La Gioia Coffee Shop

2

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

4

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

5

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

6

Chapter 1 Introduction

7

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/)

http://www.coffeeresearch.org/

8

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

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

9

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

https://reg.mfu.ac.th/registrar/statistics/main_m.htm

10

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.

11

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

-

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

-

12

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



1

-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

13

Chapter 2

Industry profile

14

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.

15

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.

16

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.

17

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.

18

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

http://www.ncausa.org/i4a/pages/index.cfm?pageid=68

19

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).

20

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

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

http://www.boncafe.co.th/thai-coffee/thai-coffee.htm

21

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


22

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

http://doichaangcoffee.com/

http://www.waweecoffee.com/intro.php

23

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

http://inventors.about.com/od/foodrelatedinventions/a/ice_cream.htm

24

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


25

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/

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

http://www.swensens.com/our-story/

26

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)

http://chartsbin.com/view/581

28

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

29

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

30

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


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


Month Profit

0

20000

40000

60000

80000

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


Month Profit

0

20000

40000

60000

80000

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


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


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


Month Sales

0

1000

2000

3000

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


Series1 Series2

0

10000

20000

30000

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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


Cash be. balance - 686828 663583 647452 628625 620632


Net income (loss) 9050 11250 8900 7560 7020 8640

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - 15000 - 1000 1000 - - 1000


13500 1000 - 1000 - - 1000


6272 9972 7622 6282 5742 9362


Building - 460000 - - - - -

Equipments - 459210 - - - - -

Tools - 887690 - - - - -


- 1806900 - - - - -


Borrowing 2500000 - - - - -

Interest - - 3250 - 3196 - 3141 - 3086 - 3032

Repayment - - 21750 - 21804 - 21859 - 21914 - 21968


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


Net income (loss) 11790 21000 20310 16870 22140 29800

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - - 1000 - - - 1500


- - - 1000 - - 1500


10512 19722 9032 15592 20862 28522


Building - - - - - -

Equipments - - - - - -

Tools - - - - - -


- - - - - -


Borrowing - - - - - -

Interest - 2977 - 2922 - 2867 - 2811 - 2756 - 2700

Repayment - 22023 - 22078 - 22133 - 22189 - 22244 - 22300


- 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


Cash be. balance 659303 681548 700797 720770 741677 761928


Net income (loss) 25080 23400 19770 18250 19500 19000

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - 2500 4000 - - - -


2500 - 4000 - - - -


23802 22122 18492 16972 18222 17722




Tools - - - - - -


- - - - - -



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


- 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. )


Cash be. balance 785483 815092 844625 876262 906563 949278


Net income (loss) 20940 23400 20040 16900 26910 33300

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - - - 1500 500 2000 - 7500


- - 1500 - 500 - 2000 7500





Tools - - - - - -


- - - - - -



Interest - 2,307 - 2,250 - 2,193 - 2,136 - 2,079 - 2022

Repayment - 22,693 - 22,750 - 22,807 - 22,864 - 22,921 - 22978


- 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


Cash be. balance 1001417 1051156 1095289 1143626 1191727 1242082


Net income (loss) 31500 31520 24100 22680 22100 20850

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory 6500 - 1500 - - 3500 -


- 6500 1500 - - - 3500 -


23802 22122 18492 16972 18222 17722




Tools - - - - - -


- - - - - -



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


- 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. )


Cash be. balance 1293161 1349494 1405771 1465562 1528037 1600466


Net income (loss) 23240 21240 22350 20500 30180 33250

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - - - - - 2000 - 4000


- - - - 2000 4000


21962 19962 21072 19222 28902 31972




Tools - - - - - -


- - - - - -



Interest - 1,617 - 1,558 - 1,500 - 1,441 - 1,382 - 1323

Repayment - 23,383 - 23,442 - 23,500 - 23,559 - 23,618 - 23677


- 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


Cash be. balance 1668709 1746332 1822549 1899490 1976675 2056084


Net income (loss) 32970 29700 27400 25030 24000 24600

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - 2000 200 - 200 - - -


2000 - 200 200 - - -


21962 19962 21072 19222 28902 31972




Tools - - - - - -


- - - - - -



Interest - 1,264 - 1,204 - 1,145 - 1,085 - 1,025 - 966

Repayment - 23,736 - 23,796 - 23,855 - 23,915 - 23,975 - 24034


- 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. )


Cash be. balance 2137447 2218204 2303385 2392650 2478239 2581222


Net income (loss) 24600 21680 23700 25380 19500 34200

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - 200 - 500 1000 1500 -


200 - - 500 - 1000 - 1500 -


23322 20402 22422 24102 18222 32922




Tools - - - - - -


- - - - - -



Interest - 905 - 845 - 785 - 724 - 664 - 603

Repayment - 24,095 - 24,155 - 24,215 - 24,276 - 24,336 - 24397


- 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


Cash be. balance 2686239 2793096 2895427 2997702 3099591 3205264


Net income (loss) 25080 23400 19770 18250 19500 19000

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - 2000 - - - - -


2000 - - - - -


23802 22122 18492 16972 18222 17722




Tools - - - - - -


- - - - - -



Interest - 542 - 481 - 419 - 358 - 296 - 235

Repayment - 24,458 - 24,519 - 24,581 - 24,642 - 24,704 - 24765


- 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. )


Cash be. balance 3313581 3446412 3584687 3725846 3863179 3878801


Net income (loss) 19000 20940 23400 20040 16900 26910

Depreciation 10802 10802 10802 10802 10802 10802


Change in inventory - - - - 300 300 200


- - - 300 - 300 - 200


17722 19662 22122 18762 15622 25632




Tools - - - - - -


- - - - - -



Interest - 173 - 111 - 62 - 14 - -

Repayment - 24,827 - 19,318 - 19,318 - 5571 - -


- 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


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.)


Asset

Cash 609763 610538 617527 622390 626217 637718

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

99


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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


Asset

Cash 659303 681548 700797 720770 741677 761928

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

101


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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.)


Asset

Cash 785483 815092 844625 876262 906563 949278

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

103


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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


Asset

Cash 1001417 1051156 1095289 1143626 1191727 1242082

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

105


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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.)


Asset

Cash 1293161 1349494 1405771 1465562 1528037 1600466

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

107


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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


Asset

Cash 1668709 1746332 1822549 1899490 1976675 2056084

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

109


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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.)


Asset

Cash 2137447 2218204 2303385 2392650 2478239 2581222

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

111


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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


Asset

Cash 2686239 2793096 2895427 2997702 3099591 3205264

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

113


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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.)


Asset

Cash 3313581 3446412 3584687 3725846 3863179 3878801

Equipment



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


Cake display 45200 45200 45200 45200 45200 45200

Glass & plate 5600 5600 5600 5600 5600 5600

Tools



9900 9900 9900 9900 9900 9900

Fruit blander 99000 99000 99000 99000 99000 99000

Computer 50800 50800 50800 50800 50800 50800

115


10990 10990 10990 10990 10990 10990

Refrigerator 68400 68400 68400 68400 68400 68400

Inventory

Coffee product 2000 2000 2000 2000 2000 2000


Bakery 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



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











https://reg.mfu.ac.th/registrar/statistics/main_m.htm









La Gioia Coffee Shop

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