IT 2U

GROUP MEMBERS

KITTIKUN MONGKONCHAIHAN ID 5331205005

NUTNAREE IADHAD ID 5331205025

DUANGNAPA TRAKULLTHONGCHAI ID 5331205028

PAILIN JANPRADIT ID 5331205062

RUKNUAL CHAIKUL ID5331205069

RUTHAITIP NAKNARONG ID 5331205072

SUKONTHIP PANONVICH ID 5331205094

AJCHARAWAN VONGKHAMSAO ID 5331205102

SECTION 2 GROUPS 2

TOURISM MANAGEMENT

MAE FAH LUANG UNIVERSITY

PREFACE

This Project is a part of 1203302 Project Feasibility Study and Evaluation Course in

the third semester of 2009. In this project is studying the feasibility of the computer shop that

name "IT2U"

Which is include generally of the computer shop business, management in the

computer shop business, competition analysis and marketing feasibility, the technical process

in the computer shop business and the financial feasibility of the computer shop business.

This project makes everyone who interested to get knowledge and information about the

computer shop business before make decision to investment, including preoperational process

and operation process of the computer shop business, for the benefit to investment and profit

of doing this the computer shop business. I expect that my project will provide benefit more

and more interested person, moreover, if they are any error in this project or whatever, my

ground made an apology at this opportunity. The information in this report mostly provides

benefits for people who are read. And it can attract others people who would like to know

more of the detail about feasibility of the computer shop. We hope that this report will give

more benefits and knowledge to others.

Content

Chapter 1: Introduction Page

1.1 Background 1-2

1.2 Project Objective 2

1.3 The data collecting method 2-3

1.4 Benefit 3

1.5 Actual plan 4

Chapter 2: Industry Profile

2.1Nature of Industry 6-7

2.2 Situation of Industry 7-8

2.3 Product & Service 9

2.4 Vision 10

2.5 Mission 10

2.6 Strategy 10

2.7.1 Corporate Level 11

2.7.2 Business Level 11

2.7.3Function Level 12

2.8 Human Resource Management 12-13

2.9 Logistics Management 13

3 Marketing management 14

Chapter 3: Market Feasibility Study

3.1 Market Analysis 16

3.1.1 General Environment Analysis 16-20

3.1.2 C competitions Analysis 21-22

Competitor Analysis 22-27

3.2 STP Analysis 27-30

3.3 Marketing Mix Strategy 30-33

3.4 Sales Forecast 33-35

3.5 Sale for cash 36-39

4.1 Marketing Expenses 40-42

4.2 Conclusion 43

Chapter 4: Technical Feasibility Study

4.1 Production and Operation Analysis 45

4.1.1 Product characteristics 45-47

4.1.2 Service process 47-49

4.1.3 Location 49-50

4.1.4 Store Layout 50-52

4.1.5 Machine, Tool and Equipment 53-61

4.1.6 Logistic Management 62

4.1.7 Organization Management 62-64

4.2 Cost of investment 65

4.3 Investment Cost 65-69

4.4Management Analysis 70

4.5.1Electricity 70-72

4.5.2 Water Supply 72-73

4.5.3 Drinking water 74

4.5.4 Telephone 74

4.5.5 Insurance 75

Conclusion 76

Chapter 5: Operating Cost 77-80

Chapter 6: Administration Cost 81-84

Chapter7: Financial Analysis 85-100

Chapter8: Management risk 101-107

Chapter 9: Summary 108-112

References: 113

Chapter 1

Introduction

1

Chapter 1: Introduction

IT 2 U Business located in Chiang Rai. Our business is retail shop that provides IT

products for selling and provides service for advising the IT products for customers both

before and after buying our products. At first year, we sell only notebook, and printer. For the

next year later, we will add more IT accessories products for response the costumers’

demand.

1.1 Background

Retailing business is very important for today 1with the emergence of modern

technology business has globalized and become a 24 hour endeavor. With the introduction of

the internet, business opportunities have virtually become endless. This same technology has

also made consumers more aware and better informed, giving them a better grasp on prices

and the ability to purchase products globally. To be competitive in this environment,

businesses need to be able to streamline their workflows, manage security,

communicate effectively and improve efficiency.

Table 1 Number of establishments by sales of good via internet, Amphoe and Tambon in

Chiang Rai.

Amphoe/Tambon Number of establishments Sales of IT

Yes No

AmphoeMueang Chiang Rai 10,716 44 26,063

TambonWiang 1,638 6 1,632

TambonRopWiang 4,639 20 4,619

Tambon Ban Du 1,947 4 1,943

Tambon Nang Lae 355 0 355

Tambon Mae Yao 349 0 349

Tambon Sam Sai 395 0 395

Tambon Rim Kok 999 1 998

Tambon Pa Oa Don Chai 394 0 394

From the table in Chiang Rai province has many shops such as Tambon Ban Du, it

have number of establishments 1,947 and sales of IT 4 shops, so Tambon Ban Du is direct

competitor. And the next competitor is Tambon Nang Lae, it have number of establishments

355 and no have sale of IT. Therefore competitor is Tambon Ban Du which not near our shop

this is the good way that sell the product (IT).

2http://chiangrai.nso.go.th/

2

Technology and IT products also important for today, 3at every instant of time, you are

surrounded by technology, literally. Whether you are working or resting, you are always

using technology. It is used everywhere and all the time. Technology has changed the way

people communicate, have evolved from pigeons carrying messages to emails and instant

messages that travel long distances in seconds. Cellular technology and satellite

communication have increased communication speeds and made connecting easier. The

Internet has enabled easy exchange of information over long distances. At the heart of every

piece of technology is automation. Technology automates the most complex of processes, be

it in communication, education, medicine or any other industry. With the application of

technology, critical and time-consuming processes can be executed with ease and in less

time. They save human effort and time to a great extent and make life easy and comfortable.

Nothing else has changed living the way technology has. And that's exactly why technology

is so important today and will always be.

1.2Project Objective

- To provide the project feasibility of information technology business

- To study the market and debut of information technology

- To calculate financial factors of this business

- To penetrate the market of teenagers are interesting

1.3The data collecting method

We are going to use many methods in collection data. The methods we use

depend on type of data as below:

1http://www.smartofficescan.com/.../SOS-en-VRetail2.1.pdf

2http://chiangrai.nso.go.th/

3http://www.buzzle.com/articles/why-is-technology-so-important-today.html

3

Primary data

- Survey:

We have to survey about the demand of IT products and its accessories

especially PC, notebook, and printer. The risks of business will also be surveyed.

- Interview:

We will focus and interview the populations that use the IT products to

collect the data for perceived needs and wants of the market.

Secondary data

- Internet

- Books

- IT Shops

- Research

1.4 Benefit

To knowing feasibility of this project – we will understand how to start a business

in real situation with real facts and reliable information. This will make us realize

the risks, so we are able to avoid the problems or make the problems smaller. We

can predict the upcoming problems from the information we have gathered.

To knowing, practice, and improve teamwork skill with others.

To exchange and share ideas with others, and practice co-working together.

To knowing the real situation and innovation of retail business & IT products and

understanding the demand of IT products.

To knowing the financial management of this business and be able to control over

the process to have the maximize profit.

4

1.5 Action plan

November 2012 December 2012 January 2013 Febuary 2012

45 46 47 48 49 50 51 52 1 2 3 4 5 6 7 8

Start project feasibility

Brainstorming

Select the business

Start writing report

Introduction

Industry Profile

Market Feasibility

Technical Analysis

Financial Analysis

Risk Management

Summary

Marketing Research

5

Chapter 2

Industry Profile

6

Chapter 2: Industry Profile

This chapter contains detailed information of Information Technology business and its

current situation. Another part is information of the business, including its product and

service, vision, mission, and the strategy of the company.

2.1 Nature of Industry

Information technology (IT) can defined in number of ways, but is too broad

considered to including use of computers and telecommunications equipment to store,

retrieve, transmit and modified data. The term is common to use as a synonym for computers

and computer networks, but it covered other information distribution technologies such as

computer and notebook as well.

Technological advances nowadays have changed the way of people communicating to

another. As we all know that couple years ago, people may only rely on the phone line and e-

mails to keep in contact with others, but now they can make it easier and efficient by using

those mobile phones and text messaging features for communications. They can now sending

and receiving information to others at anytime and anywhere they want.

The new technological of communication provides the population with the easy way

of getting in touch to others, while it also offers the lower cost of communication solution.

The development of cell phone technology and internet have also find it is way to support

each other easy with the fact that now cell phones are able to offer the users with instant

access to internet content, allowing people to gain any information and news from internet at

any time they want from their handset.

1 "This is the era for the mobile communication and internet technology as it offers

great contribution to our life to accommodate everyone’s need for a simpler and efficient

communication approach." From ALEXA RANK and yes, even now businesses consider the

rapid growth of internet technology as they now apply the internet as a potential marketing

environment.

1http://www.ictbestpractices.net

7

Chiang Rai province has many organization and educational institution which to use

communication for working and other business. We focused on group of worker, student and

normal people who to uses the Information technology products in daily life for

communication system.

2.2 Situation of Industry

At the present, the fast growing computer business computer accessories are high

demand in the market. Our company sells and services after sales, as well. IT 2 U our

company believes has the potential to sell it as well. The goal is to move one of the leading

marketing channels and services.

The prediction of BKK online research center, 2Economy and a 'leg up' of the region

including Thailand. The Japanese retail giant opening pace attack 'outside' hard to expand

new wave. Mr. Maeda, Jun Inoue, Chairman Chi Family Mart Ltd., Japan said that the retail

situation in the region. ASEAN has a high growth rate continued to move higher income

populations. If the rate of customer access to convenience stores in Japan, Taiwan and Korea

at 2,800 people per store per 2,500 people each, while 6,800 people a day to see that Thailand

has many opportunities to expand the business.

http://www.nesdb.go.th/

8

3Table A-1: ICT * market value of the year 2554 and projections to the year 2555.

In terms of market share in the IT market in 2554 was found in the market. Computer

hardware market is holding up with 61 percent. The proportion accounted for.19.9 and 19.1

percent, respectively, noted that a portion of the computer hardware market.

Chiang Rai is one of province that the resident population not less. Since the majority

of the population is working age people and students. Computers are a part of life.

For the conclusion, in Thailand have opportunity for investment in IT business. The

growth of Thailand computer business is recently developing more and more which make us

sure that in the future our IT 2 U Company will make millions of profits.

Our company has opportunity to be successful for investment. Information technology

product be needed in the market and be require community system, because of the investment

the Information Technology products in the present very important.

2http://www.bkkonline.com/scripts/news/popup.aspx?contentid=33516

3www.nstda.or.th/prs/index.php/all-download/.../175--2554—2555

Market Value (million)

2554 2555f

Market share. (%)

2554 2555f

Growth (%)

53/54 54/55

1.Computer

Hardware

93,589 112,705 17.6 19.1 2.9 20.4

2.Communication 408,846 444,385 76.9 75.1 6.9 8.7

3.Software &

Software

Services

29,418 34,481 5.5 5.8 10.1 17.2

Total Market ICT 531,853 591,571 100 100 6.3 11.2

9

2.3 Product & Service

Information Technology product is product of technology useful in the present such as

computers, notebooks, mouse, earpiece and printer etc. Our company sells quality of products

and services, has promotion for sell and low prices than other company. Customers can

provide satisfy when they buy products, so our company as an alternative when customers

think about Information Technology product.

Our company has service and product for customers such as;

We have many brands of notebooks, mouse, earpiece and printer, so customers as an

alternative when they buy.

We have professional team working in Information Technology Company.

We have insurance products of customers when computer or notebook to lose and

repair.

We have suggestion and instruction from professional employees to customers before

them to buy.

Our company has a special promotion and gift vouchers for respond to customers

want.

All types of products have efficiency and ready to solve problems.

The key to success is the employees who care about the needs of our customers from

products and offer solutions that can meet all customer needs.

The Product of company

http://blog.eduzones.com/webter/8878

http://electronictoys.weloveshopping.com/shop/showproduct.php?pid=16386872&shopid=207450

http://www.buycoms.com/product-news.asp?TopicID=429

10

2.4 Vision

We will be Leadership Company about Information Technology products because our

company has efficiency and quality of products and service with professional employees.

First choice when customers think of Information Technology products. We want to be the

best one of Information Technology business in Chiang Rai.

2.5 Mission

The first year, our products are Note book, mouse, earpiece and printer.

For the first year we set the target to get profit only 5% from investment.

For the next year we set the target to get more profit from 5% up to 10% after we

increase IT product.

Integrity: To conduct our business fairly, with honesty and transparency. Everything

we do must stand the test of public scrutiny.

Terrific: To provide the best quality of IT product and services with high efficiency

staff.

Unity: To building strong relationships based on tolerance, understanding and mutual

cooperation.

2.6 Strategy

Strategic management is a process that evaluates and controls the business in which

the company is involved; assesses its competitors and sets goals and strategies to meet all

existing and potential competitors. The strategy of the company can divide into 3 levels;

corporate level, business level, and function level.

11

2.7.1 Corporate Level

In corporate level, we decide to use two strategies: Product Differentiation Strategy

and Marketing Strategy. Our company thinks about the importance of communicating with

the target audience to understand the differences of each competitor. Both of strategy has

specific unique that we think it could push the company to be success in market. There are

two reason that why we use those strategy to compete with competitors. The first reason, we

use Product Differentiation cheaper price and quality product for competitive to competitor.

The second reason, we use Marketing Strategy because we need new customer and a number

of buyers or who interest with special promotion and distribution channel.

4Product Differentiation Strategy will often use a product differentiation strategy

when they have a competitive advantage, such as superior quality or service. We are a new

business which IT products so this means our company customer are student, worker in other

organization and normal person. Obviously, companies use a product differentiation strategy

to set themselves apart from key competitors. However, a product differentiation strategy can

also help a company build brand loyalty.

5Marketing Strategy involved with the product pricing, distribution and promotion of

a company’s offering important issues here cover what type of products at what prices

through which distribution channel and by the use of which promotional tool and sales force.

Our company has promotion greater than other company for respond customer. Customer has

alternative

2.7.2 Business Level

In business level, we use cost leadership strategy. For the newly business we have to

set price lower than competitors because there are a lot of competitors in City of Chiang Rai

which have same target consumer. So we think the way to make competitive advantage to

compete with competitor, it is using price leadership strategy which is a concern more about

price of products

12

2.7.3 Function Level

Functional level strategy composes of human resource management, logistic

management and marketing management. These strategies are supporting the strategy in

business level.

2.8 Human Resource Management

Human resource management has responsible for hiring the best employees and

training employees in order to provide a good service about information technology. Human

resource functional will concern about employment process. In the first when applicants are

applying the job. They have to do the questionnaires which are related with their service

perspective. The questionnaires can evaluate applicants which they have a good view about

service or not, it will affect to provide a service to customer when applicants are employed.

In addition, after applicants pass for the questionnaires test. The next step is

interviewing the applicants before they are going to be our employees, they need to have all

the job qualification that company want to be. However, employees still need to get the

training session to improving service quality and it is the way that prepares employees before

going to provide service with customers. All employees needed to training for develop and

apply their knowledge to provide the service include with suggestion before buying our IT

products and maintain after sell the product.

4http://smallbusiness.chron.com/different-types-business-strategies-4634.html

5http://www.citeman.com/11918-different-types-of-strategy.html

13

Figure 1: Process of employment and improving service quality

It is method which company is using to evaluate the employees after training session.

As you can see from the figure above, this is a whole process that Human Resource

functional concern about employee and customer who will got a good service from our

company.

2.9 Logistics Management

The logistics management is the process involved the planning, process and control,

and including control of the organization. It’s including data management and work about of

finance, storage of the product6, collection of the product and product distribution about IT.

The logistics management is part of our company that provides service by selling. Company

are focused on the effectively products and services by cheaper the cost than other company.

Our company will be best quality of service and product and it’ll be effective if we can send

to the right product, right customer, right place, right time and right quality7, moreover, make

the goods arrive safely. It takes into consideration the needs and satisfaction of customers

important but if customer is not satisfied in services of the company. The company will

repairs and make the best of them. Example, Banana IT Company is retail company selling

IT product has most stores in Thailand

14

3.Marketing management

As we are a new company that will enter a new market, first we need to have

customers, so we are going to attract the customers by placing an interesting marketing plan

through communication that can access everywhere, so that the customers can see the

differences from competitors.

To achieve that goal, we are going to start with finding customers, in finding

customers we can’t use the same types of methods as other business do like advertising,

leaflet, posting posters8 because our main customers are student, organization, company and

industry used IT products, so we’ll be the one that go in to our customer talk to them and

attract them. We will find customer around City of Chiang Rai because it’s center of

marketing. Other reasons Chiang Rai has less competitor and our company locate near the

community and other organization. Another ways are advertise in local newspaper, magazine

of Chiang Rai and local radio.

Promotion is a very effective method to get attention from our new customers. For

our very first promotion, we give a special promotion by offering special price and services

after selling for new customers, treat them well with services and responsibilities in order to

gain their trust and satisfy them9.

For events and experiences and public relation, we will become sponsor in Chiang Rai events

and festival, Mae Fah Luang University, Chiang Rai United Football Club, other organization

etc… as many people visiting the festivals, so that people will recognize us and we can

building a good relationship with them, even that they may not be our customers but we can

build our network and image of company. We also provide training for our employees before

get selling and manage process inside the company for respond to customers. The employee

can make decisions quickly by themselves when problems occur.

Although our company is IT 2 U Company, our main service is to sales IT product

but we concern about the quality of products and service, needs and wants of customer,

responsibility of employees and the relationship with customers in long-term.

6 http://dek-logistic.blogspot.com/2007/10/blog-post_9894.html

7http://value.exteen.com/20120203/logistics-management

8 http://www.marketeer.co.th/inside_detail.php?inside_id=2950

9 http://www.nidambe11.net/ekonomiz/2007q1/2007jan02p4.ht

15

Chapter 3

Market Feasibility Study

16

Chapter 3: Market Feasibility Study

Study on competitors and customers, to see the feasibility of the project. Then set the

market target and position for the company and set strategy using STP analysis and marketing

mix strategy.

4.6 Market Analysis

4.6.2 General Environment Analysis

Social

Today’s society is referred to as the Digital Age because of the world’s dependence

on technology. The modern world of high technology could not have come about, except

for the development of the computer. Different types and sizes of computers find uses.

Throughout society in the storage and handling of data, from secret governmental files to

banking transactions to private household accounts.

Currently is rapidly growing of information technology and need for everyday life

whether for education, office, entertainment etc. The target market of IT2U Company is

students and individuals in Chiang Rai province who need to use computers and they

have a potential to be profitable for the company.

We had found that there are 43 high school, 13 vocational school and 10 universities

in Chiang Rai province. 1

So, our target market is quite a big group and we have prospect

to get interest from them in order to buy our product.

You can see some of the most common and important uses of Computers in our

society nowadays: write documents such as letters, memos, reports, create illustrations for

communication such as Internet and e-mail, store and retrieve information for the future,

plan and visualize schedules, international trading via websites, calculating simple and

complicated formulae with ease, research and study purposes, bookkeeping,

entertainment, like computer games and online shopping.

1www.chiangrai108.com

2Namibia Training Authority, 2006.ICT Foundation Level.

17

Politic

Governments all over the world have started resorting to the newly found information

and communication technology (ICT) to establish a citizen-centric, more transparent

and more accountable government mechanism. Available ICT infrastructures together

with government’s willingness to implement e-governance have already brought success

in e-government initiatives across the industrialiser world (Robins & Burn, 2001).

While some developing countries have taken steps in this regard, they often fall short of

expectations in improving their governance structure and relevant outcomes. In this

regard, a number of barriers exist that need to be understood and tackled by developing

countries in pursuing e-government objectives. These include, lack of ICT resources and

infrastructure such as high-speed broadband network connections, unequal access to

technology (resulting into ‘digital divide’), low literacy rate, corruption and the lack of

government policy initiatives. Often, ‘the lack of resources and technology is

compounded by a lack of access to expertise and information’ (PCIP, 2002: 1). A

strong political will and commitment, reflected in a country’s politico-legal structure, are

in the core of combating these barriers and achieving success. Together with other laws

of the land, the presence of a well-orchestrated IT Act could provide the necessary

foundation and benchmark in this regard and facilitate the smooth functioning of a

country’s ICT sector.3

3As_Saber, Srivastava&Hossain, 2006 Information technology law and e-government: A developing

country perspective, JOAAG, Vol. 1. No. 1

18

Technology

Since 1970, the year that social computing technologies to play a role in the business

social and industry fully. It can be said as the year that saw the movement of human society

from the industrial revolution to the information in the value chain. The development of new

telecommunications technologies is continued to support the new services such as computer

networks, the Internet multimedia, and fiber optic. The development of computer technology

is cheaper and better quality. It is easy to use which contribute to the development of

telecommunication technology advances rapidly.

Nowadays, using of technology tools and media to convey information to each other

over long distances. It said that the volume of information increases over time and it can be

integrated into many different features so the information is a commodity price is trade.

However, the information can be shared and interchangeable technology tools and media to

convey information.

As John Nesbitt, the social prophet wrote a book Megatrends 2000 that the new trends

of social change in the world that Information technology makes possible rapid distribution

of information and distribution characteristics in all directions. The system responds quickly

and two-way communication. For this reason, the impact on the economy, politics and

society are so different from the past.4

4Faculty of Social Sciences, ChiangraiRajabhat University

19

Economic

The situation of the world about economic in each country emphasize to fix their

economic problem. The trade is important with more convenient transportation to with over

the country and contact the opportunity to trade between countries with different economic

systems. Economic and social activities in one country may have both direct and indirect

effects on other countries. Advancement in today's technology makes the world narrower by

the people more and more using information technology tools and the internet. The impact of

economic and trade policy even more intense but the modern world has changed the way of

weapons and war into a trade competition.5

In the daily life of every human being it is closely related to the operation of the

economic system whether it's making a living in society, products and services. To meet their

economic needs, society in all its forms in terms of personal or individual are always need the

goods and services rather than manufacturing. The more advanced the society is causing the

expansion of the new product because human need are endless.

The government’s policy promotes the North as a major economic region called the

Economical Rectangle amongst four countries namely People’s Republic of China, Lao

People’s Democratic Republic, The Union of Myanmar and Thailand. According to GDP per

Capital and Population Data for the Provinces of Thailand state that Chiang Rai GDP per

capital is 54,745; population 1,200 thousands6 as follows;

5Faculty of Social Sciences, ChiangraiRajabhat University

6http://www.thaiwebsites.com/provinces-GDP.asp

20

Hereare the GDP figures for 2009 in all the provinces of Thailand by region (latest

comprehensive date, October 2011)7

7http://www1.cpn.co.th/property_detail.aspx?menu=Plaza_Landing&id=2

21

4.6.3 Competition Analysis

Customer analysis

Now a day in Globalization have communication on the social media, search

information and working on internet is popularity in all level such as Business, student and

other.

IT2U company located in Chiang Rai and near with Mae fah Luang University, many

people can see the shop and design of decorate the shop is very attractive it good opportunity

to sale because of 1Mae fah Luang University have student amount 9,623 and Personnel is

target market of our company. Our company can sales product in season start new semester

and between term endings. In addition student of Mae fah Luang University is interested our

product and students of Chiang Rai Rajabhat University also can come to buy our products

because of distance afar just 10 Kilometer

.

8According to information from National Statistical Office and Ministry of

Information and Communication Technology report when asked to use the computer /

internet. The number of employment up to the age of 15 years totaled 39.6 million people

classified by the employment status found that most computer users are government

employees. (Including state employees and temporary employees), followed by 71.3 percent

to 32.3 percent into the employer and employee 26.5 percent with the use of the Government

employees. (State employees and temporary employees and the public) and the highest spec

is 63.1 percent. Much inferior to the employers and employees 26.9 percent 20.7 percent.

8http://service.nso.go.th/nso/nsopublish/themes/files/ict_household54.pdf

22

The information from interview of the area to survey entrepreneur the position of my

business is the good product and popular. In 4P method computer business find customer by

use mix communication. In the price is the suit price and fairly to customer.

9According information from The 2011 Establishment survey on use of Information

and Communication Technology report found that the use of computers across the country.

With use of the computer to operate. 23.5 percent, with the number of computers.

Approximately 2.1 million or an average of about 4.2 to the Company's use of the computer.

And people who use computers using the approximately 2.1 million people.

IT 2 U Company can sale to Establishment because our company have potentiality for setting

system in organization.

IT 2 U Company, our sale computer and accessories have quality and guarantee in

product. Customers can confidence in the quality of its products. Customer can trust the

quality of our product no matter how you use it for, personal, household or commercial

proposes. Normally our product prices are reasonable comparing with the quality, but we

still have promotional campaigns for valued customers.

Our company has branches in Chiang Rai province. Customer for orders and product

details, please contact any of our stores.

Competitor Analysis

As a survey in Chiang Rai around the area of Muang district there are 4 companies. And there

are many products that are good quality for all of ages. Our company analyzed the competitor by

using SWOT analysis because it easy to compare the competitor and our company.

J.I.B. Computer

Location10

195-196 Thanalai Road, Mueang Chiang Rai, Chiang Rai, 57000

9http://service.nso.go.th/nso/nsopublish/themes/files/ict_estRep54.pd

10http://www.thaigreenpages.com/company/509076/jib-computer

23

Service Detail11

:

- After-sales service of J.I.B. does not lose money on products that claim.

- Service mind

- Good information service

- Online 24 hours

- Product variety

- 7 days guaranty

J.I.B computer

As our company using the SWOT analysis to analyzed JIB computer the answer is…The strange

of JIB computer is service mind, good information service and friendly with the customer. The

weakness of JIB computer is expensive and some of product is out of date. The opportunity of JIB

computer is having the shop or store in the shopping mall, many people can see the shop and design

of decorate the shop is very attractive. The treat of JIB computer is having a computer shop located

opposite them, it maybe catch the customer to each other.

DN Computer Service

Location12: 3/3 M.17NongBua Road, Mueang Chiang Rai, Chiang Rai, 57000

Service Detail:

- Products are good quality

- Cheap product

- 7 days change

11http://www.jib.co.th/web/index.php/page/view/85/85.html

12http://www.chiangraidirectory.com/ads/dn-computer/

24

DN computer service

As our company using the SWOT analysis to analyzed DN computer the answer is…The strange

of DN computer service is good information service, friendly with the customer and product good

quality. The weakness of DN computer service is some of product is out of date but it cheap. The

opportunity of DN computer service is only cheap and good quality of products. The treat of DN

computer service is the bad decorate in front of the shop it will make the customer don’t want to

come.

KVC Computer

\

Location13

: 395/29 Bunprakarn Road, Wiang, Muang, Chiang Rai 57000

Service Detail14

:

- Standard product

- Good quality

- Product variety

13http://www.chiangraifocus.com/webboard/Qpic/cat4-0jRgj7Sbim.gif

14http://www.kvccom.co.th/contact.php

25

KVC computer

As our company using the SWOT analysis to analyzed KVC computer the answer

is…The strange of KVC computer is service mind, good information service and friendly

with the customer. The weakness of KVC computer is expensive and some of product is out

of date. The opportunity of KVC computer is having the shop in the corner near the road,

many people can see the shop and design of decorate the shop is very attractive. The treat of

KVC computer is hard to find the car park because the shop located next to the road.

ChiangraiTechnocom

As our company using the SWOT analysis to analyzed ChiangraiTechnocom the answer

is…The strange of ChiangraiTechnocom is service mind, good information service and

friendly with the customers. The weakness of ChiangraiTechnocom is expensive and some of

products are out of date. The opportunity of ChiangraiTechnocom is having the shop or store

in the university, many people can see the shop and design of decorate the shop is very

attractive. The treat of ChiangraiTechnocom is having a computer shop located opposite

them, it maybe catch the customer to each other.

Hardware House

Location15

:Hayek Pho Khun 727/10-11 UtrarakitRoad, Mueang Chiang Rai, Chiang Rai,

57000

15http://www.chiangraifocus.com/webboard/Qpic/cat4-0jRgj7Sbim.gif

26

Service Detail16

:

16http://www.hwhinter.com/hwhservice_eng.php

27

Hardware house

As our company using the SWOT analysis to analyzed KVC computer the answer

is…The strange of Hardware house is service mind, good information service and friendly

with the customer. The weakness of Hardware house is expensive and some of product is out

of date. The opportunity of Hardware house is having the shop or store in the shopping mall

and near the main road, many people can see the shop easily and the design and decorate the

shop is very attractive. The treat of Hardware house is having a computer shop located

opposite them, it maybe catch the customer to each other.

4.7 STP Analysis

STP analysis

STP is the tools of market for accessing the customer that in common use, comprise

with segment market, target market, and positioning.

Market segment

Our company will focus on the customers that use the IT product every day such as

student, employee, worker, etc. Our research shows the customer group that most likely use,

buy, and sell IT products , the most of them are teenage. The chart below outlines the total

market potential (in percentage of customers) of IT products.

17The Geographic Segmentation of Market segment

17http://www.mict.go.th/download/article/article_20120605144054.pdf

28

18The Demographic Segmentation of Market segment

19Target analysis

18http://www.mict.go.th/download/article/article_20120605144054.pdf

19http://www.mict.go.th/download/article/article_20120605144054.pdf

29

Our company divide target into 3 groups that use internet, computer, and cell phone. Our

company provides the modern of IT products for the customers that pay attention in new

technology in the luxury place, although our company location on near Mae Fah Luang

University, Chiang RaiRajabhat university and Chiang Rai city. It doesn’t hard to find our

company or our shop. For us, this will provide a unique possibility for building a loyal client

base. The main customer of our company is the teenagers and worker. The main product that

they buy is telephone, Computer, PC. Nowadays in the marketing of IT products have very

type of a new technology, the main type that the customer interested is internet, computer,

and cell phone. The customers that use the cell phone is highest of all, there are 66.4%, the

second is computer there are 32.0%, and the last is internet there are 23.7%. The teenagers

interested to cell phone like a part of life and almost populations have cell phone. So, we

receive the profit from teenager highest of all. Secondary customers are the worker who

concern about the necessity, they use the computer to do the tasks everyday especially in the

company or firm, the main equipment that use to work is computer there are 32%. So our

company can get the profit from teenager and worker that age are 15-24 year, 25-49 year and

local people that use the IT products in whole year.

Positioning

30

The positioning of ITU is base in high quality and not too much of price that the one

reason why customer come to our shop. Our shop establishes on the great location that not

too far from university the customer can easily access to the shop, the main of target group is

collegian and local people that use computer to do the task. Nowadays people want to buy the

IT products that very high performance but stand in the cheap price, our shop is one choice

that the customer interested in products. In our shop have many facilitation to do such as

WIFI zone, read the information of new technology by internet, living zone for the customer

that wait the product that the personnel preparing. Our shop provide the best quality of IT

products to the customer and we can guarantee the price that our shop sell is cheaper than

other shop, we realize the customer first we always think, if the customer satisfy our service

and our products they will return to our service again and again.

3.3 Marketing Mix Strategy

3.3.1 Products & Services

Our retailing company provides both tangible and intangible products through

selling and providing suggestion on IT products in Chiang Rai. We sell any products like

IT products and accessories. We start our business with personal computer, notebook, and

printer in the first six months.

As our company selling IT products, there will a risk in customer knowledge, so

we decide to provide the suggestion for customers before they buy our products. To

giving the information for make the decision of choosing our IT products.

Additional services from our company are: the suggestion after buying our

products because some customers, they don’t know how to maintain their IT products for

getting the long life of the products.

3.3.2 Place

Our company is retailing business in IT products that provides a good quality of IT

products and we also provide service about suggestion and maintain in information

technology both before and after buying and selling our products. Our main target customers

are the students. They have necessary to use computer, located in front of Mae FahLaung

University where suitable for students to seeking the IT products. The place of our company

have 2 rai and it is big enough for keep our stock and shop. That location also have road

31

passing through the front of our place and that road can passing to Mae Sai. The picture

shown below is the map preview to our company

Map of IT 2 U

32

Location of IT 2U business

However, our company is only retailing business in IT products around this area, so

no need to worry about the competitor near there. Most of the competitors are located

within town so our company has much more opportunities to reach customer need and want

because employees still need to get the training session to improving service quality and it

is the way that prepares employees before going to provide service with customers.

3.3.3 Price

Price plays a number of important roles in a market economy. Price influences both

consumer and producer decisions and acts as a signal in the marketplace. We use price

leadership strategy to set up price. For the newly business we have to set price lower than

competitors because there are a lot of competitors which have same target consumer. So we

think the way to make competitive advantage to compete with competitor, it is using price

leadership strategy which is a concern more about price of information technology product.

So, if our price of information technology product lower than competitors, it possible change

consumer come to buy products in our company.

33

3.3.4 Promotion

Promotion is key factor to communicate with our target market. Our basic promotion

is advertising, public relation and sale promotion. First is advertising, our purpose of

advertising is to inform and persuade our targeted audience to know our shop, buy our

products, visit a location, or remember our company. We’ll advertise in internet, spreading

leaflet and poster and use car advertisement that will spread news through Chiang Rai, Mae

Chan, Baan Du, and Thasud because those places are the place that most of our target

customers will be. To be more effective in our advertising, we will go in and represent our

company to our target customers who is student or businessman.

Public relations tools are effective in developing our company attitude toward the

society and can enhance the credibility of a product. Public relations activities have the

drawback that they may not provide an accurate measure of their influence on sales as they

are not directly involved with specific market. We’ll also ask the customers’ feedback or

some advices about our service by using questionnaire and interview to check that our service

meet their satisfaction and change according to the customer behavior.

For the sales promotion, we provide special offer 5% for the grand opening. In the

first year, we will change the sales promotion every 4 months. And offer the different sales

promotion for attract customers.

3.4 Sales Forecast

Our company forecast that sale volume depend on number of customers in Chiang

Rai. The people in Chiang Rai buy information and communication technology devices.

Therefore, according to National Statistical Office reported that Chiang Rai has percent of

buy information and communication technology devices; there is PC 97,476 or 41.24%,

Telephone 63,069 or 26.69%, PAD, Smart Phone 35,652 or 15.08%, Notebook 31,489 or

13.32%, Fax 8,650 or 3.66%, the total is 236,363

34

Analyze information technology product in our company

Year 1

Year 2

35

Year 3

Year 4

Year 5

36

Profit Estimation

Table 2: Five Years - Cash Receive

Year 1

Year 2

37

Year 3

Year 4

38

Year 5

39

Our company buy the product from SYNNEX Company

Company profile SYNNEX

The Company operates its distribution business computer, peripherals, computer software, computer

systems and supplies for use with a computer. Company is a leading distributor of leading manufacturers

worldwide for more than 50 brand name and customer base as a computer operator at a restaurant retailer

and wholesalers around the country and computer manufacturers under their own trademark include

department stores large retail chain stationery and supplies, etc. In 2550, the company has a total of more

than 5,000 partners.

The experience of the TKS Technologies Limited (Thailand) and in distribution business supplies

products to the computer and administrators in Thailand with experience in computer sales and computer

peripheral experience. The server on which the company is one of SYNNEX Taiwan, the company has an

advantage in the field of warehouse management and the recognized by world-class manufacturers, the

company has been appointed as the distributor from all over the world.

A variety of products that offer comprehensive and reliable company to all business partners and

customers of the company be confidence in buying goods from the Company, because of the ease of

purchase and after sales service at the convenience of the Company's share of the company's products

distributed into 8 groups with details of each product are as follows.

1. Component Product Group: CPG

2. Consumables & Supply Group: CSG

3. Image & Printing Product Group: IPG

4. Network Product Group: NPG

5. Display Product Group: DPG

6. System Product Group: SPG

7. Multimedia Consumer Electronic Product Group: MCE

8. Software Product Group: SWG

9. Communication Devices Product Group: CDG

After-sales service is the best wish that customer expect from the company after they bought the product,

This Company recognizes the importance of after-sales service as the company vision for a business to

business supplier of computer equipment. Integrated services (one-stop service) are not just a business

trading. The current distribution businesses in computing gross profit relatively low of competitive illegally

goods imported, company has competitive advantage in terms of customer service and after sales Repair

Comprehensive maintenance. .So that is why our company chooses this company to import the computer

laptop to sell at our shop.20

20http://www.synnex.co.th/default.aspx

40

4.1 Marketing Expenses

A marketing expense is an estimate of projected costs to market your products or

services. A typical marketing budget will take into account all marketing costs. Our

marketing expense is concerned with marketing communications for example, advertising,

promotion, public relation, events and experiences, etc.

For advertising, we divided into advertising in radio, car advertisement, leaflet and

poster. We will advertise in FM radio 94.50 MHZ at Nang Lae, Ban Du, and Mae Fah Luang

University and Chiang Rai city. For radio, our company will promote whole the year. For

first year on January pay 1,000 per month, February-June pay 3,000 per month and on July-

December pay 2,000 per month. For second year and third year on January-June pay 2,000

per month and on July-December pay 1,500 per month. For forth year and fifth year pay

1,500 per month whole the year. Car advertising promote on January pay 1,500 every year.

Poster promote on January, February and December pay 2,000 per month.

Another marketing expense is public relation, events and experience. In order to make

people recognize us through events, we are giving the sponsor for Chiang Rai events, 5,000

for one event. The events are sold Information Technology products in May and Jane. It helps

promote products and service to people which lead to the image of our company with positive

attitude.

41

Table 2: Five Years - Marketing Expenses

First Year

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

Radio FM 94.5 1,000 3,000 3,000 3,000 3,000 3,000 2,000 2,000 2,000 2,000 2,000 2,000 28,000

Car

advertisement

1,500 0 0 1,500 0 0 1,500 0 0 1,500 0 0 6,000

Poster 2,000 2,000 0 0 0 0 0 0 0 0 0 2,000 6,000

Events 5,000 0 0 0 5,000 0 0 5,000 0 0 0 5,000 20,000

Total 9,500 5,000 3,000 4,500 8,000 3,000 3,500 7,000 2,000 3,500 2,000 9,000 60,000

Second Year

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

Radio FM 94.5 2,000 2,000 2,000 2,000 2,000 2,000 1,500 1,500 1,500 1,500 1,500 1,500 21,000

Car

advertisement

1,500 0 0 0 0 0 1,500 0 0 0 0 0 3,000

Poster 2,000 2,000 0 0 0 0 0 0 0 0 0 2,000 6,000

Events 5,000 0 0 0 5,000 0 0 5,000 0 0 0 5,000 20,000

Total 10,500 4,000 2,000 2,000 7,000 2,000 3,000 6,500 1,500 1,500 1,500 8,500 50,000

Third Year

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

Radio FM 94.5 2,000 2,000 2,000 2,000 2,000 2,000 1,500 1,500 1,500 1,500 1,500 1,500 21,000

Car

advertisement

1,500 0 0 0 0 0 1,500 0 0 0 0 0 3,000

Poster 2,000 2,000 0 0 0 0 0 0 0 0 0 2,000 6,000

Events 5,000 0 0 0 5,000 0 0 5,000 0 0 0 5,000 20,000

Total 10,500 4,000 2,000 2,000 7,000 2,000 3,000 6,500 1,500 1,500 1,500 8,500 50,000

42

Forth Year

Fifth Year

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

Radio FM 94.5 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000

Car

advertisement

1,500 0 0 0 0 0 1,500 0 0 0 0 0 3,000

Poster 1,500 1,500 0 0 0 0 0 0 0 0 0 1,500 4,500

Events 5,000 0 0 0 5,000 0 0 5,000 0 0 0 5,000 20,000

Total 9,500 3,000 1,500 1,500 6,500 1,500 3,000 6,500 1,500 1,500 1,500 8,000 45,500

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

Radio FM 94.5 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000

Car

advertisement

1,500 0 0 0 0 0 1,500 0 0 0 0 0 3,000

Poster 1,500 1,500 0 0 0 0 0 0 0 0 0 1,500 4,500

Events 5,000 0 0 0 5,000 0 0 5,000 0 0 0 5,000 20,000

Total 9,500 3,000 1,500 1,500 6,500 4,500 3,000 6,500 1,500 1,500 1,500 8,000 45,500

43

4.2 Conclusion

As we know Computer is essential for everyone. It is very hard to imagine modern

life without computer. Day by day the benefits of computer and internet are increasing and

everyone is interested in studying about computers. Since it is available in almost all the

fields and computer knowledge is important to everyone. Even a little kid also need computer

knowledge for various purposes, so only schools started to teaching lessons using computer

and included a subject for computer literacy from classes to higher.

Computers are extremely important in the modern world of today. In the fast moving

life of the modern world of today, computers hold tremendous significance. Many of us will

feel crippled without a computer, as we have gotten so used to this machine. The importance

of computers can be denied in the corporate or business world, at the work place and even in

one's personal life. According the information it can make condition of grow computer

business. The growing of computers business and business continue. Computer business was

encouraged by the government to increase the confidence in the investment business.

The sale forecast of company that is involved computer product and the company

have prediction rate grow by analysis the company compare the trend price of computer

product if happen state the grow of social network increase for planning market of computer

business to efficiency and achieve goal. In Chiang Rai our company is big business have

entire of system such as establishment, family and personal. Our company continues to

promote the product and use mix communication for attract customer to know about our

company such as radio, promote of sell, sign board and join activity or festival is create

image of company for the customer to know our brand or remember our company.

ITU company our sale computer and accessories have quality and guarantee in

product. Customers can confidence in the quality of its products. Customer can trust the

quality of our product no matter how you use it for, personal, household or commercial

proposes.

44

Chapter 4

Technical Feasibility Study

45

Chapter 4: Technical Feasibility Study

4.1 Production and Operation Analysis

This Chapter explains about the technical analysis that including product

characteristic, Location and building, the product and service process thought the

management analysis as well as the overall about cost.

4.1.1 Product characteristics

Notebook

IT 2U Company buys notebook 5 brands including Asus, Dell, Lenovo, Acer, and

Toshiba.

1Technically, a computer is a programmable machine. This means it can execute a

programmed list of instructions and respond to new instructions that it is given. Today,

however, the term is most often used to refer to the desktop and laptop computers that

most people use.

1http://www.techterms.com/definition/computer

46

Printer

2 A printer is an output device that prints paper documents. This includes text

documents, images, or a combination of both. The two most common types of printers

are inkjet and laser printers. Inkjet printers are commonly used by consumers, while laser

printers are a typical choice for businesses.

Mouse

3 The mouse is one of the primary input devices used with today's computers. The

name comes from the small shape of the mouse, which you can move quickly back and forth

on the mouse pad, and the cord, which represents the mouse's tail. Of course, if you are using

a wireless mouse, the analogy does not work so well.

2http://www.techterms.com/definition/printer

3http://www.techterms.com/definition/mouse

47

Accessories

Our company also sells accessories, which is about equipment of IT such as thumb

drive, Memory card, Cooling fan and Mouse pad.

48

Personal Company

Receive order

Checking and Up load Program

Inform cost or service charge to customer

Customer receive product

Feedback from customer

Yes

Team Service

Analysis and Improvement

No

4.1.2 Service process

Our service is to service goods to customer which mostly concern on time and after-

sales service just in time to customer have problem in product. We offer a great opportunity

to buy computer and accessories have quality and guarantee in product. Customers can

confidence in the quality of its products.

Figure 1: Process of service to customer

.

49

The receptionist receives order form customer by customer come to our shop to order

at counter. This process we will ask the detail about cost, quantity of product, insurance of

customer receiver. And lastly we will recognize the information of all customers to computer

easier and faster for retrieve information service next time.

Before customer payment for product our company have checking quality product and

up load program computer such as Window 7. Scan virus, Photo shop, MSN, Game.

After we are checking a product and up load program. We will inform cost and

service charge to customer. Customer that come to order at the office they will pay at that

time but, Company who order by calling we will print the bill for payment.

Customer receive product. When customer have problem or satisfied for product can

sent feedback for our company. If you have problem, you can send product to our shop for

improve.

When our company have receive product problem from customer we will analysis in

problem and improvement. Finished in improvement our company call to you for receive

product come back.

4.1.3 Location

Our location is near Mae FahLuang University, Thasud district, Phaholyothin road,

Chiang Rai Province. It’s around 1 km from Mae FahLuang University. See Figure

Figure 1.1: Location of IT2U

50

Figure1.2: Map near the districts around company

4.1.4 Store Layout

Figure: Company layout

http://www.apple.com/retail/fashionisland/

51

Figure 1.3: Service Center and Office

Figure 1.4: Car and motorcycle parking

Figure 1.5: Overview Layout

52

According to figure 1.3 & 1.4, our company is divided in to four parts. The first part

is a sale area, the second part is a stock room, the third part is an office and the last part is a

car parking. We arrange a sale area located in the center of the shop. A stock room is located

at the back of the shop in the right corner. An office located at the back of the shop in the left

corner. A car parking is located next to the shop in the left hand side and the motorcycle

parking is located in front of car parking.

Sale Area

We kept only 60 % of all area as our sale area or service center. We locate it in front

of our company so customer can walk around and comfortable to find our product. There are

including with counter L shape for customer service, customer’s seating zone with magazine

shelf, free internet wifi zone, and shelf at the right hand side for others accessories product.

We also provide drinking water and two restrooms for the customers.

Stock room and Office

In the stock room, we provide 6 shelves for stock the product. The first 3 shelf inside

(the left side) is the shelf for kept the product that first in and another 3 shelf in the right side

it is for kelp the product that just coming. We divide to 5 departments in the office room, next

to top management, there is printer, fax in front of a top manager room is for general manager

room, between general manager room and accountant/financial room is a refrigerator/coffee

corner, near the door of stock room is for marketing room and IT department room.

53

4.1.5 Machine, Tool and Equipment

1Compaq Q1859

LCD Panel Type

18.5" diagonal Widescreen LCD

Resolution

1366 x 768 @ 60 Hz

Dimensions (w x h x d)

17.92" x 13.69" x 6.34"

2HP Compaq dx7500 Micro tower PC (NA144PA)

Intel® Core™2 Duo Processor E7300 2.66 GHz

Intel® G45 Express

Integrated Intel® Graphics Media Accelerator X4500HD

Genuine Windows Vista® Home Basic

2 x 1 GB PC2-6400 DDR2 800 MHz

250 GB SATA HDD

SATA DVD+/-RW 16X Super Multi Light Scribe

1http://h10010.www1.hp.com/ewfrf/wc/document?cc=th&destPage=document&dlc=en&doc

name=c01732348&lc=en&printable=no&softwareitem=HU-74441-3

2http://www.itfocusthai.com/index.php?lay=show&ac=article&Id=577859

54

3Canon JX510P Fax Machine

The Canon JX510P fax machine features:

Canon's unique FINE Technology

Canon's unique UHQ imaging technology

Print direct from your PC via USB

Digital answering machine

Transmission speed of up to 3 seconds per page

Huge 120-page memory capacity

High quality fax prints

Telstra FaxStream Duet2 compatibility

Ink saver mode

Up to 99 pages of multiple copying

100 speed dials

Handset included

3http://stationery.auspost.com.au/technology/office-machines-equipment/canon-jx510p-fax-

machine.html

55

4HP CM1415FN LASERJET PRO COLOR MULTIFUNCTION PRINTER

Print - Copy - Scan – Fax

Print

Print Speed Up to 8 ppm, letter; up to 8 ppm, A4

Document Delivery Speed Black (A4): Up to 12 ppm; First Page Out Black: As fast as 26 sec

Print Resolution Up to 600 x 600 dpi; HP Image Ret 3600

Memory 160 MB

Durability Ratings Recommended monthly volume: 300 to 1500 pages;

Duty cycle: Up to 30,000 pages

Copy

Copy Resolution Black (text and graphics): Up to 600 x 600 dpi;

Color (text and graphics): Up to 600 x 600 dpi

Copy Speed Black (A4): Up to 12 cpm

Maximum Number of Copies Up to 99 copies

Copier Resize 25 to 400%

Scan

Color Scanning Yes

Scan Type Flatbed, ADF

Scan Resolution Optical: Up to 1200 dpi

Scan Speed Black (normal): Up to 12 ppm; Color (normal): Up to 8 ppm

Fax

Fax Resolution Black and White, Best Mode: Up to 203 x 196 dpi;

Black and White, Standard Mode: 203 x 98 dpi

Fax Speed 33.6 kbps

4http://www.printer-thailand.com/th/hp-multi-function-printer/124-hp-cm1415fn-laserjet-pro-

color-multifunction-printer-600x600dpi-8ppm.html

56

5Refrigerator

Brand: Whirlpool

Model: 180 MP 4S

Capacity: 180 Ltrs

Warranty: 1+4 years manufacturer warranty

6Air conditioner

Brand: Daikin

Model: FTE18NV2S, 17,750btu

Model: FTE09NV2S, 8,900 btu.

5http://www.homeshop18.com/whirlpool-direct-cool-refrigerator-180-mp-4s/household-

appliances/home-appliances/product:27937561/cid:3587/

6http://www.xn--

42c6bc8ab3d7abd0mtd8a.com/category/%E0%B9%80%E0%B8%8A%E0%B9%87%E0%B

8%84%E0%B8%A3%E0%B8%B2%E0%B8%84%E0%B8%B2%E0%B9%81%E0%B8%A

D%E0%B8%A3%E0%B9%8C%E0%B9%84%E0%B8%94%E0%B8%81%E0%B8%B4%E

0%B9%89%E0%B8%99/

57

7Toilet

Brand :American Standard

Combination Bowl and Tank, Less Seat

12" (305mm) Rough-In

Generous 9" x 8" Water Surface Area

Closed-Coupled Tank with Flat Tank Lit for Superior Storage

100% Factory Flush Tested

2 Year Warranty

Nominal Dimensions: 26-1/2" x 18" x 28-5/8" (673 x 457 x 727mm)

Meets all ANSI/ASME Low Consumption, Water Conservation Requirements

8Wash basin

Brand : American Standard

Front Overflow

Soap/Accessory Ledge

Bowl Size: 17-1/2" Wide x 11-1/2" Front to Back x 5-1/2" Deep (445 x 292 x

152mm)

7http://www.americanstandard.co.th/product.asp?lang=eng&ID=2&ProductID=1&detailid=1

136

8http://www.americanstandard.co.th/product.asp?ID=5&ProductID=73&lang=eng

58

9Wall clock

Brand: Seiko QXA129BLH

Color: Dark Brown

10Sofa Set

Kappa

Brand: Koncept furniture

Size: 184*91*63 cm.

Code: 19051475

11Chair

9http://demarini2012vendetta1282.blogspot.com/2012/05/seiko-qxa129blh-wall-clock-dark-

brown.html

10http://www.sbdesignsquare.com/th/product/SOFA/SOFA/detail/19051475/Kappa.html

11http://www.priceza.com/r/redirect?id=463290,

https://www.primeclassicdesign.com/products_new.html?page=13&disp_order=3

59

12Table

Main Table Size: 1400*700*750H

Board Material: High density particle board with melamine surface.

Color: Cherry

Packing: Outer packing: Carton, knockdown style, Easy to assemble and maintain

13Long table

12http://www.alibaba.com/product-gs/427449821/office_table_office_desk_clerk_desk.html

13http://www.be2hand.com/780474-

%E0%B8%82%E0%B8%B2%E0%B8%A2%E0%B8%94%E0%B9%88%E0%B8%A7%E0

%B8%99%E0%B9%82%E0%B8%95%E0%B9%8A%E0%B8%B0%E0%B8%9B%E0%B8

%A3%E0%B8%B0%E0%B8%8A%E0%B8%B8%E0%B8%A1-

%E0%B8%A2%E0%B8%B5%E0%B9%88%E0%B8%AB%E0%B9%89%E0%B8%AD-

logica%E0%B9%82%E0%B8%95%E0%B9%8A%E0%B8%B0%E0%B8%A2%E0%B8%B

2%E0%B8%A7%E0%B8%A3%E0%B8%B2%E0%B8%84%E0%B8%B2%E0%B8%9E%E

0%B8%B4%E0%B9%80%E0%B8%A8%E0%B8%A9.html

60

14Shelf

Width: 75 cm

Depth: 42 cm

Height: 93 cm

Max load / shelf: 30 kg

15Fluorescent lamp

W x L x H: 15 x 120 x 0

VF-292(1*40 W) (B)

Energy Saving

Environmental Friendly

User Friendly

Long Life

14http://www.ikea.com/th/th/catalog/products/30220939/

http://www.pingbazaar.com/th/home/home_furnitures/classified_ad_12373.html

15http://www.quinl.com/international/Sell+LED+Light+Bulbs+LED+Lighting+12709.html

61

16Water Cooler

17Counter L-Shape

Brand: KTM

Model: P2CJ12

16http://www.siamworachak.com/product.detail_378967_en_1849484

17http://www.ktm-

livingmall.com/store/product/view/%E0%B8%8A%E0%B8%B8%E0%B8%94_Counter_L_

Shape-20415581-th.html

62

4.1.6 Logistic Management

The logistics management is the process involved the planning, process and control,

and including control of the organization. It’s including data management and work about of

money, storage of the product1, collection of the product and product distribution about IT.

The logistics management is very important for us as we are a company that provides service

by selling. Company are focused on the effectively products and services by cheaper the cost

than other company. In our warehouse have moving the goods in twice per month.

4.1.7 Organization Management

Logo

Employee

Employees are important part of company; they are main point to force our company

in order to achieve a goal and successful in the business.

Finance & Accounting

Male or female

Age more than 25 years

Bachelor’s degree in accounting and Know very well in law that related with tax

Experienced in accounting 2 – 3 years before

Good computer skills such as Microsoft word, excel, and so on

Sale Person

63

Male or female

Age more than 25 years

Bachelor’s degree in Business Administration, or related field,

Good personality and Good communication in Thai and English

Proficient in computer skills

Service mild

Cashier

Male or female

Age more than 20 years

Bachelor’s degree in Accounting

Good communication and interpersonal skills

Good personality, talkative, and Service minded

IT Department

Male or Female

Thai nationality only, age between 22-30 years old

Bachelors’ degree of Information Technology

At least 3-5 years’ experience

Know IT technical , Good Knowledge of RDBMS concepts

Well experienced 1 – 2 before

Good communication and interpersonal skills

Should be aware of Web technologies (Java,J2EE)

Organization Chart

Top manager

Cashier Finance &

Accounting

Sale

Officer

IT

Department

64

Organization Management

Our company needs to have a good organization management for response customer

want and take care customer to get higher satisfaction.

Top Manager

Top manager is the most important person in our company because top manager concern

about strategy and management overall company. Information of every department will send

to top manager for analyze and decision to develop the strategy into the real situation to make

maximize profit in our company.

Sale Office

This department has duties tot selling everything in the shop and suggestion about IT to

customer, gives a good understanding involved in customer service work.

Finance & Accounting Department

This department will concern the quantitative data such as total sales and total costs from

every department to analyze and record data for evaluate the situation of company. Then, the

accountant will report this information to top manager for develop the strategy of our

company and apply it with real situation.

IT Department

This department will concern about system of company and consulting service for customer

and up-to-date with latest technology.

Cashier

Receive and disburse money in establishments other than financial institutions. Usually

involves use of electronic scanners, cash registers, or related equipment often involved in

processing credit or debit card transactions and validating checks.

Security Guard

This position we hire from the security company (third party) for ensure that the person in

this position can provides security services and protecting the valuable property for the best.

65

4.2 Cost of Investment

Pre – Operation cost Amount

Land 10,000,000

Building 1,500,000

Office Equipment 396,146

Total 11,896,146

4.3 Investment Cost

Office Equipment Quantity Price Amount Dep. Monthly

Dep.

Annual

Dep.

Computer 8 13,409 107,272 4 2,235 26,818

Canon JX510P Fax Machine 1 6,870 6,870 5 115 1,374

HP CM1415FN LASERJET

PRO COLOR

MULTIFUNCTION PRINTER

1 22,350 22,350 5 373 4,470

Refrigerator 1 10,078 10,078 5 168 2,016

Air conditioner office 1 13,900 13,900 5 232 2,780

Air conditioner sale area 4 24,800 99,200 5 1,653 19,840

Toilet 2 3,060 6,120 5 102 1,224

Wash basin 2 1,821 3,642 5 61 728

Wall clock 2 2,100 4,200 5 70 840

Sofa Set 2 11,270 22,540 5 376 4,508

Chair 5 2,600 13,000 5 217 2,600

Stand Chair 9 400 3,600 5 60 720

Table 5 3,000 15,000 5 250 3,000

Counter L shape 1 22,900 22,900 5 383 4,590

Long Table 4 3,500 14,000 5 233 2,800

Shelf 2 3,190 6,380 5 106 1,276

Shelf (Warehouse) 6 2,484 14,904 5 248 2,981

Water Cooler 1 5,190 5,190 5 87 1,038

Stationery 1 5,000 5,000 5 63.7 764

66

Employee Person Salary Total Salary

Finance & Accounting 1 12,000 12,000

Sale Office 4 7,000 28,000

Cashier 1 9,000 9,000

IT Department 1 15,000 15,000

Total 7 43,000 64,000

67

Five-year Depreciation

First year

Second year

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Building 1,500,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Computer 107,272 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 26,820

Office equipment 396,146 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 84,396

Total 2,003,418 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 411,216

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Building 1,200,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Computer 80,452 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 26,820

Office equipment 311,750 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 84,396

Total 1,592,202 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 411,216

68

Third year

Fourth year

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Building 900,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Computer 53,632 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 2,235 26,820

Office equipment 227,354 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 84,396

Total 1,180,986 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 34,268 411,216

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Building 600,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Computer 26,812 26,812 - - - - - - - - - - - 26,812

Office equipment 142,958 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 84,396

Total 769,770 58,845 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 411,208

69

Fifth year

Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Building 300,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000

Office equipment 58,562 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 7,033 84,396

Total 358,562 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 32,033 384,396

70

4.8 Management Analysis

4.8.2 Electricity

Our company is a small business we calculates the electricity rate which use real data from

1The Provincial Electricity Authority. Calculating from number of equipment’s and electronic

applicants; computer, Refrigerator, lights in every room and the front area, parking lot and in

inventory room, for safety and convenience for the staffs and customers.

Small General Service

Applicability

This schedule of tariff is applicable to a business enterprise, business enterprise cum

residence, industrial and state enterprise or the alike, including its compound, with a maximum 15-

minute integrated demand of less than 30 kilowatt through a single Watt-hour meter.

Monthly Tariff

Energy Charge:

Below 22 KWH - 40.90 per month

22-33 KWH 2.4649 baht/unit 228.17/month

Below 22 KWH

First 150 unit 1 - 150 unit 1.8047 baht per unit

Next 250 unit 151 - 400 unit 2.7781 baht per unit

Over 400 unit More 400 2.9780 baht per unit

Time of Use Rate: TOU

Energy charge Bath/Unit Service charge

(Bath/Month) Peak Off Peak

4.2.1 22-33 KWH 3.6246 1.1914 228.17

4.2.2 Below 22 KWH 4.3093 1.2246 57.95

1www.eppo.go.th/power/pw-Rate-PEA.html#2

71

*Peak: Monday – Friday 09.00 AM. – 22.00 PM.

*Off Peak: Monday – Friday 22.00 PM. – 09.00 AM.

: Saturday – Sunday and normal public holiday (excluding substitution holiday) from 00.00 AM to

12.00 PM.

Notes:

1. In any monthly billing period of the customer under this Schedule, the customer with a

maximum 15-minute integrated demand up from 30 kW will be classified under Schedule 3,

4 or 5, as the case may be. He will be reclassified under Schedule 2 whenever they said

demand is lower than 30 kW for twelve (12) consecutive months.

2. The customer under No. 2.1 may choose to be under tariff No. 2.2 and must pay for a TOU

meter or service charges for a TOU meter in addition to the normal service charge. He may

also switch to tariff No. 2.1 following a minimum use of twelve (12) months.

3. The customer who intends to apply for tariff No. 2.2 shall notify the Metropolitan Electricity

Authority (MEA) in advance, and then MEA will arrange installation of a TOU meter as from

January 2002 onwards.

4. Customers shall pay a monthly service charge although there is no electricity consumption

during that month.

2Calculate computer expense = Watt of monitor + Watt of CPU

= 28.5 + 300 Watt

= 328.5 Watt

(Watt * 10 hours * 30 days)/ 1,000

= (328.5Watt * 10 * 30)/ 1,000

= 98.55 KWH/Month

Note: 10 Hours is number of hour of working per day.

Hence, the unit of energy charge is 3.6246 Bath then, multiply with 98.55 KWH is equal 357.21 Bath

per month * 5 computers is equal 1,786.05 Bath

2

Share.psu.ac.th/blog/soda/10152

72

We have one computer that turn on all day for checking GPS;

Calculate computer expense = (328.5Watt * 24 hours * 30 days)/ 1,000

= 236.52 KWH/Month

Hence, the unit of energy charge is 3.6246 Bath then, multiply with 236.52 KWH is equal 857.27

Bath per month. So total expense all computers per month is equal 2,643.32 Baths.

Calculate refrigerator expense = (Watt*Number of Refrigerator* Number of hour per day)/ 1,000

= (125 Watt*1 * 24 hours)/1,000

= 3 units per day

Hence, 3.6246* 3 units is equal 10.9, so multiple with 30 days is equal 327 Bath per month.

3Calculate lights expense = (Watt*Number of lights* Number of hour per day)/ 1,000

= (40 Watt* 8* 10 hours)/ 1,000

= 3.2 units per days

Hence, 3.2* 3.6246 is equal 11.6 per day, so 30 days* 11.6 is equal 348 Baths per month

4.8.3 Water Supply

Water supply is mostly used for washing equipment. We choose to use the city hydrant water,

because it is qualified to use for washing the equipment and Trucks and it is safe to use for washing

body. The calculated amount for water supply used in the business is approximately 20 units per

month, which 1 unit to 10 units it cost 12.13 per unit and 11 units to 20 units it cost 14.92 per units,

total is 270.50 Bath per month.

4Water rates by user types

3

http://www.student.chula.ac.th/~49718863/elec.htm 4

www.pwa.co.th/service/tariff_rate.html

73

Regulation 2554

Water rates by user No. 3.1

Level of water used

Cum./month

User Types

Official and Small Business

Baht/Cum. Cost per number of unit

Low Level Rate 150 Baht

0 – 10 12.13 121.30

11 – 20 14.92 270.50

21 – 30 16.13 431.80

31 – 50 17.21 776.00

51 – 80 17.56 1302.80

81 - 100 17.66 1656.00

101 - 300 17.75 5206.00

301 - 1,000 17.84 17,694.00

1,001 - 2,000 17.93 35,624.00

2001 - 3,000 18.03 53,654.00

>3,000 18.12

Note: The users of type 1 water, if exceed usage of 100 m3 per month, the water fee will be

calculated as the type 2 water fee.

Calculate water supply expense:

Water supply 10 x 12.13 = 121.30

10 x 14.92 = 149.20

= 270.50 units per month

Then, our company will pay 3,246 Baht per year.

74

4.8.4 Drinking water

Our company chooses to order drinking water from the nearest supplier from the company

called D.D. drinking water. The company will provide to customers and employees, the consumption

of water is calculated to 400 liters per month, a 20 liter bottle is 15 Baht per bottle, which will be 20

bottles per month, according to the number of employees and the forecasting number of customers.

Calculating drinking water expense

Drinking water 20 X 15 = 300 Baht/per month

= 3, 600 Baht/per yea

4.8.5 Telephone

The company has installed one telephone in the company which is all in one type. This can

use for sending fax, printer, scanner and telephone. For making call to use in business; such as

ordering products and contacting customers. The amount of telephone usage is estimated to be 150

times per month, with telephone fee for 3 Baht per one call. This fee is making call only in same

province and telephone fee for 6 Bath per one call use for call to Bangkok.

Calculating telephone expense

Telephone usage 150 x 3 = 450 Baht/per month

= 5,400 Baht/per year

Telephone usage 20 x 6 = 120 Baht/per month

= 1,440 Baht/per year

Total = 6,840 Baht/per year

75

4.8.6 Insurance

Unexpected incident such as fire, car accident, burglary, or other disasters can happen to the

company. In order to prevent the loss from those incidents, the company buys an insurance to cover

everything that might damage the company, the people, cars and goods, includes the followings;

- Fire and other natural disasters

- Damage on electrical appliances

- Expenses on moving property from disaster

- Expenses on engineering from damage

- Expenses on fire extinguish

- Damage and loss from burglary

- Damage on outsiders

- Damage or loss on cash

- Damage on advertising signs

- Hospital expenses

- Damaged on crashed property

1. Insurance expense of the company is 1,290 Baht per year. (Bangkok Insurance Co., Ltd.2013)

2. Social insurance for employee pays once/year not more than 20,000 Bath. (Social Security

Office)

76

4.5 Conclusion

Our company is retail shop that our company has everything about IT product. Our Company

focuses on satisfaction of customer and good service. For the office we have one counter for general

service which can ask for the service, beside general service counter we provide some facilities for

customer to be comfortable like air conditioning, sofa and free drink. The next room near general

service is working room for officers and manager, so that the manager can solve problem quickly if

something go wrong or if the customer can’t get satisfaction over our employees or services. The

parking is big and wide enough to keep ten trucks. We create the parking area separate from office to

reduce the air and noise pollution to our employees and customers. But we make sure that the officer

from officer and go in a plan and process. So, it can help us to get right orders and quick services

create the just in time from offices to truck can respond customer immediately.

Employee is important part of company; they are main key for us to achieve our customer’s

royalty and also achieve our goals. The positions for employees consist of top managers, head of

department which include finance & accounting, top manager, customer service. The top manager

has a duty to control all the departments and the information going in and out. Each head of the

department has to control their own department to maintain, perform high performance and create

employee well-being. The company sets standard in selecting people with sufficient skills and ability

to perform a task and to execute the expected performance for the company.

Every process of the company is important for us to achieve the objective like cost of

investment which can show us how to plan and control financial which will lead to the profit of

company. In addition, employee is important tool to get in touch and respond to customers for

gaining trust and good relationship. So, these things are what can’t lack in the business of our

company.

77

Chapter 5

Operating Cost

78

Chapter 5: Operating Cost

First year

*For the first year, we have to spend more than other after year for advertisement to promote the shop.

*We spend on Dec-Jan much more other month of every year because we have a promotion for New Year celebration.

*Another promotion period is on May for the student term begins, so the advertisement is high cost.

*Office equipment pays only in the first year.

*Stationery pays 1 time per 1 year.

79

Second year

Third year

80

Fourth year

Fifth year

81

Chapter 6

Administration Cost

82

Chapter 6: Administration Cost

First Year

Second Year

83

Third Year

Forth Year

84

Fifth Year

85

Chapter7

Financial Analysis

86

Chapter7: Financial Analysis

Income Statement

Year 1

87

Year 2

Year 3

88

Year 3

89

Year 4

90

Year 5

91

Cash Flows

Year 1

92

Year2

93

Year 3

94

Year 4

95

Year 5

96

Balance Sheet

Year 1

97

Year 2

98

Year3

99

Year4

100

Year5

101

Chapter 8

Management risk

102

Chapter 8: Management risk

Risks of IT 2U business, that may be occurs in the future and also become to the problems to

company. The risks included internal and external, some risks can avoid and some risks occur

instability with unavoidable, so IT 2 U business needs to awareness the result when the risks are

occurred and IT 2 U business can manage all of the risks.

1. External factor risks

1.1 General environment risk factors (PEST Analysis)

- Politic factor:

Nowadays the political is instability, thus, when the Thai’s political occur the problem

it effects to decrease of customers and uncertain in the business of collecting.

- Economic factor:

Thai economic is not stable as well but for the younger business can investment

because the government gives important part of capital and decreases interest rate for

starting new business.

- Social factor:

Thai people fast to accept new trends such as: culture, tradition, value, way of life from

other country, nowadays Thai people not enough time for them-self ,so our business

have several way and easy to more achieve the consumer.

- Technology factor:

Technology is the important part of daily life in the recent such as; internet, IT system,

communication, etc. It effects the business change all of time especially the new

business have to pursue technology all the time and use appropriate technology to find

more target market.

1.2 Competitive factor:

For the new business, it’s difficult to be accepted from consumers in the part of

reputation, brand, quality, product, price, etc. Because many competitor influence into price

negotiation, production, material resource, marketing with competitor to each other.

External factors, it’s difficult to control because external factors change all, so our business

have to face-to-face and accept with the risks that will happened but our business have plan

for prevent the business.

103

2. Internal factor risk:

Inside of IT2Ubusiness have many risks that happen from itself but it is low levels

and our company can control and prevent the risks. Important in all of risks, our company can

avoid. The part of internal risks includes;

- Strategic risk;

The risk occur from planning and use strategic that inappropriate and less of

benefit. So, our company has good planning before such as;

Predict situation in the future and bring to use in planning about strategic of our

company for prevent the problem that will occur.

Improve and develop the new strategic that can rival the competitors.

Know the strange point of our company and know the weakness point of the

competitor and bring to use in planning strategies of our company by efficiency.

- Marketing risk;

Now a day the marketing not instability and changing all the time effect to business

and unknown consumer need, uncertain target market, positioning of produce. So, our

business has management and plan about marketing risk include;

Our company finds certain positioning of produce for distribute the produce to target

market that appropriate both product and consumer.

Our company reduces the risk of marketing by do the research market all the time.

Our company always set the promotion to attractive the customer.

- Operation risk;

Inside the business, maybe have the mistakes in the part of operation such

as operation of human resource, service, communication, and system. So, our company

have management in part of operation risk include;

Take the right man in the right job for potential of human resource.

Always training the employees for added the performance skills and the employees

can adapt the skills in their work.

For the technology system, our business have staffs who take care and advise the

other employees, when the technology system have the problems, they can solve that

problems right now because our company training employees all the time.

104

- Financial risk;

It’s very important part because our business may loss the profit when managing in

the wrong way such as occur from corruption of insider, loss of profit from selling, lack

of skill or knowledge of accountant. So, our business can provide about finance risk

include;

Prevent the corruption by inspection account from every department in every day

and do the report in every month.

Providing the system for security in every department.

In part of account department, need the reliable and honest accountant who cans

responsibility.

Risk financial analysis

Before sales decrease 5%

Year 1 Revenue = 1,730,590 Baht

Year 2 Revenue = 2,585,070 Baht

Year 3 Revenue = 2,746,020 Baht

Year 4 Revenue = 3,408,820 Baht

Year 5 Revenue = 3,348,380 Baht

From sales decrease 5% it makes income statement follow as:

Income Statement Year 1 = 1,644,060.50 Baht

Income Statement Year 2 = 2,455,816.50 Baht

Income Statement Year 3 = 2,608,719 Baht

Income Statement Year 4 = 3,238,379 Baht

Income Statement Year 5 = 3,180,961 Baht

Before sales decrease 10%

Year 1 Revenue = 1,730,590 Baht

Year 2 Revenue = 2,585,070 Baht

Year 3 Revenue = 2,746,020 Baht

105

Year 4 Revenue = 3,408,820 Baht

Year 5 Revenue = 3,348,380 Baht

From sales decrease 10% it makes income statement follow as:

Income Statement Year 1 = 1,557,531 Baht

Income Statement Year 2 = 2,326,563 Baht

Income Statement Year 3 = 2,471,418 Baht

Income Statement Year 4 = 3,067,938 Baht

Income Statement Year 5 = 3,013,542 Baht

Before sales decrease 15%

Year 1 Revenue = 1,730,590 Baht

Year 2 Revenue = 2,585,070 Baht

Year 3 Revenue = 2,746,020 Baht

Year 4 Revenue = 3,408,820 Baht

Year 5 Revenue = 3,348,380 Baht

From sales decrease 15% it makes income statement follow as:

Income Statement Year 1 = 1,471,001.50 Baht

Income Statement Year 2 = 2,197,309.50 Baht

Income Statement Year 3 = 2,334,117 Baht

Income Statement Year 4 = 2,897,497 Baht

Income Statement Year 5 = 2,846,123 Baht

From risk analysis for sale decrease 5%, 10%, 15%. It’s loss profit when we calculate income

statement. Decrease 15 % most loss profit, so we will increase sale products by advertising or

inventory for price to change in the future. Our company focuses on quality to customers for respond

and satisfies of customer. It helps increase sale product and more profit.

106

Before sales increase 5%

Year 1 Revenue = 1,730,590 Baht

Year 2Revenue = 2,585,070 Baht

Year 3Revenue = 2,746,020 Baht

Year 4Revenue = 3,408,820 Baht

Year5Revenue = 3,348,380 Baht

From sales increase 5%It makes income statement follow as:

Income Statement Year 1 = 1,817,119.5 Baht

Income Statement Year 2 = 2,714,323.5 Baht

Income Statement Year 3 = 2,883,321 Baht

Income Statement Year 4 = 3,579,261 Baht

Income Statement Year 5 = 3,348385 Baht

Before sales increase 10%

Year 1 Revenue = 1,730,590 Baht

Year 2Revenue = 2,585,070 Baht

Year 3Revenue = 2,746,020 Baht

Year 4Revenue = 3,408,820 Baht

Year5Revenue = 3,348,380 Baht

From sales increase 10%It makes income statement follow as:

Income Statement Year 1 = 1,903,649 Baht

Income Statement Year 2 = 2,843,577 Baht

Income Statement Year 3 = 3,020,622 Baht

Income Statement Year 4 = 3,749,702 Baht

Income Statement Year 5 = 3,683,218 Baht

107

Before sales increase 15%

Year 1 Revenue = 1,730,590 Baht

Year 2Revenue = 2,585,070 Baht

Year 3Revenue = 2,746,020 Baht

Year 4Revenue = 3,408,820 Baht

Year5Revenue = 3,348,380 Baht

From sales increase 15%It makes income statement follow as:

Income Statement Year 1 = 1,990,178.5 Baht

Income Statement Year 2 = 2,972,830.5 Baht

Income Statement Year 3 = 3,157,923 Baht

Income Statement Year 4 = 3,920,143 Baht

Income Statement Year 5 = 3,850,637 Baht

From risk financial analysis to sales increase 5%, 10%, 15%. We will see that if we calculate

15% will make the revenue better than 5% and 10% because it makes the revenue more than

expenses. So, if will can make the revenue increase. Our company will get more profit and can pay

dividend back to investor quickly.

108

Chapter 9

Summary

109

Chapter 9: Summary

Background

IT 2 U business is retailing business that provides IT products for consumers and also

provides advising service about the IT products to customers both before and after buying our

products. At first year, we sell only notebook, and printer. For the next year later, we will add more

IT accessories products for response to the costumers’ demand.

Retailing business is very important for today with the emergence of modern technology

business has globalized and become a 24 hour endeavor. Technology and IT is also important in

nowadays too, at every instant of time, you are surrounded by technology, literally. Whether you are

working or resting, you are always using technology. It is used everywhere and all the time. So IT 2

U has the idea to operate the IT shop with many employees who provide suggestions about IT to

customers.

Product/Service

There are many kinds of such as computers, notebooks, mouse, earpiece and printer etc. Our

company sells quality of products and services, has promotion for sell and low prices than other

company. Customers can provide satisfy when they buy products, so our company as an alternative when

customers think about Information Technology product.

Industry Profile

Chiang Rai is one of province that the resident population not less. Since the majority of the

population is working age people and students. Computers are a part of life. At the present, the fast

growing computer business computer accessories are high demand in the market. Our company sells

and services after sales, as well. IT 2 U our company believes has the potential to sell it as well. The

goal is to move one of the leading marketing channels and services. For the conclusion, in Thailand

have opportunity for investment in IT business. The growth of Thailand computer business is

recently developing more and more which make us sure that in the future our IT 2 U Company will

make millions of profits. Our company has opportunity to be successful for investment. Information

technology product be needed in the market and be require community system, because of the

investment the Information Technology products in the present very important.

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Marketing

Marketing Mix:

Product: We sell any products like IT products and accessories. We start our business with

personal computer, notebook, and printer in the first six months. As our company selling IT

products, there will a risk in customer knowledge, sowe decide to provide the suggestion for

customers before they buy our products. To giving the information for make the decision of choosing

our IT products.

Price: We use price leadership strategy to set up price. For the newly business we have to set

the price lower than competitors because there are a lot of competitors which have same target

consumer. So we think the way to make competitive advantage to compete with competitor, it is

using price leadership strategy which is a concern more about price of information technology

product

Place: They have necessary to use computer, located in front of Mae Fah Luang University

where suitable for students to seeking the IT products. The place of our company have 2 rai and it is

big enough for keep our stock and shop. That location also have road passing through the front of our

place and that road can passing to Mae Sai.

Promotion: For the sales promotion, we provide special offer 5% for the grand opening. In

the first year, we will change the sales promotion every 4 months. And offer the different sales

promotion for attract customers.

Technical Feasibility Study

Our company is retail shop that our company has everything about IT product. We focus on

satisfaction of customer and good service .About the office we have one counter for general service

which can ask for the service, beside general service counter. The parking is big and wide enough to

keep ten trucks. We create the parking area separate from office to reduce the air and noise pollution

to our employees and customers. But we make sure that the officer from officer and go in a plan and

process. So, it can help us to get right orders and quick services create the just in time from offices to

truck can respond customer immediately. Employee is important part of company; they are main key

for us to achieve our customer’s royalty and also achieve our goals. The positions for employees

consist of top managers, head of department which include finance & accounting, top manager,

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customer service.Every process of the company is important for us to achieve the objective like cost

of investment which can show us how to plan and control financial which will lead to the profit of

company. In addition, employee is important tool to get in touch and respond to customers for

gaining trust and good relationship. So, these things are what can’t lack in the business of our

company.

Operating Cost

Operating cost shown that the first year, we have to spend more than other after year for

advertisement to promote the shop to make customer know our shop. We spend on Dec-Jan much

more other month of every year because we have a promotion for New Year celebration and another

promotion period is on May because of the semester of school and university start-up. So, the

advertising cost of December, January and May is higher than others month in order to promote our

promotion. The office equipment cost is pay only in the first time for the furniture and decoration in

our office. The stationery our company pays one time per one year for 5000 baht.

Total operating costs each year are follows;

First year = 935,007.88 baht

Second year = 885,861.88 baht

Third year = 884,361.88 baht

Fourth year = 884,361.88 baht

Fifth year =881,361.88 baht

Administration Cost

Administration Cost is direct cost for our company. It including expense of Employee salary,

Electricity expense, Water expense, Internet and telephone expense, Fire Insurance, Social security

Insurance expense, Commission expense, Training expense, and the first year have Staff shirt

expense. Our company has less for variant expense each year. The first year have expense about

Staff shirt expense and every years have increase Commission expense because the five years have

increase product sale every years. December and January have more gain sale product because the

New Year seasons, product for gift and prepare new semester. It affect for commission expense. Our

company has gain profit increase every year.

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Risk analysis of projects

- Marketing risk;

Now a day the marketing not instability and changing all the time effect to business and

unknown consumer need, uncertain target market, positioning of produce.

- Operation risk;

Inside the business, maybe have the mistakes in the part of operation such as operation of

human resource, service, communication, and system.

- Financial risk;

It’s very important part because our business may loss the profit when managing in the wrong

way such as occur from corruption of insider, loss of profit from selling, lack of skill or knowledge

of accountant.

- Risk financial analysis

From risk analysis for sale decrease 5%, 10%, 15%. It’s loss profit when we calculate income

statement. Decrease 15 % most loss profit, so we will increase sale products by advertising or

inventory for price to change in the future. Our company focuses on quality to customers for respond

and satisfies of customer. It helps increase sale product and more profit.

From risk financial analysis to sales increase 5%, 10%, 15%. We will see that if we calculate

15% will make the revenue better than 5% and 10% because it makes the revenue more than

expenses. So, if will can make the revenue increase. Our company will get more profit and can pay

dividend back to investor quickly.

113

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