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La Gioia coffee shop
Present
Aj.Chaiyawat Thongintr
By
Miss Yanika Eiamsupan ID 4931205041
Miss Napapan Apiwong-ngam ID 5131205132
Miss Manaschana Chawanuntachot ID 5231205114
Miss Aruntip Ampaikitpanich ID 5231205171
(Group Vip1…..Section 2)
School of Management Mae Fah Luang University
3
Preface
This project was concerning with a past of 1203302 Project feasibility and Evaluation
subject in the second semester of 2011. In this project is study about feasibility of coffee
shop business in Chaing Rai, located near Mae Fah Luang University. The content of this
report consist of Introduction, Industry Profile, Market Feasibility Study, Technical Feasibility
Study, Financial Analysis, Risk Management, and Summary This project can makes everyone
who interested to get knowledge and information about coffee shop business before make
decision to investment, including preoperational process and operation process of coffee
shop business, for the benefit to investment and profit of doing this business.
We are hoping that our report will be utility and helpful for everybody who is
interested as much as possible. If there are any mistakes in this reporting, we will apologize
at this opportunity.
Lagioia Coffee Shop
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Content
Page
Preface…………………………………………………………………………………………………………………………….….2
Content…………………………………………………………………………………………………………………………….2-3
Chapter 1: Introduction……………………………………………………………………. …………..4
1.1 Back ground and significance of project…………………………………………………………......6-7
1.2 Project Objective(s)……………………………………………………………………………………………..8
1.3 Benefits of Project……………………………………………………………………………………………….. 8
1.4 Activities/Time Frame………………………………………………………………………………………9-10
Chapter 2: Industry Profile………………………………………………………………………………………….11
2.1 Nature of Industry………………………………………………………………………………………… 12-23
2.2 Situation of Industry………………………………………………………………………………….…..24-25
2.3 Product/service…………………………………………………………………………………………….26-28
2.4 Vision Mission……………………………………………………………………………………………………………29
2.6 Strategy………………………………………………………………………………………………………………..30-32
- Corporate Level…………………………………………………………………………………………………30
- Business Level…………………………………………………………………………………………………..31
- Functional Level………………………………………………………………………………………………32
Chapter 3: Marketing Feasibility Study……………………………………………………………………………………….33
3.1 Marketing Analysis………………………………………………………………………………………………….34
- General Environment Analysis……………………………………………………………………….34
- Competition Analysis (3C Analysis)………………………………………………………………35-39
3.2 STP Analysis…………………………………………………………………………………………………………….40
3.3 Marketing mix strategy………………………………………………………………………………….41
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Page
3.4 Sale forecast ……………………………………………………………………………………….……42-43
3.5Profit estimate…………………………………………………………………………………………..44-45
3.6 Marketing Expense………………………………………………..…………………………………46-47
Chapter 4: Cost of Investment………………………………………………………………………………………..48
4.1Pre-operating…………………………………………………………………………………………………49
4.2 Location…………………………………………………………………………………………………………50
4.3Machines / Tools / Equipments………………………………………………………………….51-54
4.4Cost of investment…………………………………………………………………………………...55-56
- Investment cost of equipment……………………………………………………………….57
- Depreciation of equipment………………………………………………………….…...58-62
- Investment cost of machine…………………………………………………………………..63
- Depreciation of tool and machine……………………………………………………..64-68
Chapter 5: Operating Cost………………………………………………………………………………………….69-72
Chapter 6: Organization and Administration……………………………………………………………..73-74
Chapter 7: Financial Analysis………………………………………………………………………………………….75
-Income statement…………………………………………………………………………….76-81
-Cash flow…………………………………………………………………………………….……82-92
-Balance sheet………………………………………………………………………………….93-113
Chapter 8: Risk Management………………………………………………………………………………..114-116
Chapter 9: Conclusion …………………………………………………………………………………………..117-119
Reference………………………………………………………………………………………………………….120
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Chapter 1 Introduction
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Background and significance of the project
Coffee originated in tropical Africa, from where it has since been introduced to most
tropical countries throughout the world. Coffee was introduced to Southeast Asia and the
West Indies in the 17th and 18th centuries. Nowadays coffee consumption market is more
expand that we can observe the coffee products in the market which are coffee bean,
ground coffee, instant coffee and instant coffee canned and there are many coffee drink
manufactures in Thailand which hare famous brand names, regular shops and instant coffee
that sell in convenience shop or store regular shop and etc. Prices of fresh coffee are higher
than instant coffee that sell with the feature of cans, bottles and plastics bag because the
costs are expensive; it is 10 to more hundred baht and they are better tastes. Thai Coffee
Consumption Trend in year 2009 was increased because it is good taste and high quality so
the premium coffee shop is spread in Thailand widely because Thai people change their
behavior. In each main regions of Thailand which are North, Central, Northern East and
South, there are many coffee shops that provide for public so the customers have many
choices for them. The famous coffee shops in Thailand are Starbucks, Black Canyon, Blue
Mountain, Coffee World, Doi tung,Wawee, Doi Chang and etc. There are 2 type of market
segmentation that foreign brand name is 60% and Thai brand name is 40%. The main
consumers of premium are business man, tourists, officers and student that they have
power to buy because they almost of them are middle class and they want to consume the
taste and quality of coffee. They do not concern much with higher price.
We chose open the coffee shop because coffee marketing trend in Thailand will
increased by trend coffee consumption is 7 cups per week from 3-4 cups per week and
coffee consumptions in Thailand will increase in future.
(Source:http:// http://www.coffeeresearch.org/)
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We should to open coffee shop in Chiang Rai province. Because, nowadays the number
of tourist come to travel in chiang rai increase every year. Our coffee shop set from
inspiration of investors who love in flavor and smell of coffee. Our coffee shop concept will
be the garden style coffee shop in addition to flavor and smell of coffee can made other feel
relax involving fresh environment that full of trees all of this it’s will make customer feel
fresh more.
(Source: http://www.chiangrai.net/dashboard19/?PID=VG91cmlzdC9Ub3VyaXN0MS5hc2N4)
2006 2007 2008 2009
1,332,518 1,436,435
1,741,246 1,680,248
Number of traveller in Chiang Rai (Year 2007-2011)
Number of traveller in Chiang Rai
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We already consider to selected the place to set coffee shop is near the Fah Thai Market
which located beside the Mae Fah Luang University at Chiang Rai province because Mae Fah
Luang University is a new university and increase number of students and staffs every year.
(Source: https://reg.mfu.ac.th/registrar/statistics/main_m.htm)
2007 2008 2009 2010 2011
7054 8008
8950 9678 9623
Number of student in MFLU
(Year 2007-2011)
Number of student in MFLU
2007 2008 2009 2010 2011
820 895
994 1083
1148
Number of staff who work in MFLU
(Academic year 2007-2011)
Number of staff who work at MFLU
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Project objectives
To study about the situation of coffee shop in nowadays.
To study about technical and management process in the coffee shop business.
To study possibility of coffee shop business trend in the future.
To analyze the marketing in this business.
To analyze the financial risk feasibility.
To analyze demand of people who drink coffee.
To summary the feasibility of coffee shops business.
Benefits of project
Understanding about the situation of coffee shop.
Understanding behavior of customer to select and identify the right customer.
Understanding to calculate profits and expenses, and find the way to get profits.
To learned about market in the business and financial risk feasibility.
To learn about technical and management process in the coffee shop business.
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Activities/Time Frame
Time Frame
Date and time Designations Problems/Events
18-25Nov 2011
To study about coffee shop in Chiang Rai
To study about coffee shop at Mae Fah Luang University
-
25Nov-2Dec 2011
To study about how to manage coffee shop business
-
2-9Dec 2011
To study about competition analyze and marketing feasibility
-
9 Dec -20 Jan 2011/2012
To study about technical process in coffee shop business
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20-27 Jan 2012
To study about financial feasibility of coffee business
-
27Jan-3 Feb 2012
To study about financial feasibility of coffee business
-
3-10 Feb 2012
To study and analyze about risk of coffee shop business in Chiang Rai
To summary the business of coffee shop in Chiang Rai
-
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Gantt chart
No
Activities
November
December
January
February
w w W W E E E E E E E E K K K K 1 2 3 4
W W W W E E E E E E E E K K K K 1 2 3 4
W W W W E E E E E E E E K K K K 1 2 3 4
W W W W E E E E E E E E K K K K 1 2 3 4
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-To study about coffee shop in Chiang Rai - To study about coffee shop at Mae Fah LuangUniversity
2
-To study about how to manage coffee shop business
3
-To study about competition analyze and marketing feasibility
4
-To study about technical process in coffee shop business
5
-To study about financial feasibility of coffee business
6
-To study about financial feasibility of coffee business
7
-To study and analyze about risk of coffeeshop business in Chiang Rai -To summary the business of coffee shop in Chiang Rai
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Chapter 2
Industry profile
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Nature of industry
History of coffee
World coffee
In the Ethiopian highlands, where the legend of Kaldi, the
goatherd, originated, coffee trees grow today as they have
for centuries. Though we will never know with certainty,
there probably is some truth to the Kaldi legend.
It is said that he discovered coffee after noticing that his
goats, upon eating berries from a certain tree, became so
spirited that they did not want to sleep at night.
Kaldi dutifully reported his findings to the abbot of the local monastery who made a drink
with the berries and discovered that it kept him alert for the long hours of evening
prayer. Soon the abbot had shared his discovery with the other monks at the monastery,
and ever so slowly knowledge of the energizing effects of the berries began to spread. As
word moved east and coffee reached the Arabian Peninsula, it began a journey which would
spread its reputation across the globe.
Today coffee is grown in a multitude of countries around the world. Whether it is Asia or
Africa, Central or South America, the islands of the Caribbean or Pacific, all can trace their
heritage to the trees in the ancient coffee forests on the Ethiopian plateau.
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The Arabian Peninsula
The Arabs were the first, not only to cultivate coffee but also to begin its trade. By
the fifteenth century, coffee was being grown in the Yemeni district of Arabia and by the
sixteenth century it was known in Persia, Egypt, Syria and Turkey. It’s popularity was
perhaps due, in part, to the fact that Muslims, forbidden alcoholic drink by the Koran, found
coffee's energizing properties to be an acceptable substitute.
Coffee was not only drunk in homes but also in the many public coffee houses -- called
qahveh khaneh -- which began to appear in cities across the Near East. The popularity of the
coffee houses was unequaled and people frequented them for all kinds of social activity.
Not only did they drink coffee and engage in conversation, but they also listened to music,
watched performers, played chess and kept current on the news of the day. In fact, they
quickly became such an important center for the exchange of information that the coffee
houses were often referred to as 'Schools of the Wise.'
With thousands of pilgrims visiting the holy city of Mecca each year from all over the world,
word of the 'wine of Araby' as the drink was often called, was beginning to spread far
beyond Arabia. In an effort to maintain its complete monopoly in the early coffee trade, the
Arabians continued to closely guard their coffee production.
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Coffee Comes to Europe
European travellers to the Near East
brought back stories of the unusual dark
black beverage. By the 17th century, coffee
had made its way to Europe and was
becoming popular across the continent.
Opponents were overly cautious, calling the
beverage the 'bitter invention of Satan.' With the coming of coffee to Venice in 1615, the
local clergy condemned it. The controversy was so great that Pope Clement VIII was asked
to intervene. Before making a decision however, he decided to taste the beverage for
himself. He found the drink so satisfying that he gave it Papal approval.
Despite such controversy, in the major cities of England, Austria, France, Germany and
Holland, coffee houses were quickly becoming centers of social activity and communication.
In England 'penny universities' sprang up, so called because for the price of a penny one
could purchase a cup of coffee and engage in stimulating conversation. By the mid-17th
century, there were over 300 coffee houses in London, many of which attracted patrons
with common interests, such as merchants, shippers, brokers and artists.
Many businesses grew out of these specialized coffee houses. Lloyd's of London, for
example, came into existence at the Edward Lloyd's Coffee House.
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The New World
In the mid-1600's, coffee was brought to New Amsterdam, a location later called New York
by the British.
Though coffee houses rapidly began to appear, tea continued to be the favored drink in the
New World until 1773 when the colonists revolted against a heavy tax on tea imposed by
King George. The revolt, known as the Boston Tea Party, would forever change the
American drinking preference to coffee.
Plantations Around the World
As demand for the beverage continued to spread, there was tense competition to cultivate
coffee outside of Arabia. Though the Arabs tried hard to maintain their monopoly, the Dutch
finally succeeded, in the latter half of the 17th century, to obtain some seedlings. Their first
attempts to plant them in India failed but they were successful with their efforts in Batavia,
on the island of Java in what is now Indonesia. The plants thrived and soon the Dutch had a
productive and growing trade in coffee. They soon expanded the cultivation of coffee trees
to the islands of Sumatra and Celebes.
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The Dutch did a curious thing, however. In 1714, the Mayor of Amsterdam presented a gift
of a young coffee plant to King Louis XIV of France. The King ordered it to be planted in the
Royal Botanical Garden in Paris. In 1723, a young naval officer, Gabriel de Clieu obtained a
seedling from the King's plant. Despite an arduous voyage -- complete with horrendous
weather, a saboteur who tried to destroy the seedling and a pirate attack -- he managed to
transport it safely to Martinique. Once planted, the seedling thrived and is credited with the
spread of over 18 million coffee trees on the island of Martinique in the next 50 years. It
was also the stock from which coffee trees throughout the Caribbean, South and Central
America originated.
Coffee is said to have come to Brazil in the hands of Francisco de Mello Palheta who was
sent by the emperor to French Guiana for the purpose of obtaining coffee seedlings. But the
French were not willing to share and Palheta was unsuccessful. However, he was said to
have been so handsomely engaging that the French Governor's wife was captivated. As a
going-away gift, she presented him with a large bouquet of flowers. Buried inside he found
enough coffee seeds to begin what is today a billion-dollar industry.
In only 100 years, coffee had established itself as a commodity crop throughout the
world. Missionaries and travellers, traders and colonists continued to carry coffee seeds to
new lands and coffee trees were planted worldwide. Plantations were established in
magnificent tropical forests and on rugged mountain highlands. Some crops flourished,
while others were short-lived. New nation's were established on coffee
economies. Fortunes were made and lost. And by the end of the 18th century, coffee had
become one of the world's most profitable export crops.
Source: http://www.ncausa.org/i4a/pages/index.cfm?pageid=68
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Thai coffee
The real start of the Thai coffee industry is relatively young. According to
governmental statistics, the total coffee plantation area in 1960 was only about 19,000 rai
(approximately 7,600 acres), producing a mere 750 tons of coffee. In the same year,
Thailand had to import almost 6,000 tons of coffee. To improve the trade balance, the Thai
government started a successful campaign promoting Robusta coffee growth in Southern
Thailand.
This campaign was further cemented when opium crop replacement became an
official Thai Government program in the 1970s. Supported by the Royal Family, the UN and
many other governmental and non-governmental organizations, the hill tribe farmers in the
Golden Triangle and along the borders of Burma and Laos started to grow Arabica coffee.
In 1976, Thailand officially became a coffee exporting nation, selling 850 tons of
Robusta coffee in the world market. Helped by strong world market prices in the 1980s,
exports thrived in the following years and culminated in 1991-2 at almost 60,000 tons. The
collapse of the "International Coffee Agreement" in July 1989 and the following slump in
world coffee prices has since hurt the coffee farmers hard.
Facing the threat of an oversupply situation, the Thai government made a
turnaround and, under a 5-year-plan (1992-1997), began to encourage the coffee farmers to
switch to other crops in an effort to reduce the total coffee planting area from a level of
almost 500,000 rai (approximately 200,000 acres).
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Thailand is a coffee nation, ranked third (after Indonesia and Vietnam) in
Southeast Asia in annual raw coffee production. While there are many species of
coffee trees in the world, only Arabica and Robusta have major economic
significance, both of which are grown in Thailand.
At present, Thailand produces approximately:
• 50,000 - 80,000 tons of Robusta coffee, of which 40% (ca. 30,000 tons) are
processed locally and about 60% (ca. 50,000 tons) is exported.
• A few thousand tons of Arabica coffee, which are almost entirely processed locally
Source: http://www.boncafe.co.th/thai-coffee/origin-history.html
http://www.boncafe.co.th/thai-coffee/thai-coffee.htm
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Coffee Shop in Chiang Rai
Doi Tung
The creation of Café DoiTung allows locals to capture the top value in coffee
growing, which is a replacement crop for opium. Café DoiTung uses only the Project's high-
quality aromatic Arabica coffee beans harvested from trees grown at approximately 1,000
meters above sea level. The coffee cherries are hand-picked and selected before being
carefully roasted and ground. The process lends every cup at Café DoiTung its great taste.
Another product offered at Café DoiTung is macadamia nuts, another cash crop replacing
opium.
Pangkhon Coffee
Slogan of Pangkhon is “one cup save one tree”
Located at downtown of Chiang Rai, opposite with the clock tower of Chiang rai .
Pangkhon have to provide a delivery service to customer. Contact 053-712-878.
Source:
http://www.pangkhoncoffee.com/index.php?option=com_content&view=article&id=12&Itemid=1
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Doi Chaang
Doi Chaang coffee house is proud to present “Pride of Thailand” a rave world-class,
single-estate special coffee premium bean. It’s roasted to a full medium to produce a fruity,
sweet cup with pleasant flowery fragrance.
Source: http://doichaangcoffee.com/
Wawee coffee
First coffee business of Wawee coffee open at the Maesa Elephant Camp in 2001,
expanding coffee branches and continuously distributing franchise of the first Wawee Co.,
Ltd--all trademarked with the now-familiar logo of the Akha lady in an orange-brown dress.
In Chiang rai wawee coffee located Address: 634/2 Wiang, Muang, Chiang Rai 57000
Tel: 0-5474-4465.
Source: http://www.waweecoffee.com/intro.php
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History of ice cream
The origin of ice cream can be traced back to 62 A.D in the time of the Roman
emperor Nero who invent chilled delicacies made from snow and flavored with honey and
mixed fruits. This dessert was usually served to the emperor and his great warriors before
battles. As time went by, the dessert was developed to a type of ice-cream called “Sherbet”.
There is also another view that the creation of ice cream first happened in China before
spreading to India then Persia. Around 2,000 BC the Chinese accidentally created milk ices as they
usually buried milk, which was very expensive, under snow to preserve it. From then, the Chinese
developed many ice concoctions such as fruit juices mixed with honey and ice. In the Mokul dynasty,
the Chinese created a recipe called “Kulfi” which was milk ice mixed with pistachio. It was believed
to be the archetype of today’s ice-cream.
In the 13th century, Marco Polo visited China and fell in love with the frozen desert, so he
took the technique of making ice cream back to Italy. During his journey, Marco Polo created his
own recipe by adding a few ingredients such as yak milk with snow. After he introduced the delicacy
to the Italians, it became very popular and soon spread to France and England. The Italians are very
famous for their ice cream recipe known as “Gelati”. They have developed the technique of making
Gelati and they have become known as the original ice cream maker and they also claim to be the
inventors as well.
In 1670, the Franesco café was the first parlor to sell this tasty treat which became a top hit
dish and the talk of the town. The popularity of gelato among the general population however only
developed in 1846 when Mrs. Nancy Johnson invented an ice cream making machine.
Source: http://inventors.about.com/od/foodrelatedinventions/a/ice_cream.htm
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Ice cream in Thailand
Ice cream was first imported from Singapore to Thailand in late King Rama IV- King
Rama V era. It was brought in a few years after ice first appeared. At that time, the Thais
called ice cream “I-Tim” and they were amazed by its chilled making process. It has been
said that at first, I-Tim was not actually an ice cream mixture as we would recognize today
but instead was syrup mixed with ice. After that, the Thais developed their I-Tim blend into
popsicles. By adding color such as red, green, pink and orange mixed with many tasty
flavored syrups, I-Tim became a top hit desert for sweet-toothed consumers, especially
young children. Today not only does the Thai’s I-Tim Popsicle come with a great sweet taste,
but it also is great fun. I-Tim popsicle makers always put a red dot on some of the popsicle
sticks and whoever has one gets a second free I-Tim popsicle.
Source:
http://www.highlightthailand.com/main/detail_content/The-history-of-ice-cream/22.html
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Happy plus
Ten years ago, office worker Soraya Printrakul spent her free time making ice cream
for her kids and her friends. Seven years ago, she decided to turn her hobby into a career,
resigning from her job and opening a cafe she named Happy Plus offering aromatic coffee,
smoothies and lots of home-made ice creams. Located in front of Mae Fah Luang University
Chiang Rai, Happy Plus is popular with students as well as families. The ambience is warm
and friendly with white wooden tables, chairs and comfy sofas and green walls painted with
lovely cartoons. It’s open daily from 10.30am to 9.30pm. Call (081) 764 6768.
Source: http://worldfilmbkk.com/life/Ice-cream-with-a-fruity-flavour-30167125.html
Swensen’s
Swensen”s was established by Earle Swensen. The first Swensen's Ice Cream Store opened
at the corner of Union & Hyde in San Francisco in 1948. The Minor Food Group is a
franchise company of Swensen's in Thailand. In downtown of Chiang Rai have 3 branch of
swensen’s : big c, night bazaar and central plaza.
Source: http://www.swensens.com/our-story/
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Situation Analysis
During the last 3-4 years, coffee shop business has obviously high growth rate.
Nowadays many people pay attention and invest to coffee business. Investors trust this
business can refund more benefit and stable. At the same time, consumer’s behavior for
drinking coffee of Thai people has changed. Because In the past, they drink instant coffee,
but now they changed to drink fresh roasted coffee which has shop. The decoration,
pleasant atmosphere and comfortable in the shop can make them to drink more coffee. The
coffee shop businesses had to adjust their marketing strategies to handle the situation and
attract more customers. The strategies like membership and promotions make the
customers feel that their cups of coffee are more valuable, thus, more enjoyable. The rate
of drinking coffee per person in Thai is still low .The average each 200 glasses per person per
year, compared with people in Asia such as Japanese, They drink coffee average 500 glasses
per person per year or 3-4 cups per week. While Americans drink coffee, the average 700
glasses per person per year, so the market trend in Thailand will be increased by trend
coffee consumption is 7 cups per week from 3-4cups per week and coffee consumptions in
Thailand will increase in future. Because of this, many investors both Thai and foreigners are
interested to invest in a coffee shop. Market competitions seem to be high. However most
of the coffee shop today will focus on selling products and other value added services such
as cakes, cookies, and sandwiches, some of them have internet access to customers. When
each shop has strength points with many options for consumer to choose. Entrepreneurs
must need to standardize their products and services that meet the needs of consumers.
27
Current Worldwide Annual Coffee Consumption per capita
(Source: http://chartsbin.com/view/581)
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Product/Service
In our coffee shop, we choose a coffee is a main product and in the shop also have
soft drink, Food, bakery, homemade ice-cream and Special homemade ice-cream.
Coffee Products
Espresso
Only black coffee serve both ice and hot
Latte
Americano
Cappuccino
Mocha
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Soft Drink
Ice Tea, Ice Milk Tea, Ice Lemon Tea, Green Tea
Italian Soda
(Kiwi, Apple, Blueberry and Strawberry)
Smoothies
Strawberry, Blueberry, Raspberry, Kiwi, Banana, Pineapple
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Bakery
Brownie, Blueberry cheese cake, Blueberry cheese pie,
Strawberry cheese cake, Coconut cake, Green tea cake
Home Made Ice-cream
Cookie & Cream, Thai Tea, Mocha Almond Fudge
Strawberry Yogurt, Blueberry Yogurt, Yakult
Special - Passion fruit, Tamarind Sorbet, Lychee, Santol Sherbet, Chao-guai
Service
Establishing a customer base of regular customers and must take care regular
customers continuously and then, always find for new customer. Business should be
development by raising the point that is unique and has special charm, developed taste. To
make customer gets a good impression and keep customers coming back to our shop. Our
shop provide a restroom, non-smoking area, safety area for children who’s come with
parents, an internet Wi-Fi, and open soft music for customer feel relax.
31
Vision of our organization
Our vision is we want to serve and bring good Thai’s coffee to Thai customers with low
price. To make customers are happy and impressed with the product as much as possible.
We have many style of coffee taste that customer can choose by themselves.
Mission of our organization
We try to develop taste of coffee to serve and make customer satisfy. In the marketing,
our main target group is students at MFLU and traveler. We try to provide comfortable
atmosphere to customer needs and the customer can receive high quality of coffee with low
price.
32
Strategy
Corporation level
Coffee shop being very popular for people who looking for business. Thus, market
competition is quite high. But with the way our shop has invented a formula that is unique
coffee shop. Our shop is a small business use few budgets to launch by target is students
and traveler who pass through our shop. And we also serve produce with low price.
1. Vision
- We want to become famous and number 1 coffee shop in front of university with
low price but high quality
2. Policy
- Our shop is center of student for meeting or relaxing.
3. Objective
- Serve coffee and ice cream with low price to student who has less money.
4. Process project team
- Our employee in our shop is student who wants to work for part time because
it’s easy to connect with our customer.
5. Individual job performance
- We’ll train our employee how to sever good service to our customer.
33
Business level
Our shop has highly competition environment and increase continuously. It affects
directly to our shop because the customer will use service with the shop that give the
highest return then we will concern about competitive strategy that can help us to have
more advantages competition than the competitor, so we will use competitive strategies in
order to make competitive advantage for our company that we created some special for
different from others.
Service
Our shop will make the customer’s loyalty by creating the impression to the
customer by services such as service satisfaction over quickly, clean and good workplace
such as we provide open soft music, our concept is garden that we should to maintenance
the environment.
Price
We have to provide low price to meet the customer satisfaction. Because the target
of our shop are students and staff in Mae Fah Luang University.
Quick-responses
- Take a feedback from customer and improve our service and product
- Ask employee and discussion how to make customer satisfaction
34
Function level
The functional level strategy will give the detail of the strategy for each function of our
shop represent in the function of marketing, production and service, organization,
management information system, and financial and accounting.
1. Marketing
Support all of target group. Our marketing is aimed at students. For that
reason, our shop is close to the Mae Fah Luang University. This makes our store
accessible to customers easily. There are also people who drive through can park
and visit our coffee and bakery shop to relax as well.
2. Financial
Recruit expert financial personal for financial statements to systematic, clear,
and accurate in every month and improving the accounting system and financial
standard form. Financial evaluate systematic and controlling within organization.
3. Human resource management
We have to select good staff. Good staff here is going to be people who
speak good, cleaning, good manners, friendly with customers and ethics. For working
together in the shop are not focus on the boss to employee, we will focus on work
like friends and brothers. To create intimacy makes it easy to work. Employee of our
shop will come from students who study at Mae Fah Luang University because they
know what their friends want from our service.
35
Chapter 3
Market Feasibility
study
36
Market analysis
General environment analysis
- Political analysis
country rule require food supplier provide everything is health and safe .Public
Healthy research indicates coffee can reduction many kinds of disease risk like Heart
disease, cirrhosis and gout. Our shop have safe rule make sure our product haven’t
any harmful.
- Economy analysis
National economy condition average income per person, unemployment condition,
growth/slow down of GDP, inflation, deflation, all of these affect directly to
purchasing power of customers who are target group. Tax rate that government
determine for business and product will affect to advantages/disadvantages in
determining price selling and cost of competition including import tax and specific
business tax.
- Social analysis
In Thai culture got some cultures from the western, so many socials such as office
worker, students, like to drink coffee after work or class because it can help them
fresh. A coffee becomes a part of life for modern social. They drink coffee as a
fashion.
- Technological analysis
Use of technology can improve operational efficiencies. Provide E-Marketing is the
two way communication activity that marketers can connect with customers around
the world and all time.
37
Competition Analysis (3C Analysis)
- Competitor Analysis
We identify competitors that provide service and product same as us which
are around Mea Fah Luang University and famous place that MFU’s students often to
visit. Then, we divide competitors with products for local coffee shop and
decoration, atmosphere; homemade bakery and ice cream, fresh coffee. Black
canyon, Starbuck, Wavee etc. are high brand which strong group of competitor so
we might sell our product with more cheaper price, we will identify with local
competitors we think they will become a high performance competition will be:
Happy Plus
Happy plus located Mea Fah Luang University flyover opposite Hui Phu School. They
open their shop for longtime and they focus on homemade ice cream and also serve with
some beverages and some of bakeries; there are have a few of menus. Happy plus has a
nice decoration with small sofa and relax atmosphere. They also hired Mea Fah Luang
student is employee.
I use studio
I use coffee lactated opposite Fah Thai market but no have enough parking lot. They
present Vittoria coffee to make coffee and also have cakes, foods. They focus on coffee than
everything, I use is small coffee shop that open till late.
38
Chiang Rai in love
Chiang Rai in love located opposite Doi Aob near Mea Fah Luang University, they
have beautiful scenery with field in the front and mountains in back they are have inside
and outside zone. They provide coffee, bakery and foods but they not have enough staffs for
service, and they also use normally design and furniture with white shade. They have a big
“Chiang Rai in love” name of shop to attract customers.
Banoffee
Banoffee prefer Arabica coffee from Doi Pha Hee, they roast and grind coffee by
them self, they have Banoffee coffee shop 3 brunches around Chiang rai at MFU brunch
located at 2nd floor of Chit Chat shopping place. They also have banoffee cake and a lot of
menus of bakery but they don’t have food. Theme color of them is orange that strike the
eyes. All of employee is student part time job.
39
Sa Wat Dee Chiang Rai
Sa Wat Dee Chaing Rai has good location that improves the shop to be good look for
high customer. Because the shop decoration invest by the modern furniture, big signboard
“สวัสดเีชยีงราย” make a attraction customer who is traveler (the most) go to buy a coffee
and take some of picture a big windmill like they stay in Netherlands About the performance
Sa Wat Dee Chaing Rai going to use a good coffee machine Brazign duels and cook a new
food every time they have an order. The most interesting is food that never see in the
coffee shop is Tim Sum, the Chinese stream food, because only open table coffee shop in
the old town at south of Thailand do this.As the reasons that why Sa Wat Dee Chaing Rai
attract both old customer and new customer to come.In the other way, Sa Wat Dee Chaing
Rai always take care customer well and almost waiter is MFU’s student path time job that
have train to have a good service mind.
Le petit café
Le petit located San kong noi road, Chiang Rai downtown. Le petit is fantastic
atmosphere with natural and a cute style of decoration also has a big menu of coffees, fruit
shakes, pastries and the standard Thai fare. The furniture was modern and comfortable. Le
petit is popular coffee shop that has homemade bakery and ice cream and also set up in
downtown which comfortable for customers in downtown.
40
Parabola
Parabola is popular place for student and tourist located at Mea Chan, Chiang Rai
where nice place have and also provide full option menus; coffee, beverages, Japanese cake
style, a lot of bakery and Thai and international foods, they have to bake at least 10 kinds of
cake every day. The favorites are banana chocolate cake, white chocolate cheesecake and
squidgy chocolate cake. They have many customers both of tourists and students because
Parabola an ideal place to take a break as they make their way to destinations along the
border. This is, after all, the route to Doi Mae Salong, Mae Sai, Chiang Saen, Chiang Khong
and the Golden Triangle. Parabola have red box which is symbol and easy to find and they
also have beautiful decoration with luxury style with high price of coffee and food but they
still have a lot of customers
Customer Analysis
We found customer who is students and teenager focus on demand first of all, then
taste of coffee, food, decorations because they want to take a photo with beautiful scenery
and also share on social network we understand their behavior by survey and study so we
would like to have a lots of promotions, they will be can touch nice atmosphere and
comfortable with power of buying that they can and we should focus on everything taste,
location, atmosphere, parking lot .Our coffee shop will be first choice in the customers’
information search. We sure that our brand must be in all stages of customers’ buying
decision process, final choice or decision.
41
Competitive Analysis
It is true that the level of competition among various coffee shops is high. In order
for a particular coffee shop to retain its loyal customers and to attract more potential coffee
drinkers, it is vital for it to employ some sales promotion every once in a while, especially
coffee shop that set up around Mae Fah Luang University; big target is students. Parabola
have high price but still have a lots of customer because they have difference signature
menu so our shop might be noticeable menu and sell with cheaper price. Each coffee shop
always has style for them, they focus on taste and atmosphere and they also have
difference decoration style, good atmosphere and good decorations. , we found customer
want to drink fresh high quality coffee and low cost. But no have any coffee shop that
talking about baristas, Baristas are the most important people in a coffee shop. As we all
know, they are the ones responsible for providing customers with the various coffee treats
that they would love to enjoy we will trainings are essential for baristas because of a variety
of reasons, the standards that we have developed for the making of your drinks. Most
importantly, with trainings, baristas will be able to improve their coffee-making skills,
making sure that they provide only high-quality, aromatic coffee drinks to customers, so we
provide our coffee shop has a good taste, I use is low cost business and can pull
more customers but they not important about decorate shop same as Phuvaree but they
have unique menu for attract customer We have many competitors that open same coffee
shop but shop that buy homemade bakery and ice cream just have some shop; happy plus
and parabola provided homemade ice cream, Happy plus not focus on coffee and bakery
and still located in unnoticeable. Parabola even set up far away from community but taste
of coffee can pull customer with location in clearly place and has a nice display that
noticeable and menu of foods, beverages and homemade cakes. Le petit café also popular
and buy homemade bakery and ice cream, located in downtown where far from Mea Fah
Luang University. Everything information we will use to improve and developing our coffee
business then we set plan and strategy about sell coffee, pull customers, promotion. When
we can success business, we will develop next mission and try to leader coffee business in
province.
42
STP Analysis
Like we said about the Strategy that I targeted on student and teenage, so most of
customer would be people who free and have a time to relax or small meeting even date.
The segmentation we divide in to 4-5 segments for service suitable in each:
Mean target will be teenager, why? Because teenagers love to drive they life freely
without any rules, provide a free time for them so they can spend the time in the shop, they
also spend money for food that they want and almost teenager can get money easily from their parents
every month.
Teenager love in low price and also need comfortable once of strategy that set the
price lower for this kind because I point that low price will attract people more. But we
didn’t say that low price with less quality.
43
Marketing mix strategy
Product
- We provide to make coffee shop for relaxing and meeting and sell with
homemade ice-cream, bakery and soft drink.
Price
- We set the price of coffee and other product in our shop with low price for
motivate customer and want to earn market segment from competition. Even
though we sell with low price but we still use with good ingredient to serve
coffee and other product to customer.
Place
- Our place is in front of Mae Fah Luang University. We build in small shop with
garden theme. Customer can satisfy our product and our place together.
Promotion
- We plan to set promotion every month as much as we can because this way is
good for motivation customer come to our shop and after customer satisfy with
our service and know us then they will tell to other and another tell to another
that would be great and we will gain more income.
44
Sale forecast/Profit estimate
Sale forecast
We estimate that first we start and not much sales. But then people will know us
more from word of month because good service and service mind on employee. However
we can make more sales and more customers in the second year and next year. In every
year we gain income in October-January because this time is high season in Chiang Rai
province. And this time we will gain income from traveler the one of our target group. This
time help us more to increase sales in our shop from coffee, homemade ice-cream,
homemade bakery etc.
0
50000
100000
150000
1 2 3 4 5 6 7 8 9 10 11 12
sales forecast year 1
Month Revenue
0
50000
100000
150000
1 2 3 4 5 6 7 8 9 10 11 12
Sales forecast year 2
Month Revenue
Month Sales 1 90100
2 85550
3 63250
4 62200
5 62200
6 71100
7 71750
8 84850
9 78750
10 78500
11 71100
12 103700
Month Sales
1 106800
2 98900
3 89700
4 84850
5 78750
6 78750
7 85500
8 87600
9 89700
10 85500
11 98900
12 103700
45
0
50000
100000
150000
1 2 3 4 5 6 7 8 9 10 11 12
Sales forecast year 3
Month Revenue
0
50000
100000
150000
1 2 3 4 5 6 7 8 9 10 11 12
Sales forcast year 4
Month Revenue
0
50000
100000
150000
1 2 3 4 5 6 7 8 9 10 11 12
Sales forcast year 5
Month Revenue
Month Sales
1 106300
2 100600
3 98900
4 89700
5 80250
6 83100
7 85500
8 89700
9 98900
10 83100
11 98900
12 106800
Month Sales
1 103500
2 100200
3 98900
4 87600
5 85500
6 85500
7 89700
8 98900
9 89700
10 85500
11 98900
12 101750
Month Sales
1 106800
2 98900
3 89700
4 84850
5 78750
6 85500
7 85500
8 87600
9 89700
10 85500
11 98900
12 103700
46
Profit estimation
We estimate that the first semi-annual has less profit because customer don’t know our
shop and this is a good way for us to try to promote our shop to customer by word of mouth
and make brochure to introduce our shop and set promotion for customer.
0
20000
40000
60000
80000
1 2 3 4 5 6 7 8 9 10 11 12
Profit estimation year 1
Month Profit
0
20000
40000
60000
80000
1 2 3 4 5 6 7 8 9 10 11 12
Profit estimation year 2
Month Profit
Month Income
1 48640
2 45840
3 43740
4 43230
5 42890
6 44310
7 46380
8 55640
9 54900
10 54460
11 56730
12 64390
Month Income
1 59670
2 57990
3 54610
4 53920
5 55370
6 54670
7 55530
8 57990
9 54630
10 54490
11 61500
12 67890
47
0
20000
40000
60000
80000
1 2 3 4 5 6 7 8 9 10 11 12
Profit estimation year 3
Month Profit
0
20000
40000
60000
80000
1 2 3 4 5 6 7 8 9 10 11 12
Profit estimation year 4
Month Profit
0
20000
40000
60000
80000
1 2 3 4 5 6 7 8 9 10 11 12
Profit estimation year 5
Month Profit
Month Income
1 66090
2 66110
3 58940
4 62350
5 57970
6 56520
7 57830
8 55880
9 56940
10 58090
11 64770
12 72840
Month Income
1 67560
2 64290
3 62240
4 60700
5 60270
6 60270
7 58340
8 58340
9 59970
10 57090
11 68790
12 71090
Month Income
1 59670
2 57990
3 54610
4 53920
5 55370
6 54670
7 55530
8 57990
9 54630
10 54490
11 61500
12 67890
48
Marketing Expense
Our coffee shop has Expense as follow many advertise. The first advertising we choose
Radio advertises. In short spot tell about the name of our shop, place, sale promotion and
slogan. The second advertising we provide website for customer to find information of our
shop easily. The third we make brochure for given to people in many places and make
billboard for the people know about our shop. We always change billboard every year
before high season. Because in high season has many tourist come to Chiang Rai. We think
new billboard must attract more customers into our shop.
0
2000
4000
6000
1 2 3 4 5 6 7 8 9 10 11 12
Marketing Expense year 1
Month Sales
0
1000
2000
3000
1 2 3 4 5 6 7 8 9 10 11 12
Marketing Expense year 2
Month Sales
Month Sales
1 5000
2
3
4
5
6
7
8
9
10 3000
11
12
Month Sales
1
2
3
4
5
6
7
8
9
10 3000
11
12
49
0
2000
4000
6000
1 2 3 4 5 6 7 8 9 10 11 12
Marketing Expense year 3
Month Sales
0
1000
2000
3000
1 2 3 4 5 6 7 8 9 10 11 12
Marketing Expense year 4
Series1 Series2
0
10000
20000
30000
1 2 3 4 5 6 7 8 9 10 11 12
Marketing Expense year 5
Month Sales
Month Sales
1
2
3
4
5
6
7
8
9
10 3000
11
12 5000
Month Sales
1
2
3
4
5
6
7
8
9
10 3000
11
12 3000
Month Sales
1
2
3
4
5
6
7
8
9
10 30000
11
12 3000
50
Chapter 4
Cost of Investment
51
Pre-operating
Stand-alone pattern (Area of 50 square meters) around Mae Fah Luang
University
Construction cost, Design cost and Decoration cost
800,000฿
Electrical system cost
50,000฿
Water supply system cost
15,000฿
Telephone system cost
5,000฿
Electronic cash register calculators system
50,000฿
Total 920,000฿
52
Location
Our Coffee shop is locating in front of Mar Fah Luang Univerisy on the street near a local
market and residential areas. Our shop is about 9 meters wide and 16 meters deep. We bought this
location 2500000 Baht.
53
Machines / Tools / Equipments
Table and Chair (octagonal)
Wicker Swing 1
Table and Chair modern
Table and Chair wood *2
Table and Chair (Wicker)
Coffee Table *2
Sofa
Armchair(Nina)*2
54
Chandelier
Bookshelf
Stool bar chair *2
Glass
Plate
MP4 Player Pioneer
Air-conditioner LG
55
TV LG Plasma
Ice cream display
Cake Display Cabinet
Tools & Machine
Coffee Machine & Grinder
Fruit blender
56
Ice cream Machine
Refrigerator A
Refrigerator B
Computer A&B
Electronic Cash Register Calculator
57
Cost of investment
Pre operating cost
Land 25000000
Investment cost
Building
Environment structure 90000
Structure 220000
Build in 150000
Total 460000
Equipment
Table & chair & Sofa
(Outdoor)
Table and Chair (octagonal) 4600
Wicker Swing 1 8,500
Table and Chair modern 15,000
Table and Chair wood *2 8,000
(indoor)
Table and Chair (Wicker) 25,000
Coffee Table *2 4,400
Sofa 22,900
Armchair(Nina)*2 9980
Stool bar chair *2 1,180
Total 99560
58
Chandelier 5900
Bookshelf 2,990
Glass 3650
Plate 1950
Counter 140000
DVD Player Pioneer 12990
Air-conditioner LG 30980
TV LG Plasma 26990
Ice cream display 89000
Cake Display Cabinet 45200
Total 359650
Tools & Machine
Coffee Machine & Grinder 99000
Fruit blender 9900
Ice cream Machine 177000
Refrigerator A 15000
Refrigerator B 53400
Computer A&B 41800
Electronic Cash Register Calculator 10,990
Total 887690
Etc
Miscellaneous 150000
Total 150000
59
Investment cost
Equipment
Investment Amount Depreciation Annual Dep. Monthly Dep.
Table & Chair Outdoor 36100 3 Years 12024 1002
Table & Chair Indoor 63460 5 Years 12684 1057
Chandelier 5900 10 Years 588 49
Bookshelf 2990 10 Years 288 24
Glass & Plate 5600 5 Years 1116 93
DVD Player Pioneer 12990 5 Years 2592 216
Air-conditioner LG 30980 5 Years 6192 516
TV LG Plasma 26990 5 Years 5388 449
Ice cream display 8900 5 Years 1776 148
Cake Display Cabinet 45200 5 Years 9036 753
Counter 140000 10 Years 1392 116
60
Depreciation
First Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Table & Chair
Outdoor
36100 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 12024
Table & Chair
Indoor
63460 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 12684
Chandelier
5900 49 49 49 49 49 49 49 49 49 49 49 49 588
Bookshelf 2990 24 24 24 24 24 24 24 24 24 24 24 24 288
Glass & Plate 5600 93 93 93 93 93 93 93 93 93 93 93 93 1116
DVD Player
Pioneer
12990 216 216 216 216 216 216 216 216 216 216 216 216 2592
Air-
conditioner
LG
30980 516 516 516 516 516 516 516 516 516 516 516 516 6192
TV LG Plasma
26990 449 449 449 449 449 449 449 449 449 449 449 449 5388
Ice cream
display
8900 148 148 148 148 148 148 148 148 148 148 148 148 1776
Total 193910 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 42648
61
Second Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Table & Chair
Outdoor
36100 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 12024
Table & Chair
Indoor
63460 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 12684
Chandelier
5900 49 49 49 49 49 49 49 49 49 49 49 49 588
Bookshelf 2990 24 24 24 24 24 24 24 24 24 24 24 24 288
Glass & Plate 5600 93 93 93 93 93 93 93 93 93 93 93 93 1116
DVD Player
Pioneer
12990 216 216 216 216 216 216 216 216 216 216 216 216 2592
Air-
conditioner
LG
30980 516 516 516 516 516 516 516 516 516 516 516 516 6192
TV LG Plasma
26990 449 449 449 449 449 449 449 449 449 449 449 449 5388
Ice cream
display
8900 148 148 148 148 148 148 148 148 148 148 148 148 1776
Total 193910 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 42648
62
Third Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Table & Chair
Outdoor
36100 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 12024
Table & Chair
Indoor
63460 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 12684
Chandelier
5900 49 49 49 49 49 49 49 49 49 49 49 49 588
Bookshelf 2990 24 24 24 24 24 24 24 24 24 24 24 24 288
Glass & Plate 5600 93 93 93 93 93 93 93 93 93 93 93 93 1116
DVD Player
Pioneer
12990 216 216 216 216 216 216 216 216 216 216 216 216 2592
Air-
conditioner
LG
30980 516 516 516 516 516 516 516 516 516 516 516 516 6192
TV LG Plasma
26990 449 449 449 449 449 449 449 449 449 449 449 449 5388
Ice cream
display
8900 148 148 148 148 148 148 148 148 148 148 148 148 1776
Total 193910 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 42648
63
Fourth Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Table & Chair
Outdoor
36100 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 12024
Table & Chair
Indoor
63460 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 12684
Chandelier
5900 49 49 49 49 49 49 49 49 49 49 49 49 588
Bookshelf 2990 24 24 24 24 24 24 24 24 24 24 24 24 288
Glass & Plate 5600 93 93 93 93 93 93 93 93 93 93 93 93 1116
DVD Player
Pioneer
12990 216 216 216 216 216 216 216 216 216 216 216 216 2592
Air-
conditioner
LG
30980 516 516 516 516 516 516 516 516 516 516 516 516 6192
TV LG Plasma
26990 449 449 449 449 449 449 449 449 449 449 449 449 5388
Ice cream
display
8900 148 148 148 148 148 148 148 148 148 148 148 148 1776
Total 193910 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 42648
64
Fifth Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Table & Chair
Outdoor
36100 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 1002 12024
Table & Chair
Indoor
63460 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 1057 12684
Chandelier
5900 49 49 49 49 49 49 49 49 49 49 49 49 588
Bookshelf 2990 24 24 24 24 24 24 24 24 24 24 24 24 288
Glass & Plate 5600 93 93 93 93 93 93 93 93 93 93 93 93 1116
DVD Player
Pioneer
12990 216 216 216 216 216 216 216 216 216 216 216 216 2592
Air-
conditioner
LG
30980 516 516 516 516 516 516 516 516 516 516 516 516 6192
TV LG Plasma
26990 449 449 449 449 449 449 449 449 449 449 449 449 5388
Ice cream
display
8900 148 148 148 148 148 148 148 148 148 148 148 148 1776
Total 193910 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 3554 42648
65
Investment Cost
Tools & Machines
Investment Amount Depreciation Annual Dep. Monthly Dep.
Coffee machine + Grinder 99000 5 Years 19800 1650
Fruit blender 9900 5 Years 1980 165
Ice cream machine 177000 5 Years 35400 2950
Computer A 20900 3 Years 6960 580
Computer B 20900 3 Years 6960 580
Electronic Cash Register
Calculator
10990 5 Years 2196 183
Refrigerator A 15000 5 Years 3000 250
Refrigerator B 53400 5 Years 10680 890
66
Depreciation Tools
First Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Coffee machine
+ Grinder
99000 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 19800
Fruit blender
9900 165 165 165 165 165 165 165 165 165 165 165 165 1980
Ice cream
machine
177000 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 35400
Computer A
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Computer B
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Electronic Cash
Register
Calculator
10900 183 183 183 183 183 183 183 183 183 183 183 183 2196
Refrigerator A
15000 250 250 250 250 250 250 250 250 250 250 250 250 3000
Refrigerator B
53400 890 890 890 890 890 890 890 890 890 890 890 890 10680
Total
407000 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 86976
67
Second Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Coffee machine
+ Grinder
99000 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 19800
Fruit blender
9900 165 165 165 165 165 165 165 165 165 165 165 165 1980
Ice cream
machine
177000 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 35400
Computer A
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Computer B
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Electronic Cash
Register
Calculator
10900 183 183 183 183 183 183 183 183 183 183 183 183 2196
Refrigerator A 15000 250 250 250 250 250 250 250 250 250 250 250 250 3000
Refrigerator B 53400 890 890 890 890 890 890 890 890 890 890 890 890 10680
Total 407000 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 86976
68
Third Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Coffee machine
+ Grinder
99000 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 19800
Fruit blender
9900 165 165 165 165 165 165 165 165 165 165 165 165 1980
Ice cream
machine
177000 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 35400
Computer A
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Computer B
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Electronic Cash
Register
Calculator
10900 183 183 183 183 183 183 183 183 183 183 183 183 2196
Refrigerator A 15000 250 250 250 250 250 250 250 250 250 250 250 250 3000
Refrigerator B 53400 890 890 890 890 890 890 890 890 890 890 890 890 10680
Total 407000 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 86976
69
Fourth Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Coffee machine
+ Grinder
99000 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 19800
Fruit blender
9900 165 165 165 165 165 165 165 165 165 165 165 165 1980
Ice cream
machine
177000 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 35400
Computer A
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Computer B
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Electronic Cash
Register
Calculator
10900 183 183 183 183 183 183 183 183 183 183 183 183 2196
Refrigerator A 15000 250 250 250 250 250 250 250 250 250 250 250 250 3000
Refrigerator B 53400 890 890 890 890 890 890 890 890 890 890 890 890 10680
Total 407000 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 86976
70
Fifth Year
Investment Amount Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Coffee machine
+ Grinder
99000 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 1650 19800
Fruit blender
9900 165 165 165 165 165 165 165 165 165 165 165 165 1980
Ice cream
machine
177000 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 35400
Computer A
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Computer B
20900 580 580 580 580 580 580 580 580 580 580 580 580 6960
Electronic Cash
Register
Calculator
10900 183 183 183 183 183 183 183 183 183 183 183 183 2196
Refrigerator A 15000 250 250 250 250 250 250 250 250 250 250 250 250 3000
Refrigerator B 53400 890 890 890 890 890 890 890 890 890 890 890 890 10680
Total 407000 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 7248 86976
71
Chapter 5
Operating cost
72
Operating cost
Inventory
Coffee and Bakery
Hot Ice Frap
Espresso 30 35 45
Latte 40 45 55
Americano 40 50 60
Cappuccino 30 35 45
Mocha 30 35 45
73
Brownie
20/piece
Blueberry cheese cake
55/piece
Blueberry cheese pie
55/piece
Strawberry cheese cake
55/piece
Strawberry cheese pie
55/piece
Coconut cake
35/piece
Green tea cake
35/piece
74
Raw material: Coffee bean from Doi Chaang
Pea berry 1600/kg
Organic 1400/kg
Premium 1080/kg
Cocoa powder 170/500g
Green tea powder (Matcha) 1150/500g
Tea powder (Ceylon) 210/500g
Sugar 23/kg
Cream 45/450g
Carnation milk 60/405g
Fruit juice smoothie (Sun up) 130/700ml
Syrup 315/700ml
Soda 6/325ml
Ground cinnamon 40/50g
Yoghurt 1250/kg
Skim milk powder 500/2500g
Lime powder 420/kg
Sodium carboxymethy cellulose gum 350/kg
Dextrose 205/5kg
Malt dextrin 370/7500g
Citric acid 15/100g
Shortening 75/kg
75
Chapter 6
Organization
And Administration
76
Administration cost
Labor per month
28,000
Water supply per month
450
Electronic supply per month
5500
Internet per month
690
Telephone per month
500
Other expense; such as, dishwashing liquid, clean water surface, Knitting liquid cleaner
Total
35,140
77
Chapter 7
Financial
78
Income
Statement
79
Income Statement 1st year
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Revenue 90100 85550 63250 62200 62200 71100 71750 84850 78750 78500 71100 103700
Cost of revenue
41460 39710 19510 18970 19310 26790 25370 29210 23850 24040 14370 39310
Gross profit 48640 45840 43740 43230 42890 44310 46380 55640 54900 54460 56730 64390
Expense
*Selling expense 5000 - - - - - - - - 3000 - -
Administration cost
*Labour 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000
*Electric supply 5000 5000 5200 6000 6200 6000 5000 5000 5000 5000 5000 5000
*Water supply 400 400 450 480 480 480 400 450 400 400 400 400
*Telephone 500 500 500 500 500 500 500 500 500 500 500 500
*Internet 690 690 690 690 690 690 690 690 690 690 690 690
34590 34590 34840 35670 35870 35670 34590 34640 34590 34590 34590 34590
Net income (loss)
9050 11250 8900 7560 7020 8640 11790 21000 20310 16870 22140 29800
80
Income Statement 2nd year
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Revenue 106800 98900 89700 84850 78750 78750 85500 87600 89700 85500 98900 103700
Cost of revenue
47130 40910 35090 30930 23080 24080 29970 29610 35070 31010 37400 35810
Gross profit 59670 57990 54610 53920 55370 54670 55530 57990 54630 54490 61500 67890
Expense
*Selling expense - - - - - - - - - 3000 - -
Administration cost
*Labour 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000
*Electric supply 5000 5000 5200 6000 6200 6000 5000 5000 5000 5000 5000 5000
*Water supply 400 400 450 480 480 480 400 450 400 400 400 400
*Telephone 500 500 500 500 500 500 500 500 500 500 500 500
*Internet 690 690 690 690 690 690 690 690 690 690 690 690
34590 34590 34840 35670 35870 35670 34590 34640 34590 34590 34590 34590
Net income (loss)
25080 23400 19770 18250 19500 19000 20940 23400 20040 16900 26910 33300
81
Income Statement 3nd year
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Revenue 106300 100600 98900 89700 80250 83100 85500 89700 98900 83100 98900 106800
Cost of revenue
40210 34490 39960 27350 22280 26580 27670 33820 41960 25010 34130 33960
Gross profit 66090 66110 58940 62350 57970 56520 57830 55880 56940 58090 64770 72840
Expense
*Selling expense - - - - - - - - - 3000 - 5000
Administration cost
*Labour 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000
*Electric supply 5000 5000 5200 6000 6200 6000 5000 5000 5000 5000 5000 5000
*Water supply 400 400 450 480 480 480 400 450 400 400 400 400
*Telephone 500 500 500 500 500 500 500 500 500 500 500 500
*Internet 690 690 690 690 690 690 690 690 690 690 690 690
34590 34590 34840 35670 35870 35670 34590 34640 34590 34590 34590 34590
Net income (loss)
31500 31520 24100 22680 22100 20850 23240 21240 22350 20500 30180 33250
82
Income statement 4th year
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Revenue 103500 100200 98900 87600 85500 85500 89700 98900 89700 85500 98900 101750
Cost of revenue
35940 35910 36660 26900 25230 25230 31360 40560 29730 28410 30110 30660
Gross profit 67560 64290 62240 60700 60270 60270 58340 58340 59970 57090 68790 71090
Expense
*Selling expense - - - - - - - - - 3000 - 3000
Administration cost
*Labour 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000
*Electric supply 5000 5000 5200 6000 6200 6000 5000 5000 5000 5000 5000 5000
*Water supply 400 400 450 480 480 480 400 450 400 400 400 400
*Telephone 500 500 500 500 500 500 500 500 500 500 500 500
*Internet 690 690 690 690 690 690 690 690 690 690 690 690
34590 34590 34840 35670 35870 35670 34590 34640 34590 34590 34590 34590
Net income (loss)
32970 29700 27400 25030 24000 24600 21680 23700 25380 19500 34200 33500
83
Income statement 5th year
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Revenue 106800 98900 89700 84850 78750 78750 85500 87600 89700 85500 98900 103700
Cost of revenue
47130 40910 35090 30930 23080 24080 29970 29610 35070 31010 37400 35810
Gross profit 59670 57990 54610 53920 55370 54670 55530 57990 54630 54490 61500 67890
Expense
*Selling expense - - - - - - - - - 3000 - -
Administration cost
*Labour 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000 28000
*Electric supply 5000 5000 5200 6000 6200 6000 5000 5000 5000 5000 5000 5000
*Water supply 400 400 450 480 480 480 400 450 400 400 400 400
*Telephone 500 500 500 500 500 500 500 500 500 500 500 500
*Internet 690 690 690 690 690 690 690 690 690 690 690 690
34590 34590 34840 35670 35870 35670 34590 34640 34590 34590 34590 34590
Net income (loss)
25080 23400 19770 18250 19500 19000 20940 23400 20040 16900 26910 33300
84
Cash Flow
85
Cash Flow 1st year
Jan Feb Mar Apr May June
Cash be. balance - 686828 663583 647452 628625 620632
Cash flow from operating
Net income (loss) 9050 11250 8900 7560 7020 8640
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - 15000 - 1000 1000 1000
Change in account payable
13500 1000 - 1000 1000
Total cash flow from operating
6272 9972 7622 6282 5742 9362
Cash flow from investing
Building - 460000
Equipments - 459210
Tools - 887690
Total cash flow from investing
- 1806900
Cash flow from financing
Borrowing 2500000
Interest - 3250 - 3196 - 3141 - 3086 - 3032
Repayment - 21750 - 21804 - 21859 - 21914 - 21968
Total cash flow from financing
2500000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 686828 - 23245 - 16131 - 18827 - 7993 - 10869
Net cash flow 686828 663583 647452 628625 620632 609763
Jan Feb Mar Apr May June
Cash be. balance - 686828 663583 647452 628625 620632
Cash flow from operating
Net income (loss) 9050 11250 8900 7560 7020 8640
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - 15000 - 1000 1000 - - 1000
Change in account payable
13500 1000 - 1000 - - 1000
Total cash flow from operating
6272 9972 7622 6282 5742 9362
Cash flow from investing
Building - 460000 - - - - -
Equipments - 459210 - - - - -
Tools - 887690 - - - - -
Total cash flow from investing
- 1806900 - - - - -
Cash flow from financing
Borrowing 2500000 - - - - -
Interest - - 3250 - 3196 - 3141 - 3086 - 3032
Repayment - - 21750 - 21804 - 21859 - 21914 - 21968
Total cash flow from financing
2500000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 686828 - 23245 - 16131 - 18827 - 7993 - 10869
Net cash flow 686828 663583 647452 628625 620632 609763
86
1st year (Cont.)
July Aug Sep Oct Nov Dec
Cash be. balance 609763 610538 617527 622390 626217 637718
Cash flow from operating
Net income (loss) 11790 21000 20310 16870 22140 29800
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - - 1000 - - - 1500
Change in account payable
- - - 1000 - - 1500
Total cash flow from operating
10512 19722 9032 15592 20862 28522
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 2977 - 2922 - 2867 - 2811 - 2756 - 2700
Repayment - 22023 - 22078 - 22133 - 22189 - 22244 - 22300
Total cash flow from financing
- 25000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 775 6989 4863 3827 11501 21585
Net cash flow 610538 617527 622390 626217 637718 659303
87
Cash Flow 2nd year
Jan Feb Mar Apr May June
Cash be. balance 659303 681548 700797 720770 741677 761928
Cash flow from operating
Net income (loss) 25080 23400 19770 18250 19500 19000
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - 2500 4000 - - - -
Change in account payable
2500 - 4000 - - - -
Total cash flow from operating
23802 22122 18492 16972 18222 17722
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 2,644 - 2,588 - 2,532 - 2,476 - 2,420 - 2,363
Repayment - 22,356 - 22,412 - 22,468 - 22,524 - 22,580 - 22637
Total cash flow from financing
- 25000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 22245 19249 19973 20907 20251 23555
Net cash flow 681548 700797 720770 741677 761928 785483
88
2nd year ( Cont. )
July Aug Sep Oct Nov Dec
Cash be. balance 785483 815092 844625 876262 906563 949278
Cash flow from operating
Net income (loss) 20940 23400 20040 16900 26910 33300
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - - - 1500 500 2000 - 7500
Change in account payable
- - 1500 - 500 - 2000 7500
Total cash flow from operating
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 2,307 - 2,250 - 2,193 - 2,136 - 2,079 - 2022
Repayment - 22,693 - 22,750 - 22,807 - 22,864 - 22,921 - 22978
Total cash flow from financing
- 25000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 29609 29533 31637 30301 42715 52139
Net cash flow 815092 844625 876262 906563 949278 1001417
89
Cash flow 3rd year
Jan Feb Mar Apr May June
Cash be. balance 1001417 1051156 1095289 1143626 1191727 1242082
Cash flow from operating
Net income (loss) 31500 31520 24100 22680 22100 20850
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory 6500 - 1500 - - 3500 -
Change in account payable
- 6500 1500 - - - 3500 -
Total cash flow from operating
23802 22122 18492 16972 18222 17722
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 1,964 - 1,907 - 1,849 - 1,791 - 1,733 - 1,675
Repayment - 3,036 - 23,093 - 23,151 - 23,209 - 23,267 - 23,325
Total cash flow from financing
- 25000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 49739 44133 48337 48101 50355 51079
Net cash flow 1051156 1095289 1143626 1191727 1242082 1293161
90
3nd year ( Cont. )
July Aug Sep Oct Nov Dec
Cash be. balance 1293161 1349494 1405771 1465562 1528037 1600466
Cash flow from operating
Net income (loss) 23240 21240 22350 20500 30180 33250
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - - - - - 2000 - 4000
Change in account payable
- - - - 2000 4000
Total cash flow from operating
21962 19962 21072 19222 28902 31972
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 1,617 - 1,558 - 1,500 - 1,441 - 1,382 - 1323
Repayment - 23,383 - 23,442 - 23,500 - 23,559 - 23,618 - 23677
Total cash flow from financing
- 25000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 56333 56277 59791 62475 72429 68243
Net cash flow 1349494 1405771 1465562 1528037 1600466 1668709
91
Cash flow 4th year
Jan Feb Mar Apr May June
Cash be. balance 1668709 1746332 1822549 1899490 1976675 2056084
Cash flow from operating
Net income (loss) 32970 29700 27400 25030 24000 24600
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - 2000 200 - 200 - - -
Change in account payable
2000 - 200 200 - - -
Total cash flow from operating
21962 19962 21072 19222 28902 31972
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 1,264 - 1,204 - 1,145 - 1,085 - 1,025 - 966
Repayment - 23,736 - 23,796 - 23,855 - 23,915 - 23,975 - 24034
Total cash flow from financing
- 25000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 77623 76217 76941 77185 79409 81363
Net cash flow 1746332 1822549 1899490 1976675 2056084 2137447
92
4th year ( Cont. )
July Aug Sep Oct Nov Dec
Cash be. balance 2137447 2218204 2303385 2392650 2478239 2581222
Cash flow from operating
Net income (loss) 24600 21680 23700 25380 19500 34200
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - 200 - 500 1000 1500 -
Change in account payable
200 - - 500 - 1000 - 1500 -
Total cash flow from operating
23322 20402 22422 24102 18222 32922
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 905 - 845 - 785 - 724 - 664 - 603
Repayment - 24,095 - 24,155 - 24,215 - 24,276 - 24,336 - 24397
Total cash flow from financing
- 25000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 80757 85181 89265 85589 102983 105017
Net cash flow 2218204 2303385 2392650 2478239 2581222 2686239
93
Cash Flow 5th year
Jan Feb Mar Apr May June
Cash be. balance 2686239 2793096 2895427 2997702 3099591 3205264
Cash flow from operating
Net income (loss) 25080 23400 19770 18250 19500 19000
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - 2000 - - - - -
Change in account payable
2000 - - - - -
Total cash flow from operating
23802 22122 18492 16972 18222 17722
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 542 - 481 - 419 - 358 - 296 - 235
Repayment - 24,458 - 24,519 - 24,581 - 24,642 - 24,704 - 24765
Total cash flow from financing
- 25000 - 25000 - 25000 - 25000 - 25000 - 25000
Change in cash 106857 102331 102275 101889 105673 108317
Net cash flow 2793096 2895427 2997702 3099591 3205264 3313581
94
5th year ( Cont. )
July Aug Sep Oct Nov Dec
Cash be. balance 3313581 3446412 3584687 3725846 3863179 3878801
Cash flow from operating
Net income (loss) 19000 20940 23400 20040 16900 26910
Depreciation 10802 10802 10802 10802 10802 10802
Pre operating cost - 12080 - 12080 - 12080 - 12080 - 12080 - 12080
Change in inventory - - - - 300 300 200
Change in account payable
- - - 300 - 300 - 200
Total cash flow from operating
17722 19662 22122 18762 15622 25632
Cash flow from investing
Building - - - - - -
Equipments - - - - - -
Tools - - - - - -
Total cash flow from investing
- - - - - -
Cash flow from financing
Borrowing - - - - - -
Interest - 173 - 111 - 62 - 14 - -
Repayment - 24,827 - 19,318 - 19,318 - 5571 - -
Total cash flow from financing
- 25000 - 19,429 - 19,380 - 5,585 - -
Change in cash 132831 138275 141159 137333 15622 25632
Net cash flow 3446412 3584687 3725846 3863179 3878801 3904433
95
Balance sheet
96
Balance sheet 1st year
Jan Feb Mar Apr May June
Asset
Cash 686828 663583 647452 628625 620632 609763
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
97
Computer 50800 50800 50800 50800 50800 50800
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 1964982 1942283 1926152 1907325 1899332 1888463
98
1st year (Cont.)
July Aug Sep Oct Nov Dec
Asset
Cash 609763 610538 617527 622390 626217 637718
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
99
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 1888463 1889238 1896227 1901090 1904917 1916418
100
Balance sheet 2nd year
Jan Feb Mar Apr May June
Asset
Cash 659303 681548 700797 720770 741677 761928
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
101
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 1938003 1960248 1979497 1999470 2020377 2040628
102
2nd year (Cont.)
July Aug Sep Oct Nov Dec
Asset
Cash 785483 815092 844625 876262 906563 949278
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
103
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 2064183 2093792 2123325 2154962 2185263 2227978
104
Balance sheet 3rd year
Jan Feb Mar Apr May June
Asset
Cash 1001417 1051156 1095289 1143626 1191727 1242082
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
105
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 2286117 2329856 2373989 2422326 2470427 2520782
106
3rd year (Cont.)
July Aug Sep Oct Nov Dec
Asset
Cash 1293161 1349494 1405771 1465562 1528037 1600466
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
107
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 2571861 2628194 2684471 2744262 2806737 2879166
108
Balance sheet 4th year
Jan Feb Mar Apr May June
Asset
Cash 1668709 1746332 1822549 1899490 1976675 2056084
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
109
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 2947409 3025032 3101249 3178190 3255375 3334784
110
4th year (Cont.)
July Aug Sep Oct Nov Dec
Asset
Cash 2137447 2218204 2303385 2392650 2478239 2581222
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
111
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 3416147 3496904 3582085 3671350 3756939 3859922
112
Balance sheet 5th year
Jan Feb Mar Apr May June
Asset
Cash 2686239 2793096 2895427 2997702 3099591 3205264
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
113
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 3964939 4071796 4174127 4276402 4378291 4483964
114
5th year (Cont.)
July Aug Sep Oct Nov Dec
Asset
Cash 3313581 3446412 3584687 3725846 3863179 3878801
Equipment
Table & Chair (indoor) 63460 63460 63460 63460 63460 63460
Table & Chair (outdoor)
36100 36100 36100 36100 36100 36100
Counter 140000 140000 140000 140000 140000 140000
Chandelier 5900 5900 5900 5900 5900 5900
Bookshelf 2990 2990 2990 2990 2990 2990
Dvd player 12990 12990 12990 12990 12990 12990
Tv 26990 26990 26990 26990 26990 26990
Air conditioner 30980 30980 30980 30980 30980 30980
Ice-cream display 8900 8900 8900 8900 8900 8900
Cake display 45200 45200 45200 45200 45200 45200
Glass & plate 5600 5600 5600 5600 5600 5600
Tools
Ice-cream machine 177000 177000 177000 177000 177000 177000
Coffee grinder + machine
9900 9900 9900 9900 9900 9900
Fruit blander 99000 99000 99000 99000 99000 99000
Computer 50800 50800 50800 50800 50800 50800
115
Electronic cash register cal.
10990 10990 10990 10990 10990 10990
Refrigerator 68400 68400 68400 68400 68400 68400
Inventory
Coffee product 2000 2000 2000 2000 2000 2000
Soft drink product 1500 1500 1500 1500 1500 1500
Bakery product 10000 10000 10000 10000 10000 10000
Ice-cream product 10000 10000 10000 10000 10000 10000
Building 460000 460000 460000 460000 460000 460000
Total asset 4592281 4725112 4863387 5004546 5141879 5157501
116
Chapter 8
Risk Management
117
Risk Management
The analyzing of business risk factors we will use our business as a set. Then
look environment around business and business itself that what is the important point. If
this point is very important and adverse impact occur to this point, our business may get
some problem
Identify of risk Analyze of risk Resolve of risk
Political Politic is external out of
control by business. Many
competitors have to face
with this too. Politic might
positively affect to business
investment or negatively
affect as obstacle in business
success.
We always follow political
news and apply in our
business.
HR factor risk
Inefficient employees who
are lack of performance and
cannot satisfy customers. In
Chaing Rai many of
employees are from
Myanmar
Hired only Thais in both of
full-time and par-time job;
especially MFU’s students
who want to work in part
time job and train them
essential
Employee risk Some employee who are
students can’t work in long
vacation
Hire student who study in
summer course
Environmental risks pollution in the air, water
harmful to the atmosphere
We started to adopt new
ways that will not adversely
affect the environment and
start to employ eco-friendly
processes
Season and whether In raining season we might
use less outside zone
Prepare splashier above
outside zone
118
Low season Low season will be drop of
customer
Set a attractive promotion
Fire We have kitchen, its fire risk insurance
Raw material Some period might be effect
to some raw material have
high price
Have Connection with
wholesaler and stock some
raw material which can keep
long time
Equipment Coffee shop use a lots of
machine to make product, if
one of machine out of order
we can’t sell our product
reserve equipment
Quality Our shop buy roast coffee,
we need high quality of
coffee to make good coffee
Buy good quality roast coffee
from Doi Chang
Competitors Around MFU have a lots of
coffee shop
We provide difference of
menus, low price, good
service, professional,
comfortable
Financial Risk Financial risk is associated
with the financial structure
of the business. The
transactions the business
makes, and the financial
systems that already have in
place.
- Examining daily financial
operation.
- Watching the cash flow
management
Being in business involves risks. Some you’ll be aware of, but there may also
be others that have escaped your attention.
119
Chapter 9
Conclusion
120
Conclusion
Thailand coffee consumption is worth more than 4,000 million baht (US$130million) in
2007, with an annual growth rate of 25% so hundreds of new coffee shops, both chains and
non-chains, are open every year, reflecting a continued increase in demand for new coffee
machine equipment and supplies. Thailand Coffee, Tea &Drinks 2010 and Thailand Bakery &
Ice Cream 2010 are currently the BEST and LARGEST coffee bakery & ice cream show in the
country, signifying a golden opportunity for manufacturers/distributors of equipment and
supplies for coffee, tea, drinks, bakery, and ice cream wishing to penetrate the 80 million
people market (66million Thais and 14 million tourists). Thailand Coffee, Tea and Drinks
2010 and Thailand Bakery & Ice Cream 2010 aims to attract more than 30,000 buyers from
all over Thailand and neighboring countries to meet entrepreneur. More than
US$100,000(three million baht) marketing and promotion budget is set to draw buyers. The
show is well supported by both local and regional trade publications, thus ensuring publicity
tothe target group. Full supports from Thailand Barista Association and related government
agencies. A comprehensive coffee and bakery activities i.e. National Thailand Barista
Champion ship, Bakery Competition. We can see many opportunities why this project
should launch this project
From my study of project feasibility study and evaluation that show me about the
process of coffee shop is running on small business and planning for providing good service
with low price. Even coffee shop just small businesses and use less budget to launch. Coffee
shops not clear level of command because everyone can be every level. So we confirm that
no one study this business seriously before and if we know this business clearly every one
can build this kind of carrier. When we set up coffee business, we must thinking and
planning about objective that clear, reliable and make high profit to business. We must
understand customer and what demand while study competitor, find out the way to make
profit from customer and try to do anything that customers are satisfied. We take the
feedback to improve our service or make a new product. We choose right strategies to
adapt with the situation. We can manage risk and take advantage on competitors.
Timeframe, tell about period of time in processing business.
121
In market analysis we must know about political analysis. Politic is out of control by
business. Many competitors have to face with this too. Politic might positively affect to
business investment or negatively affect as obstacle in business success. So, we always
follow political news and apply in our business. Economy analysis, it is out of control from
business and others competitors must face as same as politic. Social and environment
analysis, business in different industry, market, and region might face with risk. It has
different business feasibility because business operation environment and market
environment that is different. Technology analysis, changed rapidly today that is called the
digital age. Marketing is the same. Result of technology change make marketing change too.
E-Commerce has grown continuously and force marketing must adapt following trade
system. So, E-Marketing happens. It helps to operate marketing activity by using electronic
equipment. Competition analysis [3c analysis] such as competitor analysis, we define the
competitors who provide service as same as us.
122
Reference
http://www.coffeeresearch.org/
http://www.chiangrai.net/dashboard19/?PID=VG91cmlzdC9Ub3VyaXN0MS5hc2N4
https://reg.mfu.ac.th/registrar/statistics/main_m.htm)
http://www.pangkhoncoffee.com/index.php?option=com_content&view=article&id=12&Itemid=1
http://inventors.about.com/od/foodrelatedinventions/a/ice_cream.htm
http://www.waweecoffee.com/intro.php
http://doichaangcoffee.com/
http://chartsbin.com/view/581
http://worldfilmbkk.com/life/Ice-cream-with-a-fruity-flavour-30167125.html
http://www.swensens.com/our-story/
http://www.highlightthailand.com/main/detail_content/The-history-of-ice-cream/22.html