
Fun Wan Co., Ltd. is Located at 596/7 Tambon RobViang, Muang District, Chiang Rai
Province 57000.
Shareholder as following:
1. Mr.Phithakchai Somjai, 22 years old, Thai Nationality
Address: 119/6 Srinumsuem Rd. Tumbon Uthaimai, Muang District,
Uthaithani Province, 61000
Investment Capital: 200,000 Baht.
2. Ms.Thunyalak junthiboon, 22 years old, Thai Nationality
Address: 471 Moo.1 Tumbon Sansai, Muang District,
Chaiang Rai Province, 57000
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3. Ms.Pattamaporn Prommee, 22 years old, Thai Nationality
Address: 3 Moo.9 Tumbon Bankrang, Sanpatong District,
Chiang Mai Province, 50120
4. Ms.Krongkan Temjai, 21 years old, Thai Nationality
Address: 57 Moo.1 Tumbon Thapla, Thapla District,
Uttaradit Province, 57150
5. Ms.Chatmanee Kaewplang, 21 years old, Thai Nationality.
Address: 80 Moo.2 Tumbon Tamprang, Kaenkhoi District,
Saraburi Province, 18110
 Billboard of company
Figure 4.16 Billboard of company
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The billboard of Fun Wan Company order from 4D Supply Co., Ltd. which located in
727/1-3 Uttarakit road, Vieng Sub district, Muang District, Chiang Rai 57000. Telephone
number is 053-600855. Email address is sale@4d-supply.com
The type of Fun Wan Company’s billboard is vinyl which has pink and green is main
colors. Sizes of billboard of Fun Wan Company are wide 4 meters and height 8 meters. The
billboard has English and Thai font and also include of picture of Products and logo in the
billboard.
The detail of font that uses in Billboard are
 Sort of font is JasmineUPC

 Bold
 There are 4 sizes of fonts include of 90, 105, 145, and 210 pt. as follows:
- Sizes of 90 pt use for the footer of billboard
that sentences are “Contact 053-499321,
087-8421886”
- Sizes of 105 pt use the word of type of

products.
- Sizes of 145 pt use for this sentence “Sell the

handmade bedding”
- Size of 210 pt use for the header of

billboardthat sentence is the name in English
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and Thai font of company that is “Fun Wan” and “ฝนหวาน”
There are 2 pictures in the billboard as follows

- The picture of products of Fun Wan Company.
- Size is 450 x 450 pixels (w15.88xh15.88 cm.)
- The picture of logo of Fun Wan Company.

- Size is 550x480 pixels (w19.4xh16.93 cm.)
From the price rate of 4D Supply Co., Ltd. tell that inkjet outdoor that
have resolution is 72 pixels/inch by use the material is opaque vinyl by 3 PASS(the speed in
the printed for 48 square meter/hours) the price is 120 baht/square meter.
Size of billboard of Fun Wan Company is 32 square meter. So, the price of vinyl of
Fun Wan Company is 120x32 equal to 3,840 baht.
 Security camera setting
We used security camera of Fujiko because they have

warranty for lose products. They pay 300,000 baths for lose
products. The security camera series is FK-NEW 204YO. They
provided 2 camera, control machine, and hard disk 250 GB. Cost
of security camera setting depends on size of the company.
Figure 4.17 Security camera setting
 Interior design
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Figure 4.18 Interior design
Interior design, renovation, house plans, house construction, best Interior design in
Thailand, house design, office renovation, hotel renovation, Architect design, Landscape
design with completed house construction, our motto is to make everybody see the
importance of interior design. The cost for the design is 2,000 baht/square meter (from the
total area). But, for any total area which is lower than 100 square meters, the cost for the
design will be 200,000 baht. The customer will receive a discount in the amount of 1,000-
1,500 baht/square meter, therefore, the cost for the design will be changed from 2,000
baht/square meter to 500-1,000 baht/square meter, in case of the customer agree to follow the
conditions of interior construction contract.
Cost of investment
4.3 Investment Cost
 Office equipment
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 Electrical equipment
96
 Stationery
4.4
Depreciation
A noncash expense reduces the value of an asset as a result of wear and tear, age, or
obsolescence. Most assets lose their value over time and must be replaced once the end of
their useful life is reached. There are several accounting methods that are used in order to
write off an asset's depreciation cost over the period of its useful life. Because it is a non-cash
expense, depreciation lowers the company's reported earnings while increasing free cash
flow. Depreciation is, simply put, the expense generated by the use of an asset.
- Office equipment 8 years
- Computer 3 years
- Electrical equipment 5 years
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5. Management Analysis
5.1 Organization Management
Fun Wan Company managed by registers Fun Wan Company to be a company

limited. Follow the new law tells that Company limited will be arise as there are partnership
and shareholder from 5 people, company limited will be divided the capital into share and
each share will have an equal value, value of each shares shall not be less than 5 baht,
shareholders will be have a limited responsibility of the company's debt by not exceeding the
amount value of each shares that each shareholder held and must be registered as Civil and
Commercial Code and also be corporate. (Department of business development, 2009)
Fun Wan Company has to register to be Company limited at Office of Commercial

Affairs Chiang Rai in the register partnership firm department.
Name of partnership who invest in Fun Wan Company as follows:
1. Miss.Chatmanee Kaewplang
2. Miss.Krongkan Temjai
3. Miss.Pattamaporn Prommee
4. Mr.Phithakchai Somjai
5. Miss.Thunyalak Junthiboon
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5.1.1 Organization Chart
People in the organization
There are 5 positions in Fun Wan Company are 1 manager, 1 accounting

department, 1 sales & marketing department and 2 employees.
MANAGER
Accounting Sales & Marketing Employees
Department Department
Figure 4.19People in the organization
To description the characters and duties of employee in each department of Fun Wan
Company as follows:
1. Manager(1 position)
Manager is more important for organizations or entities so much. Manager will be
responsible for success things and failure things of the organization. Manager who has more
intelligence, good management, good human relation, good vision and good in strategy
would to have advantages more than the manager who has less ability. Self development of
manager is more important that required. Especially to learn about the role of them for
working be fully operational capacity. This will be affecting the success of the organization
because of the survival of the organization is the basic functions of manager. The primary
task of a leader is to ensure the survival of the organization.
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Character
- Male/Female
- 24 years old up
- Bachelor degree up
- Have work experience more than 2 years will be consider in specify
- Good skill in Microsoft Office like a Microsoft Word, Microsoft Excel and
Microsoft PowerPoint
- Good skill in the organization management and good relationship with other
people
Duty of manager
- Directly responsible to provide the internal control to beeffective and levels of

productivity are always impressive.
- Manager of the Fun Wan Company must be people who have knowledge of
marketing, looking the importance of marketing and see marketing as an
investment cost. Do not see that the cost of marketing as a cost wastage.
- Manager of Fun Wan Company must be a good example foremployees and
philosophize that "Customer is God." And they should to take the closer to
customers more than meetings with employees in the company.
- Manager must not to evaluate the work of employees in just sales or profit, but
should to assess in the ability that they can retain the existing customersand to
satisfy customers until enable customer’s loyalty to use our products.
- Assessment of internal control of each department.
- Manager is a person who planned long-term decisions about the overall direction
of Fun Wan Company, set the objectives, policies and strategies planning of
company.
- Recommended the management in all things that have already defined.
- Maintain the viability of the company.
- Manager is a person who decisions the main important thing in the finalsuch as
the personnel budget, human resource and business plan.
2. Accounting Department
Accounting and Finance Department have a responsible for revenue and expenses of
all internal value of Fun Wan Company such as the general work, documentation, fees, media
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advertising, materials in the company and other expenses. And also they doing other works
that have assigned for make the job well done.
And the accounting department will be managing the finance of the company to make
a financial liquidity of company. Managing the budget for make a finance spending complies
with regulations.
Character
- Male/Female
- 23 years old up
- Bachelor degree up
- Have an experience in accounting will be consider in specify
- Have a good skill to use program computer
Duty of accounting department
- Responsible for overseeing the operation of the accounting follow the regulation
of the account of Fun Wan Company.
- Review and analysis of financial statement.
- Check the accuracy of cash flow and the daily reports.
- Collect the items that will be prepared for making an income statements and
expenses.
- Offer financial budget to the manager informed.
- Acts of funds disbursement of Fun Wan Company.
- To storage the certificate documentation of Fun Wan Company.
3. Sales and Marketing Department

"Marketing process" consists of 4 steps are the analysis the opportunity marketing,
define strategies marketing, planning and organization, implementation and controlling.
"Market-oriented planning by focused target market" is a management process to

develop and the right consistencies between the organizational objectives, organizational
skills, and resources of the organization.
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"Market-oriented planning" may occur four things are the highest level characteristics
(Corporate Strategy), class level (Division Strategy), business unit level (Business Unit
Strategy) and the product level (Product Strategy).
Character
- Female
- 23 years old up
- Bachelor degree in marketing or similar degree up
- Have a good skill in computer and Microsoft office
Duty of sales and marketing department
- To define common strategies and policies of Fun Wan Company to achieve its
objective in all aspects of overall quality (Total Quality Excellence.)
- Everyone must work together to create and deliver quality marketing with the
product quality to customers.
- Each marketing activities want to be taken with standards. (Such as market
research, training, advertising sales. Customer service, etc.)
- Marketing need to track and create a feel good relationship with customers. An
impressive customer loyalty.
4. Employee
To be a good employee does not be a clever always. Have a proof to prove that clever
people are not always good people. Today we need an honest people. If employee can take
care themselves and increase their capacity to work well, then you will be having a
professional employee.
Character
- Male/Female
- 20 years old up
- Honest
- Have a good relationship
- Love to work in service and serve the customers need
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Duty of employee
- Diligent, honest, have a self-development and love the company.

- All employees must be aware that whatever they work in any department. Their
responsibilities are to help the company search new customers. And retaining the
old customers.
- All employees of Fun Wan Company are ready and willing to help customer and
take care of them.
- Employees must be trained to recognize rigorous appreciation of the importance
of customers is very grateful of your customers. Employees must not be arrogant.
The employees were doing to the customers, they must not think that they can
help customers, but they must think that customers are helping them to work and
get a salary. This idea will make employees have a good conscious of customer
service.
5.2 Administration cost
Utilities expense
 Electricity expense
Electricity charge rate by Provincial Electricity Authority
For Fan Wan company is a small business that uses electric energy average in 15 minutes and
less than 30 KW.
Table 4.3 Electricity expense
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Electricity charge expense / month method
22 meters voltage in rate = 2.4649 xunit
Electricity approximate 500 units x 2.4649 = 1,232.45 baht
Add Service expense = 228.17 baht
Total Electricity expense / month = 1,460.62 baht
Figure 4.20 Electricity’s bill
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 Water expense
Water rate
by
Provincial Waterworks Authority
107
Table 4.4 Water expense
Figure 4.21 Water’s bill
 Telephone expense
Figure 4.22 Telephone expense

- Telephoning in the province.
You can call to any numbers that stay in the same province. You must press the provincial
area code followed by numbers to call. The service charge is 3 baht per call in 1 time and
unlimited in conversation.
- Domestic long distance calls.
The service charge in different province is different price. It depends on the distance of calls
to numbers beginning at 3 baht to 18 baht per minute for domestic long distance divided into
2 types as follow:
- Calls to numbers in the different province, but provincial use the same area code.
108
- Calls to numbers in the country and area code different.
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110
111
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5.2 Other expenses
Fire insurance
We have register with Viriyah Insurance, Thailand. They have fire insurance,
thunderbolt, earth shake etc. They are general insurance advice at customer premises and
claims procedures training courses to Agents etc. So we choose Viriyah Insurance, Thailand
for grantee of our shop and building. We pay 7,600 Baht per year for insurance.
Figure 4.23 Fire insurance
Social Security insurance
Figure 4.24 Social Security insurance
Background
In 1954, the Social Security Act was enacted. However, the then Government
considered that the economic condition of the country at that time was not favorable for
enforcement of the Social Security Act 1954. As a result, the ROYAL DECREE was enacted
in lieu of the said Act. In 1972, the Government by the Revolutionary Party decided that
employees who sustained injuries or illness or who died as a result of working for the
employer should be secured that they would receive compensation money. As a result, the
Government by the Revolutionary Party then issued a Notification of the Revolutionary Party
No 103 dated 16 March 1972 under which a compensation fund was established in the
Department of Labor with the intention to protection security to employees who were ill or
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injured in relation to performance of work. This Notification of the Revolutionary Party

requires the employers to make contributions to the Compensation Fund to pay for
compensation for employees in lieu of the employer; to pay for medical treatment expenses,
to payment compensation for loss of monthly income; to pay the cost of physical
rehabilitation of working capability; and to pay for funeral expense. However, the employer
shall be required unilaterally to make contribution to the fund according to the risk of such
category of business at the rate of 0.2 -2.0 percent. The Compensation Fund has started its
management of the fund since 1 January 1974 under the supervision of the Department of
Labor. This was the first step of actual social security. The Office of Social Security was
transferred to be under the Ministry of Labor and Social Welfare on 23 September 1993.
The document for registration of Employer
In the case of registration of the juristic person (must use the annexes for every defined
clause.)
1. A copy or a photocopy of the Certificate of Incorporation of the Juristic Person together

with its corporate objects.
2. A copy or a photocopy of the Value Added Tax (VAT) Certificate (Form Phor.Por. 10);
or a copy or a photocopy of the Specific Business Tax Certificate (Form Phor. Chor. 20); or a
copy or a photocopy of the License to Operate Factory Business (Ror.Ngor. 4).
3. Sketch map of the location of the place of business.
4. The Power of Attorney (particularly the granting of authority to others to act on one’s
behalf which requires the duty stamp to be affixed pursuant to the Revenue Code)
How to register the insured
Instructions:
1. The person who is signing to certify the personal information of the insured is the person
who has the power to execute an act to bind upon the company or the authorized person.
2. A notice to register the insured with the Zone Office of Social Security must be given
within 30 days with effect from the date on which the employee is engaged as an employee or
otherwise it is an offense punishable by not more than 6 months imprisonment or a penalty
fine of not more than 20,000 Baht or both.
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3. When the fact given has been changed; a written notice to that effect must be given to the
Zone Office of Social Security not later than the 15 today of the month following the month
in which the change has taken place. If incorrect fact is given, it shall affect the rights and
benefits to be entitled to under the law.
4. The filing of the Registration Form in which other persons who are not the employees are
listed for registering as an insured shall be liable for imprisonment of not more than 6 months
or a penalty fine of not more than 20,000 Baht or for both.
Social security calculation
From social security law in Thailand assign every company that has employee more
than one person have to pay for social security. Social security assign employee pay 5% of
salary, employer pay 5% of employee’s salary and the government agency pay 5% of
employee’s salary. Social security must pay in every month.
 Billboard Tax
The base tax and billboard tax rate are area and sort of billboard. If the billboard has
specified boundary, calculate the area of the billboard by use the highest and the widest of the
billboard to be a boundary.
Billboard of Fun Wan Company makes by English alphabet and Thai alphabet. And
also include of pictures of product and logo in the billboard.
To calculate the billboard tax we will calculate by use the area of billboard multiply
by rate of billboard tax. As billboard of Fun Wan Company consist of English and Thai font.
And also include of pictures of product and logo in the billboard. By the regulation of tax
base and tax rate define that “the billboard that has a Thai alphabet combine with English
alphabet and/or combine with picture or others symbol will calculate by 20 baht/500 square
centimeter.
So, we can calculate the area of billboard of Fun Wan Company as follows:
- The size of billboard of Fun Wan Company equal wide 4 meters and
height 8 meters equal to 32 square meters.
- 1 meter = 1 square meter, 1 meter = 10000 square centimeters
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- So, 4x8 meters =32 square meters, 32 square meters=320,000 square

centimeters.
- Total billboard area equal to 320,000 square centimeters.
To calculate the billboard tax of Fun Wan Company as follows:
- 320,000 divide by 500, multiply by 20 equal to 12,800 baht.

(320,000/500 x 20 = 12,800 baht)
And then we have to pay billboard tax at Rob Wieng Sub district Administration
Organization where located at 336 Moo.5, Rob Wieng District, Muang, Chiang Rai 57100.
The contact number is 665-374-2663.
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Conclusion
In this chapter tell about technical feasibility study. It is include production and operation
analysis, cost of investment, investment cost, operation cost, and management analysis. In
each topic is taking about how to operate business.
Products of Fun Wan are bedcover, blanket, backrest pillow (cushion), pillow cover,
baby’s bedding, and wall hanging. The most products are punctilious, and then it is quite
expensive. So our shop is decorating punctiliously. It is for adapt with our products. We have
shield for protect our shop such as extinguish and security camera for recognize theft.
For logistic, we used the logistics which is inland transportation for distribute our product.
We transport products from headquarter in Nakornsawan province for stock the product. By
use NTC Overnight Express Co., Ltd. The facility management, we still used basic factor
such as electricity, water system, telephone system, and security camera.
Cost of investment, we have to invest in pre-operating cost. We are register 1million

baths for our company. Our shop is located in 596/7 Tambon RobViang, Muang District,
Chiang Rai Province 57000. It is close to Thai Air Ways office and Night Brazes Chiang Rai
Province. We warrantee our officer by pay for social security. We pay it every month for
officer. In this chapter we are telling about requirement. The position is manager, accountant,
sale and marketing, and Employee. All of this is our technical feasibility study.
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CHAPTER 5
Financial Analysis
121
Income Statement
Fun Wan Company Limited
Income Statement
Monthly Based for Year 2010
First Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Gross sales 1,453,644 1,850,092 1,189,345 1,057,196 792,897 660,747 660,747 1,321,494 660,747 660,747 660,747 2,114,391 13,082,795
Net sales 1,453,644 1,850,092 1,189,345 1,057,196 792,897 660,747 660,747 1,321,494 660,747 660,747 660,747 2,114,391 13,082,795
Cost of Goods Sold
Beginning inventory 219,604 279,496 179,676 159,712 119,784 119,784 99,820 199,640 99,820 99,820 99,820 1,676,976
Goods purchased 1,317,624 1,457,372 798,560 778,596 558,992 598,920 598,920 1,098,020 399,280 499,100 499,100 1,816,724 10,421,207
Total Goods Available For Sale 1,317,624 1,676,976 1,078,056 958,272 718,704 718,704 718,704 1,197,840 598,920 598,920 598,920 1,916,544 12,098,183
Ending inventory 219,604 279,496 179,676 159,712 119,784 119,784 99,820 199,640 99,820 99,820 99,820 319,424 1,996,400
Cost of Goods Sold 1,098,020 1,397,480 898,380 798,560 598,920 598,920 618,884 998,200 499,100 499,100 499,100 1,597,120 10,101,783
Gross Profit (Loss) 355,624 452,612 290,965 258,636 193,977 61,827 41,863 323,295 161,647 161,647 161,647 517,271 2,981,012
Expenses
Pre-operating cost 366,911 0 0 0 0 0 0 0 0 0 0 0 366,911
Marketing Expense 18,000 1,000 1,000 10,500 300 300 0 10,500 0 0 35,500 10,500 87,600
Selling and administrative Expense 75,819 75,269 74,615 74,756 74,320 74,493 74,323 74,999 74,149 74,357 74,857 75,874 897,833
Other Expense 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 41,775
Total expenses 464,211 79,751 79,096 88,737 78,101 78,275 77,805 88,981 77,631 77,838 113,838 89,856 1,394,118
EBITDA (108,587) 372,862 211,869 169,899 115,875 (16,447) (35,941) 234,314 84,017 83,809 47,809 427,416 1,586,894
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Income before interest and tax (111,077) 370,371 209,379 167,408 113,385 (18,938) (38,432) 231,823 81,526 81,319 45,319 424,925 1,557,009
Interest expense (15%) 37,500 36,669 35,827 103,996 103,996 103,996 32,354 31,459 30,552 29,634 28,705 27,763 602,451
Income Before Taxes (148,577) 333,703 173,552 63,412 9,389 (122,934) (70,786) 200,365 50,974 51,685 16,614 397,162 954,558
Income tax expense (30%) (44,573) 100,111 52,065 19,024 2,817 (36,880) (21,236) 60,109 15,292 15,505 4,984 119,149 286,367
Net Income (104,004) 233,592 121,486 44,389 6,572 (86,054) (49,550) 140,255 35,682 36,179 11,630 278,013 668,190
Retained earnings beginning of the months (104,004) 129,588 251,074 295,462 302,035 215,981 166,431 306,686 342,368 378,547 390,177
Retained earnings (104,004) 129,588 251,074 295,462 302,035 215,981 166,431 306,686 342,368 378,547 390,177 668,190
122

Income Statement
Second Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Gross sales 2,035,101 2,035,101 1,162,915 1,017,551 726,822 872,186 872,186 1,453,644 726,822 581,458 872,186 2,325,830 14,681,803
Net sales 2,035,101 2,035,101 1,162,915 1,017,551 726,822 872,186 872,186 1,453,644 726,822 581,458 872,186 2,325,830 14,681,803
Cost of Goods Sold
Beginning inventory 319,424 307,446 307,446 175,683 153,723 505,089 109,802 109,802 219,604 109,802 87,842 131,762 2,537,424
Goods purchased 1,525,249 1,537,228 746,654 746,654 564,981 153,723 658,812 1,207,822 439,208 417,248 702,733 1,976,436 10,676,746
Total Goods Available For Sale 1,844,673 1,844,673 1,054,099 922,337 718,704 658,812 768,614 1,317,624 658,812 527,050 790,574 2,108,198 13,214,170
Cost of Goods Sold 1,537,228 1,537,228 878,416 768,614 213,615 549,010 658,812 1,098,020 549,010 439,208 658,812 1,756,832 10,644,804
Expenses
Pre-operating cost 0 0 0 0 0 0 0 0 0 0 0 0 0
Marketing Expense 18,000 300 0 10,500 300 300 29,500 10,500 0 0 0 10,500 79,900
Other Expense 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 41,775
Total expenses 97,443 79,306 78,258 88,500 78,196 77,844 107,937 89,276 78,001 77,818 78,484 90,404 1,021,467
EBITDA 400,430 418,567 206,242 160,436 435,011 245,332 105,438 266,348 99,811 64,432 134,890 478,595 3,015,532
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Income before interest and tax 397,940 416,077 203,751 157,946 432,521 242,842 102,947 263,857 97,320 61,942 132,400 476,104 2,985,648
Income Before Taxes 371,129 390,231 178,882 134,066 409,643 220,977 82,110 244,059 78,575 44,262 115,799 460,596 2,730,330
Income tax expense (30%) 111,339 117,069 53,665 40,220 122,893 66,293 24,633 73,218 23,572 13,278 34,740 138,179 819,099
Net Income 259,791 273,162 125,218 93,846 286,750 154,684 57,477 170,842 55,002 30,983 81,059 322,417 1,911,231
Retained earnings beginning of the months 668,190 927,981 1,201,143 1,326,361 1,420,207 1,706,957 1,861,641 1,919,118 2,089,960 2,144,962 2,175,945 2,257,004
Retained earnings 927,981 1,201,143 1,326,361 1,420,207 1,706,957 1,861,641 1,919,118 2,089,960 2,144,962 2,175,945 2,257,004 2,579,421
123

Income Statement
Third Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Gross sales 2,537,269 2,378,690 1,427,214 951,476 792,897 634,317 792,897 1,427,214 951,476 792,897 1,110,055 2,061,531 15,857,933
Net sales 2,537,269 2,378,690 1,427,214 951,476 792,897 634,317 792,897 1,427,214 951,476 792,897 1,110,055 2,061,531 15,857,933
Cost of Goods Sold
Goods purchased 1,948,486 1,772,803 934,315 646,834 574,963 455,179 622,877 1,173,883 646,834 574,963 886,402 1,700,933 11,938,471
Total Goods Available For Sale 2,299,853 2,156,112 1,293,667 862,445 718,704 574,963 718,704 1,293,667 862,445 718,704 1,006,185 1,868,630 14,374,079
Cost of Goods Sold 1,916,544 1,796,760 1,078,056 718,704 598,920 479,136 598,920 1,078,056 718,704 598,920 838,488 1,557,192 11,978,399
Expenses
Marketing Expense 18,000 300 0 10,500 300 300 0 10,500 0 0 35,500 10,500 85,900
Other Expense 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 41,775
Total expenses 97,626 79,358 78,038 88,680 78,243 78,125 78,355 89,047 78,231 77,844 114,288 90,066 1,027,900
EBITDA 523,100 502,573 271,120 144,092 115,733 77,056 115,622 260,111 154,541 116,133 157,279 414,274 2,851,634
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Income tax expense (30%) 151,862 146,040 76,944 39,180 31,021 19,771 31,699 75,407 44,103 32,951 45,671 123,150 817,800
Net Income 354,345 340,760 179,537 91,420 72,383 46,133 73,963 175,951 102,907 76,887 106,566 287,350 1,908,201
Retained earnings beginning of the months 2,579,421 2,933,766 3,274,525 3,454,062 3,545,483 3,617,866 3,663,999 3,737,963 3,913,913 4,016,820 4,093,707 4,200,272
Retained earnings 2,933,766 3,274,525 3,454,062 3,545,483 3,617,866 3,663,999 3,737,963 3,913,913 4,016,820 4,093,707 4,200,272 4,487,622
124

Income Statement
Fourth Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Gross sales 2,775,138 2,405,120 1,480,074 1,110,055 1,110,055 925,046 740,037 2,035,101 1,295,065 1,110,055 925,046 2,590,129 18,500,922
Net sales 2,775,138 2,405,120 1,480,074 1,110,055 1,110,055 925,046 740,037 2,035,101 1,295,065 1,110,055 925,046 2,590,129 18,500,922
Cost of Goods Sold
Goods purchased 2,204,025 1,760,825 978,236 782,589 838,488 670,790 531,042 1,732,875 866,438 810,538 670,790 2,208,018 14,054,655
Total Goods Available For Sale 2,515,464 1,778,935 1,341,581 1,006,185 1,006,185 838,488 670,790 1,844,673 1,173,883 1,006,185 838,488 2,347,766 16,368,625
Expenses
Marketing Expense 18,000 300 0 10,500 300 300 29,500 10,500 0 0 0 10,500 79,900
Other Expense 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 41,775
Total expenses 97,847 79,432 78,392 88,635 78,545 78,465 107,765 89,955 78,675 78,295 78,765 90,569 1,025,343
EBITDA 179,938 910,097 283,697 182,932 193,022 147,841 73,280 407,918 238,153 193,272 147,541 543,088 3,500,780
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Interest expense (13%) 0 0 0 0 0 0 0 0 0 0 0 0 0
Income tax expense (30%) 53,234 272,282 84,362 54,133 57,160 43,605 21,237 121,628 70,699 57,234 43,515 162,179 1,041,269
Net Income 124,213 635,325 196,845 126,309 133,372 101,746 49,553 283,799 164,964 133,547 101,535 378,418 2,429,627
125

Income Statement
Fifth Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Revenue
Gross sales 3,383,026 2,960,147 1,480,074 1,268,635 1,480,074 1,057,196 1,268,635 1,902,952 1,268,635 845,756 1,268,635 3,383,026 21,566,789
Net sales 3,383,026 2,960,147 1,480,074 1,268,635 1,480,074 1,057,196 1,268,635 1,902,952 1,268,635 845,756 1,268,635 3,383,026 21,566,789
Cost of Goods Sold
Goods purchased 2,675,176 2,172,083 894,387 926,330 766,618 798,560 990,214 1,533,235 862,445 574,963 1,022,157 2,874,816 16,090,982
Total Goods Available For Sale 3,066,470 2,683,161 1,341,581 1,149,926 958,272 958,272 1,149,926 1,724,889 1,149,926 766,618 1,149,926 3,066,470 19,165,438
Expenses
Marketing Expense 18,000 300 0 10,500 300 300 29,500 10,500 0 0 35,500 10,500 115,400
Other Expense 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 3,481 41,775
Total expenses 98,322 79,933 78,372 89,148 78,527 78,461 108,267 89,700 78,630 78,472 114,252 91,145 1,063,231
EBITDA 729,311 644,247 283,718 221,215 602,987 180,174 202,096 375,844 231,732 128,437 196,111 736,489 4,532,360
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Interest expense (13%) 0 0 0 0 0 0 0 0 0 0 0 0 0
Income tax expense (30%) 218,046 192,527 84,368 65,617 180,149 53,305 59,882 112,006 68,773 37,784 58,086 220,200 1,350,743
Net Income 508,775 449,229 196,859 153,107 420,347 124,379 139,724 261,347 160,469 88,162 135,534 513,799 3,151,733
126
Statement of cash Flow

Statement of Cash Flow
First year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Cash flows from operating activities
Net income after tax (104,004) 233,592 121,486 44,389 6,572 (86,054) (49,550) 140,255 35,682 36,179 11,630 278,013 668,190
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Decrease (Increase) in Inventory (219,604) (59,892) 99,820 19,964 39,928 0 19,964 (99,820) 99,820 0 0 (219,604) (319,424)
Increase (decrease) in Accrued Expenses 218,046 (25,519) (108,159) (18,751) 114,532 (126,844) 6,576 52,124 (43,233) (30,989) 20,302 162,113 220,200
Net cash from operating activities (103,071) 150,671 115,638 48,092 163,522 (210,407) (20,520) 95,050 94,759 7,681 34,423 223,013 598,851
Cash flows from investing activities
Decrease (Increase) in Fixed Assets (158,647) 0 0 0 0 0 0 0 0 0 0 0 (158,647)
Net cash used in investing activities (158,647) 0 0 0 0 0 0 0 0 0 0 0 (158,647)
Cash flows from financing activities
Increase (decrease) in Borrowings 3,000,000 0 0 0 0 0 0 0 0 0 0 0 3,000,000
Increase (decrease) in pricipal paid (66,496) (67,327) (68,169) (69,021) (69,884) (70,757) (71,642) (72,537) (73,444) (74,362) (75,291) (76,233) (855,162)
Net cash used in financing activities 2,933,504 (67,327) (68,169) (69,021) (69,884) (70,757) (71,642) (72,537) (73,444) (74,362) (75,291) (76,233) 2,144,838
Net increase (decrease) in cash and cash
2,671,786 83,344 47,469 (20,929) 93,639 (281,164) (92,161) 22,513 21,315 (66,681) (40,869) 146,781 2,585,041
equivalents
Cash and cash equivalents at beginning
0 2,671,786 2,755,129 2,802,598 2,781,669 2,875,308 2,594,144 2,501,982 2,524,495 2,545,810 2,479,129 2,438,261 28,970,312
of year
Cash and cash equivalents at end of year 2,671,786 2,755,129 2,802,598 2,781,669 2,875,308 2,594,144 2,501,982 2,524,495 2,545,810 2,479,129 2,438,261 2,585,041 31,555,353
127

Second year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Cash flow s from operating activities
Net income after tax 259,791 273,162 125,218 93,846 286,750 154,684 57,477 170,842 55,002 30,983 81,059 322,417 1,911,231
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Decrease (Increase) in Inventory 11,978 0 131,762 21,960 (351,366) 395,287 0 (109,802) 109,802 21,960 (43,921) (219,604) (31,942)
Increase (decrease) in Accrued Expenses (108,861) 5,731 (63,405) (13,445) 82,673 (56,600) (41,660) 48,585 (49,645) (10,294) 21,461 103,439 (82,021)
Net cash from operating activities 165,399 281,383 196,066 104,852 20,547 495,862 18,307 112,115 117,649 45,140 61,090 208,742 1,827,152
Cash flow s from investing activities
Decrease (Increase) in Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Net cash used in investing activities 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash flow s from financing activities
Increase (decrease) in Borrowings 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase (decrease) in pricipal paid (77,186) (78,150) (79,127) (80,116) (81,118) (82,132) (83,158) (84,198) (85,250) (86,316) (87,395) (88,487) (992,634)
Net cash used in financing activities (77,186) (78,150) (79,127) (80,116) (81,118) (82,132) (83,158) (84,198) (85,250) (86,316) (87,395) (88,487) (992,634)
88,213 203,233 116,939 24,736 (60,571) 413,730 (64,851) 27,917 32,399 (41,176) (26,305) 120,255 834,518
equivalents
Cash and cash equivalents at beginning 2,585,041 2,673,254 2,876,487 2,993,426 3,018,162 2,957,591 3,371,321 3,306,470 3,334,387 3,366,786 3,325,610 3,299,305 37,107,837
128

Third year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Decrease (Increase) in Inventory (31,942) 23,957 143,741 71,870 23,957 23,957 (23,957) (95,827) 71,870 23,957 (47,914) (143,741) 39,928
Increase (decrease) in Accrued Expenses 13,683 (5,822) (69,095) (37,764) (8,159) (11,250) 11,927 43,709 (31,305) (11,151) 12,720 77,479 (15,029)
Decrease (Increase) in per-operating 0 0 0 0 0 0 0 0 0 0 0 0
Decrease (Increase) in Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 0
Net cash used in investing activities 0 0 0 0 0 0 0 0 0 0 0 0
Increase (decrease) in Borrowings 0 0 0 0 0 0 0 0 0 0 0 0
Increase (decrease) in pricipal paid (89,593) (90,713) (91,847) (92,995) (94,158) (95,335) (96,526) (97,733) (98,955) (100,192) (101,444) (102,712) (1,152,204)
Net cash used in financing activities (89,593) (90,713) (91,847) (92,995) (94,158) (95,335) (96,526) (97,733) (98,955) (100,192) (101,444) (102,712) (1,152,204)
248,982 270,671 164,825 35,022 (3,486) (34,004) (32,103) 28,590 47,008 (8,009) (27,582) 120,866 810,781
equivalents
Cash and cash equivalents at beginning 3,419,560 3,668,542 3,939,213 4,104,039 4,139,060 4,135,574 4,101,570 4,069,468 4,098,057 4,145,065 4,137,056 4,109,474 48,066,680
129

Fourth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Decrease (Increase) in Inventory 293,328 (345,234) 139,748 55,899 0 27,950 27,950 (195,647) 111,798 27,950 27,950 (251,546) (79,856)
Increase (decrease) in Accrued Expenses (69,916) 219,048 (187,920) (30,229) 3,027 (13,554) (22,368) 100,391 (50,929) (13,464) (13,719) 118,664 39,029
Decrease (Increase) in per-operating 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase (decrease) in pricipal paid 0 0 0 0 0 0 0 0 0 0 0 0 0
Net cash used in financing activities 0 0 0 0 0 0 0 0 0 0 0 0 0
350,116 511,629 151,163 154,470 138,890 118,631 57,624 191,034 228,323 150,523 118,256 248,026 2,418,685
equivalents
4,230,340 4,580,456 5,092,085 5,243,248 5,397,718 5,536,607 5,655,239 5,712,863 5,903,897 6,132,220 6,282,743 6,400,999 66,168,415
of year
130

Fifth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Depreciation 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 2,490 29,885
Decrease (Increase) in Inventory (119,784) 63,885 223,597 31,942 31,942 0 (31,942) (95,827) 95,827 63,885 (63,885) (319,424) (119,784)
Increase (decrease) in Accrued Expenses 55,867 (25,519) (108,159) (18,751) 114,532 (126,844) 6,576 52,124 (43,233) (30,989) 20,302 162,113 58,020
Net cash from operating activities 447,348 490,085 314,788 168,789 569,312 25 116,848 220,135 215,553 123,549 94,442 358,979 3,119,854
Decrease (Increase) in per-operating 0 0 0 0 0 0 0 0 0 0 0 0 0
Increase (decrease) in pricipal paid 0 0 0 0 0 0 0 0 0 0 0 0 0
Net cash used in financing activities 0 0 0 0 0 0 0 0 0 0 0 0 0
447,348 490,085 314,788 168,789 569,312 25 116,848 220,135 215,553 123,549 94,442 358,979 3,119,854
equivalents
6,649,025 7,096,373 7,586,459 7,901,246 8,070,035 8,639,347 8,639,372 8,756,221 8,976,355 9,191,909 9,315,458 9,409,900 100,231,700
of year
131
Statement of Balance Sheet

Statement of Balance sheet
First year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Assets
Curent assets
Cash 2,671,786 2,755,129 2,802,598 2,781,669 2,875,308 2,594,144 2,501,982 2,524,495 2,545,810 2,479,129 2,438,261 2,585,041 31,555,353
Total current assets 2,891,390 3,034,625 2,982,274 2,941,381 2,995,092 2,713,928 2,601,802 2,724,135 2,645,630 2,578,949 2,538,081 2,904,465 33,551,753
Non current assets
Equipment 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 1,903,764
Less: accmlated depreciation 2,490 4,981 7,471 9,962 12,452 14,942 17,433 19,923 22,413 24,904 27,394 29,885 194,250
Total non current asset 156,157 153,666 151,176 148,685 146,195 143,705 141,214 138,724 136,234 133,743 131,253 128,762 1,709,514
Total assets 3,047,546 3,188,291 3,133,450 3,090,067 3,141,287 2,857,632 2,743,017 2,862,859 2,781,864 2,712,693 2,669,333 3,033,228 35,261,267
Liabilities
Current liabilities
Taxes payable 218,046 192,527 84,368 65,617 180,149 53,305 59,882 112,006 68,773 37,784 58,086 220,200 1,350,743
Total current liabilities 218,046 192,527 84,368 65,617 180,149 53,305 59,882 112,006 68,773 37,784 58,086 220,200 1,350,743
Non current liabilities
Long term loan 2,933,504 2,866,177 2,798,008 2,728,987 2,659,104 2,588,346 2,516,705 2,444,167 2,370,724 2,296,362 2,221,070 2,144,838 30,567,991
Total non current liabilities 2,933,504 2,866,177 2,798,008 2,728,987 2,659,104 2,588,346 2,516,705 2,444,167 2,370,724 2,296,362 2,221,070 2,144,838 30,567,991
Total liabitlties 3,151,550 3,058,704 2,882,376 2,794,604 2,839,252 2,641,651 2,576,586 2,556,173 2,439,496 2,334,146 2,279,156 2,365,037 31,918,734
Equity
Retained earnings - 104,004 129,588 251,074 295,462 302,035 215,981 166,431 306,686 342,368 378,547 390,177 668,190 3,342,533
Total equity - 104,004 129,588 251,074 295,462 302,035 215,981 166,431 306,686 342,368 378,547 390,177 668,190 3,342,533
Total liabilities and equity 3,047,546 3,188,291 3,133,450 3,090,067 3,141,287 2,857,632 2,743,017 2,862,859 2,781,864 2,712,693 2,669,333 3,033,228 35,261,267
132

Second year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Curent assets
Cash 2,673,254 2,876,487 2,993,426 3,018,162 2,957,591 3,371,321 3,306,470 3,334,387 3,366,786 3,325,610 3,299,305 3,419,560 37,942,356
Non current assets
Equipment 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 1,903,764
Total non current asset 126,272 123,782 121,291 118,801 116,310 113,820 111,330 108,839 106,349 103,859 101,368 98,878 1,350,899
Total assets 3,106,972 3,307,714 3,290,400 3,290,685 3,578,990 3,594,943 3,527,601 3,662,830 3,582,937 3,517,310 3,532,435 3,869,804 41,862,621
Liabilities
Wages payable
Taxes payable 111,339 117,069 53,665 40,220 122,893 66,293 24,633 73,218 23,572 13,278 34,740 138,179 819,099
Total current liabilities 111,339 117,069 53,665 40,220 122,893 66,293 24,633 73,218 23,572 13,278 34,740 138,179 819,099
Long term debt 2,067,652 1,989,502 1,910,375 1,830,258 1,749,140 1,667,009 1,583,850 1,499,653 1,414,402 1,328,086 1,240,691 1,152,204 19,432,822
Total non current liabilities 2,067,652 1,989,502 1,910,375 1,830,258 1,749,140 1,667,009 1,583,850 1,499,653 1,414,402 1,328,086 1,240,691 1,152,204 19,432,822
Total liabitlties 2,178,991 2,106,571 1,964,039 1,870,478 1,872,033 1,733,302 1,608,483 1,572,870 1,437,975 1,341,365 1,275,431 1,290,383 20,251,921
Equity
Retained earnings 927,981 1,201,143 1,326,361 1,420,207 1,706,957 1,861,641 1,919,118 2,089,960 2,144,962 2,175,945 2,257,004 2,579,421 21,610,700
Total equity 927,981 1,201,143 1,326,361 1,420,207 1,706,957 1,861,641 1,919,118 2,089,960 2,144,962 2,175,945 2,257,004 2,579,421 21,610,700
133

Third year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Curent assets
Cash 3,668,542 3,939,213 4,104,039 4,139,060 4,135,574 4,101,570 4,069,468 4,098,057 4,145,065 4,137,056 4,109,474 4,230,340 48,877,461
Non current assets
Equipment 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 1,903,764
Total non current asset 96,387 93,897 91,407 88,916 86,426 83,936 81,445 78,955 76,464 73,974 71,484 68,993 992,284
Total assets 4,148,238 4,392,462 4,411,057 4,371,718 4,341,784 4,281,333 4,270,697 4,392,623 4,365,271 4,330,814 4,348,656 4,610,772 52,265,425
Liabilities
Current liabilities
Taxes payable 151,862 146,040 76,944 39,180 31,021 19,771 31,699 75,407 44,103 32,951 45,671 123,150 817,800
Total current liabilities 151,862 146,040 76,944 39,180 31,021 19,771 31,699 75,407 44,103 32,951 45,671 123,150 817,800
Long term debt 1,062,611 971,897 880,050 787,055 692,897 597,562 501,036 403,302 304,348 204,156 102,712 - 0 6,507,625
Total non current liabilities 1,062,611 971,897 880,050 787,055 692,897 597,562 501,036 403,302 304,348 204,156 102,712 - 0 6,507,625
Total liabitlties 1,214,473 1,117,937 956,994 826,235 723,918 617,333 532,734 478,710 348,451 237,108 148,383 123,150 7,325,425
Equity
Retained earnings 2,933,766 3,274,525 3,454,062 3,545,483 3,617,866 3,663,999 3,737,963 3,913,913 4,016,820 4,093,707 4,200,272 4,487,622 44,939,999
Total equity 2,933,766 3,274,525 3,454,062 3,545,483 3,617,866 3,663,999 3,737,963 3,913,913 4,016,820 4,093,707 4,200,272 4,487,622 44,939,999
134

Fourth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets
Curent assets
Cash 4,580,456 5,092,085 5,243,248 5,397,718 5,536,607 5,655,239 5,712,863 5,903,897 6,132,220 6,282,743 6,400,999 6,649,025 68,587,100
Non current assets
Equipment 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 1,903,764
Less: accmlated depreciation 92,144 94,635 97,125 99,615 102,106 104,596 107,086 109,577 112,067 114,558 117,048 119,538 1,270,096
Total assets 4,665,069 5,519,442 5,528,367 5,624,447 5,760,846 5,849,038 5,876,222 6,260,413 6,374,447 6,494,530 6,582,346 7,079,428 71,614,594
Liabilities
Current liabilities
Taxes payable 53,234 272,282 84,362 54,133 57,160 43,605 21,237 121,628 70,699 57,234 43,515 162,179 1,041,269
Long term debt 0 0 0 0 0 0 0 0 0 0 0 0 0
Total non current liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0
Total liabitlties 53,234 272,282 84,362 54,133 57,160 43,605 21,237 121,628 70,699 57,234 43,515 162,179 1,041,269
Equity
Total equity 4,611,835 5,247,160 5,444,005 5,570,314 5,703,687 5,805,432 5,854,985 6,138,784 6,303,748 6,437,295 6,538,831 6,917,249 70,573,326
135

Fifth year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Assets
Curent assets
Cash 7,096,373 7,586,459 7,901,246 8,070,035 8,639,347 8,639,372 8,756,221 8,976,355 9,191,909 9,315,458 9,409,900 9,768,879 103,351,554
Non current assets
Equipment 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 158,647 1,903,764
Less: accmlated depreciation 122,029 124,519 127,010 129,500 131,990 134,481 136,971 139,461 141,952 144,442 146,933 149,423 1,628,711
Total assets 7,644,070 8,067,780 8,156,481 8,290,837 8,825,716 8,823,251 8,969,551 9,283,022 9,400,258 9,457,432 9,613,269 10,289,181 106,820,847
Liabilities
Current liabilities
Taxes payable 218,046 192,527 84,368 65,617 180,149 53,305 59,882 112,006 68,773 37,784 58,086 220,200 1,350,743
Long term debt 0 0 0 0 0 0 0 0 0 0 0 0 0
Total non current liabilities 0 0 0 0 0 0 0 0 0 0 0 0 0
Total liabitlties 218,046 192,527 84,368 65,617 180,149 53,305 59,882 112,006 68,773 37,784 58,086 220,200 1,350,743
Equity
Total equity 7,426,024 7,875,253 8,072,112 8,225,219 8,645,567 8,769,946 8,909,669 9,171,016 9,331,486 9,419,648 9,555,182 10,068,981 105,470,104
136
CHAPTER 6
Risk Management
Business of handmade is quite less competing in market. Most of investor would like
to invest in finished goods business. Fun Wan choose to invest in Chiang Rai province
because Chiang Rai is famous in natural travel. Then tourist from Thailand and aboard will
come to travel in Chiang Rai. Therefore, the investor would like to invest in this province.
Investment has a risk. Then uncertain risk can be happen all time such as fire, flood,
theft, or seasonal etc. Fun Wan can classify our risk into 5 groups Fire, New competitor,
Theft, supplier, and obsolete design as follow as,
Risk from Fire
For risk to be fire our shop. It can be happens of all time. Our can be opportunities to
burn or electronic short in our shop. It has effect for our product and equipment. We don’t
know when will be happens. Then risk to be fire can be.
Risk form fire with our shop, we had sign contact with Viriyah Insurance. They have
insurance for fire and hailstorm. We sign contact per year. We are installing a fire
extinguisher.
Risk from New competitor
Risk of new competitor, we cannot stop who want to invest handmade business.
Handmade business in Chiang Rai is sensitive because Chiang Rai is less handmade shop.
Chiang Rai is a travel province. Then it has more opportunities to open handmade shop in
Chiang Rai.
137
We cannot stop new competitor to invest business but we can protect them to get more
market share. We will design new format to attract the customer but we still maintain our
identity. We also use promotion to attract customer and we will go to exhibition for show our
product in Chiang Rai and Bangkok to promote our shop.
Risk from Theft
Our products are quite big size. It is difficult to steal products while we open. Theft
will steal when we closed shop. At night is easy to steal. The theft would like the value
equipment in shop.
For the way to protect our shop, we are installing security camera. It can recognize the
thefts who steal our products. It is the best for us to trail theft. The security camera company
warrantee for loss product from theft.
Risk from Supplier
We have only supplier. It is possible to have a risk from supplier such as lack of
products and error produces. We don’t have other supplier. If our supplier cannot produce
from order, it will effect with our shop.
Therefore, the best way to manage risk is, we will expect sale when close to festival
and order it before festival. We prevent the problem of lack of supplier. We will not rush the
supplier to produces for prevent error products.
Risk from Obsolete Design
Obsolete is the risk for handmade product. Our products can be possible. Nowadays
fashion is changing dramatically. Then if we have more stock, it will be obsolete design.
We are thinking to reduce risk from obsolete design. We need update new design to
attract our customer. Before we will order products, we will ask supplier to give us to see
design. It avoid to obsolete design.
138
CHAPTER 7
Summary
7.1 Project Objectives

The project objective can be divides in to 4 objects as follow:
 For study about feasibility of operational management.

 For support the handicraft groups have income.
 For maintains the Thai handicraft.
 For expand the products base around country.
7.2 Benefits of Project

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

The bedding industry got together and fought for sanitary bedding laws and
eventually got them. It was not uncommon to have vermin-infested mattresses, even new off
the production lines. Organic mattresses fillings of the time were subject to all sorts of attack
by bugs, bacteria, and mildew. Cotton mattresses were popular even into the 1950's and
1960's. Cotton would mildew easily in hot humid climates before the advent of air
conditioning. Cotton mattresses differentiate themselves in price points by using
combinations of raw cotton and cotton felt. Cotton felt is cotton that is run through a garnet
machine which combs the cotton into a fine and fully layer.
139
Medium price mattresses had a layer of cotton felt on the outside portions with raw cotton
stuffed in the center. Higher priced mattresses were all cotton felt. Cotton mattresses tended
to compact and become harder with age, and innerspring mattresses tend to become softer
with age. According to bedding market survey in Thailand found that Thai consumers are
buying their bedding from an average 2 times per year. Especially fashion decoration style
hotel set has a maximum growth because the current lifestyle of many people changes from
the past. They must take on more work when their rests to sleep less as well as they have a
less time to buy bedding. Which these groups turned to focus on bedding to help their sleep
easily in the limited time and helps relax tension from work. There are the reasons why we
choose this product to run the project.
7.4 Analysis of bedding marketing
Thailand is famous in travel country. You can see from rate of travel will be growing
12% in 2553. It has affected to handmade market. The most of tourist prefer to travel in the
north part of Thailand. Then the municipal of each province are promoted their province by
exhibition and used their identity to attract tourist such as Chiang Rai has walking street. For
the situation of bedding decorate in Thailand Market. The big brands of bedding in Thailand
are TOTO, TULIP, and SATIN etc. They are compete by use only promotion. Potential
market of bedding in the direction of Chiang Rai is better because the economy and real
estate background will return to conditions that result in better overall market trends in
bedding with growth of around 10-15 percent. Owners and brand name products from
overseas in Chiang Rai and began working toward a plan to increase market distribution
channels and product development, product design, to create a brand with a variety of new
beddings to cover all customer groups. Because the behavior of the Chiang Rai people tends
to buy novelty is always popular. Bedding's competitive market of Chiang Rai as follow by
current competitive market of bedding a global strategy is to use price and promotion
increased the price of bedding and softening 40-60 percent.
140
7.5 Analysis of bedding shop marketing

7.5.1 A and Ann Towel Shop
A and Ann Towel Shop sell products are seminar our products. The located is close to
King Meng Rai the great monument. It is. The most of product are Lanna handmade and
some cloth handmade. It can be compete with our product. A and Ann Towel Shop is the
direct competitor.
7.5.2 Big C super center store
Big C super center store is a biggest store in Chiang Rai. Many people come to Big C
for buying a lot of goods. And Big C also has many brand of bedding for serve the customers
want. Many bedding products of SATIN, TOTO and TULIP brand name are already in the
shelf of Big C for customers can choose and compare price with other brand name. Big C
always have a promotion for attract people come to buy products. So Big C can earn a lot of
money from customers.
7.5.2 Tesco Lotus
They also sell bedding of SATIN, TOTO, and TULP. Tesco Lotus is located in
Meachan district and Measai district. People are close to Tesco Lotus will come to buying
goods. And Tesco Lotus also has many brand of bedding for serve the customers want.
People can chose and compare with other brand in that shelf of Tesco Lotus. Tesco Lotus
always have a promotion for attract people come to buy products. So Tesco Lotus can earn a
lot of money form customers.
7.5.3 Pi Nang (Baan Duu, Chiang Rai)
They sell bedding of SATIN and TOTO brand name. Many people in Chiang Rai like
to look for bedding in Pi Nang for selecting bedding of TOTO and SATIN’s products. I Nang
is the local bedding store in Chiang Rai. The majority people in Chiang Rai know this shop.
7.5.4 MaeSai Shop
They sale the bedding cover and blanket from China. It has not brand name but price
is cheaper than our products. Many people love to shop there. And in the winter that shop
will have many design of blanket for attract customers and price will be increase too.
141
7.6 Marketing mix
Handmade bedding of Fun Wan has the best quality and has a sufficient quantity to
serve the customers want and our shop always has service for our customers. Customers can
design or choose pattern of the fabric that they want, it causes to make them satisfy of our
services. Inside the shop has a point of sitting for customers who waiting to receive their
handmade bedding products and have lounges for customers who come to purchase our
products. Fun Wan set the moderate prices for general products for our shop can be
competing in the market including setting up price to promote in some period of time.
Fun Wan” shop is located near Night Bazaar Chiang Rai where has many people around here.
It’s comfortable and easy for customers to come to our shop. Fun Wan has more strategy to
promote our sales and marketing that can reach consumers as well such as 15% discount, 500
baht gift vouchers, exhibition etc.
7.7 Technical Feasibility Study
7.7.1 Location
Fun Wan Co., Ltd. Located at 596/7 Tambon Robwiang, Muang District, Chiang Rai
Province 57000. Reason for locate at that there because there is business area of ChaiangRai
as well as there is center of the city. The location is near the customer and easy to access for customer. It can
attractive for customer because this locate is on the main street for travel.
7.7.2 Layout
142
7.7.3 Cost of investment
Pre-operating costs
Pre-operating costs are expenditures made in a period that precedes operation, to

establish a business. These costs may be deferred in limited circumstances.
7.7.4 Investment costs
Investment costs required beyond the development phase to introduce into operational
use a new capability; to procure initial, additional, or replacement equipment for operational
forces; or to provide for major modifications of an existing capability. They exclude research,
development, test and evaluation, military personnel, and operation and maintenance
appropriation costs.
143
144
7.7.5 Management Analysis
Organization Management
Fun Wan Company managed by registers Fun Wan Company to be a company

limited. Follow the new law tells that Company limited will be arise as there are partnership
and shareholder from 5 people
There are 5 positions in Fun Wan Company are 1 manager, 1 accounting department,
1 sales & marketing department and 2 employees.
Administration cost
Rental fee
Fun Wan has to pay 65,000 baht per month.
Electricity expense
The cost per unit of electricity is 2.978 baht. Fun Wan pay 2,500 baht in the
first month and increase or decrease according to the sales.
Water expense
The cost per unit of water supply is 0.9 baht. Fun Wan pay 80 baht in the first
month and increase or decrease according to the sales.
Telephone expense
- Telephoning in the province.
You can call to any numbers that stay in the same province. You must press the provincial
area code followed by numbers to call. The service charge is 3 baht per call in 1 time and
unlimited in conversation.
- Domestic long distance calls.
The service charge in different province is different price. It depends on the

distance of calls to numbers beginning at 3 baht to 18 baht per minute
Fun Wan pay 1,200 baht in the first month and increase or decrease according to the sales.
145
Other expenses
Fire insurance
We have register with Viriyah Insurance, Thailand. We pay 7,600 Baht per
year for insurance.
Social Security insurance
Social security assign employee pay 5% of salary, employer pay 5% of

employee’s salary and the government agency pay 5% of employee’s salary. Social security
must pay in every month.
Billboard Tax
Fun Wan pay 12,800 baht per year for billboard tax.
7.8 Financial Analysis
Net incomes always increase in every year except in 2012 net income will a little bit
decrease. From 2010 to 2011 our cash flow decrease dramatically but 2012 to 2014 cash
flow change to increase and our balance sheet have always increase.
Net present Value is equal 2,909,555
Internal Rate Of Return is equal 55%
Investors can get money back with 26 months
7.9 Risk Management
Business of handmade is quite less competing in market. Most of investor would like to
invest in finished goods business. Fun Wan choose to invest in Chiang Rai province because
Chiang Rai is famous in natural travel. Then tourist from Thailand and aboard will come to
travel in Chiang Rai. Therefore, the investor would like to invest in this province.
Investment has a risk. Then uncertain risk can be happen all time such as fire, flood,
theft, or seasonal etc. Fun Wan can classify our risk into 5 groups Fire, New competitor,
Theft, supplier, and obsolete design
146
Appendix
147
Group Member
1. Krongkan Temjai ID: 4931203004
2. Chatmanee Kaewplang ID: 4931203022
3. Thunyalak Junthiboon ID: 4931203038
4. Pattamaporn Prommee ID: 4931203053
5. Phithakchai Somjai ID: 4931203191

Project Feasibilty Study and Evaluation

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Project Feasibility Study and Evaluation course is use of mathematical analysis to

-Backrest pillow (Cushion) 12

Financial and sales 18

Chapter 3: Market Feasibility Study 19

-Competition Analysis (3C Analysis) 23

Marketing Mix Strategy 29

Sales Forecast/Profit Estimation 33

Purchase order process 57

-Pre- operating cost 85

Chapter 5: Financial Analysis 118

Chapter 6: Risk Management 134

Risk from New competitor 134

Risk from Theft 135

Risk from Supplier 135

Risk from Obsolete Design 135

Chapter7: Summary 136

1.1 Background and significance of the project

1.2 Project Objectives

1. To study feasibility of operational management.

1.3 Benefits of Project

1. To everyone know Thai handicraft.

1.4 Activities/Time Frame

Time frame of the study since November 2009 - November 2010

Remark: For one week For two week

For three week For a month

More than one month

2.1 Nature of Industry

Sheets: flat and fitted

Comforter: a thick puffy cover designed for warmth, often reversible

2.2 Situation of Industry

Figure 2.1 Situation of foreigner

Figure 2.2 Chiang Rai walking street

 King size (6.5 x 6.5 foot)

 King size (100x92 inch)

Backrest pillow (Cushion)

Backrest pillow size:

 Small Size (15x15 inch)

Pillow covers size:

 normal size (80x130 cm)

Baby bedding size:

Wall hanging size:

“The best handmade bedding retailer in Chiang Rai”

Strategy of marketing that important can be summary as follow:

 Financial and sales

Strategy of financial and sales can be summary as follow:

Market Feasibility Study

3.1 Market Analysis

3.1.1 General Environment Analysis

For firms that effectively compete in an organization, an analysis of its specific

Figure 3.1 Political Factor

Figure 3.2 Social Factor

Figure 3.3 Technological factors

3.1.2 Competition Analysis (3C Analysis)

We can classify the competition analysis to 3 part, Competitor Analysis,

Therefore the indirect competitors

Figure 3.4 A and Ann Towel Shop

Figure 3.5 Big C logo

Figure 3.6 Tesco Lotus logo

Figure 3.7 Pi Nang

Figure 3.8 Shop in Mae Sai District

From our survey questionnaire, we got information of customer behavior in Chiang

1. Rivalry Among Current Competitors