Group Member

Group

 

1. Miss Chaloemkwan Ishiura ID:4931203023

2. Miss Netnapha Pho-in ID: 4931203046

3. Miss Piyaporn Thong-orn ID: 4931203059

4. Mr. Puchong Sittimon ID: 4931203082

5. Miss Rungsiya Rodbuab ID: 4931203087

Business Administration
School of Management
Mae Fah Luang University

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Executive Summary
Mae Korn Alaiyont is the spare part shop which provides standard and high quality
the variety of spare part products where is located in Mae Korn intersection area is near the
Chiang Rai bus station. Also Mae Korn Alaiyont provide customers satisfaction and
trustworthy with high quality and variety of products anticipate their requirement and create
the great value of product with reasonable price and service with friendly greeting and smile.
We emphasize is on the garage market include individual car user. We expand market in
Chiang Rai and expand the business growth which related with customers order for provide
opportunity profit. In addition, we applying computing technology for inventory management
and customers can order though website. Beside this we believe that lasting business success
is built upon ethical that had customer above profit which we operate to centre of spare part
product and service we do, we act with honesty, fairness and integrity. Moreover we concern
the corporate social responsibility to the social activities and environment friendly. We
recruit, develop, motivate, reward and retain personal of ability to be the technician working
condition, superior leadership, and condensation on the basis of performance with high
degree of employee security.

The important reasons for establish Mae Korn Alaiyont according to the general of
spare part business in Chiang Rai have higher growth rate and it affect to increase the spare
part business. From this reason, Mae Korn Alaiyont’s customers can be many garages and
general customers which can the same increase. And because of there are only three to four
the main and big spare parts business in Chiang Rai. Moreover the numbers of customer’s use
the garages have increased because it can from accidents or they need to maintain their car.
In addition the spare part business is not enough to serve the customers satisfaction including
the people who use the individual car and each garage in Chiang Rai or suburban. In term of
the nature of industry, the development of each country often to consider from economic
growing rate is the main point. Where the developed country is high economic growing rate
before the economic crisis is happen in Thailand. To develop the economic continually and
rise effect by Thai because Thailand economy is depend on the industrial more than the
agricultural and the product of industry change from production for importing substituted to
produce for exporting. The government aim about production for exporting by reach to the
international market. If the ability to distribute Thailand product into the world market; from

19 | P a g e
the business process to the customer is smooth, Thailand product will successful in the world
market. It is an important thing of exporting business, and the main factor that effect to
economic growth. When the economy of country have to depend on the industrial that
emphasize with the production for exporting, and there is a production. It must have the
products receiving by using logistics system.

According to the export and import statistic, there are increasing in every year the
state always tries to develop the transportation system. Transportation system has landing
transportation that has long road 170,000 km. high ways 25,000 km. combination with
railroad more than 4,000 km. connect between country size and pass to neighbors hood
country. Moreover air transportation have international airport seven places, domestic airport
twenty-five places and water transportation there are international port for five ports but
transportation system in Thailand is depend on truck which is the most quantity and accept
convenience and fast’ it is reason growing of automobile industrial. That makes for carriage
more weight. From this information that the most quantity transportation is landing so trucks
is important vehicles for distribute goods to local that make logistics business increase by
statistic about commercial increase, high sale volume. In distribution by truck is hard for
overweight carriage for breakeven and long time to distribute. Truck is not maintenance
because driver is not owner who is employee only that make owner must be maintenance
themselves, fixed and change spare part always for truck or car have long time and safety
although changing spare part at that time have to pay much more money.

On the other hand, the situation industry in Thailand has problem with export the auto
part industry. The auto part industry has exporting decline stage about forty-three point nine
percent when compare with the same period of last year. The main factor effect continuously
is the economic crisis and the dimension of many factors such as world oil price fluctuation
make the oil price high and effect to world economic. From the reason is effected the car
producer industry and car market has decrease of sales volume. That effect to the individual
car user influent to decrease customer buying power and customer loyalty. From the
continuous effect car producer industry and auto part industry although , in the present of
market situation it can build the opportunity for spare part business growing because the
customer favor to use the old car or no chance to buy a new car. Thus, increase the spare part
product for customer who would like to maintenance their cars. Make the spare part product

20 | P a g e
has high demand for sales. The customer doesn’t desire to buy new car because the difficult
about the contract and high risk to has more debt. The customer favor to use old car and
second hand car because low price and more product to offer from the statistical of export
spare part product of Thailand researches by the federation of Thailand industries found that
has continuous to expanding. However, in the auto part industrial is strong competing with
competitors. It is necessary to reduce cost and develop a quality of product to increase the
customer acceptable the product. Moreover the entrepreneurs are necessary to build the
business relationship with car center and garage business. In the present, Car is the necessary
vehicle used in human daily life for convenience and comfortable to do the business and
many activities such as transportation and service to the customer. Therefore, a spare part is
the importance equipment for car maintenance and necessary to use in every vehicle. So
spare part market is high profit and grows continuously and very interesting to invest the
business with large customer who use car and need to maintenance car.

According to market analysis, there are five external factors are effected to our
business; General Environment, Political, Economy, Social, and Technology. First the
general environment in Chiang Rai of spare part business information base on customer
buying power of Chiang Rai population. The most of customer of spare part business is the
owner of garage and car user that has high buying power for the observation of the many
garages can provide their service for the customer. Second one is political in Thailand
communication is important people who need to use vehicles for transportation and their
business so spare part business is necessary product for everyone. Third one is economy
crisis effect to slow down off last years by supply of Thailand people income and car industry
both of down production sector and customer demand is down follow delay of world
economy and the demand. Demand side, consuming consume the private sector is down from
a consumer is careful buying private sector investment still shrink brining pays the budget of
the government sector is down. The exporting decelerates down and lead part reaches to
expand price consumer index decelerates to follow fuel price that fines continual down for
the deposit and the credit still expand. Fourth is social, because of transportation is very
important in people daily life and car is very important thing for necessary and convenience
for people as well. Moreover, Chiang Rai is agriculture province most of people is
agriculturist and usually use car and agricultural vehicle for agricultural. For this reason,
cause the spare part product is important for their vehicle. Therefore people willing to pay
21 | P a g e
for safety of their confidential drive. And the most of people like to check for car
maintenance at the garage or car center service that certainly growing effect of spare part
business extremely. The last factor is technology Information Technology progression has
fast communication. The place is basically carry appeared growing and in the present people
want to convenience in communication which car is important in their life. Many companies
provide modern product to customer for suitable with their lifestyle by comfortable product
or service. New technology can change old things to new things such as auto part or spare
part business is providing new technology for the customers. Therefore we have more good
opportunity to establish spare part business. Also Mae Korn Alaiyont is high feasibility to
offer the largest spare part shop in Chiang Rai and provide excellent service by high skill
technician and professional who can provide right information to customers. By the way we
can make customers satisfy with our spare part and we can gain more profit.

In term of competitor analysis, because of spare part business is continuously

competition because the number of passenger car using, secondhand cars, and car that use for
agriculture have trend to increase. There is effect to spare part business has more expand and
has more necessary for every kind of cars in addition there is high profit business. Also spare
part shop in Chiang Rai is not enough and cannot response and support for customers need
and there is high start up and investment include the location in the city and cause of limited
area in Chiang Rai when compare with the around Mae Korn area. Thus we have more
opportunity to establish spare part shop because there have trend to increase growth. From
that reasons spare part business which located in Mae Korn has lass of competitors when we
compare with situation analysis that higher competition. Almost the spare part competition,
there are emphasize in quality of products and reasonable price including more variety of
products. That while in the future spare part market in Mae Korn area has expand and trend t
increase because economic in Chiang Rai expand and effect to increasing of spare part
market growth rate.

Moreover there are five factors in the competitive analysis; rivalry among competing
firms, potential of new competitors, potential development of substitute products, bargaining
power of suppliers, and bargaining power of customers. First rivalry among competing firms
in spare part business it does not has high competitive in the market because many firms still
not promote for their business. This business has high investment. General competition of

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this business is small market because competitors only allocated in Chiang Rai. However, we
concern for business trustworthy from customers and the business main competitors. Due to
in the beginning business of spare part business cannot know about customers order and it is
difficult to catch the loyalty of customer. Moreover, if we are new business, nature of
customer will be not trust in the quality or standard of new business. Therefore, it is barrier
for our business. Second is potential of new competitors, because of spare part market
growth has trend to increase, thus the new firm likely to aim for the maximize profit and able
to sell the same characteristic of the products. However, we attempt to keep our customers
include barriers to entry such always make customers loyalty, lack of experience, gain
technology and specialized know-how and potential saturation of the market. Moreover we
develop the strategy to attract the intension of the customer and to raise the barrier to the new
entry firm. Third is potential development of substitute products, because of spare parts
product is unique product and there is important and necessary component of every vehicles.
Thus there is difficult to find the substitute products and we don’t worry about this and don’t
have competitive pressures from substitute product. Fourth is bargaining power of suppliers
there is high bargaining power of supplier because it affects the intensity of competition in
spare part business, especially when there are a large number of suppliers. It’s often in best
interest both of supplier and producers to assist each other with reasonable price improve
quality, development service, and just-in-time delivery. Suppliers can set the criteria of the
spare part for the entrepreneurs and has the high bargain power. And the last factor is
bargaining power of customers, because the bargaining power of customers is also higher
when the products being purchase are standard or undifferentiated. Customers have a high
purchasing power because it not too many types of customer who like to purchase spare part
product. Because of the bargaining power of customers can be the most important force
affecting competitive advantage. Therefore customer always concern in many factor that
relate for them before making decision to purchase the product. Moreover, nowadays
customers concern about high quality and more variety of products. Furthermore, customers
would like to get value added of product; they want to get more satisfaction in all brand of
spare part. It is good opportunity of our business.

According to management analysis, there are project activities, marketing

activities, technical activities, and project’s building and constructions. For the beginning of
our business has the pre-operating administrative therefore our spare part business is high
23 | P a g e
feasibility and have more trend to increase the market growth in the future. In addition, the
period of project feasibility preparing the basis information for the component of analysis and
use to survey the location to open spare part business that we decided to choose area around
Mae Korn intersection is the our location. For the marketing, Mae Korn Alaiyont has concern
about the quality of products for standard and durable use and applies technology for
management. Moreover the efficiency of employee’s service can support the sell with service
mind and fast service. Therefore we apply the strategy for attract our customers and
advertisement our spare part shop such the radio and broadcast depend on the situation and
different for attract the customers to buy our all of spare part products. Moreover we have
different promotion in many seasons for makes the customers impress with our good service
and quality of products.
In the technical term, Mae Korn Alaiyont is located at the Mae Korn intersection
area where opposite the ESSO gas station that appropriate location because of their located
the main road and convenience for the customers. For the project’s building, we use the
architecture’s outsourcing to build our spare part shop and we have deal with them to raw
material procurement, equipment which use in the building including the operating cost.
Therefore we can reduce the problem and budget. Moreover we estimated the construction
time period and fix the completing time for reduce the problem of construction slow down.
According to the risk feasibility, in the part of sales can be decreasing 20 percents.
The changing in sales will affect to income, so the risk will be occurred. Such as if the sales
decrease for 20 percent, the company’s income will be decreased. In contrast, the payback
period will be increased. Moreover, financial risk affect to company’s financial statement
such as income statement and statement of cash flow too. Although the financial ratio was
decrease, we still have a high income. Therefore, we decide this risk can accept.

24 | P a g e
 Chapter 1

Introduction

Background and Significance of the Project

Nowadays, the numbers of people who use car in Chiang Rai are steady increase in
every year and this reason is the important to effect expand the spare part business.
According the trade of spare part market growth and increase sales of spare part, but it has a
few of spare part business in Chiang Rai. Therefore it’s not enough provide the quality of
spare part to serve customers satisfy and the most of people have more concern about
maintenance their car to can use in long time.

Our business is located in Mae Korn where is has more area and appropriate to
located the spare part business. Thus in this area is near the Chiang Rai bus station, it is the
centre of transportation and it suitable for customers include who live in around there and
makes them convenience and easy to go there. The general of spare part business in Chiang
Rai have higher growth rate and it affect to increase the spare part business. From this reason,
our customers can be many garages which can the same increase. There are only 3 to 4 the
main and big spare parts business in Chiang Rai. Moreover the numbers of customer’s use the
garages have increased because it can from accidents or they need to maintain their car. And
because of the economic factor that cannot support the customers need to sales and purchase
or change their new car. It makes the customers use more the garages and makes spare part
products is important and necessary for the customers.

Overall reasons, it makes us to look at the important factor and have more feasibility
to provide the spare part business. In addition the spare part business is not enough to serve
the customers satisfaction including the people who use the individual car and each garage in
Chiang Rai or suburban. So we study the feasibility of spare part business that located in Mae
Korn for response the customers need with variety and high quality of our product include
service from professional who have many experiences to makes customers have more
satisfaction.

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26 | P a g e
Project objectives

1. To study the important and the feasibility of spare part business in Chiangrai

2. To study the feasibility of market and sale volume related with spare part business

3. To study the feasibility of financial about risk investment, operation, sales forecasting
and return on investment

4. To study the feasibility of technical analysis consist of operation, production, and

organization

Benefits of Project

1. To understand the general environment of spare part competition to determine the

feasibility of spare part business

2. To understand the spare part market, customers need, marketing problems and can
forecast appropriate sales

3. To understand the risk of business investment for determine the efficiency financial
management

4. To understand operation, organization, and marketing cost

27 | P a g e
Time Period

Activity Time Frame

Between November 2009 – February 2010

Activity Time periods (Week)

1 2 3 4 5 6 7 8 9 10 11 12 13

1. Idea Generating

2. To consult with lecturer for

operating

3. Idea Conclusion

4. Planning

5. Study about operation details

6. Study project feasibility

6.1 Industry profile

6.2 Marketing

6.3 Technical

6.4 Financial

6.5 Economical and Environment

6.6 Risk management

7. Summary of project feasibility

Remark * Week 1 is November 2nd 2009 - November 8th 2009

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 * Week 13 is January 27th 2010 - February 2nd 2010

Chapter 2

Industry Profile

Nature of Industry

The development of each country often to consider from economic growing rate is the
main point.(e.g Reported results of operations of the Department of Export Promotion,2009)
.Where the developed country is high economic growing rate before the economic crisis is
happen in Thailand. To develop the economic continually and rise effect by Thai because
Thailand economy is depend on the industrial more than the agricultural and the product of
industry change from production for importing substituted to produce for exporting. The
government aim about production for exporting by reach to the international market. If the
ability to distribute Thailand product into the world market; from the business process to the
customer is smooth, Thailand product will successful in the world market. It is an important
thing of exporting business, and the main factor that effect to economic growth

When the economy of country have to depend on the industrial that emphasize with
the production for exporting, and there is a production. It must have the products receiving by
using logistics system. According to the export and import statistic, there are increasing every
year. For this reason, the state always tries to develop the transportation system, for example
the new airport construction, Suvarnabhumi international airport, when this project is finish.
It will make the transportation in the country is better and faster moreover; the location is the
effect that support Thailand to develop the ability to be the distribution center in the
Indochina region such as Malaysia, Singapore, Myanmar, Cambodia, Laos, included China
southern.

Transportation system has landing transportation that has long road 170,000 km. high
ways 25,000 km. combination with railroad more than 4,000 km. connect between country
size and pass to neighbors hood country. Moreover air transportation have international
airport 7 places, domestic airport 25 places and water transportation there are international
port for five ports such as Bangkok port, Laem chabang port, Maptaphudt port, Songkha port
29 | P a g e
and Puket port but transportation system in Thailand is depend on truck which is the most
quantity and accept ‘convenience and fast’ it is reason growing of automobile industrial. That

is made for carriage more weight. Construction of road to be increase always that makes each
year can distribution to local for much tons

From information below that the most quantity transportation is landing so trucks is
important vehicles for distribute goods to local that make logistics business increase by
statistic about commercial increase, high sale volume. In distribution by truck is hard for
overweight carriage for breakeven and long time to distribute. Truck is not maintenance
because driver is not owner who is employee only that make owner must be maintenance
themselves, fixed and change spare part always for truck or car have long time and safety
although changing spare part at that time have to pay much more money.

30 | P a g e
Situation of Industry

Thailand has problem with export the auto part industry. The auto part industry has
exporting decline stage at 43.9% (e.g. Souwalak, 1997) compare with the same period of last
year. The main factor effect continuously is the economic crisis and the dimension of many
factors such as world oil price fluctuation make the oil price high and effect to world
economic. From the reason to effect the car producer industry and car market has decrease of
sales volume. That effect to the individual car user influent to decrease customer buying
power and customer loyalty. From the continuous effect car producer industry and auto part
industry although , in the present of market situation it can build the opportunity for spare
part business growing because the customer favor to use the old car or no chance to buy a
new car. Thus, increase the spare part product for customer who would like to maintenance
their cars. Make the spare part product has high demand for sales. The customer doesn’t
desire to buy new car because the difficult about the contract and high risk to has more debt.
The customer favor to use old car and second hand car because low price and more product to
offer from the statistical of export spare part product of Thailand researches by the federation
of Thailand industries found that has continuous to expanding. On May 2009, has the highest
expanding to 40.4 % show opposite with the export of auto part and mechanical are
decreasing.

However, in the auto part industrial is strong competing with competitors. It is

necessary to reduce cost and develop a quality of product to increase the customer acceptable
the product. The entrepreneurs necessary to build the business relationship with car center
and garage business. In the present, Car is the necessary vehicle used in human daily life for
convenience and comfortable to do the business and many activities such as transportation
and service to the customer. Therefore, a spare part is the importance equipment for car
maintenance and necessary to use in every vehicle. So spare part market is high profit and
grows continuously and very interesting to invest the business with large customer who use
car and need to maintenance car. From this reasons, he secondhand spare part business can
call Chiang Kong spare part which are almost from Japan and some from Europe. Nowadays
31 | P a g e
Chiang Kong spare part is very famous and popular in all groups of car users such both of
passenger cars and commercial cars. (e.g. The federal of business development in Roy,1993)
In the beginning, spare part business is imported the spare part unsystematic but develop in
later. It has more high quality of products which import to the big resource at Pathumwan and
Lhuksi intersection. Ten years later, spare part business distribute around in Bangkok area
including individual shop and group shop However the big shop in Pathumwan which sale
spare part in expensive and make the most of customers change to buy in outskirt. Beside
this, it’s convenience to go but Chiang Kong at Wong Wian Odian is the source of domestic
secondhand spare part is not imported and it liquidation. When the persons think about
Chiang Kong spare part, Chiang Kong is imported spare part of Japan’s spare part. Name
Chiang Kong from Chiang Kong shrine which is the famous shrine before it has old car
selling.
From the surveying, numbers of Chiang Kong shop in Roy-ad are six shops
approximately. There are motor, gear, wheel, gear wheel etc. The big resource imported spare
part from Japan and sales of spare part market in Roy-ad are fifty to sixty million Baht per
year. The trend of sale has increase and higher of spare part shop. In year 2541 it has auto
part shop and Chiang Kong spare part only three shops but now has six shops5 and from

customers need and increasing of necessary to use spare part depend on the number of truck
increase in every year.

32 | P a g e
Product/ Service (in General)

General spare parts are the product that about car such as Engine, Fuel tanks,
Intake, Air system, Cvt continuous various transmission, Front suspension, Under rear,
Wheel and Brake system. This group product can offer to customer when they want, large
group of many people use these product. There are many parts.

Part 1: Engine

- Oil filter - Air filter

- Oil meter - Front seal
- Seal oil - Crank case
- Oil cap - Cylinder head gasket
- Trimming belt - Trimming belt idler (starter)
- Trimming belt idler (follower) - Oil color
- Water pump - Radiator fluid
- Radiator -Radiator tank
- Radiator cap - Left engine insulator
- Right engine insulator - Front engine insulator
- EGR value - Airmassmitor
- Intake gasket - Power steering pump
- Turbo - Inter cooler
33 | P a g e
Part 2: Fuel tanks, Intake, Air system

- Benzie Oil Filter - Charcoal

- Charcoal valve - Manifold gasket set
- Catalytic Converter - Compressor
- Air Dryer - Condenser

Part 3: CVT continuous various transmission

- Automatic transmission
- Automatic transmission Fluid
- Automatic transmission Fitter
- Fluid gasket
- Gear Insulator
34 | P a g e
Part 4: Front Suspension

- Bush thrust arm

- Thrust arm (front/ left)
- Thrust arm (rear/ right)
- Thrust arm (rear/ left)
- Bush control arm (inside)
- Bush control arm (outside)
- Control arm (front/ left-right)
- Bush control arm (rear/ left-right)
- Control arm (rear/left)
- Control arm (rear/right)
- Balljoint steering (C-shape/left)
- Balljoint steering (C-shape/right)
- Front wheel bearing
- Rubber buffer
- Axil shaft (in-left/right)
- Axil shaft (out-left/right)
- Spider joint bearing kit (out-left)
- Shock absorber (Front/left-right)
- Front stop buffet (front-left/right)
- Front shock absorber boot kit(left/right)

35 | P a g e
Part 5: Wheel and Brake System

- Front Brake Pad Kit

- Front Disk Brake
- Rear Brake Pad Kit
- Rear Disk Brake

36 | P a g e
 Accessory Spare parts are the accessories for customer who want to modified
car, they use them for decorate car to modern and look suitable for they want.

Part 1: Electric System

- Left front light - Right front light

- Low trumpet - High Trumpet
- Front windshield wiper blade left - Tiger bullet dynamo
- Front windshield wiper bland right - Right rear light
- Front windshield wiper blade Motor - Glass Cleaner
- Belt thickness - Ring thickness
- Shove Thickness - Front light switch
- Exigent light - Light mudguards
- Left light buffer - Right light buffer
- Left rear light

37 | P a g e
 Large spare parts are the big spare part of a car such as Front wind shield, Front
Bumper, Back Bumper. They are important for all cars because this part is component of
style of car. If cars don’t have this, they aren’t perfectly.

Part 1: Under rear

- Bush rear bar steel ring left

- Bush rear bar steel ring right
- Button rear wheel
- Chock up spring rear wheel left and right
- Stop buffer shock absorber rear left- right
- Shock absorber left- right
- Chock up spring

38 | P a g e
Part 2: Body
- Front wind shield
- Back Bumper
- Back Hood
- Front Spoiler Bumper
- Left Front Chromium Bumper
- Back Chromium Bumper
- Front Left Latch
- Back Left Latch
- Front left glass gutter
- Back left glass gutter
- Key remote
- Front Bumper
- Front Hood
- Boiler
- Back Spoiler Bumper
- Right Front Chromium Bumper
- Front Choke-up Hood
- Front Right Latch
- Back Right Latch
- Front right glass gutter
- Back right glass gutter
- Key
39 | P a g e
Vision

Mae Korn spare part is to be the largest leader provides all of spare part products and
service in the Chiang Rai.

Mission

Mae Korn spare part earn customers satisfaction and trustworthy with high quality
and variety of products anticipate their requirement and create the great value of product with
reasonable price and service with friendly greeting and smile. We emphasize is on the garage
market include individual car user. We expand market in Chiang Rai and expand the business
growth which related with customers order for provide opportunity profit. In addition, we
applying computing technology for inventory management and customers can order though
website. Beside this we believe that lasting business success is built upon ethical that had
customer above profit which we operate to centre of spare part product and service we do, we
act with honesty, fairness and integrity. Moreover we concern the corporate social
responsibility to the social activities and environment friendly. We recruit, develop, motivate,
reward and retain personal of ability to be the technician working condition, superior
leadership, and condensation on the basis of performance with high degree of employee
security.

40 | P a g e
Company Strategy

• Corporate Level

Market Development

Mae Korn spare part choose to establish and introducing the all of spare part products
into Mae Korn area where is the new market geographic area which we located the largest
spare part shop in Chiang Rai. We position on the general customers market for passenger
cars and commercial cars. In the future, we are planning to expand new market in the
neighborhood like Payao. We think market development can be good opportunity because if
we expand new market, we can get more customers and we can gain more profit and market
share especially in Mae Korn area because of there are no spare part business in this area.
Therefore, we choose the market development strategy apply to our business.

• Business Level

Differentiate

Mae Korn spare part has target customers are the general customers, garages and
retail shop and the main target is main focus on the general customers where require spare
part product for service their car maintenance and modified the garages require spare part
products for sell to their customers. In addition, there are two main competitors available. For
our business is new entry in the spare market in Chiangrai we necessary to create differentiate
from competitors. We provide higher technology than Petch Yon spare part shop and higher
accessible for customers than Charean Yon spare part shop. Moreover there are many
competitors are provide low technology and accessible.

Mae Korn spare part provide the convenience for customers that we offer customers
comfortable such as parking lots, cleanness, and located the main road where can motivate
41 | P a g e
the customers easy accessible to our shop. In technology innovation, we apply the barcode
system for accuracy and convenience for fasten service.

• Functional Level

Marketing Management
Mae Korn spare part focus on standard and more variety of products include the high
quality all of spare part. Moreover we concern about warranty of products and we have
products guaranty to make customers trust in our spare part. In addition, we have a special
price and discount for customers who loyalty with our shop and make our customers satisfy
to come to our shop again. In the advertising we would like to provide the marketing strategy
such as public relation, bill broad etc. we do the marketing strategy to race our customers.

Human Resource Management

Mae Korn spare parts have a good procurement process to recruit our staff including
the recruiting the high technician skill of employees or spare part professor for provide the
clearly information and describe the right products uses. We emphasize in sales person
training for right information with well understand about products and our staff can describe
all of spare part to customers that they want to know the information appropriate use with
their objective.

42 | P a g e
 Chapter 3
Marketing

Market Feasibility Study

Market Analysis

General Environment Analysis

From the general studying in Chiang Rai of spare part business information base on
customer buying power of Chiang Rai population. From the information present of Chiang
Rai population has is males has income level no more than 30,000 baht per month. The most
of population more than 20 years old. (e.g. Akkadech,2007) The most of customer of spare part
business is the owner of garage and car user that has high buying power for the observation
of the many garages can provide their service for the customer. The owner of the garages
buys spare part products follow by customer order that can not specify the products.
Furthermore, form the observation has 90% of consumer who use car to convenience them

Political Analysis

In car market situation many country has good sigh to recover the car business make
the buyer more confident to buy a cars with high power effect to demand of car and car spare
part is increasingly.

For the government regulation of Thailand is very advantage for our business on the
car spare part tax reduces in FTA and AFTA regulation.

43 | P a g e
 “From the discussion of Thailand Economist 5 % of tax on automobiles and parts
traded among the six founding ASEAN countries -Thailand, Malaysia, Singapore, Brunei, the
Philippines and Indonesia that was abolished on January 1, in a move towards turning
ASEAN into a single market. The regulation of ASEAN agreement would help ASEAN
nations become more competitive against other Asian giants particularly China and India.
Despite the global recession last year, auto sales in China reached 13 million units and in
India 2.2 million units, while combined sales in ASEAN hit 1.8 million units. Since major
markets such as the US, Europe and Japan are saturated and stagnant, due to the financial
crisis, any growth in the auto industry would have to take place in the Asian region,the
liberalization of the auto and parts trade will not only help ASEAN manufacturers, but also
draw investment into the region.

With the tariff barrier in ASEAN markets lifted, it would not be surprising to see a
particular product being manufactured in one country and exported to other countries within
the region, But it will also depend on the policy and risk management of each company. Such
as Honda assembly plants in several ASEAN countries and have been utilizing the Aico
(Asean Industrial Cooperation) scheme and AFTA to dramatically lower the cost for
purchasing parts. This has helped strengthen Honda manufacturing in each country and raised
the level of competitiveness.

According to Kasikorn Research Centre (KResearch), Thailand's exports of auto parts

could expand by 18-22 per cent this year to Bt150 billion-Bt155 billion after plunging by 23
per cent to Bt127 billion last year due to drop in demand from the global recession.OEM
(original) auto parts will be the main category benefiting from these changes, given their high
export value that is nine times higher than REM (spare) items," it stated in research published
earlier this month. From K research among the six founding ASEAN countries, Indonesia is
expected to be the most promising market for Thai parts exports, followed by Malaysia and
the Philippines.

Auto parts for small Japanese passenger cars and commercial vehicles, such as
electronic components, engines and drive-train components that are of high value, have been
embraced by these markets for their OEM quality. In addition, relocation of manufacturing

44 | P a g e
bases of foreign automakers into Thailand is likely to boost demand for locally-made REM
parts, especially for export-oriented production.

Toyota Motor Thailand, the country's largest producer and exporter of vehicles has
the scrapping of the import duty could help the ASEAN auto market increase by as much as
10 per cent. Thailand would benefit greatly from this, with more income for the government
from the increased excise, value-added and corporate taxes.The arrival of new models
produced under the Thai government's eco car project will also serve as a boost for Thai auto
exports to Asean.

Nissan will be the first company to launch an eco car in March, while Honda is
expected to unveil its model at the end of this year or early next year.Other companies in the
project are Mitsubishi, Tata, Suzuki and Toyota.

According to the eco car guidelines, each manufacturer must produce at least 100,000 eco
cars a year by the fifth year of production, with 50,000 units exported. However, the AFTA
scheme also brings concerns, particularly for parts makers with high production costs and no
research and development facility. This means that pure Thai suppliers (1st, 2nd and 3rd
tiers) need to raise their competitiveness in order to survive,

Presently local parts makers have to bear higher costs than others due to raw material
import duties and eventually lose competitiveness, since imports from ASEAN are not taxed.
So, K Research also noted that local suppliers may be challenged by an influx of truck and
bus parts imported from Indonesia.

Nevertheless the Thai auto industry still has brighter potential than those of other
ASEAN nations, and cutting out the 5-per-cent import duty does not pose a big difference in
retail pricing of vehicles sold within the region. Thus, the import duty for AFTA has been
incrementally lowered over the years, and there is not much difference between 5 per cent
and no import duty. Automakers in Thailand, including Honda, have been planning and
running operations incorporating the AFTA scheme for years.

Asean is the largest export market for Honda, representing 78 per cent of the
company's auto exports last year Motorcycle market not affected. The ASEAN motorbike

45 | P a g e
market could expand as a result of AFTA, but not by as much as the auto market. The
motorcycle markets in many ASEAN countries, especially Thailand, are already saturated
and for the market to expand there needs to be new models to stimulate sales.

While AFTA is simply an import duty elimination scheme among AFTA members,
the next level of integration lies in the AFTA Economic Cooperation (AEC), which is
expected to completely transform ASEAN into one economic community by 2015. With
investment shifting from developed regions such as the US, Europe and Japan to Asia,
ASEAN would benefit from AEC, which would serve as an incentive to attract investors.

Thai suppliers that are capable enough can also set up operations in other ASEAN
countries, while those that are weaker may need assistance from parent companies. "The next
challenge for automobile companies in this region (as well as around the world), is the
coming of the alternative energy era, and we must be prepared for this in order to be able to
draw in investment and make Thailand a window the ASEAN.

“Encouraged by the ASEAN Free Trade Agreement, several Malaysian auto-parts

producers have set up shop in Thailand, using the Kingdom as their manufacturing base.
Hemaraj Land and Development Plc's president and chief executive officer, David R
Nardone, said that his company had sold developed land to six auto-parts firms from
Malaysia: Hicom-Teck See Manufacturing, Changchaut Plastic Co Ltd, Technic Asia Co Ltd,
Ingress Autoventures Co Ltd, Metrode Co Ltd and Siam CM (Clarion) Co Ltd.
The company is negotiating with several more Malaysian auto-parts makers that have
expressed an interest in expanding their investment in Thailand."We believe that auto-parts
firms from Malaysia are interested in expanding their investment in Thailand under the
concept of clusters that will provide parts to auto-assemblers in Thailand," Nardone said.
Hicom-Teck See's chairman, Tuan Haji Abbas Mehad, who has invested Bt300 million in a
bumper-manufacturing facility on Hemaraj's industrial estate on Thailand's Eastern Seaboard,
said that Thailand's auto industry had a potential for growth as the economy grew. It is
Hicom's first such facility outside Malaysia, but if the market warrants it, the company would
like to expand its activities to make other parts”

Thailand is set to benefit tremendously from the elimination of import duties on

automobiles and parts under the ASEAN Free Trade Area scheme, industry leaders
46 | P a g e
regulation. Thus, the regulation of AFTA and ASEAN make Thailand has benefit with auto
part industry and related industry such as spare part business that more benefit for our
business.(Souwaluk,2007)

Economy Analysis

Population of Chiang rai are 1,255,387 people of Gross Provincial Product (GPP) of
2549 totaled 50,093 million baht growth last year, up from 9.38 percent average per capita
income of 38,332 baht per year

Figure 3.1 Gross Provincial Product in Chaing rai

Value
Production Percentage
( Million )
Agricultural 15,943 31

Retail and wholesale 9,396 19

Industry 3,264 7

Construction 1,910 4

Hotels / restaurants 1,362 3

Other 18,218 36

GPP
50,093
GPI
38,332

Figure 3.2 Gross Provincial Product in Chaing rai( Percentage)

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 Gross Provincial Product of Chiang rai
Agriculture

Retai and
31% Wholesale
36%
Industry

Construction

Hotel and
Restaurants
3% Other
4% 19%
7%

The economy is the main agricultural provinces (31.03%). secondary, including retail
and wholesale (18.76%), industry (3.98%), construction (3.81%) and hotels / restaurants
(2.72%), respectively, by the trade of the province depend on international trade. Partner
country of Chiang Rai is the People's Republic of China (Yunnan Province), followed by the
Union of Myanmar and Lao PDR. Major export products include agricultural products Lmai
drying consumer products. Fuel, construction materials, automobile tires, food and beverages.
And medicine, respectively including major import of agricultural products, fresh vegetables,
apples sweet trolley fry timber cover consumer goods vehicles, equipment machinery,
equipment and coal, respectively

Income population average 35,109 baht per person per year. Balance of deposits in
commercial banks at the end of the month, Chiang Rai Province in September 2550 grew
281,742 million baht, up from last year's 5.02 per cent majority of the deposits of the
government. The money to finance a balance is growing 198,434 million baht, up from last
year's 7.27 percentage demand of personal loans. Business and finance-related agricultural
seasonality loan to deposit ratio was 70.4 percent up from 68.9 percent last year.

Figure 3.3 Statistics number of spare part shop in Chaing rai

Statistics number of spare part shop in Chaing rai

Registered Commercial Spare part shop

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 Concentrated Year 2546 Year 2547 Year 2548

Registered commercial 1 11 9
concentrate (Registered)

Registered commercial 31 4 2
concentrate (Cancel)

Total 31 38 45

Source: Administration of Chiang rai

Figure 3.4 Volume production cars registered nationwide that Export and import auto parts

Volume production cars registered nationwide that Export and import auto parts

Year Volume Vehicle Spare Parts (million

production cars. registration. baht).
(Cars). Around the
Export Import
country (cars).

2542 327,233 6,554,302 24,054.9 27,545.9

2543 411,721 6,727,008 32,208.6 58,240.5
2544 459,418 7,093,327 38,202.8 70,646.4
2545 580,000 7,480,000 45,000 83,000.0
Source: Federation of Thai Industries Department of Land Transport and the Customs
Department.

From several factors favorable to the business. Combined with the year 2540 - 2543,
consumers used an old car and new car slow to change. Buy new car has gradually during
2544 - 2545 more respectively. While vendors have accelerated advertising promotional
campaign continued consecutive years. Has attracted the interest of consumers shopping
satisfaction levels with the price you want more. In exports is in relatively good standard.
Many countries are gradually phased order resulting plant products to meet consumers in
both domestic and international full. Also during the year 2543 through the measures required
to use plant parts within the country and represents percentage from 45 to 72 according to the
49 | P a g e
type of vehicle. Even after being canceled since such measures since 2543, but the factory
continues to use parts of the country at relatively high for the year 2545 new car assembly
plant has about 580,000 cars, up 26.2 percent from the previous year has resulted for used
auto parts increased by with. The replacement parts market. Based on vehicle registration
with the Department of Transportation throughout the country in 2544 there were 7.09
million vehicles, up from 10 the previous year to 1.6 times the vehicle is registered for the
year 2545 throughout the country about 7.5 million vehicles, up 5.5 percent from the previous
year by a. commercial vehicles and passenger cars 63 per cent 37 per cent use cars age 1 - 5
years, approximately 1.5 million units or 20 percent of vehicles aged from 6 years old up to 6
million vehicles a number of cars began conditions are relatively old age of 6 years of use
since it will have to expense maintenance and repair parts costs somewhat and depending on
the type and quality of parts used for would result in business growth by parts with.

From the parent plant, a joint venture with foreign companies to manufacture auto
parts. And exports cars during the past 10 years, there were 8.19 billion units include all
countries want to use parts directly from Thailand. Make auto parts exports increased
continuously for the last 9 months of the year 2545 exports were $ 32,580.9 million baht, an
increase from the same period the previous year by 15.8 per cent of Japan's most purchased
8106 million baht. accounted for 24.9 per cent inferior to the United States, South Africa,
Malaysia, Indonesia and the Philippines respectively, exports in the last quarter is still in
relatively good basis throughout the year 2545 is expected to export auto parts to
approximately 45,000 million baht up. 17.8 percent from the previous year. In imports
accelerating new vehicle assembly plant products to meet consumer demand continued and
needs more parts. While the consumer public. It needs more cars. Resulting volume of the
components increased significantly; however, some parts cannot expand production enough
to increase demand. Or some cannot be produced in the country. Are imported auto parts
increased over the 4 - 5 years, especially during the first 9 months of the year 2545, import
value increased from 55,092 million baht the same period the previous year by 15.4 per cent
imported from Japan are most 36,884.5 million baht, representing 67.0 per cent inferior to
Germany, Sweden, the Philippines and Indonesia, respectively, imports in the last quarter is
still in relatively good basis throughout the year 2545 is expected to import auto parts will be
approximately 83,000 million baht, up 17.5 percent from the previous year. Outlook: the
business onto the next. Automotive business conditions in 2546 are expected to be in line
50 | P a g e
well with several favorable factors. And public demand for vehicles (new) this year, up from
approximately 15 per cent while exports. The criteria are quite good. Many countries have
continued demand for its products. Result in accelerated plant operators throughout the full
year 2546 cars will be operator of approximately 670,000 cars up 15.5 percent from the year
2545 the volume of vehicles registered with the Land Transport Department expects full year
2546 was approximately 7,900,000 additional units. This year, up from 5.7 per cent by the
automobile age use 1 - 5 years, approximately 1.6 million units of cars older age of 6 years to
6.3 million vehicles are circumstances that encourage the use of parts has more cars in the
country. While exports auto parts are in relatively good basis throughout the year 2546 is
expected to produce parts will grow by 10 percent over the previous year.
For the economy crisis effect to slow down off last years by supply of Thailand
people income and car industry both of down production sector and customer demand is
down follow delay of world economy and the demand. Demand side, consuming consume the
private sector is down from a consumer is careful buying private sector investment still shrink
brining pays the budget of the government sector is down. The exporting decelerates down
and lead part reaches to expand price consumer index decelerates to follow fuel price that
fines continual down for the deposit and the credit still expand.

Thus in the part of the state commercial of the credit still has the investment of the
private sector which, bank should have strict more and more in credit alms of the investment.
Then effect to we should planning in the part of investment and arrangement make money in
the different format for reduction the problem in mobilizing asset that will be arrival.
Although, rate of credit still come the growth but when compare with the economy that
generally be attractive for to have an effect to the beginning to do the business format.

• Social Analysis

Transportation is very important in people daily life. Transportation consists of many

vehicles such as car, rail, air etc. Car is very important thing for necessary and convenience
for people. Moreover, Chiang Rai is agriculture province most of people is agriculturist and
usually use car and agricultural vehicle for agricultural. For this reason, cause the spare part
product is important for their vehicle. However, the attitude of people who use individual car
or commercial cars always think the safety is come first. That causes people willing to pay
for safety such as car maintenance and modify etc. for their confidential drive. Most of
51 | P a g e
people like to check for car maintenance at the garage or car center service that certainly
growing effect of spare part business extremely.

• Technology Analysis

The scientific and technology progression knowledge lead the change about process
of product popularly in the world. Process of product should have the increase efficiency and
reduce costs and including produce new product and service and also process about new
marketing. Information Technology progression can happen fast communication. The place is
basically carry appeared growing and in the present people want to convenience in
communication which car is important in their life. Many companies provide modern product
to customer for suitable with their lifestyle by comfortable product or service. New
technology can change old things to new things such as auto part or spare part business is
providing new technology for customer via concern main customer’s using.

The research of economy factor to influent the customer behavior to buy a spare part product,
Akkadech Roperoon, 2550

Competitor Analysis (3C Analysis)

• Competitor Analysis

Figure 3.5 Statistic of Spare part shop in Chiang rai

Statistic of Spare part shop in Chiang rai

31 December 2005

Registered commercial information Number of garages

2003 2004 2005

Registered spare part shop 1 11 9

Canceled Registered spare part shop - 4 4

Total 31 38 45

Source: Administration of Chiang Rai

52 | P a g e
 Nowadays spare part business is continuously competition because the number of
passenger car using, secondhand cars, and car that use for agriculture have trend to increase.
There is effect to spare part business has more expand and has more necessary for every kind
of cars in addition there is high profit business. Spare part shop in Chiang Rai isn’t enough
and cannot response for customers need because there is high start up and investment include
the location in the city and cause of limited area in Chiang Rai when compare with area
around Mae Korn, we have more opportunity to establish spare part shop because there have
trend to increase growth. Mae Korn spare part is located in Mae korn area where near the
Highway main road and we can target customers in Chiang Rai and neighborhood like Payao
where this area less of spare part shop and there is the centre of transportation and near the
Chiang Rai bus station for convenience to transport. Because of spare part shop in Mae korn
area is not enough, so most of customers go to buy spare part in inner city.

Overall, spare part business which located in Mae Korn has lass of competitors when
we compare with situation analysis that higher competition. Almost the spare part
competition, there are emphasize in quality of products and reasonable price including more
variety of products. In the future, spare part market in Mae Korn area has expand and trend t
increase because economic in Chiang Rai expand and effect to increasing of spare part
market growth. The lists of our competitors are

• Charearn Yont

53 | P a g e
 Charern yon is the main competitor of Mae Korn spare part shop. Charern yon
established for many years ago. In Charern Yon 2002 and they launch new branch that is
more comfortable and modern in 2009. Spare part is the product of their business. The spare
part products of Charern yon are almost product has very high quality such as pure spare
part that has high price. In another hand, Charern yon apply higher technology than Mae
Korn spare part shop such as customers ordering, purchasing system, customer service etc.

Strengths:

- There company apply higher technology that can make customers comfortable
- There company has the professional sales person to service their customers
- There products has high quality and concern on quality first
- There company support more sales activities such bill board, radio, etc.
- There company has customers loyalty

Weaknesses:

- There company has very high price in the view of customers

- There company has very difficult to accessible in the view of the garages
- There company has high cost to expense when operating the business such the
marketing cost, financial cost, etc.

54 | P a g e
 • Petch yont

Petch yont is the one of main competitors of Mae Korn spare part shop. Petch yon
located in Chiang rai country, and establish on 1982. Petch yon is the large and well known
55 | P a g e
 spare part shop in Chiang Rai those sell all of spare part products. In addition, Petch yon
spare part shop set price in reasonable price which not too high and appropriate with the
quality of products. Petch yon has more variety of products that can makes customers
satisfaction and satisfies with customer’s requirement. Moreover Petch yon is easy to
accessible for customers because they are reliable and open for many years ago.

Strengths:

- There company has more variety of products

- There company is easy to accessible for customers
- There company set price of spare part is not too high
- There company has customers loyalty

Weaknesses:
- There company has low technology to apply their shop
- There shop is no more area and narrow spare part shop

SWOT Analysis
To analyze the business from external and internal environment that effect to the
business operation and investment.
Strengths Weaknesses
1. The business has more variety of product 1. The customer has customer loyalty with
and service with the efficiency employee and others products.
expertise technician. 2. High cost to investment and market
2. The company allocated the shop near the research for business implementation.
city to serve the customer that has high 3. The spare pare business has direct and
demand on spare part business. indirect competitors.
3. The product has quality and sales at
reasonable price concern on user safety.
4. The company applies support sales
activities such as advertising to increase
sales.

56 | P a g e
5. The business operates base on market
information, competing competitors,
customer demand and material.
Opportunities
1. In the present, people popular to fix their
car instead to buy new cars and popular to
modified their car that effect to spare part
business grow increasing.
2. The growing rate of car user in Chiang Rai
province for last 4 years.
Threats
1. Has many competitors from direct and
indirect such as the spare part shop allocated
at Muang Chiang Rai and the garage to sales
spare part with many car center services.
2. The most of people like to use car center
service that include car maintenance
guarantee.
3. The economic crisis effect to customer
buying power that effect to sales volume and
debt rate is very low to make the bank strict
more and more in credit arm of the
investment.That effect for source of capital
and investment.
57 | P a g e
• Customer Analysis

Figure 3.6 Number of new vehicles registered under motor act by type of vehicle: 2004-2008

Type of vehicle 2004 2005 2006 2007 2008

Sedan (Not more than 7
2,459 1,393 2,729 2,704 2,993
passengers)
Microbus & passenger
77 39 73 93 95
pick up
Van & pick up 4,198 2,815 4,791 4,439 4,220
Motor tricycle - - - - -
Interprovincial taxi
- - - - -
(Sedan)
Urban taxi (Sedan) - - - - -
Fixed route taxi - - - - -
Motor tricycle taxi (Tuk
- - - - -
Tuk)
Hotel taxi (Sedan) - - - - -
Tour taxi (Sedan) - - - - -
Car for hire (Sedan) - - - - -
Motorcycle 30,718 17,916 35,066 27,396 28,895

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 Tractor - 34 29 296 957
Road roller - 5 4 4 -
Farm's vehicle - - - - -
Automobile's trailer - - - - -
Public motorcycles - - 1 3 8
Total 37,452 22,202 42,693 34,935 37,168
Source: Chiang Rai Provincial Transport Office

From above car in Chaing rai does not increase every year that according to Chiang
Rai Provincial Transport Office can give information about for five years ago people doesn’t
bought cars, they use to change or modified their car that make spare part is necessary for
them. From above in year 2004 to 2005 people does not to buy and buying car increase in
year 2006 may be in this year good economy and new car down in year 2007 and increase in
year 2008 again bit not more that depend on economic.

Figure 3.7 Number of vehicle registered under motor vehicle act by type of vehicle:2004-2008

Type of vehicle 2004 2005 2006 2007 2008

Sedan (Not more than 7
377,416 453,433 31,186 35,425 38,418
passengers)
Microbus & passenger
24,938 31,817 3,902 4,107 4,202
pick up
Van & pick up 3,435 4,932 78,860 82,913 91,335
Motortricycle 66,110 90,395 2 3 3
Interprovincial taxi
- 2 2 2 2
(Sedan)
Urban taxi (Sedan) - - - - -
Fixed route taxi 4 - - - -
Motortricycle taxi (Tuk
222 229 226 226 226
Tuk)
Hotel taxi (Sedan) 34 42 36 46 46
Tour taxi (Sedan) - - - - -
Car for hire (Sedan) 3 - - - -
Motorcycle 281,677 323,915 326,557 333,410 362,305
Tractor 805 1,034 943 1,160 2,117
Road roller 177 209 192 192 192
Farm's vehicle 5 851 845 910 910
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Automobile's trailer 4 5 4 4 4
Public motorcycles - - - 639 647
Total 754,830 906,864 442,755 459,037 500,407
Source: Chiang Rai Provincial Transport Office

From above in year 2006 registered under motor vehicle are lower that people used old car
more than new car although in 2007 and 2008 year are increase registered but they increase not
more.

Figure 3.8 Number of new vehicles registered under land transport by of vehicle: 2004-2008
Type of vehicle 2005 2006 2007 2008

Bus 1,128 46 53 54
Fixed route bus 721 10 6 16
Non-fixed route bus 365 30 38 29
Private bus 42 6 9 9
Truck 1,419 2,247 2,255 306
Non-fixed route truck 1,321 1,750 1,939 170
Pick-up truck 14 141 130 60
Dangerous goods vehicle - - - -
Special purpose vehicle 1 7 3 -
10 wheeled - - - -
6 wheeled 935 1,027 1,181 -
4 wheeled 362 432 453 -
Truck tractor 2 25 1 26
Trailer 6 89 121 39
Semi-trailer 1 29 50 45
Private truck 98 497 316 132
Pick-up truck 89 453 292 98

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 Van 6 36 15 5
Liquid bulk vehicle 2 4 7 2
Dangerous goods vehicle 1 4 2 1
Special purpose vehicle - - - 9
Long-loading semi-trailer - - - -
10 wheeled - - - -
Type of vehicle 2005 2006 2007 2008
6 wheeled - - - -
4 wheeled - - - -
Truck trator - - - 2
Trailer - - - 9
Sami trailer - - - 6
Small rural bus 355 3 11 4
Non-Motorized Vehicle Act B.E.2478 - - - -
Total 2,902 2,296 2,319 360

Figure 3.9 Number of vehicle registered under land transport act by type of vehicle: 2004-2008

Types of vehicle 2004 2005 2006 2007 2008

Bus 1,274 1,233 1,331 1,341 1,396
Fixed route bus 885 804 874 868 884
Non-fixed route bus 337 376 396 399 429
Private bus 52 53 61 74 83
Truck 7,565 7,565 8,359 8,843 16,088
Non-fixed route truck 1,165 1,333 1,547 1,817 2,760
Pick-up truck - 948 1,050 - 60
Dangerous goods vehicle - 3 3 - 3
Special purpose vehicle - 40 45 - 45
10 wheeled 725 - - - 725
6 wheeled 60 - - 1,181 1,181
4 wheeled 97 - - 453 453
Truck tractor 43 60 76 1 27
Trailer 170 222 304 121 160
Semi-trailer 41 60 68 50 95
Other 29 - 1 11 11
Private truck 6,039 5,890 6,455 6,675 12,973
Pick-up truck - 4,921 5,370 - 5,468

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 Van - 205 235 - 240
Liquid bulk vehicle - 114 130 - 132
Dangerous goods vehicle - 67 61 - 62
Special purpose vehicle - 361 378 - 387
Long-loading semi-trailer - 4 4 - -
10 wheeled 691 - - - -
6 wheeled 403 - - 1,185 1,185
4 wheeled 4,178 - - 5,467 5,467
Truck trator 56 55 66 - 2
Trailer 83 111 142 7 16
Sami trailer 61 52 69 8 14
Other 567 - - 8 -
Small rural bus 361 342 357 351 355
Non-Motorized Vehicle Act
B.E.2478 - - - - -
TOTAL 8,839 8,798 9,690 10,184 17,484
Source: Chiang Rai Provincial Transport Office

Figure 3.10 Statistical road traffic accidents casualties and property damaged

Number of casualties
Number of
Year Property damaged
reported accidents Killed Injured
2003 1,205 281 1,331 34,710,100
2004 1,453 282 1,505 20,221,300
2005 850 196 1,138 22,117,300
2006 614 190 846 21,400,300
2007 1,225 255 909 20,928,000
Source: Chiang Rai Provincial Transport Office

From above is number of statistical road traffic accidents casualties and property
damaged that reported from Chiang Rai Provincial Transport Office that help we know about
property damaged of car in year 2007 that assume 1225 who accidental then bought spare
from Mae korn Alaiyont 1,225 x 7% = 85.75 car for purchase spare part.

Customer marketing information

62 | P a g e
 Product: According to the research sample of people follow from most importance to
lease importance is quality of product (e.g Akkadech, 2007) varieties of product, the spare part
shop not sell old product to the customer and the last is the spare part shop can serve the
customer want the product is the main reason to influent customer buy the product. Spare
parts are the parts of automotive that were assembled in each system for running. There are 4
kinds of spare parts:

1. Pure spare parts – Pure spare part were produced by car manufacturers, or the
suppliers that receive the order from the car manufacturers for using in assembly
the cars that can make sure in the quality, but the price is often high. These kind of
spare parts sell in the cars service center and the agents, or the spare parts shops.
2. Secondhand spare parts – The secondhand spare parts were the pure spare parts,
but they were took off for reselling because these cars cannot use anyway, or the
owner of cars want to change the engine system. The old spare parts that still good
will take off and resell. These kind of spare parts were sold in the secondhand
spare parts shops (Zeangkong), and the price depends on the quality.
3. Equivalent spare parts – This kind of spare parts were produced by the spare
parts suppliers for direct selling by identify the brand of cars in them. Equivalent
spare parts have a several quality both high quality and low quality for provide the
customer want that has few of buying power. These kind of spare parts were sold
in the general spare parts shop.
4. Faked spare parts - The faked spare parts were produced for cloning the pure
spare parts both the dimension and packages by the others spare parts suppliers.
The price of these kinds of spare parts is lower than the pure spare parts, but
higher than the equivalent spare part. The quality of these kind of spare parts also
lower than the pure spare parts, but they are similar or lower than the equivalent
spare parts.

Price: According to the research sample of people follow from most importance to
lease importance is the reasonable price with quality of product, The discount price for
permanent customer, Product has low price when compare with competitors price and the
customer can negotiated the price is the influent factor effect customer buy the product.

63 | P a g e
 Distribution channel: According to the research sample of people follow from most
importance to lease importance is the shop has technician to advice the customer fluently,
The parking is available for customer cars, The convenience to customer buy the product,
The delivery service the product at customer home and the shop style and decoration make
customer comfortable is the influent factor effect customer buy the product.

Support sales: According to the research sample of people follow from most
importance to lease importance is the guarantee of the product, The shop offer more product
information such as brand or price to show the customer directly, The shop has discount
promotion and give the customer use their credit to buy the product is the influent factor
effect customer buy the product.

General customers
There are many people in Chiang rai, according to number of house there are one car
per house so there are buying car increase in every year that number of car increase that our
spare part will growth for serve to customer although new car don’t want to buy spare part for
their but car which more than five year need to change or modified their car certainly. In the
present general customer famous to buy spare part by themselves because they want to get
good quality spare part in suitable price for their car and avoid garage charge price for spare
part more than real price.

Figure 3.11 Number of demography in Chiang rai for 2005-2008

Year Male Female Total Number of house

2005 606,689 618,369 1,225,058 421,814

2006 606,390 619,323 1,225,713 431,763

2007 605,963 619,050 1,225,013 439,072

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 2008 606,775 620,542 1,227,317 446,346

Source: http://www.dopa.go.th/xstat/popyear.html

Assume that each families has one car we have segmentation in market for 10 % for year
2008 there are 446,346 families

So assume 446,346 X 7% = 31,244 people in market

Figure 3.12 Market segmentation of Mae Korn Aliayont

Market segmentation
10%
7% Other Spare
part shop
38% Maekorn
Alaiyont

45%

Figure 3.13 Customer separate by gender

Gender

40%
60%
Male

Female

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Figure 3.14 Customer separate by gender

Gender Number Percentage

Male 240 60
Female 160 40
Total 400 100

According to research about customer behavior separate by gender in Chiang rai from
400 people, male 240 people are more than female because in fact male have knowledge
about car and spare part more than female so male is target group in buying our spare part
more than female.

Figure 3.15 Number of customer separate by age

Number of customer (Age)

1.50% 2%

12.50% Less than 20 year

20-30 year
13% 42%
31-40 year

41-50 year
29%
51-60 year

More than 60 years

Figure 3.16 Number of customer separate by age

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 Age Number(People) Percentage
Less than 20 years 8 2
20-30 years 168 42
31-40 years 116 29
41-50 years 52 13
51-60 years 50 12.5
More than 60 years 6 1.5
Total 400 100

According to research about customer behavior separate by gender in Chiang rai from
400 people general customer in 20-30 year will buy spare part mostly because this aging are
work and use car always in their life routine and secondary is 31-40 years that same reason
they use more car.

Figure 3.17 Number of customer separate by status

Figure 3.18 Show number of customer separate by status

Status Number(People) Percentage

Single 190 47.5
Married 194 48.5
Divorce 16 4
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 Total 400 100

According to research about customer behavior separate by gender in Chiang rai from
400 people general customer in Single group and Married group are same quantities that
make us known about status is not important in selecting spare part because spare part is
necessary for all car when owner want change or modifies.

Figure 3.19 Number of customer separate by education

Figure 3.20 Show number of customer separate by education

Education Level Number(People) Percentage

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 Primary education 10 2.5
High School 58 14.5
Diploma 52 13
Bachelor Degree 178 44.5
Higher than Bachelor Degree 102 25.5
Total 400 100

According to research about customer behavior separate by gender in Chiang rai from
400 people general customer in Bachelor Degree are mostly to buying spare part because they
want to get more quality spare part for their car and high school and diploma are same that
because they have power to buy spare part for their car that suitable and suitable price when
they go to select when compare with garage buying.

Figure 3.21 Number of customer separate by occupation

Number of customer separate

1.50%
(Occupation)
6.50%
1.50% Student
9.50%
Governmental

15.50% Individual
employee
43%
15.50% Private business

Garage

Figure 3.22 Show number of customer separate by occupation

Occupation Number(People) Percentage

Student 26 6.5
Governmental 172 43

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 Individual employee 62 15.5
Private business 90 15.5
Garage 6 1.5
Agriculture/Hirer 38 9.5
Housewife 6 1.5
Total 400 100
From the research of the factor to buy a spare part product in Chiang rai which
according to sample of population who is males about 400 people in Governmental group and
private business will buying spare part by themselves because they go to anywhere so when
they go they have change spare part for safety and business have to communicated with
someone frequency so they will repair always and want to select spare which suitable for car.
Many year ago a spare part product is the product which necessary for the garages business.
The garages are the main customer of spare part market although the garage is the main
customer but in the present the customer behavior has more factors to influent and effect to
the customer and the market sinuously. Moreover, the customer who is the garage’s customer
like to buy the spare part by themselves because they don’t thrust of the garages about quality
of product, price, technician and service dissatisfaction that make the garages has less thrust
worseness from their customer and make the general is main target of spare part market now.

Garages

Garages are necessary to buy spare part product to apply with their business and they
has high customer purchasing. They buy product frequency. Garages can support our
business are growing and rapidly with high sales volume. So, they are main target customer.

Figure 3.23 Show quantities and percentage of garages

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Figure 3.24 Quantities and percentage of garages

Types Quantities Percentage

One owner 31 34.4
Limited Company 41 45.6
Limited Partnership 18 20.0
Total 90 100

From above show the most entrepreneurs is Limited Company is 45.6 percent,
secondly is one owner is 34.4 percent and the last one is Limited Partnership is 20 percent.

Figure 3.25 Show quantities and percentage of garages separate by time of operation

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Figure 3.26 Quantities and percentage of garages separate by time of operation

Time of operation Quantities Percentage

Less than 5 years 4 4.4

5-10 years 31 34.4

11-20 years 23 25.6

More than 20 years 32 35.6

Total 90 100

From above show almost of the entrepreneurs that has the business operation more
than 20 years is 35.6 % and 5-10 years of the business operation is 34.4% and operation 11-
20 years is 25.6% and the entrepreneurs that has business operation less than 5 years is 4.4 %

Figure 3.27 Percentage of investment divide by capital

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 Percentage of investment divide by capital

23% Less than 1 million

35% baht
1-5 million baht
11%
6-10 million baht

31% More than 10 million

baht

Figure 3.27 Show the amount of money and percentage of investment divide by capital

Capital Amount Percentage

Less than 1 million Baht 31 34.4

1-5 million Baht 28 31.2

6-10 million baht 10 11.1

More than 10 million Baht 21 23.3

Total 90 100

From above show almost of the entrepreneurs has capital investment less than 1
million baht is 34.4 % and 1-5 million baht is 31.2% and has capital investment more than 10
million baht is 23.3% and 6-10 million baht is 11.1%

Figure 3.28 Percentage of machine used by entrepreneurs

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Figure 3.29 Show the amount and percentage of machine used by entrepreneurs

Horse power of machine Amount Percentage

Less than or equal 50 horse 34 37.8

power

51-100 horse power 14 15.6

101-200 horse power 20 22.2

More than 200 horse power 22 24.4

Total 90 100

From above show the Entrepreneurs e apply the machine is analyze by horse power is
use less than or equal 50 horse power machine is 34 and calculate in percentage is 37.8%, the
entrepreneur use 51-100 horse power machine is 14 and calculate in percentage is 15.6%, and
the entrepreneur use 101-200 horse power machine is 20 that calculated in percentage is 22.2
% and the last the entrepreneur used more than 200 horse power machine is 22 and calculate
in percentage is 24.4%

Figure 3.30 Percentage of entrepreneurs purchase number of spare part products per month
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 Percentage of entrepreneurs purchase number of
spare part products per month

20%
Less than 20,000 baht
39%
20,001-50,000 baht
50,000-100,000 baht
19%
More than 100,000

22%

Figure 3.30 Show the percentage of entrepreneurs purchase number of spare part products
per month

Purchase no. per month Amount Percentage

Less than 20,000 baht 18 20.0

20,001-50,000 baht 17 18.9

50.001- 100,000 baht 20 22.2

More than 100,000 baht 35 39.8

Total 90 100

From above show the almost of entrepreneurs has number of spare part purchase more
than 100,000 baht is 35 or 39.8% , 50,001-100,000 baht is 20 or 2.2 % , Less than 20,000
baht is 18 or 20% and 20,001 – 50.000 baht is 17 or 18.9 % and found that almost of the
entrepreneurs emphasize on the products factor in the high average level for the entrepreneurs
who is one owner of business take the importance in the product factors in high level such as
thrust with employees, high capacity , frequency and the employees can make the customers
trustworthiness and the employees can serve the customers requirement on time. For the
Limited Company take the importance in product factors and has the high average level. For
the Limited Partnership take the importance in products factors and has high average level
such as quality of products, the employees has technical skills with advice the customers

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and the employees can serve the customers requirement on time. For the medium rate is using
the modern technology to produce the products.

Figure 3.31 Percentage of the person who has high purchasing power of spare part products

Figure 3.32 Show the person who has high purchasing power of spare part products

Person has high purchasing power Amount Percentage

The entrepreneurs / Managers 70 77.8

Assistant managers 12 13.3

Purchasing employees 8 8.9

Total 90 100

From above show the person who has highest purchasing power is the entrepreneurs
or managers is 70 or 77.8%, the Assistant managers is 12 or 13.3 % and the least is
purchasing employees is 8 or 8.9%

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Figure 3.32 Percentage of the quality control of purchase spare part products for the
entrepreneurs

Figure 3.33 Show the quality control of purchase spare part products for the entrepreneurs

Quality Control Amount Percentage

Identify brand of spare part product 23 25.6

Identify grade of spare part products 14 15.6

Identify with sample products 51 56.7

Depend with type and characteristics 2 2.2

of products

Total 90 100

From above show the number or percentage of quality control of purchase spare part
products for the entrepreneurs and almost of entrepreneurs decide on identify with sample
products 51 or 56.7 %, Identify brand of spare part product is 23 or 25.6%, Identify grade of
spare part products is 14 or 15.6 % and Depend with type and characteristics of products is 2
or 2.2 %

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Figure 3.34 Percentage of the policy to purchase spare part products of the garage
entrepreneurs

Figure 3.35 Show the policy to purchase spare part products of the garage entrepreneurs

Purchasing policy Amount Percentage

Purchase from one seller 11 12.2

Purchase from many sellers 79 87.8

Total 90 100

From above show the policy to purchase spare part products of the garage
entrepreneurs that show almost of the entrepreneurs purchase from many sellers is 79 or
87.8% and purchase from one seller is 11 or 12.2 %

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Figure 3.36 Percentage of the criteria to choose and purchase spare part products

Figure 3.37 Show the criteria to choose and purchase spare part products

The criteria Amount Percentage

Good quality of products 50 30.3

Low price 12 7.3

Good service / Convenience 33 20.0

Variety of products 35 21.2

Reliability of product 35 21.2

Total 165 100

From above show the criteria to choose and purchase spare part products the most
importance is good quality of products is 50 or 30.3% , More variety of products and
products has reliability is 35 or 21.2 % , Good service is 20.0 % and the least is low price is
7.3%

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Figure 3.38 Show the high average marketing mixes divide by horse power of machine

No. Horse power Factors of highest average

Factors Average Outcomes

Product 4.1 High

• The employees have high

technical skills to serve the
customers requirement.

Less than or equal 50 hp • The employees has

trustworthiness can motivate
customer

• High quality of work

Product 3.97 High

• The employees have high

technical skills to serve the
customers requirement.

51-100 hp. • The employees has

trustworthiness can motivate
customer

• High quality of work

Product 4.16 High

• The employees have high

technical skills to serve the
customers requirement.
101-200 hp.
• The employees has
trustworthiness can motivate
customer

• High quality of work

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 Product 4.16 High

• The employees have high

technical skills to serve the
customers requirement.
More than 200 hp.
• The employees has
trustworthiness can motivate
customer

• High quality of work

Retailers
Retailers buy our products to their customers. Almost of retailers has small shop in
Chiang Rai or suburban shop they usually buy the products in high volume and frequency to
buy and then they sell the products to their customer. We assume on retailers is our
distributor on the distribution channel.

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Customer behaviors

Economic: According to the research of economy factor to influent the customer

behavior to buy a spare part product follow from most importance to lease importance is the
increase or decrease of customer income and the price of product uncertainly there is the
influent factor of customer behavior.

Social: According to the research of social factor to influent the customer behavior to
buy a spare part product follow from most importance to lease importance is the credit of the
shop that customer can trust and reliable, the shop reputation to service the customer is the
influent factor of customer behavior.

Business contract: According to the research of business factor to influent the

customer behavior to buy a spare part product follow from most importance to lease
importance is the shop has many technician to give the information and the customer feel
good with the shop that familiar with them.

Necessary: According to the research of customer satisfaction factor to influent the

customer behavior to buy a spare part product follow from most importance to lease
importance is the customer satisfied to fixed their cars and want to maintenance the car, Buy
the product from the technician order or advice, The garage owner buy the product to fix their
customer car or buy the product to keep in their stock.

Motivation: According to the research of motivation factor to influent the customer

behavior is the customer need the confident and safety when drive with a good car, the
motivated by sales person to give customer relationship and the customer know the seller
very well.

Characteristics: According to the research of characteristic factor to influent the

customer behavior is the customer who likes to modify their car and concern on their car
spare part more than price and the customer who concern on quality of spare part more than
price.

Attitude: According to the research of attitude factor to influent the customer behavior
is the reasonable price when compare with quality of product, quality of product and good
service can provide.
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 Perception: According to the research of perception factor to influent the customer
behavior is the image of product and the shop image reputation.

Leaning: According to the research of learning factor to influent the customer

behavior is customer learning from the quality of product that the shop sells to them, the
confident with technician advice and the experience of they use sale promotion.

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• Competitive Analysis

Competitive Analysis: Porter’s Five-force model of Competition

1. Rivalry among Competing Firms

In spare part business, it has high competitive in the market because many firms still
promote for their business.
“Since the motor vehicle manufacturing is completely globalized today, which first of
all applies to automobile manufacturing, we believe there is no need to define the size of the
domestic market. Globalization in the auto industry is caused by the increasing competition
among the manufacturers, as well as the constant need to lower the price lower of the final
product. The last ten years have seen manufacturing facilities for automobiles, parts and
equipment relocate to transition countries (Slovakia, Czech Republic, Poland, Hungary), as
well as some Asian and Latin American countries, which was triggered by significantly lower
Labor costs than in the economically developed Western countries and Japan. The fact of
total exports by motor vehicle parts and equipment manufacturers in question cover almost
99% of their total operating revenues.
The Asian-Pacific region has the largest automobile production capacities in the
world, with a total of more than 28.6 million vehicle units per year. The capacities in this
region are expected to grow to a total of 32.6 million units by 2010, primarily driven by
production increase in China”
This business has high risk high return on investment. General competition of this
business is small market such as Charern Yont , Petch Yont , Car center service and others
competitors. These competitors allocated in Aumphur Muang Chiang Rai.. In generally; all of
these will be types of old competitor and car center service that operated the business more
than 10 years. They provide product and service gain customer very trustworthy and receive
high loyalty from the customers. The competitors try to gain more market share and sales
volume they apply the strategy to do the business in the spare part market. However, we
concern for the most powerful of rivalry among competing with competitors with business
trustworthy from customers and compete with business main competitors by need to gain the
competitive advantage. Due to in the beginning of our business in spare part market the
barrier of our business is we cannot identify about customers order and it is difficult to catch
the loyalty of customer. Moreover, we are new business; nature of customer will be not trust
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in the quality or standard of new business. Therefore, it is barrier for our business. Thus, we
need to compete with the competitors by offer the low price at reasonable price that
customers can buy for their requirement. We emphasize on new products with variety of
products to gain the market target with the customers and competitive advantage.

The list of our competitors in Chiang Rai

1. Charernyont

2. Petchyont

3. Others

2. Potential Entry of New Competitors

For the spare part shop industry of spare part shop in Chiang Rai the numbers of
people who use car in Chiang Rai are steady increase in every year and this reason is the
important to the spare part business. According the trade of spare part market growth and
increase sales of spare part, but it has a few of spare part business in Chiang Rai. Therefore
it’s not enough provide the quality of spare part to serve customers satisfy and the most of
people have more concern about maintenance their car to can use in long time.
During the lack of market leader in spare part business, it is the barrier of our business to
entry in the market in new firm. Because of spare part market growth has trend to increase,
Thus, the new firm likely to aim for the maximize profit and able to sell the same
characteristic of the products. However, we attempt gain and keep our customers by apply the
quality of products, reasonable price use pricing strategies and apply marketing strategy to
overcomes the new competitors barrier. From studying, the majority of customers concern
about warranty of products and almost of right information. Therefore we emphasize the
products guaranty to make customers sure in our spare part. In addition, when the customers
purchase our products we give a bill for them every time and we establish clearly time period
for warranty the products to make customers happy. Including the recruiting the high level of
employee or spare part professor for provide the clearly information and describe the right
product’s uses. The importance to eliminate the potential power of new competitors is we
emphasize to make customers loyalty, gain technology and specialized know-how and

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potential of the market. Moreover we develop the strategy to attract the intension of the
customer and to raise the barrier to the new firm entry in the spare part market.

3. Potential development of substitute products

Spare parts product is unique product and there is important and necessary component
of every vehicle. The problem that effect with our business from the substitute products is car
center service and second hand car seller business. They become our indirect competitors and
can produce substitute product to the customers.

“There are many new products and technologies being developed as automakers
continue to create and show new models. We'll see rapid advances in alternative engines and
electronic based interior features. The vehicles on the market today are built with high quality
standards, safety features, and new technologies. There are many great choices out there for
consumers. The choice is however, more complete” Charlie Vogelheim Publisher of
IntelliChoice, 2008

Currently there are no evident threats as to the possibility of new products that could
replace automobiles and other motor vehicles. Nevertheless, high prices of oil could have a
significant impact on demand automobiles, which would eventually translate into a reduced
demand for domestic auto parts and equipment. Also, there is a certain risk for some of the
Domestic manufacturers, especially considering the fact those companies are underinvested,
in terms of possible greater technological discoveries and the orientation towards
manufacturing automobiles that are substantially different from today's standards, such as the
hybrid vehicles or those run by alternative fuels. Such possible developments on the market
would probably have a short-term impact on the demand for the products manufactured by
those domestic manufacturers that wouldn't be able to adapt to such new development in
time”

The explaining the number of car increase in the world and affect car center also
increase at the same time. So, car center service in Chiang Rai about 5 place such as Isuzu
Chiang Rai, Totota Chain Rai , Honda Chiag Rai ,Nissan Chaing Rai , Ford Chaing Rai etc.
Car center is rising with demand of car sales volume. They offer the convenience to
customers by has a show room to support the customers to test dive or show car model. In the
most importance to affect our spare part shop business is they offering customer service such

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as car maintenance, use highest quality products of spare part for check-in to check-out, auto
care advisors and standard technicians work to get vehicle ready to go as quickly as possible.
They Complete Auto Care store locations e finding one is convenient to customers. The most
of locations of Car center service is open seven days a week, and open late to accommodate
customers busy schedule. Moreover, substitute products becomes from second hand car
sellers because they can modify old car to re sales to customers they can offer spare part to
maintenance the car make customers has less opportune to buy a spare part in Chiang Rai has
many second hand sellers such as Toyoto sure has high quality to sales used car. They are our
indirect competitors and can produce substitute product to the customers.

Show: TOYOTA Chiang Rai Car Center service

Show: TOYOTA SURE Chiang Rai

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 4. Bargaining Power of Suppliers

In auto industry, the bargaining power of suppliers is greatly dependent on the

bargaining power of buyers. As regards the first-tier production and original parts production,
the bargaining power of buyers is so high that they often instruct their suppliers in terms of
what and whose materials to use in production. Auto parts manufacturers often get from
buyers a list of several companies, which meet all the production standards and have all the
necessary certificates, from which to choose their supplier. If the supplier is not explicitly
specified in the contract between the manufacturers and their buyers, it is mostly possible to
use the material supplied exclusively by renowned suppliers, who have all the necessary
certificates. The abovementioned limitations imposed on auto parts manufacturers in regard
to supplier selection and the inability to make quick changes provide suppliers with
substantial bargaining power.
However, there have lately been strong pressures in the global industry, mostly
coming from competitors in Asia, to increase productivity and cut production costs for all
participants in the supply chain for car factories. Therefore, suppliers for auto parts
manufacturers are usually in no position to unfoundedly increase their prices despite their
high bargaining power. Even more so, they are forced to follow the trends in the global auto
industry, increasing their productivity and cutting production costs. Many auto parts
manufacturers are now faced with higher prices of raw material, which have been pushed up
by the increase of oil prices on global markets during the last several years. In addition to the
higher prices caused by higher transportation costs in all the segments of auto parts
production, the most significant increase was noted with domestic companies manufacturing
plastic parts, since the material used to make plastic is produced in the oil refinement process.
The market shock created by the surging oil prices brought certain short-term problems for
domestic manufacturers before they managed to adapt to the new situation on the market. A
part of the increase in their operating expenses, caused by higher prices of raw material,
domestic auto parts manufacturers have successfully transferred to buyers, while they
covered the remaining part from their internal reserves, i.e. productivity improvement.
Several years ago, the prices of most metals rose abruptly, as a result of surging demand on
the Chinese market, which brought certain problems for domestic auto parts manufacturers.
Due to such price volatility, domestic manufacturers, in agreement with their buyers, have
started including a special clause in contracts protecting them from possible new market
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shocks, or even forming the price on the date of delivery based on agreed formula .The prices
of machinery and equipment used in production take up a major part in the structure of total
costs of domestic auto parts manufacturers, since they are constantly forced to invest in
production facilities, modernization of equipment and human resources. The Asian countries
have lately been increasing their production of capital equipment, especially the CNC
machines, and are becoming considerable competitors to the EU countries and the United
States, pushing the prices of machines slightly down. We can conclude that the bargaining
power of suppliers of domestic auto parts manufacturers is moderate in all segments of
production. Despite the fact that the number of certified suppliers of raw material is relatively
low, which increases their bargaining power, the current trends in the global auto industry are
preventing them from fully utilizing their position.”Nicole Wong KMK Rubber August 02,
2007
“We are recognized as a highly trusted business entity producing premium range of
Car Parts and Truck Parts. Our Company is dedicated to manufacture good quality Rubber
Moulded parts allowing us to offer our clients the best quality at most comprehensive prices
and highly professional services. We understand the precise requirement of our honorable
clients and take utmost care in the in house quality control set up and Research &
Development activities. Windsor Exports is the leading exporter of Peugeot Car Parts and
Truck Parts. We have vast sale network all over the world to serve the global market better.
We are a leading manufacturer & supplier of Peugeots that includes Robber Mounting, Brake
Parts, Nut Bolts and Electric Parts etc. for European and Japanese cars and Trucks. We are
committed to offer to our customers the most cost effective range of Rubber products. We are
one of the most reputed names engaged in Manufacturing and Exports of Car Parts and Truck
Parts. Today we are recognized as a highly trusted business entity producing premium range
of Car Parts and Truck Parts. Our Company is dedicated to manufacture good quality Rubber
Moulded parts allowing us to offer our clients the best quality at most comprehensive prices
and highly professional services. We understand the precise requirement of our honorable
clients and take utmost care in the in house quality control set up and Research &
Development activities. We are one of the most reputed names engaged in Manufacturing and
Exports of Car Parts and Truck Parts. Today we are recognized as a highly trusted business
entity producing premium range of Car Parts and Truck Parts. Our Company is dedicated to
manufacture good quality Rubber Moulded parts allowing us to offer our clients the best

89 | P a g e
quality at most comprehensive prices and highly professional services. We understand the
precise requirement of our honorable clients and take utmost care in the in house quality
control” Business blog http://dragongatebyphoenix.com/?p=6

“The demand for car spare parts in Greece is essentially fulfilled by imports, since
production is very limited and domestically-manufactured products are intended only for
certain passenger vehicle categories. "Genuine" spare parts are those imported by car
dealerships or by companies that belong to their official networks and are channeled into
the market through their authorized distributors. This activity (spare parts) only accounts
for a small percentage of the annual turnover of those car dealerships that are involved
with it. "After-market" spare parts are products that are supplied to automobile industries
as well, and bear the brand name of their manufacturer instead of a car industry's brand
name. In addition to the two aforementioned categories, there are also used spare parts,
which account for only a small part of the overall spare part market and are therefore not
taken. http://www.theautochannel.com/news/2010/01/15/461905.html

In spare part business, there is high bargaining power of supplier because it affects the
intensity of competition in spare part business, especially when there are a large number of
suppliers. It’s often in best interest both of supplier and producers to assist each other with
reasonable price improve quality, development service, and just-in-time delivery. Suppliers
can set the criteria of the spare part for the entrepreneurs and has the high bargain power. The
entrepreneurs shall unite in the cooperation to deal with the supplier to reduce the price and
decreasing in the competition. The way to gain the advantage from the supplier is to give
their more credibility on good or service on deferred payment term to make them
trustworthiness and to substitute the intensity of competition.

We need to maintain supplier relationship Resolve all issues relating to accounting,

allotment, pricing, vouchers, notification, cancellations, etc. Participate in market research as
required. Evaluate production and determine follow up action. Administration: Prepare
presentations, proposal, and contract. Manage all supplier data in distribution systems.
Manage seasonal rate renewals. Provide training of distribution systems for suppliers.
Regularly update on supplier relationship. Manage weekly and monthly supplier and internal
reports. Initiate agreement and credit arrangement with suppliers.

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 5. Bargaining power of customers

“In motor vehicle parts and equipment manufacture, the suppliers are at the same time
manufacturers of certain parts, while buyers depend on the type of production. In case of
first-tier production and original spare parts production, the buyers are automobile factories
directly or their official suppliers, who buy products from multiple manufacturers, assemble
the products in modules and then deliver them to factories. In “no name” spare parts
production, products are mostly sold through standard distribution channels, i.e. through
wholesalers and retailers. In motor vehicle parts and equipment manufacture, the buyers have
extremely strong bargaining power against their suppliers, which is especially evident in the
segment of first-tier production and original spare parts production relations between
suppliers and buyers are typically long-term and assume a close cooperation between the
partners, with the suppliers being constantly subjected to supervision by the buyers or an
Independent third party (a company authorized for certification). Automobile factories
usually have contracts with several suppliers for the same segment of production in order to
minimize the risk of shortages and stoppages in production, caused by suppliers' failure to
comply with delivery deadlines” Nicole Wong KMK Rubber August 02, 2007

“This paper aims to point out the consequences of customization in spare part
operations. The spare part business is taken to be the purchasing, warehousing, selling and
delivering of spare parts. In addition, customer service, such as handling warranty issues, is
seen as a part of the spare part business. The impact of the spare part business on company
profit tends to be significant to the case company represents an industry in which
customization is a typical phenomenon. Customized products are slight variations of standard
configurations and are typically developed in response to a specific order by a customer.
Fulfilling individual customer needs in the customization process is likely to increase
customer loyalty. The case study conducted in the metal industry takes a constructive
approach. At the initial stage of the project, company representatives expected customization
to have a negative impact on spare part business profit. By identifying and categorizing
different customization cases from the spare part business's point of view a framework is
established to assist R&D and product management in decision-making related to
modifications of a standard product. The study suggests that if customization leads to an

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increase in the number of seldom sold items the personnel costs are in a significant role. The
effects on the inventory level were minor” Petri Suomala, Matti Sievänen 22 May 2002.

In this business, bargaining power of customers also is lower because spare part
product is the necessary products for passage car or many cars. In others hand, products being
purchase are standard or undifferentiated in spare part market. Customers have a high
purchasing power many types of customer who like to purchase spare part product is
necessary to use a product for fix the car. The bargaining power of customers can be the most
important force affecting competitive advantage. Therefore customer always concern in many
factor that relate for them before making decision to purchase the product. Moreover,
nowadays customers concern about high quality and more variety of products. Furthermore,
customers would like to get value added of product; they want to get more satisfaction in all
brand of spare part. It is good opportunity of our business.

92 | P a g e
STP Analysis

Segmentation
Segmentation is very important for our business because it can help to identify our
target market so, we segment by four factor geographic, demographic, and psychographic and
behavior that we can describe following:
We focus on people who would like to buy a spare part is the general customers who
are our main customer. The people who are our customer should live in Chiang Rai and live
in near province. Most of our customer is males more than 20 years old, individual, the owner
of garage, and the people who like to modify and maintenance their car. Furthermore,
customer likes to buy the product from shop that can make them trust with expert sales
person that is technician of car. They may look for the quality, price, brand, package and
service.
Figure 3.38 Show market segmentation of Mae Korn Aliayont
M General customers Garages Retailers
P 70% 25% 5%
General Spare parts
14% 5% 1%
20%
Accessory Spare parts
49% 17.5% 3.5%
70%
Large Spare parts
7% 2.5% 0.5%
10%

Our company attempts to serve all customers groups who are general customers,
garages and retailers with the products they might need. We divided in 3 groups of target
market and 3 groups of products. We decided to appropriated with full market coverage in
differentiated marketing that our operated in several market segmentation are general
customers, garages and retailers and designs to offer the products in different products for
each segment in
General spare part is 20% all of product involve with 3 groups of customers are
general customers is 14%, Garages is 5% and Retailers is 1%

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 Accessory Spare parts is 70% all of product involve with 3 groups of customers are
general customers is 49%, Garages is 17.5% and Retailers is 3.5%
Large spare part is 10% all of product involve with 3 groups of customers are general
customers is7%, Garages is 2.5% and Retailers is 0.5% According to the interview of Petch
Yon entrepreneurs spare part shop

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Target
Figure 3.39 Percentage of market segmentation of Mae Korn Aliayont

The garage, Car user, Second hand seller in Chiang Rai

In the present, Chiang Rai has car user rate is higher compare when the part source
of information from Chiang Rai Department of Land Transportation that show the growing of
spare part business because spare part business cover on many customers groups divide with
our target customers in 3 groups are general customers, garages and retailers.
General customers 70% of our target market is the main of our customers. Almost of
general customers buy spare part products to fix or modify their own cars. Almost of them
would like to buy a good quality of products from spare past shop that they trust. A general
customer has variety of customers and variety of customers’ requirement that effect to our
business should offer more variety of products too. We assume they can influent our sales
and growing rate. We emphasize them in the first market.
Garages are 25% of our target market. They necessary to buy spare part product to
apply with their business and they has high customer purchasing. They buy product
frequency. Garages can support our business are growing and rapidly with high sales volume.
So, they are main target customer.
Retailers are 5% buy our products to their customers. Almost of retailers has small
shop in Chiang Rai or suburban shop they usually buy the products in high volume and
frequency to buy and then they sell the products to their customer. We assume on retailers is
our distributor on the distribution channel.

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Positioning

High Accessible

Petchyont
Mae Korn Alaiyont

Low Technology High Technology

Charearnyon
Others

Low Accessible

The positioning of our company is focus on the quality product and service and
differentiates from the competitors. We will offer the spare part that standard and quality,
Moreover; we also offer the reasonable price to the customer and provide good service mind.
Mae Korn spare part has positioning that we provide higher technology than Petch
Yon spare part shop and higher accessible for customers than Charean Yon spare part shop.
Moreover there are many competitors are provide low technology and accessible. The spare
market in Chiangrai we necessary to create differentiate from competitors.
Mae Korn spare part provide the convenience for customers that we offer customers
comfortable such as parking lots, cleanness, and located the main road where can motivate
the customers easy accessible to our shop. In technology innovation, we apply the barcode
system for accuracy and convenience for fasten service.

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Marketing Mix Strategy

1. Product
From studying, the majority of customers concern about standard of products and then
they concern about variety of products. Therefore we emphasize the high quality of spare part
by consider with the position and source of spare part where standard and high quality
including the variety of product which we sale for response and make our customers satisfy
with our spare parts.

2. Price
From studying, the majority of customers concern in reasonable price which
suitable with the products and then they concern about special price or discount for customers
loyalty. Therefore we emphasize the reasonable price for customers and establish standard
price for customers satisfaction including the discount for customers who loyalty with our
shop. In this reason we can make customers loyalty and honesty with us.

3. Place
From studying, the majority of customers concern the service from spare part
professor who can provide the right information about products. Then they concern about
convenience parking lots. Therefore we emphasize in sales training for right understand about
products and can describe all of spare part to customers that they want to know the
information. Including more parking lots where can make customers comfortable ad security.
Overall strategy can attract more customers to use and purchase our spare part again.

4. Promotion

From studying, the majority of customers concern about warranty of products and
almost of right information. Therefore we emphasize the products guaranty to make
customers sure in our spare part. In addition, when the customers purchase our products we
give a bill for them every time and we establish clearly time period for warranty the products
to make customers happy. Including the recruiting the high level of employee or spare part
professor for provide the clearly information and describe the right product’s uses

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Sale Forecast/ Profit Estimation

Sale in cash (Baht)

• General customers

We estimated the sales of general customers by consider the number of cars in Chiang
Rai that was registered in 2005. In 2005, there are 95,082 cars in Chiang Rai (Transportation
Office, Chiang Rai, 2005). The reason that we decide to use the statistic data of year 2005
because the car that has a using life more than 5 year, there are at least one time to
maintenance; moreover we can forecast the frequency of customers that buy the spare parts
from the using life of spare parts. We choose the oil lubricant to be the factor because there
are two times that we have to change the oil lubricant (Hmeedumnern, 2002) so we choose
this product to be the factor, and the brand of this product is CALTEX Delo Silver SEA 40
that the price is 480 baht per gallon. The reason that we choose this brand because this is a
standard quality product the sales forecasting of general customer is following this table.

• Garage customers
We estimated the sales of garage customers by consider the number of garage in
Chiang Rai in 2005. There are 79 garages in Chiang Rai (Industry Office, Chiang Rai, 2005).
And the buying power to buy spare parts in each garage is 100,000 baht.

• Retailer customers

We estimated the sales of retailer customers by consider the number of retailer in

Chiang Rai in 2005. There are 45 retailers in Chiang Rai (Provincial Administration, Chiang
Rai, 2005). And the buying power to buy spare parts in each garage is around 40,000 baht
Therefore, The sales forecasting of general customer is following this table:

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General Customer Forecasting

Year 1
January February March April May June July August September October November December Total
General spare parts 20% 63,895 72,840 83,038 94,663 88,984 83,645 78,626 73,908 69,474 65,306 74,448 84,871 933,699
Accessories parts 70% 223,633 333,213 496,487 739,766 584,415 461,688 364,734 288,140 227,630 179,828 267,944 399,236 4,566,714
Large spare parts 10% 31,948 34,184 36,577 39,137 37,963 36,824 35,720 34,648 33,609 32,600 34,882 37,324 425,415
Total 319,476 440,237 616,102 873,567 711,362 582,157 479,079 396,696 330,713 277,734 377,274 521,431 5,925,829

Year 2
January February March April May June July August September October November December Total
General spare parts 20% 96,753 110,299 125,740 143,344 134,743 126,659 119,059 111,916 105,201 98,889 112,733 128,516 1,413,853
Accessories parts 70% 594,862 886,344 1,320,653 1,967,773 1,554,540 1,228,087 970,189 766,449 605,495 478,341 712,728 1,061,965 12,147,424
Large spare parts 10% 39,937 42,732 45,724 48,924 47,457 46,033 44,652 43,312 42,013 40,753 43,605 46,658 531,800
Total 731,552 1,039,375 1,492,117 2,160,041 2,030,438 1,908,612 1,794,095 1,686,450 1,585,263 1,490,147 869,067 1,237,138 18,024,295

Year 3
January February March April May June July August September October November December Total
General spare parts 20% 146,508 167,019 190,402 217,058 204,035 191,793 180,285 169,468 159,300 149,742 170,706 194,605 2,140,923
Accessories parts 70% 1,582,327 2,357,668 3,512,925 5,234,258 4,135,064 3,266,700 2,580,693 2,038,748 1,610,611 1,272,383 1,895,850 2,824,816 32,312,043
Large spare parts 10% 49,924 53,419 57,158 61,159 59,324 57,544 55,818 54,144 52,519 50,944 54,510 58,326 664,788
Total 1,778,759 2,578,106 3,760,485 5,512,475 5,181,727 4,870,823 4,578,574 4,303,859 4,045,628 3,802,890 2,121,066 3,077,747 45,612,140

Remark:

High season (Ex. Havesting period, exployees gain bonus, etc.)

Low season (rainy season)

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General Customer Forecasting (Continues)

Year 4
January February March April May June July August September October November December Total
General spare parts 20% 221,850 252,909 288,316 328,680 308,959 290,422 272,996 256,617 241,220 274,990 313,489 357,378 3,407,825
Accessories parts 70% 4,208,977 6,271,375 9,344,349 13,923,080 10,999,233 8,689,394 6,864,621 5,423,051 4,284,210 3,384,526 5,042,944 7,513,987 85,949,747
Large spare parts 10% 62,408 66,777 71,451 76,453 74,159 71,935 69,777 67,683 65,653 63,683 68,141 72,911 831,032
Total 4,493,235 6,591,061 9,704,116 14,328,213 11,382,352 9,051,751 7,207,395 5,747,351 4,591,083 3,723,200 5,424,574 7,944,275 90,188,604

Year 5
January February March April May June July August September October November December Total
General spare parts 20% 407,410 464,448 529,471 603,597 567,381 533,338 501,338 471,257 442,982 416,403 474,700 541,158 5,953,482
Accessories parts 70% 11,195,840 16,681,802 24,855,884 37,035,268 29,257,861 23,113,711 18,259,831 14,425,267 11,395,961 9,002,809 13,414,185 19,987,136 228,625,555
Large spare parts 10% 78,015 83,476 89,319 95,572 92,704 89,923 87,226 84,609 82,071 79,609 85,181 91,144 1,038,848
Total 11,681,265 17,229,725 25,474,674 37,734,436 29,917,947 23,736,972 18,848,395 14,981,133 11,921,013 9,498,821 13,974,066 20,619,438 235,617,886

Year 6
January February March April May June July August September October November December Total
General spare parts 20% 616,920 703,288 801,749 913,994 859,154 807,605 759,149 713,600 670,784 630,537 718,812 819,446 9,015,035
Accessories parts 70% 29,780,833 44,373,442 66,116,428 98,513,478 77,825,647 61,482,261 48,570,986 38,371,079 30,313,153 23,947,391 35,681,612 53,165,602 608,141,912
Large spare parts 10% 97,524 104,351 111,655 119,471 115,887 112,410 109,038 105,767 102,594 99,516 106,482 113,936 1,298,632
Total 30,495,277 45,181,081 67,029,832 99,546,942 78,800,688 62,402,277 49,439,173 39,190,446 31,086,530 24,677,443 36,506,906 54,098,984 618,455,579

Remark:

High season (Ex. Havesting period, exployees gain bonus, etc.)

Low season (rainy season)

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Garages Forecasting

Year 1
January February March April May June July August September October November December Total
General spare parts 20% 11,060 12,608 14,374 16,386 15,403 14,479 13,610 12,793 12,026 11,304 12,887 14,691 161,621
Accessories parts 70% 38,710 57,678 85,940 128,051 101,160 79,917 63,134 49,876 39,402 31,128 46,380 69,106 790,482
Large spare parts 10% 5,530 5,917 6,331 6,775 6,571 6,374 6,183 5,998 5,818 5,643 6,038 6,461 73,639
Total 55,300 76,204 106,645 151,211 123,134 100,769 82,927 68,667 57,245 48,075 65,305 90,258 1,025,742

Year 2
January February March April May June July August September October November December Total
General spare parts 20% 16,748 19,093 21,766 24,813 23,324 21,925 20,609 19,373 18,210 17,118 19,514 22,246 244,737
Accessories parts 70% 102,969 153,423 228,601 340,615 269,086 212,578 167,937 132,670 104,809 82,799 123,371 183,823 2,102,680
Large spare parts 10% 6,913 7,397 7,915 8,469 8,215 7,968 7,729 7,498 7,273 7,054 7,548 8,077 92,056
Total 126,630 179,913 258,281 373,897 300,625 242,471 196,275 159,540 130,292 106,971 150,433 214,146 2,439,473

Year 3
January February March April May June July August September October November December Total
General spare parts 20% 25,361 28,911 32,959 37,573 35,318 33,199 31,207 29,335 27,575 25,920 29,549 33,686 370,594
Accessories parts 70% 273,896 408,105 608,076 906,034 715,767 565,456 446,710 352,901 278,792 220,246 328,166 488,967 5,593,116
Large spare parts 10% 8,642 9,247 9,894 10,587 10,269 9,961 9,662 9,373 9,091 8,819 9,436 10,097 115,079
Total 307,899 446,263 650,929 954,194 761,355 608,617 487,580 391,609 315,458 254,985 367,151 532,750 6,078,789

Remark:

High season (Ex. Havesting period, exployees gain bonus, etc.)

Low season (rainy season)
101 | P a g e
Garages Forecasting (Continues)

Year 4
January February March April May June July August September October November December Total
General spare parts 20% 38,402 43,779 49,908 56,895 53,481 50,272 47,256 44,421 41,755 39,250 44,745 51,009 561,174
Accessories parts 70% 728,561 1,085,556 1,617,479 2,410,043 1,903,934 1,504,108 1,188,245 938,714 741,584 585,851 872,919 1,300,649 14,877,643
Large spare parts 10% 10,803 11,560 12,369 13,235 12,838 12,453 12,079 11,717 11,365 11,024 11,796 12,622 143,859
Total 777,767 1,140,894 1,679,755 2,480,173 1,970,253 1,566,833 1,247,580 994,851 794,704 636,126 929,460 1,364,280 15,582,676

Year 5
January February March April May June July August September October November December Total
General spare parts 20% 58,151 66,292 75,573 86,153 80,984 76,125 71,557 67,264 63,228 59,434 67,755 77,241 849,758
Accessories parts 70% 1,937,966 2,887,570 4,302,479 6,410,694 5,064,448 4,000,914 3,160,722 2,496,971 1,972,607 1,558,359 2,321,955 3,459,714 39,574,401
Large spare parts 10% 13,505 14,451 15,462 16,544 16,048 15,567 15,100 14,647 14,207 13,781 14,746 15,778 179,836
Total 2,009,622 2,968,312 4,393,514 6,513,392 5,161,480 4,092,606 3,247,379 2,578,881 2,050,042 1,631,575 2,404,457 3,552,733 40,603,994

Year 6
January February March April May June July August September October November December Total
General spare parts 20% 88,055 100,383 114,436 130,457 122,630 115,272 108,356 101,854 95,743 89,999 102,598 116,962 1,286,745
Accessories parts 70% 5,154,973 7,680,910 11,444,557 17,052,389 13,471,388 10,642,396 8,407,493 6,641,920 5,247,116 4,145,222 6,176,381 9,202,807 105,267,553
Large spare parts 10% 16,883 18,064 19,329 20,682 20,061 19,460 18,876 18,310 17,760 17,228 18,434 19,724 224,810
Total 5,259,911 7,799,357 11,578,322 17,203,528 13,614,079 10,777,128 8,534,725 6,762,083 5,360,620 4,252,448 6,297,413 9,339,493 106,779,107

Remark:

High season (Ex. Havesting period, exployees gain bonus, etc.)

102 | P a g e
 Low season (rainy season)

Retailer Forecasting

Year 1
January February March April May June July August September October November December Total
General spare parts 20% 3,360 3,830 4,367 4,978 4,679 4,399 4,135 3,887 3,653 3,434 3,915 4,463 49,101
Accessories parts 70% 11,760 17,522 26,108 38,902 30,732 24,279 19,180 15,152 11,970 9,457 14,090 20,995 240,147
Large spare parts 10% 1,680 1,798 1,923 2,058 1,996 1,937 1,878 1,822 1,767 1,714 1,835 1,963 22,372
Total 16,800 23,151 32,399 45,938 37,408 30,614 25,193 20,861 17,391 14,605 19,840 27,421 311,620

Year 2
January February March April May June July August September October November December Total
General spare parts 20% 5,088 5,800 6,613 7,538 7,086 6,661 6,261 5,886 5,532 5,201 5,929 6,759 74,354
Accessories parts 70% 31,282 46,610 69,449 103,479 81,748 64,581 51,019 40,305 31,841 25,154 37,480 55,846 638,795
Large spare parts 10% 2,100 2,247 2,405 2,573 2,496 2,421 2,348 2,278 2,210 2,143 2,293 2,454 27,969
Total 38,470 54,658 78,466 113,590 91,330 73,663 59,629 48,469 39,583 32,498 45,702 65,058 741,118

Year 3
January February March April May June July August September October November December Total
General spare parts 20% 7,705 8,784 10,013 11,415 10,730 10,087 9,481 8,912 8,378 7,875 8,978 10,235 112,593
Accessories parts 70% 83,210 123,983 184,734 275,254 217,451 171,786 135,711 107,212 84,697 66,911 99,697 148,549 1,699,194
Large spare parts 10% 2,626 2,810 3,006 3,217 3,120 3,027 2,936 2,848 2,762 2,680 2,867 3,068 34,966
Total 93,541 135,576 197,754 289,886 231,301 184,899 148,128 118,972 95,837 77,466 111,542 161,851 1,846,754

103 | P a g e
Remark:

High season (Ex. Havesting period, exployees gain bonus, etc.)

Low season (rainy season)

Retailer Forecasting (Continues)

Year 4
January February March April May June July August September October November December Total
General spare parts 20% 11,667 13,301 15,163 17,286 16,249 15,274 14,357 13,496 12,686 11,925 13,595 15,498 170,496
Accessories parts 70% 221,338 329,793 491,392 732,174 578,418 456,950 360,990 285,183 225,294 177,982 265,194 395,139 4,519,847
Large spare parts 10% 3,283 3,512 3,758 4,021 3,901 3,784 3,670 3,560 3,453 3,350 3,584 3,835 43,713
Total 236,288 346,607 510,313 753,481 598,567 476,008 379,018 302,239 241,434 193,257 282,373 414,472 4,734,057

Year 5
January February March April May June July August September October November December Total
General spare parts 20% 17,668 20,141 22,961 26,175 24,605 23,129 21,741 20,436 19,210 18,058 20,586 23,468 258,176
Accessories parts 70% 588,757 877,248 1,307,099 1,947,578 1,538,586 1,215,483 960,232 758,583 599,281 473,432 705,413 1,051,066 12,022,758
Large spare parts 10% 4,104 4,391 4,698 5,027 4,877 4,730 4,588 4,451 4,317 4,188 4,481 4,795 54,647
Total 610,528 901,780 1,334,758 1,978,780 1,568,068 1,243,342 986,561 783,470 622,808 495,677 730,480 1,079,328 12,335,581

Year 6
January February March April May June July August September October November December Total
General spare parts 20% 26,753 30,499 34,769 39,636 37,258 35,023 32,921 30,946 29,089 27,344 31,172 35,536 390,945
Accessories parts 70% 1,566,088 2,333,472 3,476,873 5,180,540 4,092,627 3,233,175 2,554,208 2,017,825 1,594,082 1,259,324 1,876,393 2,795,826 31,980,433
Large spare parts 10% 5,130 5,489 5,874 6,285 6,096 5,913 5,736 5,564 5,397 5,235 5,602 5,994 68,315
Total 1,597,972 2,369,460 3,517,515 5,226,461 4,135,981 3,274,111 2,592,866 2,054,335 1,628,568 1,291,903 1,913,167 2,837,356 32,439,694

104 | P a g e
Remark:

High season (Ex. Havesting period, exployees gain bonus, etc.)

Low season (rainy season)

Total Sale Forecasting

105 | P a g e
 Year 1
January February March April May June July August September October November December Total
General customers 70% 319,476 440,237 616,102 873,567 711,362 582,157 479,079 396,696 330,713 277,734 377,274 521,431 5,925,829
Garage 25% 55,300 76,204 106,645 151,211 123,134 100,769 82,927 68,667 57,245 48,075 65,305 90,258 1,025,742
Retailer 5% 16,800 23,151 32,399 45,938 37,408 30,614 25,193 20,861 17,391 14,605 19,840 27,421 311,620
Total 391,576 539,591 755,146 1,070,716 871,905 713,540 587,200 486,224 405,350 340,414 462,419 639,110 7,263,191

Year 2
January February March April May June July August September October November December Total
General customers 70% 731,552 1,039,375 1,492,117 2,160,041 2,030,438 1,908,612 1,794,095 1,686,450 1,585,263 1,490,147 869,067 1,237,138 18,024,295
Garage 25% 126,630 179,913 258,281 373,897 300,625 242,471 196,275 159,540 130,292 106,971 150,433 214,146 2,439,473
Retailer 5% 38,470 54,658 78,466 113,590 91,330 73,663 59,629 48,469 39,583 32,498 45,702 65,058 741,118
Total 896,652 1,273,946 1,828,864 2,647,528 2,422,394 2,224,746 2,049,999 1,894,458 1,755,138 1,629,617 1,065,202 1,516,342 21,204,886

Year 3
January February March April May June July August September October November December Total
General customers 70% 1,778,759 2,578,106 3,760,485 5,512,475 5,181,727 4,870,823 4,578,574 4,303,859 4,045,628 3,802,890 2,121,066 3,077,747 45,612,140
Garage 25% 307,899 446,263 650,929 954,194 761,355 608,617 487,580 391,609 315,458 254,985 367,151 532,750 6,078,789
Retailer 5% 93,541 135,576 197,754 289,886 231,301 184,899 148,128 118,972 95,837 77,466 111,542 161,851 1,846,754
Total 2,180,199 3,159,945 4,609,168 6,756,555 6,174,383 5,664,339 5,214,282 4,814,440 4,456,924 4,135,340 2,599,759 3,772,348 53,537,683

Remark:

High season (Ex. Havesting period, exployees gain bonus, etc.)

Low season (rainy season)

106 | P a g e
Total Sale Forecasting (Continues)

Year 4
January February March April May June July August September October November December Total
General customers 70% 4,493,235 6,591,061 9,704,116 14,328,213 11,382,352 9,051,751 7,207,395 5,747,351 4,591,083 3,723,200 5,424,574 7,944,275 90,188,604
Garage 25% 777,767 1,140,894 1,679,755 2,480,173 1,970,253 1,566,833 1,247,580 994,851 794,704 636,126 929,460 1,364,280 15,582,676
Retailer 5% 236,288 346,607 510,313 753,481 598,567 476,008 379,018 302,239 241,434 193,257 282,373 414,472 4,734,057
Total 5,507,289 8,078,562 11,894,185 17,561,867 13,951,172 11,094,591 8,833,993 7,044,441 5,627,221 4,552,583 6,636,407 9,723,027 110,505,337

Year 5
January February March April May June July August September October November December Total
General customers 70% 11,681,265 17,229,725 25,474,674 37,734,436 29,917,947 23,736,972 18,848,395 14,981,133 11,921,013 9,498,821 13,974,066 20,619,438 235,617,886
Garage 25% 2,009,622 2,968,312 4,393,514 6,513,392 5,161,480 4,092,606 3,247,379 2,578,881 2,050,042 1,631,575 2,404,457 3,552,733 40,603,994
Retailer 5% 610,528 901,780 1,334,758 1,978,780 1,568,068 1,243,342 986,561 783,470 622,808 495,677 730,480 1,079,328 12,335,581
Total 14,301,416 21,099,818 31,202,947 46,226,608 36,647,495 29,072,920 23,082,335 18,343,485 14,593,864 11,626,073 17,109,003 25,251,499 288,557,461

Year 6
January February March April May June July August September October November December Total
General customers 70% 30,495,277 45,181,081 67,029,832 99,546,942 78,800,688 62,402,277 49,439,173 39,190,446 31,086,530 24,677,443 36,506,906 54,098,984 618,455,579
Garage 25% 5,259,911 7,799,357 11,578,322 17,203,528 13,614,079 10,777,128 8,534,725 6,762,083 5,360,620 4,252,448 6,297,413 9,339,493 106,779,107
Retailer 5% 1,597,972 2,369,460 3,517,515 5,226,461 4,135,981 3,274,111 2,592,866 2,054,335 1,628,568 1,291,903 1,913,167 2,837,356 32,439,694
Total 37,353,159 55,349,897 82,125,668 121,976,932 96,550,748 76,453,516 60,566,763 48,006,864 38,075,718 30,221,795 44,717,486 66,275,833 757,674,380

Remark:

High season (Ex. Havesting period, exployees gain bonus, etc.)

Low season (rainy season)

107 | P a g e
Marketing Expense (Sale Incentive)

Advertising expense

Year 1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Radio broadcasting 1,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,500
Car broadcasting 7,500 7,500 7,500 22,500
Calendar 14115 14,115.48
Total 1,500 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615 49,115
Year 2
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Radio broadcasting 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Car broadcasting 7,500 7,500 7,500 22,500
Calendar 14115 14,115.48
Total 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615 48,615
Year 3
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Radio broadcasting 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Car broadcasting 7,500 7,500 7,500 22,500
Calendar 14115 14,115.48
Total 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615 48,615
Year 4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Radio broadcasting 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Car broadcasting 7,500 7,500 7,500 22,500
Calendar 14115 14,115.48
Total 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615 48,615
Year 5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Radio broadcasting 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Car broadcasting 7,500 7,500 7,500 22,500
Calendar 14115 14,115.48
Total 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615 48,615

* Remark: Radio broadcasting rate (106.0Mhz.)

1,000 4 times per day
1,500 6 times per day
2,000 8 times per day
500 Spot advertising recording
108 | P a g e
Radio broadcasting

We decide to choose the radio broadcasting because the radio is assessable to our
target market and it is the most popular media for Chiang Rai people that it is suitable with
our product. We use FM 95.75 MHz. in promote because it is the popular according form the
customer target

We use 4 times per day, per month is 1,000 baht. In the first month of year 1, we have
to pay the spot sound recording fee for 500 baht.

Car broadcasting

We can advertise in harvesting season around October to November because the

customers are mostly the agriculturists and have more purchasing power to buy our products
in this period.

109 | P a g e
 The expense of Car broadcasting is 1,500 baht per day and doing in 5 days on March
and 5 days on April because we can advertise our spare parts shop in Songkran days and can
make many customers recognition in our shop. Then in November we will use car
broadcasting to advertise 5 days because in the New Year people have power buying and the
company would like to increase of sale in the New Year.

Calendar

Calendar is 28.23 baht per copy and we decide to publish for 500 copies size of
calendar is 53x39 cm. Total expense of the calendar is 14,115.48 baht.

The reasons are that we choose the calendars because the calendar can assessable to
every group of customer because the calendar is the necessary thing that the customers have
used. On the calendar, the company name, address, telephone number, and a little of business
descriptions will be published.

110 | P a g e
Conclusion

From the marketing analysis, spare part business has high feasibility and has more
opportunity to establish spare part shop in Chiang Rai around Mae Korn area. Because of
spare part is important component of cars. Therefore there is the necessary product for
customers. Moreover there are many garages in Chiang Rai including the second hand cars
market places. Thus, Mae Korn Alaiyont looks at this opportunity and we used the market
development strategy to introducing spare part business for customers who live in Chiang
Rai and neighborhood to compete and apply strategy with our competitors. We focus to
garages market and individual car user maintenance. We would like to provide expert sales
persons who have high skill technician. However there are many existing and new
competitors. Then we choose the marketing management to support our business such as
advertising though radio station, website, and billboard. In addition, spare part business has
more variety of product and service with the efficiency employee and expertise technician
where company allocated near the city to serve to customers that has high demand on spare
part business because in the present, most of people like to fix their car instead to buy new
cars and popular to modified their car that effect to spare part business grow increasing.

Overall there show about more good opportunity to establish spare part business. Also
Mae Korn Alaiyont is high feasibility to offer the largest spare part shop in Chiang Rai and
provide excellent service by high skill technician and professional who can provide right
information to customers. By the way we can make customers satisfy with our spare part and
we can gain more profit.

111 | P a g e
 Chapter 4
Technical Feasibility Study
Production and Operations Analysis
Product Characteristics
Spare part business is the business for sell a spare part products at reasonable price
that price different from customer requirement the products. So, we concern the quality of
products for standard and durable use and apply technology for management. Moreover the
efficiency of employee’s service can support the sell with service mind and fast service.

Characteristic of spare part business

To sell the 3 main of spare part products are big spare part, car accessory and general
spare part so, we sell new products and concern on quality of products. Our company located
at Mae Korn area in Chiang Rai province and near the main road. We emphasize on our
customers is 3 main groups consist with the garages, retailer and general customers. The
company located at convenience area for customers such as easy to accessible at the shop, a
lot of parking lot and many customers in nearly district can buy our products.
From researched many customers in markets. The outcomes is most of them is the
garages who is our main customers and almost of customers satisfied with our business. They
expected to receive the good service and the business has employees who have skill and
knowledge of the products. Moreover they concern on the convenience service and
technology to support them and the tools and equipment also safety and comfortable for
efficiency of service and can response to customers requirement.

86 | P a g e
Employees
Amount and employee’s qualification
In the employees researched of spare part business. Would have the employee who
related is 4 employees divided to spare part technician 1 person and general employees 3
person. They responsibility is
1. Give spare part information
2. Sell a spare part
3. Arrange a spare part to sell
4. Do an accounting Miscellaneous work
Spare part business has employees to support the customers is 4 employees. They
have high skill of spare part product and has more practical in the spare part products and
well acquainted with spare part products to service the customers. They task and
responsibilities divided with type of service. A spare part technician who response to give
spare part information to service the customers is 1 employee. Accountants do an accounting
with accounting management .is 1 employee. General employees who response to do general
work such as sell a spare part, arrange a spare part to sell and do a miscellaneous work.

Owner

Spare part Accountant General employees

Technician
1 employee 2 employees 87 | P a g e
1 employee
 Figure 4.1 Picture Show business organization chart

Training and Development planning

Training employees are the process in development skill, idea, attitude for increase
effectiveness in operating for achievement of a company objective we have 3 Type of
training.

Technical skills

• Have skillful and technical to use tools and equipment in that work.
• Top Executive or employee must have skill, technical more than middle and lower
level Human Skills
The employee can communicate with others, have skill in building good relationship
and motivate customers. Because communication skills and interpersonal relations skills are
essential for employees at all levels.

Conceptual Skills

The employee must have the ability to quickly understand, understand the scope of
immediate work correctly. When they meet the problems, they can solve the problem quickly
On-the-Job Training.

• Teaching job
• Training with interns
• Training at the point of sale

88 | P a g e
Rate of payment

1. Spare part technician 1 employee (26 x 250) 7,540 Baht/Month

Wage for work per day 290 Baht/Month
2. Accountant 1 employee (250 x 26) 6,500 Baht/Month
Wage for work per day 250 Baht/Month
3. General employees (2 x 4,680) 9,360 Baht/Month
Wage for work per day
Working day: 26 day per month (Working day are not include Sunday)

Total of payment 23,400 Baht/Month

Source of employees
In the source of employees business need to find employee’s base on good
qualification of employees that related with business and suitable for work with
responsibility. The employees should has knowledge of product and inform of business.
Moreover the business would like to training employees to service customers. The objective
of training program is

- To make the employees can do a work with the standard service and time.

89 | P a g e
 - To make the employees emphasize on
the customers satisfaction and welling to know about the feedback to improve

their ability in the future.

- To make employees feeling to close and

inform of the business to emphasize on the service to make customers satisfied.

- To make the employees emphasize on

bad result when they do in wrong way such as work violence, cheat and illegal.

Payment
For payment paid to spare part technician to 7,540 baht /month and wage for an
accountant is 6,500 baht /month combine with wage for general employees 4,680 baht /month
calculate in day is 180 baht/day is lowest wage. The shop opens on 8.00 to 17.00 o’clock if
employees work for 8 hours paid in the lowest is 180 baht per day. Moreover the company
offers the social welfare to every employee for convenience to medical treatment.

90 | P a g e
Location
In examine selected area for business is important determine investment business
because determining of area effected to cost capital and long term return. If we selected area
where is not suitable for business that influence to business. So determining area for business
has to low cost and high profit continuously. Mae Korn Alaiyont located Mae korn
intersection from research area that meet that area is suitable for customer who accessible to
buying spare parts, near bus station and Maekorn has increase economic for new country and
is the main road traffic Chiangrai - Phayoe- Chiangmai where there are many people on the
road is increase continuously and this area is near the bus station convenience to customers.

91 | P a g e
Show: Map of Mae Korn Aliyomt location area

Chiang Rai

92 | P a g e
 Pa Yao

Figure 4.2 Show: location of Mae Korn Aliayont

Facility Layout

93 | P a g e
 20 m.
8 m. 8 m.

4m 4m

16 m. 16 m.

27 m. 27 m.

8 m.

4m 4m
Parking Lot

8 m.

Entrance Exit
20 m.

Figure 4.3 show layout of Mae Korn Alaiyont

94 | P a g e
Figure 4.4 show layout of Mae Korn Alaiyont

Figure 4.5 show layout of Mae Korn Alaiyont

95 | P a g e
 20 m.
8 m. 8 m.

4m Big Spaparts Big Spaparts 4m

Toilet

16 m. 16 m.

27 m. Wheels and Oil 27 m.

8 m.
S
E
4m Coun 4m
A
ter Parking Lot
T
General Spaparts
8 m.

Entrance Exit
20 m.

Figure 4.6 show Component in Shop of Mae Korn Alaiyont

96 | P a g e
Figure 4.7 show Components in Shop of Mae Korn Alaiyont (In front side)

97 | P a g e
 Figure 4.8 show Components in Shop of Mae Korn Alaiyont (Left side)

Figure 4.9 show Components in Shop of Mae Korn Alaiyont (In front side)

98 | P a g e
Figure 4.10 show Components in Shop of Mae Korn Alaiyont (beside side)

99 | P a g e
 Figure 4.11 show Components in Shop of Mae Korn Alaiyont (top side)

Figure 4.12 show Model of Mae Korn Alaiyont shop

Facility Management

100 | P a g e
 Figure 4.13 show Model of Mae Korn Alaiyont shop (with in shop)
Facility Management focuses on providing services to people in the building
(People), work (Process) and Building (Place) to work together very consistent to achieve the
intent of the organization. Using interaction of people and building requirements in modern
buildings can be explained based on the relationship of 3 key elements is people and
buildings.
People are refers to those employees who are building the business to ensure the
villagers side. To satisfaction in use and place the results of your work is relatively who
performance of organizations and solid growth in their career.

Work (Process) to encourage business activities or transactions that occur within the
building. To use the building work in time and outside normal working hours. To work as
defined correctly. In addition, work on special events which related communities as well as
activities of public and private.

Buildings (Place) mean the building, work places and areas around the wheels of
what Wade in office. This package is limited to be positive working environment is clean,
light and temperature moderation. Use building with convenience, effective and secure. The
service is good. The building and quality standards to promote the practice of cost
management is also the lowest.

101 | P a g e
Machine/Tools/ Equipments
Equipment / tools Product description Price (Baht)

• Wood fernier
• SP132
• Size 120 x 240 x 210
• Color white
27,500

• Speak-Phone function and

PANASONIC KX- lock by 2 digit codes
T2373MXW • Music provided while hold
the line
• Headset Jack
• Blinker light 1,392
• Data port

• Function: Copy, Print,

SAMSUNG Multifunction Laser
Printer SF-565PR
Scan, Fax
• Speed (Mono): Up to
16ppm in A4 (17ppm in
Letter)
• First Print out Time 6,200
(Mono): Less than 12
seconds (From Standby
Mode)
• First Copy out Time
(Mono): 30 seconds (From
Standby Mode))

102 | P a g e
 Office Chair • Office chair CH 004/BA
• Grade A PVC skin, plastic
• Platform

1,050

Equipment / tools Product description Price (Baht)

Sofa • 3 seats

3,900

• Series STD
cold water cabinet • Size 1
• Style 3456789:-<=:?7:

3,900

Barcode Scanner set • Bar code readers Birch

108e USB
• Receipt printer Birch PRP-
058
• Billing size drawer 42x42
cm. USB 9,900
• sales program Techno
Showhuaiy

103 | P a g e
HP Pavilion a1370L • Pavilion a1370L AMD
Athlon 64 3400 with HT
• Ram512MB
• HDD 80GB
• DVD-Writer Super
multiDrive
• Ati Radeon Xpress 200
Hypermemory Graphics 19,600
• DOS +MX705 17 inch
CRT Monitor with
separated HP Speakers

Equipment / tools Product description Price (Baht)

Slide-glass cabinet • Produce from metal
• Glass in the front
• Length 4 feet

3,900

Metal desk • Series: DKS 40 (4 feet)

• Brand: Pilot furniture
• Material: Metal
• Size: (4 feet) 122x66x75cm
• three drawers (included keys)
4,800
• Material: good quality of
metal

Shelf • Dimension 914x457x914mm.

• Brand DAIWA
• Description Metal 3 shelves 1,850
• Product characteristics Metal
shelves, produce from the
metal.

104 | P a g e
 • Dimension 914x457x1830
Shelf mm.
• Brand DAIWA
• Description Metal 6 shelves
• Product characteristics Metal
shelves, produce from the 2,700
metal.

Equipment / tools Product description Price (Baht)

• length ( mm) 4,840
Kia Jumbo Pickup K2700 • wideness (mm) 1,740
• height (mm) 1,975
• wheel base (mm)
2,415
• the space between a wheel ,
in front / , back ((mm)
1,490/1,460 578,000
• Car weight (kg.)
1,570
• Weight loads to total up
(kg.) 2,765
• fuel tank capacity , (liter)
60

105 | P a g e
 Fans Model: HA-W16D1
• Blade Size (inches):16
• Electrical Rating
(voltage/hertz): 220/50
• Electrical Power (watt):52
• Electrical Current
(ampere): 0.25
• Rotary Speed (r/min): 1115
• Air Exchange Rate
(m3/min/watt): 1.21
• Control Switch: Soft Touch
• Step of Wind (speed
control): 1, 2, 3
• Timer (hours): 1-2-4-8
• Auto Wind Control 1,198
(natural wind): Available
• Total Weight (kgs): 5.2
• Carton Size (cms) (W x L x
H): 31.0x47.5x48.0

Equipment / tools Product description Price (Baht)

Max • HD-10D

139

Pen • 0.5 mm

106 | P a g e
 Paper • A4 70 gram
• 500 Pages

95

Chemical pen

10

Price Labeller • MX-2005

250

• 8 inch
Scissors

65

Equipment / tools Product description Price (Baht)

Cutter

45

107 | P a g e
 Vernier
• MODEL IS11137-150
• Range 0-150 mm/0-6"
• Resolution
0.01mm/0.0005" 1,490

• Jason W file Brand horse

H-401 F/C 3" (6)
• Code 6011341
• Size 28.9x35 cm.(F/C) 7.5 288
cm.

Machine/Tools/Equipment

Tools/Equipment No. Price

108 | P a g e
Counter 1 27,500

Phone 1 1,392

Fax machine 1 6,200

Office Chair 2 2,100

Sofa 2 7,800

cold water cabinet 1 3,900

Barcode Scanner set 1 9,900

computer 2 39,200

Slide-glass cabinet 1 3,900

Metal desk 1 4,800

Shelf 3 shelves 15 27,750

Shelf 6 shelves 20 54,00

Car 1 578,000

Fan 3 3,594

Max 2 278

Price Labeller 2 500

Scissors 4 260

Cutter 6 270

Vernier 1 1,490

Document 12 576

Total 79 719,410

109 | P a g e
Investment Cost

Investment Amount Depreciations Annual Dep. Monthly Dep.

Counter 27,500 1 3,437.5 286.46

Phone
1,392 3 464 38.67
Fax machine
6,200 3 2066.66 172.22
Office chair
2,100 8 262.5 21.88
Cold water cabinet
3,900 3 1300 108.33
Barcode Scanner set
9,900 3 3300 275.00
computer
39,200 3 13066.66 1,088.89
Slide-glass cabinet
3,900 8 487.5 40.63
Metal desk
4,800 8 600 50.00
Shelf 3 shelves
27,750 8 3468.75 289.06
Shelf 6 shelves
54,000 8 6750 562.50
Car
578,000 5 11560 9,633.33
Fan
3,594 5 718.8 59.90
Max
278 1 278 23.17
Price Labeller
500 3 166.67 13.89
Scissors
260 1 260 21.67
Cutter
270 1 270 22.50
Vernier
1,490 3 496.67 41.39

Document file 576 8 72 6.00

Total 756,610 83 49,025.71 12755.49

110 | P a g e
Cost of Investment
Pre-Operating Cost
• Free for register company 9,400 Baht

• Electronics register expense 4,450 Baht

• Water supply register expense (2 Inch) 4,100 Baht

• Telephone register expense 3,750 Baht

Total 27,100 Baht

Fixed Asset
• Total land and building 5,745,694.4 Baht
• Total equipment 192,036.0 Baht
• Total vehicle 578,000.0 Baht
• Total office supply 73,574.0 Baht

Total fixed asset 6,589,304 Baht

111 | P a g e
Depreciations
Value Residual Value
List of Assets Amount Total Longevity Per month
(Baht) Per year
1. Land and building
Land 3,269,600.0 3,269,600.0
Building and Factory 2,476,094.4 2,476,094.4 A 15.00 165,072.96 13,756.08
Total land and building 5,745,694.4 5,745,694.4 165,072.96 13,756.08
2. Equipments
Cashier counter 27,500.0 A 1.00 27,500.0 A 8.00 3,437.50 286.46
Telephone 1,392.0 A 1.00 1,392.0 A 3.00 464.00 38.67
Fax machine 6,200.0 A 1.00 6,200.0 A 3.00 2,066.67 172.22
Office chairs 1,050.0 A 2.00 2,100.0 A 8.00 131.25 10.94
Sofa 3,900.0 A 2.00 7,800.0 A 8.00 487.50 40.63
Cold-water machine 3,900.0 A 1.00 3,900.0 A 3.00 1,300.00 108.33
Barcode scanner set 9,900.0 A 1.00 9,900.0 A 3.00 3,300.00 275.00
Computer 19,600.0 A 2.00 39,200.0 A 3.00 6,533.33 544.44
Slide-glass cabinet 3,900.0 A 1.00 3,900.0 A 8.00 487.50 40.63
Metal desk 4,800.0 A 1.00 4,800.0 A 8.00 600.00 50.00
3-layers shelves 1,850.0 A 15.00 27,750.0 A 8.00 231.25 19.27
6-layers shelves 2,700.0 A 20.00 54,000.0 A 8.00 337.50 28.13
Fan 1,198.0 A 3.00 3,594.0 A 5.00 239.60 19.97
Total equipments 87,890.0 192,036.0 19,616.10 1,634.68
3. Vehicle
Pick-up car 578,000.0 A 1.00 578,000.0 A 5.00 115,600.00 9,633.33
Total vehicle 578,000.0 578,000.0 115,600.00 9,633.33
4. Office supplies
Stapler 139.0 A 2.00 278.0 A 1.00 139.00 11.58
Price Labeller 250.0 A 2.00 500.0 A 3.00 83.33 6.94
Scissors 65.0 A 4.00 260.0 A 1.00 65.00 5.42
Cutter 45.0 A 6.00 270.0 A 1.00 45.00 3.75
Vernier 1,490.0 A 1.00 1,490.0 A 3.00 496.67 41.39
Stationary 70,200.0 A 1.00 70,200.0 A 1.00 70,200.00 5,850.00
Document file 48.0 A 12.00 576.0 A 1.00 48.00 4.00
Total office supplies 72,237.0 73,574.0 71,077.00 5,923.08
Total Fixed Assets 6,483,821 6,589,304 371,366.06 30,947.17

*stationary is comprised of:

(per menth) Quantity Price Total

paper 10 95 950
pen 20 5 100
chemical pen 12 10 120
Total 1,170

5-years Quantity Price Total

paper 600 95 57,000
pen 1,200 5 6,000
chemical pen 720 10 7,200
Total 70,200

112 | P a g e
Investment Cost
Land and Landscape

Land (20 x 27) 3,150,000 Baht

Landscape 60,000 Baht
Land process
Land 210 Square-meter*110 23,100 Baht
Labor 210 Square-meter*50 10,500 Baht
After landscape 26,000 Baht

Total 3,269,600 Baht

Building

Construction cost

No. List Price (baht)

A 1.00 construction work 320,250.00

A 2.00 The roof frame and roof materials. 249,050.00
A 3.00 The floor and the floor surface 191,610.00
A 4.00 Wall and the wall surface 260,600.00
A 5.00 ceiling 123,260.00
A 6.00 The door work 72,000.00
A 7.00 the window work 75,000.00
A 8.00 color 56,100.00
A 9.00 The bathroom and equipment 20,000.00
A 10.00 Electrical work 196,800.00

113 | P a g e
A 11.00 The water – sanitation 73,650.00
A 12.00 Miscellaneous work 8,000.00
A 13.00 The interior design 400,000.00
A 14.00 Palisade and wall 50,000.00
A 15.00 Decoration garden around the building 20,000.00
Total 2,116,320.00
Operating costs 10% 211,632.00
VAT 7% 148,142.40
Total construction cost 2,476,094.40

114 | P a g e
 1. Structure work

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Landscape+Adjust land 540 25.00 13,500.00 20.00 10,800 24,300.00
2 Stake concrete 28 300.00 8,400.00 350.00 9,800.00 18,200.00
3 Cut stake concrete - - 0.00 - 0.00 0.00
4 Excavators soil 1 day 4,500.00 4,500.00 - 0.00 4,500.00
5 Cover soil 5 m³ - 0.00 120.00 600.00 600.00
6 Coarse soil 5 m³ 150.00 750.00 80.00 400.00 1,150.00
7 Coarse concrete 1 m³ 1,000.00 1,000.00 300.00 300.00 1,300.00
8 Concrete structure 30 m³ 1,450.00 43,500.00 300.00 9,000.00 52,500.00
Steel plus structure RB 6 mm
9 SR 24 150 Kg. 30.00 6,000.00 4.00 800.00 6,800.00
RB 9 mm. SR 24 300 Kg. 30.00 10,500.00 4.00 1,400.00 11,900.00
DB 12mm. SD 30 - Kg. - 0.00 - 0.00 0.00
DB 16mm SD 30 - Kg. - 0.00 - 0.00 0.00
10 Steel tie wire 30 Kg. 40.00 1,200.00 - 0.00 1,200.00
Timber (Calculate with 60% of tech
11 concrete) 180 m2 250.00 45,000.00 150.00 27,000.00 72,000.00
12 Screws 5 Box 400.0 2,000.00 - 0.00 2,000.00

115 | P a g e
 13 Flat 350 m2 250.00 87,500.00 60.00 21,000.00 108,500.00
Total 220,850.00 80,700.00 320,250.00
2. The roof frame and roof materials

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Steel box 100x50x2.3 mm. 7 Section 1,075.00 7,525.00 - 0.00 7,525.00
2 Steel C 100X50X20X2.3 mm. 10 Section 890.00 8,900.00 - 0.00 8,900.00
3 Steel box100x100x3.2 mm. 6 Section 2,000.00 12,000.00 - 0.00 12,000.00
4 Color foundation rustproof frame roof 25 m2 35.00 875.00 20.00 500.00 1,375.00
5 Color redundancy for frame roof 25 m2 40.00 1,000.00 20.00 500.00 1,500.00
m2
6 Setting + connecting component 50 - 0.00 250.00 12,500.00 12,500.00
m2
7 Metalsel roof 355 300.00 106,500.00 250.00 88,750.00 195,250.00
8 Pinion K.S.L - m - 0.00 - 0.00 0.00
9 The rain spout 10,000.00 10,000.00 10,000.00

Total 146,800.00 102,250.00 249,050.00

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 3. Floor and floor surface

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Tiled floors COTTO 24"x24" - - 0.00 - 0.00 0.00
2 Toilet tiled floor  6"x12"(Toilet) 5 m2 400.00 2,000.00 150.00 750.00 2,750.00
Tiled floor surface rough  8"x8"
3 (enter ground) 8 m2 300.00 2,400.00 150.00 1,200.00 3,600.00
4 Ground surface - - 0.00 - 0.00 0.00
5 Ground surface with soak solution 352 m2 250.00 88,000.00 120.00 42,240.00 130,240.00
6 Block paved surface (Parking) - m2 - 0.00 - 0.00 0.00
Ground surface with soak solution / Solar
7 slap gravel 32 m2 650.00 20,800.00 250.00 8,000.00 28,800.00
8 Macea floors stair - - 0.00 - 0.00 0.00
9 Ground litter 84 m2 20.00 1,680.00 35.00 2,940.00 4,620.00
10 Ground Concrete 80 m2 120.00 9,600.00 150.00 12,000.00 21,600.00

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 Total 124,480.00 67,130.00 191,610.00

4. Wall and wall surface

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Mon brick wall 290 m2 150.00 43,500.00 120.00 34,800.00 78,300.00
2 Smooth plaster 600 m2 150.00 90,000.00 100.00 60,000.00 150,000.00
3 Chamber toilet tied RCI 2"X6" 20 m2 250.00 5,000.00 200.00 4,000.00 9,000.00
4 Chamber ken sai tied2"X6" 4 m2 250.00 1,000.00 200.00 800.00 1,800.00
5 Chamber con wood wood6" 20 m2 350.00 7,000.00 150.00 3,000.00 10,000.00
6 Chamber smart board - m2 - 0.00 - 0.00 0.00
Chess plaster red- white (wall15 m2 +
7 floor 8 m2) 23 m2 350.00 8,050.00 150.00 3,450.00 11,500.00

Total 154,550.00 106,050.00 260,600.00

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 5. Ceiling

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Gym sup ceiling 9 mm.smooth plaster 350 m2 200.00 70,000.00 150.00 52,500.00 122,500.00
Gym sup ceiling 9 mm.smooth plaster(
2 leave moist ) 2 m2 230.00 460.00 150.00 300.00 760.00
Ceiling eaves lath con wood 3" inch 11
3 mm. - m2 - 0.00 - 0.00 0.00
4 Ceiling smooth - m2 - 0.00 - 0.00 0.00

Total 70,460.00 52,800.00 123,260.00

6. Doors
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No. Descriptions Quantity Material cost Wage cost
Amount Unit Price Total Price Total Total (Baht)
0.00
1 Steel door leaf curl 1 set 50,000.00 50,000.00 - 50,000.00
0.00
2 Open door to door panel 1 set 15,000.00 15,000.00 - 15,000.00
0.00
3 Toilet door 1 set 7,000.00 7,000.00 - 7,000.00

Total 72,000.00 0.00 72,000.00

7. Windows

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Window panel pair 5 panel 15,000.00 75,000.00 - 0.00 75,000.00
Total 75,000.00 0.00 75,000.00

8. Colors

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total

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1 Water color with the inside wall 280 40.00 11,200.00 35.00 9,800.00 21,000.00
2 Water color with outside wall 260 m2 50.00 13,000.00 35.00 9,100.00 35,100.00
3 Water color inside ceiling - m2 - 0.00 - 0.00 0.00
4 Water color outside ceiling - m2 - 0.00 - 0.00 0.00
5 Ground water color inside + outside - m2 - 0.00 - 0.00 0.00
Total 24,200.00 18,900.00 56,100.00

9. Bathroom and equipment

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Wall basin with equipment 1 set 3,500.00 3,500.00 300.00 300.00 3,800.00
2 Embedded sink counter with equipment - Set - 0.00 - 0.00 0.00
3 One Chamber 1 Set 8,000.00 8,000.00 300.00 300.00 8,300.00
4 Chamber pot 1 Set 3,000.00 3,000.00 300.00 300.00 3,300.00
5 Smoke with line - Set - 0.00 - 0.00 0.00
6 Hanging round 1 Set 250.00 250.00 50.00 50.00 300.00
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7 Soap dish 1 Set 350 350.00 50.00 50.00 400.00
8 Injection line 1 Set 300.00 300.00 50.00 50.00 350.00
9 Tissue case 1 Set 300.00 300.00 50.00 50.00 350.00
10 Glass 1 Set 2,000.00 2,000.00 300.00 300.00 2,300.00
11 Single chest wall 1 Set 300.00 300.00 50.00 50.00 350.00
12 Grating deodorize stand less 1 Set 500.00 500.00 50.00 50.00 550.00

Total 18,500.00 1,500.00 20,000.00

10. Electrical

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Lamp Down Light with Lamp INCAN 1X20 W 30 set 400.00 12,000.00 200.00 6,000.00 18,000.00

2 Lamp illuminates inside the building (UP LIGHT) 10 set 5,000.00 50,000.00 500.00 5,000.00 55,000.00

3 Fans suck air. 3 set 1,000.00 3,000.00 300.00 900.00 3,900.00

4 switch 20 set 400.00 8,000.00 200.00 4,000.00 12,000.00

5 Electric buzzer - set - 0.00 - 0.00 0.00

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 6 Waterproof electrical plug - set - 0.00 - 0.00 0.00

7 Plug. 20 set 400.00 8,000.00 200.00 4,000.00 12,000.00

8 TV plug. 2 set 400.00 800.00 200.00 400.00 1,200.00

9 Fire warning systems 3 set 300.00 900.00 200.00 600.00 1,500.00

10 International direct dial telephone integration 1 set 3,000.00 3,000.00 2000.00 2,000.00 5,000.00

11 Panel and power (excluding electric meter). 1 set 3,000.00 3,000.00 2000.00 2,000.00 5,000.00

12 Panel and emergency lighting 1 set 3,000.00 3,000.00 200.00 200.00 3,200.00

13 The power wiring for the water heater - set - 0.00 - 0.00 0.00

14 Motor power wiring for the gate - set - 0.00 - 0.00 0.00

15 Tank Fire 10,000.00 10,000.00 10,000.00

Total 171,700.00 25,100.00 196,800.00

Note
1. The hundreds of electrical wiring pipe wall embedded

2. Brands of electrical items required by an operator.

11.Water – sanitation

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total

1 Water system PVC. section 13.5 3 set 600.00 1,800.00 100.00 300.00 2,100.00

2 Sewerage PVC. section 8.5 3 set 600.00 1,800.00 100.00 300.00 2,100.00

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3 Toilet water pipe system PVC. section 8.5 3 set 600.00 1,800.00 100.00 300.00 2,100.00

4 Ventilation duct system PVC. section 8.5 3 set 600.00 1,800.00 100.00 300.00 2,100.00

5 Bo finished room Use with pipe size 20 cm. 5 Wells 500.00 2,500.00 100.00 500.00 3,000.00

6 Cement  size 8" 5 section 350.00 1,750.00 100.00 500.00 2,250.00

7 Treatment tank 2000 liter (Non-compressed air) 1 tank 13,000.00 13,000.00 2,000.00 2,000.00 15,000.00

8 Tank trap fat 1 tank 5,000.00 5,000.00 2,000.00 2,000.00 7,000.00

9 water storage tanks 3000 liters 1 tank 15,000.00 15,000.00 2,000.00 2,000.00 17,000.00

10 pump 1 set 10,000.00 10,000.00 1,000.00 1,000.00 11,000.00

11 The water meter 10,000.00 10,000.00 10,000.00

Total water – sanitation 64,450.00 9,200.00 73,650.00

12 Miscellaneous work

No. Descriptions Quantity Material cost Wage cost Total (Baht)

Amount Unit Price Total Price Total
1 Iron railing - section - 0.00 - 0.00 0.00

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2 Balcony in front of the building - set - 0.00 - 0.00 0.00

3 Balcony beside the building - set - 0.00 - 0.00 0.00

4 Wooden battens - m³ - 0.00 - 0.00 0.00

5 Paint the Wooden battens 20 m³ 300.00 6,000.00 100.00 2,000.00 8,000.00

6 Equipment installed access points - set - 0.00 - 0.00 0.00

7 Chamber granite counters (toilet) - m³ - 0.00 - 0.00 0.00

8 Heavy aluminum roof deck. - set - 0.00 - 0.00 0.00

9 Wall bathroom shelf - set - 0.00 - 0.00 0.00

Total 6,000.00 2,000.00 8,000.00

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Operating Expense
Total Amount(Baht)
No. Item
Year 1 Year 2 Year 3 Year 4 Year 5
A 1.00 Office supply 70,200 70,200 70,200 70,200 70,200
A 2.00 2 General employees salary 112,320 112,320 112,320 112,320 112,320
A 3.00 1 Spare partsTechnician salary 90,480 90,480 90,480 90,480 90,480
A 4.00 1 Accountant salary 78,000 78,000 78,000 78,000 78,000
A 5.00 Fuel expense for vehicles 60,000 60,000 60,000 60,000 60,000
A 6.00 Utility expense (water) 12,000 12,000 12,000 12,000 12,000
A 7.00 Utility expense (electricity) 24,000 24,000 24,000 24,000 24,000
A 8.00 Utility expense (Telephone) 14,400 14,400 14,400 14,400 14,400
Total 461,400 461,400 461,400 461,400 461,400

Remark:

Number of employees Salary per person Total salary

Minimum wage rate per day for general employees (Baht) A 180.00 A 2.00 4,680 9,360
Minimum wage rate per day for spare part technician (Baht) A 290.00 A 1.00 7,540 7,540
Minimum wage rate per day for accountant (Baht) A 250.00 A 1.00 6,500 6,500
Working day per month (Working day are not include Sunday) A 26.00 Total slary expense per month 23,400

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Operating Expense per year
YEAR 1
Item January February March April May June July August September October November December
Office supply 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850
2 General employees salary 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360
1 Spare partsTechnician salary 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540
1 Accountant salary 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500
Fuel expense for vehicles 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Utility expense (water) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Utility expense (electricity) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Utility expense (Telephone) 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Total 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450

YEAR 2
Item January February March April May June July August September October November December
Office supply 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850
2 General employees salary 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360
1 Spare partsTechnician salary 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540
1 Accountant salary 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500
Fuel expense for vehicles 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Utility expense (water) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Utility expense (electricity) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Utility expense (Telephone) 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Total 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450

YEAR 3
Item January February March April May June July August September October November December
Office supply 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850
2 General employees salary 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360
1 Spare partsTechnician salary 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540
1 Accountant salary 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500
Fuel expense for vehicles 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Utility expense (water) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Utility expense (electricity) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Utility expense (Telephone) 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Total 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450

YEAR 4
Item January February March April May June July August September October November December
Office supply 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850
2 General employees salary 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360
1 Spare partsTechnician salary 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540
1 Accountant salary 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500
Fuel expense for vehicles 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Utility expense (water) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Utility expense (electricity) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Utility expense (Telephone) 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Total 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450

YEAR 5
Item January February March April May June July August September October November December
Office supply 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850 5,850
2 General employees salary 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360 9,360
1 Spare partsTechnician salary 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540 7,540
1 Accountant salary 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500
Fuel expense for vehicles 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Utility expense (water) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Utility expense (electricity) 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Utility expense (Telephone) 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Total 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450

124 | P a g e
 Chapter 5
Financial
Financial Feasibility Analysis Budget Allocating

1. Budget Allocating Mae Korn Spare parts

Cost of this project is about 7,500,000 baht. In term of investment plan we decided to
use money that loan fromItem
the bank for 100% to use inTotal
the investment. from
Source loan(loan)
of fund the capital or
fund from1.Krung
CurrentThai
fund Bank as interest rate at 10.375% per year which it is the highest rate
1.1 Cash
for personal loanfor
bypurchasing
without goods
the guarantee. And we need to pay in each month about 67,906
1.2 Cash for operating 888,996 888,996
baht and Total
plan to due in
current 30 year of loaning money. The 888,996
fund budget allocating of our company, we
888,996
has ration2.ofFixed Assets as following:
the capital
2.1 Land 3,269,600 3,269,600
2.2 Building 2,476,094 2,476,094
2.3 Equipment 192,036 192,036
2.4 Office supplies 73,574 73,574
2.5 Vehicle 578,000 578,000
Total Fixed Assets 6,589,304 6,589,304
3. Pre-operating expense
3.1 Electronics register expense 4,450 4,450
3.2 Water supply register expense (2 Inch) 4,100 4,100
3.3 Telephone register expense 3,750 3,750
3.4 Company registering 9,400 9,400
Total Pre-operating expense 21,700 21,700
Total Cost of project 7,500,000 7,500,000
Ratio: 100% 100%

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 2. Pre-operating expense
Fee for registering company is the expense as documentation about 9,400 baht.
Electronics register expense is about 4,450 baht. Water supply register expense for using 2
inches water pipe is 4,100, and telephone register expense is 3,750. Therefore, the total of
pre-operating expense is about 21,700 baht.

Pre-operating expense
No. Item Expense
1 Fee for register company 9,400
2 Electronics register expense 4,450
3 Water supply register expense (2 Inch) 4,100
4 Telephone register expense 3,750
Total 21,700

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 3. Assets
For the assets, we spend money to invest in the assets around 6,483,821 baht. The
assets are comprised of land, building, equipments, office supplies, and vehicles. The list
as show the equipment that will use in the part of operations with the every process the
we planed and estimate the unit of equipment that we will use as following this table:

Value Residual Value

List of Assets Amount Total Longevity Per month
(Baht) Per year
1. Land and building
Land 3,269,600.0 3,269,600.0
Building and Factory 2,476,094.4 2,476,094.4 15 165,072.96 13,756.08
Total land and building 5,745,694.4 5,745,694.4 165,072.96 13,756.08
2. Equipments
Cashier counter 27,500.0 1 27,500.0 8 3,437.50 286.46
Telephone 1,392.0 1 1,392.0 3 464.00 38.67
Fax machine 6,200.0 1 6,200.0 3 2,066.67 172.22
Office chairs 1,050.0 2 2,100.0 8 131.25 10.94
Sofa 3,900.0 2 7,800.0 8 487.50 40.63
Cold-water machine 3,900.0 1 3,900.0 3 1,300.00 108.33
Barcode scanner set 9,900.0 1 9,900.0 3 3,300.00 275.00
Computer 19,600.0 2 39,200.0 3 6,533.33 544.44
Slide-glass cabinet 3,900.0 1 3,900.0 8 487.50 40.63
Metal desk 4,800.0 1 4,800.0 8 600.00 50.00
3-layers shelves 1,850.0 15 27,750.0 8 231.25 19.27
6-layers shelves 2,700.0 20 54,000.0 8 337.50 28.13
Fan 1,198.0 3 3,594.0 5 239.60 19.97
Total equipments 87,890.0 192,036.0 19,616.10 1,634.68
3. Vehicle
Pick-up car 578,000.0 1 578,000.0 5 115,600.00 9,633.33
Total vehicle 578,000.0 578,000.0 115,600.00 9,633.33
4. Office supplies
Stapler 139.0 2 278.0 1 139.00 11.58
Price Labeller 250.0 2 500.0 3 83.33 6.94
Scissors 65.0 4 260.0 1 65.00 5.42
Cutter 45.0 6 270.0 1 45.00 3.75
Vernier 1,490.0 1 1,490.0 3 496.67 41.39
Stationary 70,200.0 1 70,200.0 1 70,200.00 5,850.00
Document file 48.0 12 576.0 1 48.00 4.00
Total office supplies 72,237.0 73,574.0 71,077.00 5,923.08
Total Fixed Assets 6,483,821 6,589,304 371,366.06 30,947.17

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3.1 Cost of building constructions
We decide to do the business for long times and necessary to buy land of
establish the shop for 3,269,600 at Mae Korn district that is very suitable for our
business that satisfied to be more convenience and large area. Our decided to buy the
land instead to rent the land because we would like to do the business in long time.
Although, our business has high risk to investment for buy land, but in the feature it
could has high return too.

Construction cost

No. List Price (baht)

1 construction work 320,250.00

2 The roof frame and roof materials. 249,050.00
3 The floor and the floor surface 191,610.00
4 Wall and the wall surface 260,600.00
5 ceiling 123,260.00
6 The door work 72,000.00
7 the window work 75,000.00
8 color 56,100.00
9 The bathroom and equipment 20,000.00
10 Electrical work 196,800.00
11 The water – sanitation 73,650.00
12 Miscellaneous work 8,000.00
13 The interior design 400,000.00
14 Palisade and wall 50,000.00
15 Decoration garden around the building 20,000.00
Total 2,116,320.00
Operating costs 10% 211,632.00
VAT 7% 148,142.40
Total construction cost 2,476,094.40

4. Liability
For the liability, we do the long-term money loan with Krung Thai Bank for
7,500,000 baht for the operations, and the interest is 10.375% within 30 years. We
decide to pay the debt payment 67,906 per month.

Loan principals 7,500,000

Interest rate 10.375%
Interest rate per month 0.865%
Payment period (years) 30
Number of month 360.00
PMT 67,906
*Loan interest for business (Krung Thai Bank Company Limited) May 25, 2009
128 | P a g e
Financial Policy

1. Income Statement
For income statement, we consider from the data of sale forecasting to use as basic information to estimate income and expense that we
will receive in each year. We are estimate about 60 months by we use financial assumption and other financial expense

Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 1 to the Ending of Year 1

Item January February March April May June July August September October November December
Revenue: 391,576 931,167 1,686,313 2,757,029 3,628,934 4,342,474 4,929,674 5,415,898 5,821,247 6,161,661 6,624,081 7,263,191
Less: Cost of goods sold 88,105 209,513 379,420 620,332 816,510 977,057 1,109,177 1,218,577 1,309,781 1,386,374 1,490,418 1,634,218
Gross margin 303,471 721,654 1,306,893 2,136,698 2,812,424 3,365,417 3,820,497 4,197,321 4,511,467 4,775,287 5,133,663 5,628,973
Less: Operating expense
Marketing expense 1,500 2,500 11,000 19,500 20,500 21,500 22,500 23,500 24,500 25,500 26,500 49,115
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,748 260,996 398,744 536,493 666,741 796,989 927,237 1,057,485 1,187,733 1,317,982 1,448,230 1,640,470
Profit before deduct interest rate 172,723 460,658 908,148 1,600,205 2,145,683 2,568,429 2,893,260 3,139,835 3,323,733 3,457,306 3,685,433 3,988,503
Less: Interest expense 64,844 129,661 194,452 259,215 323,952 388,661 453,342 517,996 582,621 647,218 711,787 776,327
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 103,126 321,490 699,436 1,321,976 1,797,964 2,151,247 2,406,644 2,583,812 2,698,331 2,762,554 2,921,359 3,155,135
Less: Corporate tax 674,041
Net Income 103,126 321,490 699,436 1,321,976 1,797,964 2,151,247 2,406,644 2,583,812 2,698,331 2,762,554 2,921,359 2,481,095

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 Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 2 to the Ending of Year 2

Item January February March April May June July August September October November December
Revenue: 896,652 2,170,597 3,999,462 6,646,989 9,069,383 11,294,129 13,344,129 15,238,587 16,993,725 18,623,342 19,688,544 21,204,886
Less: Cost of goods sold 140,118 426,756 838,250 1,433,944 1,978,983 2,479,551 2,940,800 3,367,054 3,761,960 4,128,623 4,368,294 4,709,471
Gross margin 756,534 1,743,842 3,161,211 5,213,045 7,090,400 8,814,579 10,403,328 11,871,533 13,231,765 14,494,718 15,320,250 16,495,415
Less: Operating expense
Marketing expense 1,000 2,000 10,500 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 48,615
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,248 260,496 398,244 535,993 666,241 796,489 926,737 1,056,985 1,187,233 1,317,482 1,447,730 1,639,970
Profit before deduct interest rate 626,285 1,483,345 2,762,967 4,677,053 6,424,160 8,018,090 9,476,591 10,814,548 12,044,532 13,177,237 13,872,521 14,855,445
Less: Interest expense 64,511 128,992 193,443 257,865 322,257 386,618 450,948 515,248 579,517 643,754 707,959 772,132
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 557,021 1,344,847 2,555,263 4,400,174 6,078,136 7,602,952 8,992,369 10,261,273 11,422,235 12,485,949 13,112,274 14,026,272
Less: Corporate tax 3,935,382
Net Income 557,021 1,344,847 2,555,263 4,400,174 6,078,136 7,602,952 8,992,369 10,261,273 11,422,235 12,485,949 13,112,274 10,090,890

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 Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 3 to the Ending of Year 3

Item January February March April May June July August September October November December
Revenue: 2,180,199 5,340,143 9,949,311 16,705,867 22,880,250 28,544,589 33,758,871 38,573,311 43,030,235 47,165,575 49,765,334 53,537,683
Less: Cost of goods sold 344,326 1,055,314 2,092,376 3,612,601 5,001,837 6,276,314 7,449,527 8,532,776 9,535,584 10,466,036 11,050,982 11,899,760
Gross margin 1,835,873 4,284,830 7,856,935 13,093,265 17,878,412 22,268,275 26,309,344 30,040,535 33,494,651 36,699,539 38,714,353 41,637,923
Less: Operating expense
Marketing expense 1,000 2,000 10,500 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 48,615
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,248 260,496 398,244 535,993 666,241 796,489 926,737 1,056,985 1,187,233 1,317,482 1,447,730 1,639,970
Profit before deduct interest rate 1,705,624 4,024,333 7,458,691 12,557,273 17,212,171 21,471,786 25,382,607 28,983,550 32,307,417 35,382,058 37,266,623 39,997,952
Less: Interest expense 64,141 128,250 192,325 256,368 320,377 384,353 448,294 512,201 576,074 639,912 703,714 767,482
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 1,636,730 3,886,577 7,252,105 12,281,891 16,868,027 21,058,913 24,901,039 28,433,321 31,688,563 34,694,612 36,510,621 39,173,430
Less: Corporate tax 11,479,529
Net Income 1,636,730 3,886,577 7,252,105 12,281,891 16,868,027 21,058,913 24,901,039 28,433,321 31,688,563 34,694,612 36,510,621 27,693,901

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 Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 4 to the Ending of Year 4

Item January February March April May June July August September October November December
Revenue: 5,507,289 13,585,851 25,480,036 43,041,903 56,993,075 68,087,666 76,921,659 83,966,100 89,593,321 94,145,903 100,782,310 110,505,337
Less: Cost of goods sold 875,378 2,693,054 5,369,246 9,320,666 12,459,680 14,955,963 16,943,611 18,528,610 19,794,735 20,819,066 22,312,258 24,499,939
Gross margin 4,631,911 10,892,797 20,110,790 33,721,237 44,533,395 53,131,703 59,978,048 65,437,489 69,798,586 73,326,837 78,470,052 86,005,398
Less: Operating expense
Marketing expense 1,000 2,000 10,500 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 48,615
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,248 260,496 398,244 535,993 666,241 796,489 926,737 1,056,985 1,187,233 1,317,482 1,447,730 1,639,970
Profit before deduct interest rate 4,501,663 10,632,300 19,712,545 33,185,244 43,867,154 52,335,214 59,051,311 64,380,504 68,611,352 72,009,356 77,022,323 84,365,428
Less: Interest expense 63,731 127,427 191,086 254,708 318,293 381,841 445,351 508,823 572,257 635,652 699,008 762,325
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 4,433,178 10,495,367 19,507,200 32,911,523 43,525,095 51,924,853 58,572,686 63,833,654 67,996,315 71,326,170 76,271,027 83,546,062
Less: Corporate tax 24,791,319
Net Income 4,433,178 10,495,367 19,507,200 32,911,523 43,525,095 51,924,853 58,572,686 63,833,654 67,996,315 71,326,170 76,271,027 58,754,744

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 Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 5 to the Ending of Year 5

Item January February March April May June July August September October November December
Revenue: 14,301,416 35,401,233 66,604,180 112,830,788 149,478,283 178,551,203 201,633,538 219,977,023 234,570,887 246,196,960 263,305,962 288,557,461
Less: Cost of goods sold 2,280,241 7,027,700 14,048,363 24,449,350 32,695,036 39,236,443 44,429,968 48,557,253 51,840,872 54,456,738 58,306,264 63,987,851
Gross margin 12,021,175 28,373,534 52,555,817 88,381,438 116,783,247 139,314,760 157,203,569 171,419,770 182,730,015 191,740,221 204,999,698 224,569,610
Less: Operating expense
Marketing expense 1,000 2,000 10,500 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 48,615
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,248 260,496 398,244 535,993 666,241 796,489 926,737 1,056,985 1,187,233 1,317,482 1,447,730 1,639,970
Profit before deduct interest rate 11,890,927 28,113,037 52,157,573 87,845,446 116,117,006 138,518,271 156,276,832 170,362,785 181,542,781 190,422,740 203,551,969 222,929,640
Less: Interest expense 63,277 126,514 189,711 252,867 315,982 379,056 442,087 505,077 568,024 630,928 693,789 756,607
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 11,822,896 27,977,016 51,953,602 87,573,565 115,777,257 138,110,695 155,801,471 169,819,681 180,931,977 189,744,277 202,805,892 222,115,992
Less: Corporate tax 66,362,298
Net Income 11,822,896 27,977,016 51,953,602 87,573,565 115,777,257 138,110,695 155,801,471 169,819,681 180,931,977 189,744,277 202,805,892 155,753,694

1.1 Insurance Expense

We decide to buy 4 primary protection of business insurance from AIG, and plan to pay the insurance expense annually for 40,378.

Insurance policies
Cost of insurance Add: Add: Total insurance expense
Primary protection Descriptions Cost of insurance
per year Duty tax VAT per year
1. Insurance for fire and disasters According to the value of assets 6,589,304 29,652 133 2,085 31,870
2. Insurance for property theft 100,000 Baht per year 100,000 450 2 32 484
3. Insurance for liability to the third party 1,000,000 Baht per year 1,000,000 4,500 20 316 4,837
4. Insurance for the loss of trading opportunity 10% of cost of insurance for fire and disasters 658,930 2,965 13 208 3,187
Total 40,378
Insurance expense rate 0.45%
Duty tax 0.40%
VAT 7%

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 2. Statement of Cash Flow
In cash flow part, the estimate actual income in 60 months that how much company receives and expense by using financial hypothesis
and financial policy abovementioned.

134 | P a g e
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 1 to the ending of year 1

Beginning January February March April May June July August September October November December
Cash received:
Sales 391,576 539,591 755,146 1,070,716 871,905 713,540 587,200 486,224 405,350 340,414 462,419 639,110
Receivable
Other revenue
Total cash (1) 391,576 539,591 755,146 1,070,716 871,905 713,540 587,200 486,224 405,350 340,414 462,419 639,110
Cash payment:
Operation
Purchasing goods 125,864 135,681 190,694 271,341 177,007 145,276 119,937 99,663 83,405 70,332 115,809 160,838
Marketing Expense 1,500 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 674,041
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 225,665 234,982 297,494 378,142 276,308 244,577 219,238 198,964 182,706 169,633 215,110 996,172
Net cash:
Net cash (1) – (2) 165,911 304,609 457,652 692,574 595,596 468,964 367,962 287,260 222,644 170,782 247,309 - 357,062
Add current fund 888,996 888,996 982,248 1,214,199 1,599,191 2,219,106 2,742,044 3,138,348 3,433,651 3,648,252 3,798,236 3,896,359 4,071,009
Total cash 888,996 1,054,907 1,286,858 1,671,850 2,291,765 2,814,703 3,211,007 3,506,310 3,720,910 3,870,895 3,969,018 4,143,668 3,713,947
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 3,062 3,088 3,115 3,142 3,169 3,196 3,224 3,252 3,280 3,308 3,337 3,366
Less: Interest expense 64,844 64,817 64,791 64,764 64,736 64,709 64,681 64,654 64,625 64,597 64,568 64,540
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 888,996 982,248 1,214,199 1,599,191 2,219,106 2,742,044 3,138,348 3,433,651 3,648,252 3,798,236 3,896,359 4,071,009 3,641,289

135 | P a g e
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 2 to the ending of year 2

Beginning January February March April May June July August September October November December
Cash received:
Sales 896,652 1,273,946 1,828,864 2,647,528 2,422,394 2,224,746 2,049,999 1,894,458 1,755,138 1,629,617 1,065,202 1,516,342
Receivable
Other revenue
Total cash (1) 896,652 1,273,946 1,828,864 2,647,528 2,422,394 2,224,746 2,049,999 1,894,458 1,755,138 1,629,617 1,065,202 1,516,342
Cash payment:
Operation
Purchasing goods 164,952 323,020 465,004 674,636 523,329 481,509 444,399 411,255 381,472 354,560 185,245 384,680
Marketing Expense 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 3,935,382
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 264,253 422,321 571,805 781,437 622,630 580,810 543,700 510,556 480,773 453,861 284,546 4,481,355
Net cash:
Net cash (1) – (2) 632,398 851,625 1,257,059 1,866,091 1,799,763 1,643,936 1,506,299 1,383,903 1,274,365 1,175,756 780,656 - 2,965,013
Add current fund 3,641,289 3,641,289 4,201,028 4,979,994 6,164,394 7,957,825 9,684,930 11,256,207 12,689,847 14,001,091 15,202,798 16,305,895 17,013,892
Total cash 3,641,289 4,273,687 5,052,653 6,237,053 8,030,484 9,757,589 11,328,866 12,762,506 14,073,750 15,275,457 16,378,554 17,086,551 14,048,880
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 3,395 3,424 3,454 3,484 3,514 3,544 3,575 3,606 3,637 3,668 3,700 3,732
Less: Interest expense 64,511 64,481 64,452 64,422 64,392 64,361 64,331 64,300 64,268 64,237 64,205 64,173
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 3,641,289 4,201,028 4,979,994 6,164,394 7,957,825 9,684,930 11,256,207 12,689,847 14,001,091 15,202,798 16,305,895 17,013,892 13,976,221

136 | P a g e
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 3 to the ending of year 3

Beginning January February March April May June July August September October November December
Cash received:
Sales 2,180,199 3,159,945 4,609,168 6,756,555 6,174,383 5,664,339 5,214,282 4,814,440 4,456,924 4,135,340 2,599,759 3,772,348
Receivable
Other revenue
Total cash (1) 2,180,199 3,159,945 4,609,168 6,756,555 6,174,383 5,664,339 5,214,282 4,814,440 4,456,924 4,135,340 2,599,759 3,772,348
Cash payment:
Operation
Purchasing goods 408,341 805,463 1,176,809 1,727,294 1,333,098 1,225,294 1,129,815 1,044,693 968,333 899,442 436,872 961,849
Marketing Expense 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 11,479,529
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 507,642 904,764 1,283,610 1,834,095 1,432,399 1,324,594 1,229,116 1,143,994 1,067,634 998,743 536,173 12,602,672
Net cash:
Net cash (1) – (2) 1,672,557 2,255,181 3,325,558 4,922,460 4,741,984 4,339,745 3,985,166 3,670,446 3,389,290 3,136,598 2,063,586 - 8,830,324
Add current fund 13,976,221 13,976,221 15,576,119 17,758,640 21,011,539 25,861,340 30,530,665 34,797,751 38,710,258 42,308,045 45,624,676 48,688,615 50,679,542
Total cash 13,976,221 15,648,778 17,831,299 21,084,198 25,933,999 30,603,324 34,870,410 38,782,917 42,380,704 45,697,335 48,761,274 50,752,201 41,849,219
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 3,764 3,797 3,830 3,863 3,896 3,930 3,964 3,998 4,033 4,068 4,103 4,138
Less: Interest expense 64,141 64,109 64,076 64,043 64,009 63,976 63,942 63,907 63,873 63,838 63,803 63,767
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 13,976,221 15,576,119 17,758,640 21,011,539 25,861,340 30,530,665 34,797,751 38,710,258 42,308,045 45,624,676 48,688,615 50,679,542 41,776,560

137 | P a g e
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 4 to the ending of year 4

Beginning January February March April May June July August September October November December
Cash received:
Sales 5,507,289 8,078,562 11,894,185 17,561,867 13,951,172 11,094,591 8,833,993 7,044,441 5,627,221 4,552,583 6,636,407 9,723,027
Receivable
Other revenue
Total cash (1) 5,507,289 8,078,562 11,894,185 17,561,867 13,951,172 11,094,591 8,833,993 7,044,441 5,627,221 4,552,583 6,636,407 9,723,027
Cash payment:
Operation
Purchasing goods 1,042,676 2,065,621 3,044,127 4,497,947 2,790,840 2,220,827 1,769,662 1,412,435 1,129,464 920,705 1,694,132 2,485,319
Marketing Expense 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 24,791,319
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 1,141,977 2,164,922 3,150,928 4,604,748 2,890,140 2,320,128 1,868,963 1,511,736 1,228,765 1,020,006 1,793,433 27,437,932
Net cash:
Net cash (1) – (2) 4,365,312 5,913,640 8,743,257 12,957,120 11,061,031 8,774,463 6,965,030 5,532,705 4,398,456 3,532,577 4,842,974 - 17,714,905
Add current fund 41,776,560 41,776,560 46,069,213 51,910,195 60,580,793 73,465,253 84,453,626 93,155,430 100,047,801 105,507,846 109,833,643 113,293,561 118,063,876
Total cash 41,776,560 46,141,872 51,982,853 60,653,452 73,537,912 84,526,285 93,228,089 100,120,460 105,580,505 109,906,302 113,366,220 118,136,535 100,348,971
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 4,174 4,210 4,247 4,283 4,320 4,358 4,395 4,433 4,472 4,510 4,549 4,589
Less: Interest expense 63,731 63,695 63,659 63,622 63,585 63,548 63,510 63,472 63,434 63,395 63,356 63,317
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 41,776,560 46,069,213 51,910,195 60,580,793 73,465,253 84,453,626 93,155,430 100,047,801 105,507,846 109,833,643 113,293,561 118,063,876 100,276,312

138 | P a g e
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 5 to the ending of year 5

Beginning January February March April May June July August September October November December
Cash received:
Sales 14,301,416 21,099,818 31,202,947 46,226,608 36,647,495 29,072,920 23,082,335 18,343,485 14,593,864 11,626,073 17,109,003 25,251,499
Receivable
Other revenue
Total cash (1) 14,301,416 21,099,818 31,202,947 46,226,608 36,647,495 29,072,920 23,082,335 18,343,485 14,593,864 11,626,073 17,109,003 25,251,499
Cash payment:
Operation
Purchasing goods 2,721,728 5,403,019 7,994,893 11,849,697 7,321,986 5,811,001 4,615,862 3,670,324 2,922,049 2,329,687 4,378,237 6,466,757
Marketing Expense 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense - - - - - - - - - - - 40,378
Insurance Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 66,362,298
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 2,821,029 5,502,320 8,101,694 11,956,498 7,421,287 5,910,302 4,715,163 3,769,624 3,021,350 2,428,988 4,477,538 72,990,348
Net cash:
Net cash (1) – (2) 11,480,386 15,597,498 23,101,252 34,270,110 29,226,208 23,162,617 18,367,172 14,573,860 11,572,514 9,197,085 12,631,465 - 47,738,849
Add current fund 100,276,312 100,276,312 111,684,040 127,208,878 150,237,472 184,434,923 213,588,472 236,678,430 254,972,943 269,474,145 280,974,000 290,098,426 302,657,233
Total cash 100,276,312 111,756,699 127,281,537 150,310,131 184,507,582 213,661,131 236,751,089 255,045,602 269,546,804 281,046,659 290,171,085 302,729,892 254,918,384
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 4,628 4,668 4,709 4,749 4,791 4,832 4,874 4,916 4,958 5,001 5,044 5,088
Less: Interest expense 63,277 63,237 63,197 63,156 63,115 63,074 63,032 62,990 62,947 62,904 62,861 62,817
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 100,276,312 111,684,040 127,208,878 150,237,472 184,434,923 213,588,472 236,678,430 254,972,943 269,474,145 280,974,000 290,098,426 302,657,233 254,845,725

139 | P a g e
 3. Balance Sheet

In balance sheet part include the data of asset, debt share and owner at the ending of every month (total is 60 months) that how much it is.

The balance sheet takes the data cash flow income statement to calculation

140 | P a g e
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 1 to the ending of year 1

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 888,996 982,248 1,214,199 1,599,191 2,219,106 2,742,044 3,138,348 3,433,651 3,648,252 3,798,236 3,896,359 4,071,009 3,641,289
Inventory 37,759 52,032 72,818 103,248 84,077 68,806 56,623 46,886 39,087 32,826 44,590 61,629
Total current asset (1) 888,996 1,020,007 1,266,231 1,672,009 2,322,354 2,826,120 3,207,154 3,490,274 3,695,137 3,837,323 3,929,184 4,115,600 3,702,917
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Total fixed asset (2) 6,611,004 6,580,057 6,549,110 6,518,163 6,487,216 6,456,269 6,425,321 6,394,374 6,363,427 6,332,480 6,301,533 6,270,586 6,239,638
Total asset (1) + (2) 7,500,000 7,600,064 7,815,341 8,190,172 8,809,570 9,282,389 9,632,475 9,884,648 10,058,564 10,169,803 10,230,717 10,386,185 9,942,555
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,500,000 7,496,939 7,493,850 7,490,735 7,487,594 7,484,424 7,481,228 7,478,004 7,474,752 7,471,472 7,468,164 7,464,826 7,461,461
Total liabilities (4) 7,500,000 7,496,939 7,493,850 7,490,735 7,487,594 7,484,424 7,481,228 7,478,004 7,474,752 7,471,472 7,468,164 7,464,826 7,461,461
Owner's equity:
Capital
Dividend
Add: income statement accumulated 103,126 321,490 699,436 1,321,976 1,797,964 2,151,247 2,406,644 2,583,812 2,698,331 2,762,554 2,921,359 2,481,095
Total owner's equity (5) 103,126 321,490 699,436 1,321,976 1,797,964 2,151,247 2,406,644 2,583,812 2,698,331 2,762,554 2,921,359 2,481,095
Total liabilities and owner's equity (4) + (5) 7,500,000 7,600,064 7,815,341 8,190,172 8,809,570 9,282,389 9,632,475 9,884,648 10,058,564 10,169,803 10,230,717 10,386,185 9,942,555

141 | P a g e
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 2 to the ending of year 2

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 3,641,289 4,201,028 4,979,994 6,164,394 7,957,825 9,684,930 11,256,207 12,689,847 14,001,091 15,202,798 16,305,895 17,013,892 13,976,221
Inventory 61,629 86,463 122,845 176,355 255,297 233,588 214,529 197,679 182,680 169,245 157,142 102,716 146,219
Total current asset (1) 3,702,917 4,287,491 5,102,839 6,340,749 8,213,123 9,918,518 11,470,736 12,887,526 14,183,771 15,372,043 16,463,037 17,116,608 14,122,439
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 371,366 402,313 433,260 464,208 495,155 526,102 557,049 587,996 618,943 649,891 680,838 711,785 742,732
Total fixed asset (2) 6,239,638 6,208,691 6,177,744 6,146,797 6,115,850 6,084,902 6,053,955 6,023,008 5,992,061 5,961,114 5,930,167 5,899,219 5,868,272
Total asset (1) + (2) 9,942,555 10,496,182 11,280,583 12,487,545 14,328,972 16,003,420 17,524,692 18,910,534 20,175,832 21,333,157 22,393,203 23,015,828 19,990,712
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,461,461 7,458,066 7,454,641 7,451,187 7,447,704 7,444,190 7,440,645 7,437,070 7,433,464 7,429,827 7,426,159 7,422,459 7,418,727
Total liabilities (4) 7,461,461 7,458,066 7,454,641 7,451,187 7,447,704 7,444,190 7,440,645 7,437,070 7,433,464 7,429,827 7,426,159 7,422,459 7,418,727
Owner's equity:
Capital 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095 2,481,095
Dividend
Add: income statement accumulated 557,021 1,344,847 2,555,263 4,400,174 6,078,136 7,602,952 8,992,369 10,261,273 11,422,235 12,485,949 13,112,274 10,090,890
Total owner's equity (5) 2,481,095 3,038,116 3,825,941 5,036,358 6,881,269 8,559,231 10,084,046 11,473,464 12,742,368 13,903,330 14,967,044 15,593,369 12,571,985
Total liabilities and owner's equity (4) + (5) 9,942,555 10,496,182 11,280,583 12,487,545 14,328,972 16,003,420 17,524,692 18,910,534 20,175,832 21,333,157 22,393,203 23,015,828 19,990,712

142 | P a g e
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 3 to the ending of year 3

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 13,976,221 15,576,119 17,758,640 21,011,539 25,861,340 30,530,665 34,797,751 38,710,258 42,308,045 45,624,676 48,688,615 50,679,542 41,776,560
Inventory 146,219 210,233 304,709 444,456 651,525 595,387 546,204 502,806 464,250 429,775 398,765 250,691 363,762
Total current asset (1) 14,122,439 15,786,352 18,063,349 21,455,995 26,512,865 31,126,052 35,343,955 39,213,064 42,772,295 46,054,451 49,087,380 50,930,233 42,140,322
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 742,732 773,679 804,626 835,574 866,521 897,468 928,415 959,362 990,309 1,021,257 1,052,204 1,083,151 1,114,098
Total fixed asset (2) 5,868,272 5,837,325 5,806,378 5,775,431 5,744,484 5,713,536 5,682,589 5,651,642 5,620,695 5,589,748 5,558,801 5,527,853 5,496,906
Total asset (1) + (2) 19,990,712 21,623,677 23,869,727 27,231,426 32,257,349 36,839,589 41,026,544 44,864,706 48,392,990 51,644,199 54,646,180 56,458,087 47,637,228
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,418,727 7,414,962 7,411,165 7,407,335 7,403,472 7,399,576 7,395,646 7,391,682 7,387,684 7,383,651 7,379,583 7,375,480 7,371,342
Total liabilities (4) 7,418,727 7,414,962 7,411,165 7,407,335 7,403,472 7,399,576 7,395,646 7,391,682 7,387,684 7,383,651 7,379,583 7,375,480 7,371,342
Owner's equity:
Capital 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985 12,571,985
Dividend
Add: income statement accumulated 1,636,730 3,886,577 7,252,105 12,281,891 16,868,027 21,058,913 24,901,039 28,433,321 31,688,563 34,694,612 36,510,621 27,693,901
Total owner's equity (5) 12,571,985 14,208,715 16,458,562 19,824,090 24,853,876 29,440,013 33,630,898 37,473,024 41,005,306 44,260,548 47,266,597 49,082,607 40,265,886
Total liabilities and owner's equity (4) + (5) 19,990,712 21,623,677 23,869,727 27,231,426 32,257,349 36,839,589 41,026,544 44,864,706 48,392,990 51,644,199 54,646,180 56,458,087 47,637,228

143 | P a g e
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 4 to the ending of year 4

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 41,776,560 46,069,213 51,910,195 60,580,793 73,465,253 84,453,626 93,155,430 100,047,801 105,507,846 109,833,643 113,293,561 118,063,876 100,276,312
Inventory 363,762 531,060 779,004 1,146,939 1,693,466 1,345,292 1,069,836 851,849 679,285 542,625 438,999 639,939 937,578
Total current asset (1) 42,140,322 46,600,273 52,689,199 61,727,732 75,158,719 85,798,917 94,225,266 100,899,650 106,187,132 110,376,268 113,732,560 118,703,815 101,213,890
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 1,114,098 1,145,045 1,175,993 1,206,940 1,237,887 1,268,834 1,299,781 1,330,728 1,361,676 1,392,623 1,423,570 1,454,517 1,485,464
Total fixed asset (2) 5,496,906 5,465,959 5,435,012 5,404,065 5,373,118 5,342,170 5,311,223 5,280,276 5,249,329 5,218,382 5,187,435 5,156,487 5,125,540
Total asset (1) + (2) 47,637,228 52,066,232 58,124,211 67,131,797 80,531,837 91,141,088 99,536,489 106,179,926 111,436,461 115,594,650 118,919,995 123,860,303 106,339,430
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,371,342 7,367,168 7,362,958 7,358,711 7,354,428 7,350,107 7,345,749 7,341,354 7,336,921 7,332,449 7,327,938 7,323,389 7,318,800
Total liabilities (4) 7,371,342 7,367,168 7,362,958 7,358,711 7,354,428 7,350,107 7,345,749 7,341,354 7,336,921 7,332,449 7,327,938 7,323,389 7,318,800
Owner's equity:
Capital 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886 40,265,886
Dividend
Add: income statement accumulated 4,433,178 10,495,367 19,507,200 32,911,523 43,525,095 51,924,853 58,572,686 63,833,654 67,996,315 71,326,170 76,271,027 58,754,744
Total owner's equity (5) 40,265,886 44,699,065 50,761,253 59,773,086 73,177,409 83,790,981 92,190,739 98,838,572 104,099,540 108,262,201 111,592,056 116,536,913 99,020,630
Total liabilities and owner's equity (4) + (5) 47,637,228 52,066,232 58,124,211 67,131,797 80,531,837 91,141,088 99,536,489 106,179,926 111,436,461 115,594,650 118,919,995 123,860,303 106,339,430

144 | P a g e
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 5 to the ending of year 5

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 100,276,312 111,684,040 127,208,878 150,237,472 184,434,923 213,588,472 236,678,430 254,972,943 269,474,145 280,974,000 290,098,426 302,657,233 254,845,725
Inventory 937,578 1,379,065 2,034,625 3,008,856 4,457,566 3,533,866 2,803,460 2,225,797 1,768,836 1,407,265 1,121,086 1,649,797 2,434,966
Total current asset (1) 101,213,890 113,063,105 129,243,504 153,246,327 188,892,489 217,122,337 239,481,890 257,198,740 271,242,981 282,381,265 291,219,512 304,307,029 257,280,691
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 1,485,464 1,516,411 1,547,359 1,578,306 1,609,253 1,640,200 1,671,147 1,702,094 1,733,042 1,763,989 1,794,936 1,825,883 1,856,830
Total fixed asset (2) 5,125,540 5,094,593 5,063,646 5,032,699 5,001,751 4,970,804 4,939,857 4,908,910 4,877,963 4,847,016 4,816,068 4,785,121 4,754,174
Total asset (1) + (2) 106,339,430 118,157,698 134,307,149 158,279,026 193,894,240 222,093,142 244,421,747 262,107,650 276,120,944 287,228,281 296,035,580 309,092,151 262,034,865
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,318,800 7,314,172 7,309,504 7,304,795 7,300,045 7,295,255 7,290,423 7,285,549 7,280,633 7,275,675 7,270,673 7,265,629 7,260,541
Total liabilities (4) 7,318,800 7,314,172 7,309,504 7,304,795 7,300,045 7,295,255 7,290,423 7,285,549 7,280,633 7,275,675 7,270,673 7,265,629 7,260,541
Owner's equity:
Capital 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630 99,020,630
Dividend
Add: income statement accumulated 11,822,896 27,977,016 51,953,602 87,573,565 115,777,257 138,110,695 155,801,471 169,819,681 180,931,977 189,744,277 202,805,892 155,753,694
Total owner's equity (5) 99,020,630 110,843,526 126,997,646 150,974,231 186,594,195 214,797,887 237,131,325 254,822,101 268,840,310 279,952,606 288,764,907 301,826,522 254,774,324
Total liabilities and owner's equity (4) + (5) 106,339,430 118,157,698 134,307,149 158,279,026 193,894,240 222,093,142 244,421,747 262,107,650 276,120,944 287,228,281 296,035,580 309,092,151 262,034,865

145 | P a g e
 1. Financial Ratio
Invesment 7,500,000 NPV A396,112,228.88
Interest rate 0.5% Per year Investment A7,500,000
Cash flow year 1 A 3,641,288.56 remainder A388,612,228.48
Cash flow year 2 A 13,976,220.77 Favourable Project (should accept)
Cash flow year 3 A 41,776,559.61
Cash flow year 4 A 100,276,312.23
Cash flow year 5 A 254,845,724.87
NPV A 396,112,228.88

The detail of net present value (NPV) from the table. We have calculated Net Present
Value by using 0.5 percentage of interest rate at the present with cash flow from year 1 to
year 5. So, Net Present Value equal to 396,112,228.88 baht and when we compare with the
investment at the beginning 7,500,000.00 baht , we can see that value of return from the
investment higher than the investment at the beginning about 388,612,228.48 baht . Thus, the
decisions making to invest have the worthwhile value.

Investment 100%
Deposit interest rate 0.50% 0.50%
Average 50,954,864.82 50,954,864.82
PV - 250,996,852.88 A151,348,592.36
Payback Period 5.00 2.98
WACC 0.605%
*Deposit interest rate from Krung Thai bank(February 12, 2010)

100% 0%
Investment - 7,500,000
Cash flow year 1 3,641,288.56 A 0.49 ROI year 1 33.25%
Cash flow year 2 13,976,220.77 A 1.86 ROI year 2 136.02%
Cash flow year 3 41,776,559.61 A 5.57 ROI year 3 375.70%
Cash flow year 4 100,276,312.23 A 13.37 ROI year 4 802.79%
Cash flow year 5 254,845,724.87 A 33.98 ROI year 5 2145.21%
IRR after five year 187%

The internal rate of return on Investment (IRR) from the table. We have calculated
IRR by using Excel and compare the money of investment in 100% and 0 % which in table
show the rate of return after five year in the 100% is 187% that is interesting of project
investment.
The return on the investment (ROI) from the table. We calculated ROI for measuring
the performance used to evaluate the efficiency of an investment or to compare the efficiency
of a number of different investments. Compare with year 1 and year 5, the ROI has increased
for 64.5 times. It mean that we can get the net more than the cost of investment for 2,145.21

146 | P a g e
 Chapter 6

Risk Management

Business Risk

Business Risk is happened with the probable effect of expectation of return on

investment for each project or risk that has the relation with rate of return on equity (ROE).
On the other hand, spare part business risks are happened with the trouble inventory process
and while the transport the product to the customers.

The factors of Business Risk

1. Demand variability - if demand decrease effect risk is happened and high so, if the
business has sales price is stability it affect to low risk.
To eliminate the risk by, In the factor of demand variability risk is the external
factors because it influent from the customers. By the way, we can eliminate risk to do a
research for the customers demand and plan for sales the product such as If we know the
customers behavior , know the product life cycle ,the period to sales in high volumes etc
Thus, it vary advantage to our business operation like know the customers and
competitors. The importance is to plan marketing strategies, logistics management (stock
or order), transportation, cost etc.

2. Sale price variability - the discount for stimulates of sales or the price change effect to
profit and initiate risk.
To eliminate the risk by, set the products at reasonable price compare the quality of
product with our competitors. Contract the supplier with good relationships and apply
competitive advantage by reduce the supplier power of bargaining.

3. Price cutting variability – because of spare part business have many competitions and
some of competitors can use the cost leadership strategy to compete with the new spare
part shop. Thus there have a price cutting in this business.
To eliminate the risk by, We satisfy to market penetration strategy to effort more
marketing strategies to gain our target increase and can compete with our competitors.
147 | P a g e
4. Loss variability – when the ordered the spare part products from the supplier in high
quantity or many items, loss might be happened while transportation process.
To eliminate the risk by, our business is to sales spare part products to the
customers. In general, spare part products have many type and function for cars. So,
the risk to damage or loss is very high. To eliminate loss and damage variability risk
of our company is to apply efficiency of logistics management such as inventory
management on the supply chain management with the supplier and the customers.
These strategies can affect our product to less loss and damage.

S
Show: The business inventory management

148 | P a g e
 Show: The business Logistics strategic
5. Quality reduce variability – if the spare part products keep or stock in the inventory or
the warehouse for long time, the quality of products will be reduce and it makes the
customers lose the popularity.
To eliminate the risk by, We effort to control our products good quality and standard
products in the market by check the products and stock for 1 time in 1 one month for
check products durability, feature of products, characteristics of the products , loss and
damage, goods in inventory etc. The advantage is to eliminate low quality of products
and satisfy our customers with good quality of spare part products.

6. Input cost variability - if operation cost or input cost combine with product
development cost high variability effect to high risk.
To eliminate the risk by, to control and analyze for cost management by carefully
because if input cost is very high can affect to our Breakeven point, ROE and profits.

7. Ability to adjust output prices for change in input costs - when raw material cost or
production cost increase the business necessary to adjust price to concern with break
even point. Thus, adjust of service price to increase that is the risk to compete with
competitors.
To eliminate the risk by, To concern with adjust the price when compare with input
cost that is variability. Because of raw material cost or production cost increase the
business necessary to adjust price to concern with breakeven point.

8. Amount of stability cost is the obligation of operation - if the percentage of high

stability of cost is increase but the demand decrease if stability cost not decrease it effect
to increase of risk.
To eliminate the risk by, To control business stability cost efficiency. Try to compare
the demand of products from the market.

9. Conflagration Problem – because the conflagration problem will be happened though

we unexpected.

149 | P a g e
 To eliminate the risk by, we have plan to protect the conflagration by we use the fire
policy such the AIG business care for solve this problem and makes the secure spare part
business.

1. Analysis business risk of project

From the analysis of project in each area we find out to analyze the result and the
advantage in the future. But in the advantage calculation may be effect to the instability of the
advantage of the project. For many factors need to concern such as the variable of production
cost, the weather that effect for the construction, the rice of raw material cost variability.
Thus, the business need to identify and analyze risk to use in the cost management and
expense and the most close of the return on investment of our business and to decrease of the
mistake that can happened.

2. The factors to effect risk.

1. The variability of weather

The variability of the weathers such as in raining season the problem will happen is
flooding. It can effect to our construction project late. Thus, the fluctuation of the weathers
can be effect to our construction projects to late and not on and appointment of the projects.
That can cause to our cost is increasingly.

To eliminate the risk by, avoid to build shop construction project in raining season
or try to do good construction contract with reliable company because if the risk happed those
company can pay our insurance and has responsibility for our contract.

Moreover, in raining season the customers has behaviors with don’t need to buy the
products at the shop. Thus, affect to our products selling to the customers and less profit.

To eliminate the risk by, Effort to motivate our customers to by the products in low
season such as make the member card, delivery the products to customers home (door to
door)

The weather is change can affect indirect to spare part products such as heat, pressure,
liquid, breakage, moisture, pilferage.

150 | P a g e
 To eliminate the risk by, apply many method to keeping a spare part product from
many affect such as keep the products in dry and flow inventory, keep away from people or
children for dangerous products, use rustproof coating solution for steel products and spare
part shelf is storage in ranking system to avoid heat to serve the customers easy and
convenience to buy.

Show: rustproof coating solution

Show: the self of products

151 | P a g e
 2. Lack of skill employees.

The employees if the employees lack of skill may be effect to the customers and the
sales. If our employee has lack of skill can effect to our estimate of production decrease. And
affect to service our customers with efficiency. Thus, affect sales forecasting and breakeven
point or return on investment period.
To eliminate the risk by, we need to train our employees has skill in spare part
products and train our employees about service. The objective to training employees is the
employees has knowledge and skills in car spare part, motivate the employees has good
attitude with the business, the employees learn from the experience of sales spare part, use
soft ware program to sell products for accuracy and convenience. So, our employees can
serve the customer requirement and satisfaction.

Show: the company employee training system

152 | P a g e
 Show: Spare part soft ware program
3. The public utility.

The public utility problem such as out of electricity, out of water affect to the business
cannot run on the process and affect to the sales forecasting in each. Moreover the public
utility risk affect to the project has less of business feasibility. Make our cost is changing
from our estimating cost.

To eliminate the risk by, we also support our company utility layout by apply
water tank to storage liquid constrainers, these tanks are usually storing water for our
company consumption and apply dynamo for electricity utility that can support the company
shop when lack of electricity.

Show: Water Tank

153 | P a g e
 Show: Dynamo for electricity

There are many factors to affect the business such as construction problem, the
variable of the weather its make of the cost of stability increase and the service of the
business. It can cause of the production cost and the public utility can make sale volume
unstable. Thus, the profit of business operation is variability of sales volume.

Administration of Risk Management

The project feasibility of business must be having risk analysis which affect the
business in the future and then when we known about risk of our project we can plan to solve
and manage for our business. Therefore there are many plans which apply for our project
such:

1. Risk from the seasons

Risk from the seasons because the weather can be changed every time thus we can
forecast sales in each seasons which effect with the number of customers that can decrease or
increase depend on each seasons for can calculate the accurate break-even point and payback
period.

2. Risk from weather

154 | P a g e
 Risk form the weathers while construction, therefore we have deal with the contractor or
architect about construction time period that must be on time for accurate the plan of project.

155 | P a g e
 Financial Risks
1. Sales decrease 20%
The decreasing in sales is a kind of financial risk that affected by the many factors such as the increasing of competitors in the market,
economy recessions, and the disasters. These data are show about the financial information if the sales decrease by 20 percents:
General customers’ sales forecasting (Risk factors related)
Year 1
January February March April May June July August September October November December Total
General spare parts 20% 51,116 58,272 66,431 75,731 71,187 66,916 62,901 59,127 55,579 52,244 59,559 67,897 746,960
Accessories parts 70% 178,906 266,570 397,190 591,813 467,532 369,351 291,787 230,512 182,104 143,862 214,355 319,389 3,653,372
Large spare parts 10% 25,558 27,347 29,261 31,310 30,370 29,459 28,576 27,718 26,887 26,080 27,906 29,859 340,333
Total 255,580 352,190 492,882 698,854 569,090 465,726 383,263 317,357 264,570 222,187 301,820 417,145 4,740,664

Year 2
January February March April May June July August September October November December Total
General spare parts 20% 77,403 88,239 100,592 114,675 107,795 101,327 95,248 89,533 84,161 79,111 90,187 102,813 1,131,083
Accessories parts 70% 475,889 709,075 1,056,522 1,574,218 1,243,632 982,470 776,151 613,159 484,396 382,673 570,182 849,572 9,717,941
Large spare parts 10% 31,949 34,186 36,579 39,140 37,965 36,826 35,722 34,650 33,611 32,602 34,884 37,326 425,441
Total 585,242 831,500 1,193,694 1,728,033 1,624,351 1,526,890 1,435,277 1,349,160 1,268,210 1,192,118 695,254 989,711 14,419,440

Year 3
January February March April May June July August September October November December Total
General spare parts 20% 117,207 133,616 152,322 173,647 163,228 153,434 144,228 135,575 127,440 119,794 136,565 155,684 1,712,740
Accessories parts 70% 1,265,862 1,886,135 2,810,340 4,187,407 3,308,052 2,613,361 2,064,555 1,630,999 1,288,489 1,017,906 1,516,680 2,259,854 25,849,640
Large spare parts 10% 39,939 42,735 45,726 48,927 47,459 46,036 44,655 43,315 42,016 40,755 43,608 46,661 531,832
Total 1,423,008 2,062,485 3,008,389 4,409,982 4,145,383 3,896,660 3,662,860 3,443,089 3,236,503 3,042,313 1,696,853 2,462,198 36,489,723

Year 4
January February March April May June July August September October November December Total
General spare parts 20% 177,480 202,327 230,653 262,944 247,168 232,338 218,397 205,294 192,976 219,993 250,792 285,903 2,726,264
Accessories parts 70% 3,367,182 5,017,101 7,475,481 11,138,467 8,799,389 6,951,517 5,491,698 4,338,442 3,427,369 2,707,622 4,034,356 6,011,191 68,759,814
Large spare parts 10% 49,927 53,422 57,161 61,163 59,328 57,548 55,822 54,147 52,523 50,947 54,513 58,329 664,828
Total 3,594,589 5,272,850 7,763,295 11,462,574 9,105,884 7,241,403 5,765,917 4,597,882 3,672,868 2,978,561 4,339,661 6,355,422 72,150,907

Year 5
January February March April May June July August September October November December Total
General spare parts 20% 325,929 371,559 423,577 482,878 453,905 426,671 401,071 377,007 354,386 333,123 379,760 432,927 4,762,793
Accessories parts 70% 8,956,674 13,345,444 19,884,712 29,628,221 23,406,295 18,490,973 14,607,869 11,540,216 9,116,771 7,202,249 10,731,351 15,989,713 182,900,489
Large spare parts 10% 62,412 66,781 71,456 76,458 74,164 71,939 69,781 67,687 65,657 63,687 68,145 72,915 831,082
Total 9,345,015 13,783,784 20,379,745 30,187,557 23,934,364 18,989,583 15,078,720 11,984,910 9,536,814 7,599,059 11,179,257 16,495,555 188,494,364

Year 6
January February March April May June July August September October November December Total
General spare parts 20% 493,537 562,632 641,400 731,196 687,324 646,085 607,320 570,881 536,628 504,430 575,050 655,558 7,212,040
Accessories parts 70% 23,824,672 35,498,762 52,893,155 78,810,801 62,260,533 49,185,821 38,856,799 30,696,871 24,250,528 19,157,917 28,545,297 42,532,492 486,513,649
Large spare parts 10% 78,020 83,481 89,325 95,577 92,710 89,929 87,231 84,614 82,076 79,613 85,186 91,149 1,038,911
Total 24,396,228 36,144,875 53,623,880 79,637,575 63,040,568 49,921,835 39,551,350 31,352,366 24,869,232 19,741,961 29,205,533 43,279,199 494,764,601

Page | 153
Garage customers’ sales forecasting (Risk factors related)

Year 1
January February March April May June July August September October November December Total
General spare parts 20% 8,848 10,087 11,499 13,109 12,322 11,583 10,888 10,235 9,621 9,043 10,310 11,753 129,297
Accessories parts 70% 30,968 46,142 68,752 102,441 80,928 63,933 50,507 39,901 31,522 24,902 37,104 55,285 632,386
Large spare parts 10% 4,424 4,734 5,065 5,420 5,257 5,099 4,946 4,798 4,654 4,515 4,831 5,169 58,911
Total 44,240 60,963 85,316 120,969 98,508 80,616 66,342 54,934 45,796 38,460 52,244 72,207 820,594

Year 2
January February March April May June July August September October November December Total
General spare parts 20% 13,398 15,274 17,412 19,850 18,659 17,540 16,487 15,498 14,568 13,694 15,611 17,797 195,790
Accessories parts 70% 82,375 122,739 182,881 272,492 215,269 170,062 134,349 106,136 83,847 66,240 98,697 147,058 1,682,146
Large spare parts 10% 5,531 5,918 6,332 6,775 6,572 6,375 6,184 5,998 5,818 5,644 6,039 6,461 73,646
Total 101,304 143,931 206,625 299,118 240,500 193,977 157,020 127,632 104,234 85,577 120,347 171,317 1,951,582

Year 3
January February March April May June July August September October November December Total
General spare parts 20% 20,289 23,129 26,367 30,058 28,255 26,560 24,966 23,468 22,060 20,737 23,640 26,949 296,478
Accessories parts 70% 219,117 326,484 486,462 724,828 572,614 452,365 357,369 282,321 223,034 176,197 262,533 391,174 4,474,498
Large spare parts 10% 6,914 7,398 7,916 8,470 8,216 7,969 7,730 7,498 7,273 7,055 7,549 8,077 92,065
Total 246,319 357,011 520,744 763,356 609,085 486,894 390,065 313,288 252,367 203,988 293,722 426,201 4,863,041

Year 4
January February March April May June July August September October November December Total
General spare parts 20% 30,722 35,023 39,927 45,516 42,785 40,218 37,805 35,537 33,405 31,400 35,796 40,808 448,943
Accessories parts 70% 582,850 868,446 1,293,985 1,928,037 1,523,149 1,203,288 950,598 750,972 593,268 468,682 698,336 1,040,520 11,902,131
Large spare parts 10% 8,643 9,248 9,895 10,588 10,270 9,962 9,663 9,374 9,092 8,820 9,437 10,098 115,090
Total 622,215 912,717 1,343,806 1,984,141 1,576,205 1,253,468 998,066 795,882 635,765 508,902 743,569 1,091,426 12,466,163

Year 5
January February March April May June July August September October November December Total
General spare parts 20% 46,521 53,034 60,459 68,923 64,788 60,900 57,246 53,812 50,583 47,548 54,205 61,793 679,812
Accessories parts 70% 1,550,375 2,310,059 3,441,988 5,128,563 4,051,564 3,200,736 2,528,581 1,997,579 1,578,088 1,246,689 1,857,567 2,767,775 31,659,565
Large spare parts 10% 10,804 11,561 12,370 13,236 12,839 12,454 12,080 11,718 11,366 11,025 11,797 12,623 143,873
Total 1,607,701 2,374,654 3,514,817 5,210,721 4,129,191 3,274,090 2,597,908 2,063,109 1,640,037 1,305,263 1,923,569 2,842,191 32,483,250

Year 6
January February March April May June July August September October November December Total
General spare parts 20% 70,445 80,307 91,550 104,367 98,105 92,219 86,685 81,484 76,595 72,000 82,080 93,571 1,029,406
Accessories parts 70% 4,123,985 6,144,737 9,155,658 13,641,931 10,777,125 8,513,929 6,726,004 5,313,543 4,197,699 3,316,182 4,941,112 7,362,256 84,214,162
Large spare parts 10% 13,506 14,452 15,464 16,546 16,050 15,568 15,101 14,648 14,209 13,782 14,747 15,780 179,853
Total 4,207,936 6,239,496 9,262,672 13,762,844 10,891,280 8,621,716 6,827,791 5,409,676 4,288,503 3,401,964 5,037,938 7,471,607 85,423,421

Retailer customers’ sales forecasting (Risk factors related)

Page | 154
Year 1
January February March April May June July August September October November December Total
General spare parts 20% 2,688 3,064 3,493 3,982 3,744 3,519 3,308 3,109 2,923 2,747 3,132 3,571 39,281
Accessories parts 70% 9,408 14,018 20,887 31,121 24,586 19,423 15,344 12,122 9,576 7,565 11,272 16,796 192,118
Large spare parts 10% 1,344 1,438 1,539 1,647 1,597 1,549 1,503 1,458 1,414 1,372 1,468 1,570 17,898
Total 13,440 18,520 25,919 36,750 29,927 24,491 20,155 16,689 13,913 11,684 15,872 21,937 249,297

Year 2
January February March April May June July August September October November December Total
General spare parts 20% 4,071 4,640 5,290 6,031 5,669 5,329 5,009 4,709 4,426 4,161 4,743 5,407 59,484
Accessories parts 70% 25,026 37,288 55,559 82,783 65,399 51,665 40,815 32,244 25,473 20,124 29,984 44,677 511,038
Large spare parts 10% 1,680 1,798 1,924 2,059 1,997 1,937 1,879 1,822 1,768 1,715 1,835 1,963 22,376
Total 30,776 43,727 62,773 90,873 73,065 58,931 47,703 38,775 31,667 25,999 36,562 52,047 592,898

Year 3
January February March April May June July August September October November December Total
General spare parts 20% 6,164 7,027 8,011 9,132 8,584 8,069 7,585 7,130 6,702 6,300 7,182 8,188 90,076
Accessories parts 70% 66,568 99,187 147,788 220,204 173,961 137,429 108,569 85,770 67,758 53,529 79,758 118,840 1,359,361
Large spare parts 10% 2,101 2,248 2,405 2,574 2,496 2,421 2,349 2,278 2,210 2,144 2,294 2,454 27,975
Total 74,833 108,461 158,204 231,910 185,042 147,920 118,503 95,178 76,671 61,973 89,234 129,482 1,477,413

Year 4
January February March April May June July August September October November December Total
General spare parts 20% 9,334 10,641 12,131 13,829 12,999 12,219 11,486 10,797 10,149 9,540 10,876 12,399 136,401
Accessories parts 70% 177,071 263,836 393,115 585,742 462,736 365,562 288,794 228,147 180,236 142,387 212,156 316,113 3,615,894
Large spare parts 10% 2,626 2,810 3,007 3,217 3,121 3,027 2,936 2,848 2,763 2,680 2,868 3,068 34,973
Total 189,031 277,287 408,253 602,788 478,856 380,808 303,216 241,792 193,148 154,607 225,900 331,580 3,787,268

Year 5
January February March April May June July August September October November December Total
General spare parts 20% 14,134 16,113 18,369 20,941 19,684 18,503 17,393 16,350 15,369 14,447 16,469 18,775 206,547
Accessories parts 70% 471,008 701,801 1,045,684 1,558,069 1,230,875 972,391 768,189 606,869 479,427 378,747 564,333 840,857 9,618,251
Large spare parts 10% 3,283 3,513 3,759 4,022 3,902 3,785 3,671 3,561 3,454 3,350 3,585 3,836 43,721
Total 488,425 721,428 1,067,812 1,583,033 1,254,461 994,679 789,253 626,780 498,250 396,544 584,387 863,467 9,868,520

Year 6
January February March April May June July August September October November December Total
General spare parts 20% 21,403 24,400 27,816 31,710 29,807 28,019 26,338 24,758 23,272 21,876 24,938 28,430 312,767
Accessories parts 70% 1,252,876 1,866,786 2,781,511 4,144,452 3,274,117 2,586,552 2,043,376 1,614,267 1,275,271 1,007,464 1,501,122 2,236,671 25,584,467
Large spare parts 10% 4,105 4,392 4,699 5,028 4,877 4,731 4,589 4,452 4,318 4,189 4,482 4,795 54,657
Total 1,278,384 1,895,578 2,814,026 4,181,190 3,308,802 2,619,302 2,074,303 1,643,476 1,302,861 1,033,529 1,530,542 2,269,897 25,951,890

Page | 155
Total sales forecasting (Risk factor related)
Year 1
January February March April May June July August September October November December Total
General customers 70% 255,580 352,190 492,882 698,854 569,090 465,726 383,263 317,357 264,570 222,187 301,820 417,145 4,740,664
Garage 25% 44,240 60,963 85,316 120,969 98,508 80,616 66,342 54,934 45,796 38,460 52,244 72,207 820,594
Retailer 5% 13,440 18,520 25,919 36,750 29,927 24,491 20,155 16,689 13,913 11,684 15,872 21,937 249,297
Total 313,261 431,673 604,117 856,573 697,524 570,832 469,760 388,979 324,280 272,332 369,936 511,289 5,810,555

Year 2
January February March April May June July August September October November December Total
General customers 70% 585,242 831,500 1,193,694 1,728,033 1,624,351 1,526,890 1,435,277 1,349,160 1,268,210 1,192,118 695,254 989,711 14,419,440
Garage 25% 101,304 143,931 206,625 299,118 240,500 193,977 157,020 127,632 104,234 85,577 120,347 171,317 1,951,582
Retailer 5% 30,776 43,727 62,773 90,873 73,065 58,931 47,703 38,775 31,667 25,999 36,562 52,047 592,898
Total 717,322 1,019,157 1,463,092 2,118,024 1,937,916 1,779,798 1,640,000 1,515,568 1,404,111 1,303,694 852,163 1,213,075 16,963,920

Year 3
January February March April May June July August September October November December Total
General customers 70% 1,423,008 2,062,485 3,008,389 4,409,982 4,145,383 3,896,660 3,662,860 3,443,089 3,236,503 3,042,313 1,696,853 2,462,198 36,489,723
Garage 25% 246,319 357,011 520,744 763,356 609,085 486,894 390,065 313,288 252,367 203,988 293,722 426,201 4,863,041
Retailer 5% 74,833 108,461 158,204 231,910 185,042 147,920 118,503 95,178 76,671 61,973 89,234 129,482 1,477,413
Total 1,744,160 2,527,958 3,687,337 5,405,248 4,939,510 4,531,474 4,171,428 3,851,554 3,565,541 3,308,274 2,079,809 3,017,881 42,830,176

Year 4
January February March April May June July August September October November December Total
General customers 70% 3,594,589 5,272,850 7,763,295 11,462,574 9,105,884 7,241,403 5,765,917 4,597,882 3,672,868 2,978,561 4,339,661 6,355,422 72,150,907
Garage 25% 622,215 912,717 1,343,806 1,984,141 1,576,205 1,253,468 998,066 795,882 635,765 508,902 743,569 1,091,426 12,466,163
Retailer 5% 189,031 277,287 408,253 602,788 478,856 380,808 303,216 241,792 193,148 154,607 225,900 331,580 3,787,268
Total 4,405,835 6,462,854 9,515,355 14,049,503 11,160,946 8,875,679 7,067,200 5,635,557 4,501,781 3,642,070 5,309,130 7,778,428 88,404,338

Year 5
January February March April May June July August September October November December Total
General customers 70% 9,345,015 13,783,784 20,379,745 30,187,557 23,934,364 18,989,583 15,078,720 11,984,910 9,536,814 7,599,059 11,179,257 16,495,555 188,494,364
Garage 25% 1,607,701 2,374,654 3,514,817 5,210,721 4,129,191 3,274,090 2,597,908 2,063,109 1,640,037 1,305,263 1,923,569 2,842,191 32,483,250
Retailer 5% 488,425 721,428 1,067,812 1,583,033 1,254,461 994,679 789,253 626,780 498,250 396,544 584,387 863,467 9,868,520
Total 11,441,141 16,879,866 24,962,375 36,981,311 29,318,016 23,258,352 18,465,881 14,674,799 11,675,100 9,300,866 13,687,213 20,201,214 230,846,135

Year 6
January February March April May June July August September October November December Total
General customers 70% 24,396,228 36,144,875 53,623,880 79,637,575 63,040,568 49,921,835 39,551,350 31,352,366 24,869,232 19,741,961 29,205,533 43,279,199 494,764,601
Garage 25% 4,207,936 6,239,496 9,262,672 13,762,844 10,891,280 8,621,716 6,827,791 5,409,676 4,288,503 3,401,964 5,037,938 7,471,607 85,423,421
Retailer 5% 1,278,384 1,895,578 2,814,026 4,181,190 3,308,802 2,619,302 2,074,303 1,643,476 1,302,861 1,033,529 1,530,542 2,269,897 25,951,890
Total 29,882,548 44,279,948 65,700,578 97,581,608 77,240,649 61,162,853 48,453,443 38,405,518 30,460,596 24,177,454 35,774,014 53,020,702 606,139,912

Page | 156
Income Statement, from year 1 to year 5 (Risk factor related)

Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 1 to the Ending of Year 1

Item January February March April May June July August September October November December
Revenue: 313,261 744,934 1,349,051 2,205,624 2,903,148 3,473,980 3,943,740 4,332,719 4,656,999 4,929,331 5,299,267 5,810,555
Less: Cost of goods sold 70,484 167,610 303,536 496,265 653,208 781,646 887,341 974,862 1,047,825 1,109,099 1,192,335 1,307,375
Gross margin 242,777 577,324 1,045,514 1,709,358 2,249,939 2,692,335 3,056,398 3,357,857 3,609,174 3,820,231 4,106,932 4,503,180
Less: Operating expense
Marketing expense 1,500 2,500 11,000 19,500 20,500 21,500 22,500 23,500 24,500 25,500 26,500 49,115
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,748 260,996 398,744 536,493 666,741 796,989 927,237 1,057,485 1,187,733 1,317,982 1,448,230 1,640,470
Profit before deduct interest rate 112,029 316,327 646,770 1,172,866 1,583,199 1,895,346 2,129,161 2,300,372 2,421,441 2,502,250 2,658,702 2,862,710
Less: Interest expense 64,844 129,661 194,452 259,215 323,952 388,661 453,342 517,996 582,621 647,218 711,787 776,327
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 42,432 177,160 438,058 894,637 1,235,480 1,478,164 1,642,545 1,744,349 1,796,039 1,807,497 1,894,628 2,029,343
Less: Corporate tax 281,901
Net Income 42,432 177,160 438,058 894,637 1,235,480 1,478,164 1,642,545 1,744,349 1,796,039 1,807,497 1,894,628 1,747,441

Page | 157
 Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 2 to the Ending of Year 2

Item January February March April May June July August September October November December
Revenue: 717,322 1,736,479 3,199,571 5,317,595 7,255,511 9,035,309 10,675,310 12,190,877 13,594,988 14,898,683 15,750,845 16,963,920
Less: Cost of goods sold 112,095 341,405 670,601 1,147,156 1,583,187 1,983,642 2,352,642 2,693,645 3,009,570 3,302,901 3,494,637 3,767,579
Gross margin 605,227 1,395,074 2,528,971 4,170,439 5,672,324 7,051,667 8,322,668 9,497,233 10,585,419 11,595,782 12,256,208 13,196,341
Less: Operating expense
Marketing expense 1,000 2,000 10,500 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 48,615
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,248 260,496 398,244 535,993 666,241 796,489 926,737 1,056,985 1,187,233 1,317,482 1,447,730 1,639,970
Profit before deduct interest rate 474,979 1,134,578 2,130,726 3,634,446 5,006,083 6,255,178 7,395,931 8,440,247 9,398,186 10,278,300 10,808,478 11,556,371
Less: Interest expense 64,511 128,992 193,443 257,865 322,257 386,618 450,948 515,248 579,517 643,754 707,959 772,132
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 405,715 996,079 1,923,023 3,357,568 4,660,060 5,840,040 6,911,708 7,886,972 8,775,888 9,587,013 10,048,232 10,727,198
Less: Corporate tax 2,945,659
Net Income 405,715 996,079 1,923,023 3,357,568 4,660,060 5,840,040 6,911,708 7,886,972 8,775,888 9,587,013 10,048,232 7,781,538

Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 3 to the Ending of Year 3

Item January February March April May June July August September October November December
Revenue: 1,744,160 4,272,118 7,959,455 13,364,703 18,304,213 22,835,687 27,007,116 30,858,670 34,424,211 37,732,485 39,812,295 42,830,176
Less: Cost of goods sold 275,461 844,251 1,673,902 2,890,083 4,001,473 5,021,055 5,959,626 6,826,226 7,628,472 8,372,834 8,840,791 9,519,815
Gross margin 1,468,699 3,427,867 6,285,553 10,474,620 14,302,740 17,814,633 21,047,490 24,032,444 26,795,739 29,359,651 30,971,504 33,310,362
Less: Operating expense
Marketing expense 1,000 2,000 10,500 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 48,615
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,248 260,496 398,244 535,993 666,241 796,489 926,737 1,056,985 1,187,233 1,317,482 1,447,730 1,639,970
Profit before deduct interest rate 1,338,451 3,167,370 5,887,309 9,938,628 13,636,499 17,018,144 20,120,753 22,975,459 25,608,505 28,042,170 29,523,774 31,670,391
Less: Interest expense 64,141 128,250 192,325 256,368 320,377 384,353 448,294 512,201 576,074 639,912 703,714 767,482
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 1,269,557 3,029,614 5,680,723 9,663,246 13,292,355 16,605,271 19,639,185 22,425,231 24,989,651 27,354,724 28,767,772 30,845,869
Less: Corporate tax 8,981,261
Net Income 1,269,557 3,029,614 5,680,723 9,663,246 13,292,355 16,605,271 19,639,185 22,425,231 24,989,651 27,354,724 28,767,772 21,864,608

Page | 158
 Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 4 to the Ending of Year 4

Item January February March April May June July August September October November December
Revenue: 4,405,835 10,868,689 20,384,044 34,433,548 45,594,493 54,470,173 61,537,372 67,172,930 71,674,711 75,316,780 80,625,910 88,404,338
Less: Cost of goods sold 700,303 2,154,445 4,295,400 7,456,538 9,967,751 11,964,779 13,554,899 14,822,899 15,835,800 16,655,266 17,849,820 19,599,966
Gross margin 3,705,532 8,714,244 16,088,644 26,977,009 35,626,742 42,505,394 47,982,474 52,350,031 55,838,911 58,661,515 62,776,090 68,804,372
Less: Operating expense
Marketing expense 1,000 2,000 10,500 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 48,615
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,248 260,496 398,244 535,993 666,241 796,489 926,737 1,056,985 1,187,233 1,317,482 1,447,730 1,639,970
Profit before deduct interest rate 3,575,284 8,453,748 15,690,400 26,441,017 34,960,501 41,708,905 47,055,737 51,293,045 54,651,677 57,344,033 61,328,361 67,164,401
Less: Interest expense 63,731 127,427 191,086 254,708 318,293 381,841 445,351 508,823 572,257 635,652 699,008 762,325
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 3,506,799 8,316,815 15,485,054 26,167,295 34,618,442 41,298,544 46,577,112 50,746,195 54,036,640 56,660,847 60,577,065 66,345,036
Less: Corporate tax 19,631,011
Net Income 3,506,799 8,316,815 15,485,054 26,167,295 34,618,442 41,298,544 46,577,112 50,746,195 54,036,640 56,660,847 60,577,065 46,714,025

Income Statement

Mae Korn Alaiyont

Estimated Income Statement

From the Beginning of year 5 to the Ending of Year 5

Item January February March April May June July August September October November December
Revenue: 11,441,141 28,321,008 53,283,382 90,264,693 119,582,709 142,841,061 161,306,943 175,981,742 187,656,842 196,957,708 210,644,921 230,846,135
Less: Cost of goods sold 1,824,194 5,622,164 11,238,698 19,559,493 26,156,047 31,389,176 35,543,999 38,845,829 41,472,727 43,565,422 46,645,045 51,190,318
Gross margin 9,616,947 22,698,844 42,044,684 70,705,200 93,426,662 111,451,885 125,762,943 137,135,912 146,184,115 153,392,286 163,999,876 179,655,817
Less: Operating expense
Marketing expense 1,000 2,000 10,500 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 48,615
Administrative expense 38,450 76,900 115,350 153,800 192,250 230,700 269,150 307,600 346,050 384,500 422,950 461,400
Depreciation( organization plan and management) 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Property tax 12.5% 59,851 119,702 179,553 239,404 299,255 359,106 418,957 478,808 538,659 598,510 658,361 718,212
Insurance Expense 40,378
Total Operation expenses 130,248 260,496 398,244 535,993 666,241 796,489 926,737 1,056,985 1,187,233 1,317,482 1,447,730 1,639,970
Profit before deduct interest rate 9,486,699 22,438,347 41,646,439 70,169,207 92,760,422 110,655,396 124,836,206 136,078,927 144,996,882 152,074,805 162,552,147 178,015,847
Less: Interest expense 63,277 126,514 189,711 252,867 315,982 379,056 442,087 505,077 568,024 630,928 693,789 756,607
Less: Value added 7% 4,753 9,507 14,260 19,014 23,767 28,520 33,274 38,027 42,780 47,534 52,287 57,041
Profit before deduct income tax 9,418,669 22,302,326 41,442,468 69,897,327 92,420,673 110,247,820 124,360,845 135,535,823 144,386,077 151,396,343 161,806,070 177,202,199
Less: Corporate tax 52,888,160
Net Income 9,418,669 22,302,326 41,442,468 69,897,327 92,420,673 110,247,820 124,360,845 135,535,823 144,386,077 151,396,343 161,806,070 124,314,039

Page | 159
Statement of Cash Flow (Risk factors related)

Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 1 to the ending of year 1

Beginning January February March April May June July August September October November December
Cash received:
Sales 313,261 431,673 604,117 856,573 697,524 570,832 469,760 388,979 324,280 272,332 369,936 511,289
Receivable
Other revenue
Total cash (1) 313,261 431,673 604,117 856,573 697,524 570,832 469,760 388,979 324,280 272,332 369,936 511,289
Cash payment:
Operation
Purchasing goods 100,691 108,545 152,555 217,073 141,606 116,221 95,950 79,731 66,724 56,265 92,647 128,670
Marketing Expense 1,500 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 281,901
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 200,492 207,846 259,356 323,874 240,907 215,522 195,251 179,032 166,025 155,566 191,948 571,865
Net cash:
Net cash (1) – (2) 112,769 223,827 344,761 532,699 456,617 355,311 274,509 209,948 158,255 116,765 177,987 - 60,577
Add current fund 888,996 888,996 929,106 1,080,274 1,352,377 1,812,417 2,196,375 2,479,027 2,680,877 2,818,166 2,903,761 2,947,868 3,053,196
Total cash 888,996 1,001,765 1,152,933 1,425,035 1,885,076 2,269,034 2,551,686 2,753,536 2,890,824 2,976,420 3,020,527 3,125,855 2,992,620
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 3,062 3,088 3,115 3,142 3,169 3,196 3,224 3,252 3,280 3,308 3,337 3,366
Less: Interest expense 64,844 64,817 64,791 64,764 64,736 64,709 64,681 64,654 64,625 64,597 64,568 64,540
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 888,996 929,106 1,080,274 1,352,377 1,812,417 2,196,375 2,479,027 2,680,877 2,818,166 2,903,761 2,947,868 3,053,196 2,919,961

Page | 160
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 2 to the ending of year 2

Beginning January February March April May June July August September October November December
Cash received:
Sales 717,322 1,019,157 1,463,092 2,118,024 1,937,916 1,779,798 1,640,000 1,515,568 1,404,111 1,303,694 852,163 1,213,075
Receivable
Other revenue
Total cash (1) 717,322 1,019,157 1,463,092 2,118,024 1,937,916 1,779,798 1,640,000 1,515,568 1,404,111 1,303,694 852,163 1,213,075
Cash payment:
Operation
Purchasing goods 131,962 258,416 372,004 539,709 418,664 385,207 355,520 329,004 305,177 283,648 148,196 307,744
Marketing Expense 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 2,945,659
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 231,263 357,717 478,805 646,510 517,965 484,508 454,821 428,305 404,478 382,949 247,497 3,414,697
Net cash:
Net cash (1) – (2) 486,059 661,440 984,287 1,471,513 1,419,951 1,295,290 1,185,180 1,087,263 999,633 920,745 604,666 - 2,201,622
Add current fund 2,919,961 2,919,961 3,333,361 3,922,142 4,833,771 6,232,625 7,579,917 8,802,548 9,915,069 10,929,673 11,856,647 12,704,733 13,236,740
Total cash 2,919,961 3,406,019 3,994,801 4,906,429 6,305,284 7,652,576 8,875,207 9,987,728 11,002,332 11,929,306 12,777,392 13,309,399 11,035,118
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 3,395 3,424 3,454 3,484 3,514 3,544 3,575 3,606 3,637 3,668 3,700 3,732
Less: Interest expense 64,511 64,481 64,452 64,422 64,392 64,361 64,331 64,300 64,268 64,237 64,205 64,173
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 2,919,961 3,333,361 3,922,142 4,833,771 6,232,625 7,579,917 8,802,548 9,915,069 10,929,673 11,856,647 12,704,733 13,236,740 10,962,459

Page | 161
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 3 to the ending of year 3

Beginning January February March April May June July August September October November December
Cash received:
Sales 1,744,160 2,527,958 3,687,337 5,405,248 4,939,510 4,531,474 4,171,428 3,851,554 3,565,541 3,308,274 2,079,809 3,017,881
Receivable
Other revenue
Total cash (1) 1,744,160 2,527,958 3,687,337 5,405,248 4,939,510 4,531,474 4,171,428 3,851,554 3,565,541 3,308,274 2,079,809 3,017,881
Cash payment:
Operation
Purchasing goods 326,673 644,371 941,448 1,381,836 1,066,479 980,235 903,853 835,755 774,667 719,554 349,498 769,480
Marketing Expense 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 8,981,261
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 425,974 743,672 1,048,249 1,488,637 1,165,780 1,079,536 1,003,154 935,056 873,968 818,855 448,799 9,912,034
Net cash:
Net cash (1) – (2) 1,318,187 1,784,286 2,639,088 3,916,611 3,773,729 3,451,938 3,168,275 2,916,499 2,691,573 2,489,419 1,631,010 - 6,894,153
Add current fund 10,962,459 10,962,459 12,207,986 13,919,613 16,486,043 20,329,994 24,031,065 27,410,344 30,505,959 33,349,799 35,968,713 38,385,474 39,943,825
Total cash 10,962,459 12,280,645 13,992,272 16,558,701 20,402,653 24,103,724 27,483,002 30,578,618 33,422,458 36,041,372 38,458,133 40,016,484 33,049,672
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 3,764 3,797 3,830 3,863 3,896 3,930 3,964 3,998 4,033 4,068 4,103 4,138
Less: Interest expense 64,141 64,109 64,076 64,043 64,009 63,976 63,942 63,907 63,873 63,838 63,803 63,767
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 10,962,459 12,207,986 13,919,613 16,486,043 20,329,994 24,031,065 27,410,344 30,505,959 33,349,799 35,968,713 38,385,474 39,943,825 32,977,013

Page | 162
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 4 to the ending of year 4

Beginning January February March April May June July August September October November December
Cash received:
Sales 4,405,835 6,462,854 9,515,355 14,049,503 11,160,946 8,875,679 7,067,200 5,635,557 4,501,781 3,642,070 5,309,130 7,778,428
Receivable
Other revenue
Total cash (1) 4,405,835 6,462,854 9,515,355 14,049,503 11,160,946 8,875,679 7,067,200 5,635,557 4,501,781 3,642,070 5,309,130 7,778,428
Cash payment:
Operation
Purchasing goods 834,141 1,652,498 2,435,303 3,598,360 2,232,673 1,776,663 1,415,731 1,129,949 903,572 736,565 1,355,306 1,988,257
Marketing Expense 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 19,631,011
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 933,442 1,751,799 2,542,104 3,705,161 2,331,974 1,875,964 1,515,032 1,229,250 1,002,873 835,866 1,454,607 21,780,561
Net cash:
Net cash (1) – (2) 3,472,393 4,711,056 6,973,251 10,344,343 8,828,971 6,999,716 5,552,168 4,406,307 3,498,908 2,806,204 3,854,522 - 14,002,134
Add current fund 32,977,013 32,977,013 36,376,747 41,015,144 47,915,736 58,187,420 66,943,732 73,870,789 79,350,298 83,683,946 87,110,195 89,843,739 93,625,603
Total cash 32,977,013 36,449,406 41,087,803 47,988,395 58,260,079 67,016,391 73,943,448 79,422,957 83,756,605 87,182,854 89,916,398 93,698,262 79,623,469
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 4,174 4,210 4,247 4,283 4,320 4,358 4,395 4,433 4,472 4,510 4,549 4,589
Less: Interest expense 63,731 63,695 63,659 63,622 63,585 63,548 63,510 63,472 63,434 63,395 63,356 63,317
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 32,977,013 36,376,747 41,015,144 47,915,736 58,187,420 66,943,732 73,870,789 79,350,298 83,683,946 87,110,195 89,843,739 93,625,603 79,550,810

Page | 163
 Statement of Cash Flow

Mae Korn Alaiyont

Estimated cash flow statement

From the Beginning of year 5 to the ending of year 5

Beginning January February March April May June July August September October November December
Cash received:
Sales 11,441,141 16,879,866 24,962,375 36,981,311 29,318,016 23,258,352 18,465,881 14,674,799 11,675,100 9,300,866 13,687,213 20,201,214
Receivable
Other revenue
Total cash (1) 11,441,141 16,879,866 24,962,375 36,981,311 29,318,016 23,258,352 18,465,881 14,674,799 11,675,100 9,300,866 13,687,213 20,201,214
Cash payment:
Operation
Purchasing goods 2,177,384 4,322,418 6,395,919 9,479,764 5,857,593 4,648,805 3,692,692 2,936,261 2,337,641 1,863,751 3,502,592 5,173,409
Marketing Expense 1,000 1,000 8,500 8,500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 22,615
Administrative Expense - - - - - - - - - - - 40,378
Insurance Expense 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450 38,450
Property Tax 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851 59,851
Corporate Tax 52,888,160
Investment
Purchasing fixed asset (add)
Pre-operating expense (add)
Total cash payment (2) 2,276,685 4,421,719 6,502,720 9,586,565 5,956,894 4,748,105 3,791,993 3,035,562 2,436,942 1,963,052 3,601,893 58,222,862
Net cash:
Net cash (1) – (2) 9,164,456 12,458,147 18,459,655 27,394,746 23,361,122 18,510,247 14,673,888 11,639,237 9,238,158 7,337,814 10,085,320 - 38,021,648
Add current fund 79,550,810 79,550,810 88,642,607 101,028,095 119,415,091 146,737,178 170,025,641 188,463,229 203,064,458 214,631,036 223,796,536 231,061,691 241,074,352
Total cash 79,550,810 88,715,266 101,100,754 119,487,750 146,809,837 170,098,300 188,535,888 203,137,117 214,703,695 223,869,195 231,134,350 241,147,011 203,052,704
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 4,628 4,668 4,709 4,749 4,791 4,832 4,874 4,916 4,958 5,001 5,044 5,088
Less: Interest expense 63,277 63,237 63,197 63,156 63,115 63,074 63,032 62,990 62,947 62,904 62,861 62,817
Less: value added tax 7 % 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753 4,753
Net cash 79,550,810 88,642,607 101,028,095 119,415,091 146,737,178 170,025,641 188,463,229 203,064,458 214,631,036 223,796,536 231,061,691 241,074,352 202,980,045

Page | 164
Balance Sheet, from year 1 to year 5 (Risk factors related)

Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 1 to the ending of year 1

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 888,996 929,106 1,080,274 1,352,377 1,812,417 2,196,375 2,479,027 2,680,877 2,818,166 2,903,761 2,947,868 3,053,196 2,919,961
Inventory 30,207 41,626 58,254 82,598 67,261 55,045 45,298 37,509 31,270 26,261 35,672 49,303
Total current asset (1) 888,996 959,313 1,121,900 1,410,631 1,895,015 2,263,636 2,534,071 2,726,175 2,855,674 2,935,031 2,974,128 3,088,869 2,969,263
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 30,947 61,894 92,842 123,789 154,736 185,683 216,630 247,577 278,525 309,472 340,419 371,366
Total fixed asset (2) 6,611,004 6,580,057 6,549,110 6,518,163 6,487,216 6,456,269 6,425,321 6,394,374 6,363,427 6,332,480 6,301,533 6,270,586 6,239,638
Total asset (1) + (2) 7,500,000 7,539,370 7,671,010 7,928,794 8,382,231 8,719,905 8,959,393 9,120,549 9,219,101 9,267,511 9,275,661 9,359,454 9,208,902
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,500,000 7,496,939 7,493,850 7,490,735 7,487,594 7,484,424 7,481,228 7,478,004 7,474,752 7,471,472 7,468,164 7,464,826 7,461,461
Total liabilities (4) 7,500,000 7,496,939 7,493,850 7,490,735 7,487,594 7,484,424 7,481,228 7,478,004 7,474,752 7,471,472 7,468,164 7,464,826 7,461,461
Owner's equity:
Capital
Dividend
Add: income statement accumulated 42,432 177,160 438,058 894,637 1,235,480 1,478,164 1,642,545 1,744,349 1,796,039 1,807,497 1,894,628 1,747,441
Total owner's equity (5) 42,432 177,160 438,058 894,637 1,235,480 1,478,164 1,642,545 1,744,349 1,796,039 1,807,497 1,894,628 1,747,441
Total liabilities and owner's equity (4) + (5) 7,500,000 7,539,370 7,671,010 7,928,794 8,382,231 8,719,905 8,959,393 9,120,549 9,219,101 9,267,511 9,275,661 9,359,454 9,208,902

Page | 165
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 2 to the ending of year 2

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 2,919,961 3,333,361 3,922,142 4,833,771 6,232,625 7,579,917 8,802,548 9,915,069 10,929,673 11,856,647 12,704,733 13,236,740 10,962,459
Inventory 49,303 69,170 98,276 141,084 204,238 186,870 171,623 158,143 146,144 135,396 125,713 82,173 116,975
Total current asset (1) 2,969,263 3,402,531 4,020,418 4,974,854 6,436,863 7,766,788 8,974,171 10,073,212 11,075,817 11,992,043 12,830,446 13,318,913 11,079,434
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 371,366 402,313 433,260 464,208 495,155 526,102 557,049 587,996 618,943 649,891 680,838 711,785 742,732
Total fixed asset (2) 6,239,638 6,208,691 6,177,744 6,146,797 6,115,850 6,084,902 6,053,955 6,023,008 5,992,061 5,961,114 5,930,167 5,899,219 5,868,272
Total asset (1) + (2) 9,208,902 9,611,222 10,198,162 11,121,651 12,552,713 13,851,690 15,028,127 16,096,220 17,067,878 17,953,157 18,760,613 19,218,132 16,947,706
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,461,461 7,458,066 7,454,641 7,451,187 7,447,704 7,444,190 7,440,645 7,437,070 7,433,464 7,429,827 7,426,159 7,422,459 7,418,727
Total liabilities (4) 7,461,461 7,458,066 7,454,641 7,451,187 7,447,704 7,444,190 7,440,645 7,437,070 7,433,464 7,429,827 7,426,159 7,422,459 7,418,727
Owner's equity:
Capital 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441 1,747,441
Dividend
Add: income statement accumulated 405,715 996,079 1,923,023 3,357,568 4,660,060 5,840,040 6,911,708 7,886,972 8,775,888 9,587,013 10,048,232 7,781,538
Total owner's equity (5) 1,747,441 2,153,156 2,743,521 3,670,464 5,105,009 6,407,501 7,587,481 8,659,150 9,634,413 10,523,330 11,334,454 11,795,673 9,528,980
Total liabilities and owner's equity (4) + (5) 9,208,902 9,611,222 10,198,162 11,121,651 12,552,713 13,851,690 15,028,127 16,096,220 17,067,878 17,953,157 18,760,613 19,218,132 16,947,706

Page | 166
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 3 to the ending of year 3

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 10,962,459 12,207,986 13,919,613 16,486,043 20,329,994 24,031,065 27,410,344 30,505,959 33,349,799 35,968,713 38,385,474 39,943,825 32,977,013
Inventory 116,975 168,187 243,767 355,565 521,220 476,310 436,964 402,245 371,400 343,820 319,012 200,553 291,010
Total current asset (1) 11,079,434 12,376,173 14,163,381 16,841,607 20,851,214 24,507,375 27,847,307 30,908,204 33,721,199 36,312,533 38,704,486 40,144,378 33,268,023
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 742,732 773,679 804,626 835,574 866,521 897,468 928,415 959,362 990,309 1,021,257 1,052,204 1,083,151 1,114,098
Total fixed asset (2) 5,868,272 5,837,325 5,806,378 5,775,431 5,744,484 5,713,536 5,682,589 5,651,642 5,620,695 5,589,748 5,558,801 5,527,853 5,496,906
Total asset (1) + (2) 16,947,706 18,213,498 19,969,759 22,617,038 26,595,698 30,220,911 33,529,896 36,559,846 39,341,894 41,902,281 44,263,287 45,672,232 38,764,930
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,418,727 7,414,962 7,411,165 7,407,335 7,403,472 7,399,576 7,395,646 7,391,682 7,387,684 7,383,651 7,379,583 7,375,480 7,371,342
Total liabilities (4) 7,418,727 7,414,962 7,411,165 7,407,335 7,403,472 7,399,576 7,395,646 7,391,682 7,387,684 7,383,651 7,379,583 7,375,480 7,371,342
Owner's equity:
Capital 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980 9,528,980
Dividend
Add: income statement accumulated 1,269,557 3,029,614 5,680,723 9,663,246 13,292,355 16,605,271 19,639,185 22,425,231 24,989,651 27,354,724 28,767,772 21,864,608
Total owner's equity (5) 9,528,980 10,798,536 12,558,593 15,209,703 19,192,226 22,821,335 26,134,250 29,168,164 31,954,210 34,518,630 36,883,704 38,296,752 31,393,588
Total liabilities and owner's equity (4) + (5) 16,947,706 18,213,498 19,969,759 22,617,038 26,595,698 30,220,911 33,529,896 36,559,846 39,341,894 41,902,281 44,263,287 45,672,232 38,764,930

Page | 167
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 4 to the ending of year 4

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 32,977,013 36,376,747 41,015,144 47,915,736 58,187,420 66,943,732 73,870,789 79,350,298 83,683,946 87,110,195 89,843,739 93,625,603 79,550,810
Inventory 291,010 424,848 623,204 917,552 1,354,774 1,076,234 855,869 681,480 543,429 434,100 351,200 511,952 750,063
Total current asset (1) 33,268,023 36,801,596 41,638,348 48,833,288 59,542,193 68,019,966 74,726,658 80,031,778 84,227,375 87,544,295 90,194,939 94,137,555 80,300,873
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 1,114,098 1,145,045 1,175,993 1,206,940 1,237,887 1,268,834 1,299,781 1,330,728 1,361,676 1,392,623 1,423,570 1,454,517 1,485,464
Total fixed asset (2) 5,496,906 5,465,959 5,435,012 5,404,065 5,373,118 5,342,170 5,311,223 5,280,276 5,249,329 5,218,382 5,187,435 5,156,487 5,125,540
Total asset (1) + (2) 38,764,930 42,267,555 47,073,360 54,237,353 64,915,311 73,362,136 80,037,881 85,312,054 89,476,704 92,762,677 95,382,374 99,294,042 85,426,413
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,371,342 7,367,168 7,362,958 7,358,711 7,354,428 7,350,107 7,345,749 7,341,354 7,336,921 7,332,449 7,327,938 7,323,389 7,318,800
Total liabilities (4) 7,371,342 7,367,168 7,362,958 7,358,711 7,354,428 7,350,107 7,345,749 7,341,354 7,336,921 7,332,449 7,327,938 7,323,389 7,318,800
Owner's equity:
Capital 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588 31,393,588
Dividend
Add: income statement accumulated 3,506,799 8,316,815 15,485,054 26,167,295 34,618,442 41,298,544 46,577,112 50,746,195 54,036,640 56,660,847 60,577,065 46,714,025
Total owner's equity (5) 31,393,588 34,900,387 39,710,402 46,878,642 57,560,883 66,012,029 72,692,131 77,970,700 82,139,783 85,430,228 88,054,435 91,970,653 78,107,613
Total liabilities and owner's equity (4) + (5) 38,764,930 42,267,555 47,073,360 54,237,353 64,915,311 73,362,136 80,037,881 85,312,054 89,476,704 92,762,677 95,382,374 99,294,042 85,426,413

Page | 168
 Balance Sheet

Mae Korn Alaiyont

Estimated balance sheet

From the beginning of year 5 to the ending of year 5

Beginning January February March April May June July August September October November December
Asset
Current Asset:
Cash 79,550,810 88,642,607 101,028,095 119,415,091 146,737,178 170,025,641 188,463,229 203,064,458 214,631,036 223,796,536 231,061,691 241,074,352 202,980,045
Inventory 750,063 1,103,253 1,627,701 2,407,086 3,566,055 2,827,094 2,242,770 1,780,639 1,415,070 1,125,813 896,869 1,319,838 1,947,974
Total current asset (1) 80,300,873 89,745,860 102,655,797 121,822,177 150,303,233 172,852,736 190,705,999 204,845,097 216,046,106 224,922,349 231,958,560 242,394,190 204,928,019
Fixed Asset:
Land 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600 3,269,600
Building 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094 2,476,094
Equipment/Machinery 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036 192,036
Vehicle 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000 578,000
Office supply 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574 73,574
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 1,485,464 1,516,411 1,547,359 1,578,306 1,609,253 1,640,200 1,671,147 1,702,094 1,733,042 1,763,989 1,794,936 1,825,883 1,856,830
Total fixed asset (2) 5,125,540 5,094,593 5,063,646 5,032,699 5,001,751 4,970,804 4,939,857 4,908,910 4,877,963 4,847,016 4,816,068 4,785,121 4,754,174
Total asset (1) + (2) 85,426,413 94,840,453 107,719,443 126,854,876 155,304,985 177,823,540 195,645,856 209,754,007 220,924,069 229,769,365 236,774,629 247,179,312 209,682,193
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 7,318,800 7,314,172 7,309,504 7,304,795 7,300,045 7,295,255 7,290,423 7,285,549 7,280,633 7,275,675 7,270,673 7,265,629 7,260,541
Total liabilities (4) 7,318,800 7,314,172 7,309,504 7,304,795 7,300,045 7,295,255 7,290,423 7,285,549 7,280,633 7,275,675 7,270,673 7,265,629 7,260,541
Owner's equity:
Capital 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613 78,107,613
Dividend
Add: income statement accumulated 9,418,669 22,302,326 41,442,468 69,897,327 92,420,673 110,247,820 124,360,845 135,535,823 144,386,077 151,396,343 161,806,070 124,314,039
Total owner's equity (5) 78,107,613 87,526,281 100,409,939 119,550,081 148,004,940 170,528,285 188,355,433 202,468,458 213,643,436 222,493,690 229,503,955 239,913,683 202,421,652
Total liabilities and owner's equity (4) + (5) 85,426,413 94,840,453 107,719,443 126,854,876 155,304,985 177,823,540 195,645,856 209,754,007 220,924,069 229,769,365 236,774,629 247,179,312 209,682,193

Page | 169
 NPV A 313,220,361.03
Investment 100%
Interest rate 0.50%
Average 40,484,330.42
PV - 199,420,400.05

NPV A313,220,361.03
Investment A7,500,000
remainder A305,720,360.63

100% 0%
Investment - 7,500,000
Cash flow year 1 2919961 0.3893281 ROI year 1 23.42%
Cash flow year 2 10962459 1.4616611 ROI year 2 104.89%
Cash flow year 3 32977013 4.3969349 ROI year 3 296.62%
Cash flow year 4 79550810 10.606774 ROI year 4 638.27%
Cash flow year 5 202980045 27.064005 ROI year 5 1712.19%
IRR after five year 166%

Conclusion:

According to the risk feasibility study of Mae Korn Alaiyont, in the part of sales
decreasing 20 percents. The changing in sales will affect to income, so the risk will be
occurred. Such as if the sales decrease for 20 percent, the company’s income will be
decreased. In contrast, the payback period will be increased. Moreover, financial risk affect to
company’s financial statement such as income statement and statement of cash flow too.
Although the financial ratio were decrease, we still have a high income. Therefore, we decide
this risk can accept.

Page | 170
 Chapter 7

Conclusion of project feasibility of “Mae Korn Alaiyont”

According to the feasibility of Mae Korn alaiyont we investigate about spare part business in
Chiang Rai has expanded continuously. For the reason of the number of cars user in Chiang Rai are
increase in many year or the trend of cars market in Chiang Rai are grow up. Moreover, almost of
the customers has the demand for spare part products.

Spare part business has expanding increasingly because spare part products are the products
that necessary for the people who drive the cars and modified the car. Moreover, in the generally of
cars has many component that can do the business in many sectors. But the service for cars need to
do in the specifically affect to the business of cars maintenance. Thus, from the trend of market
expanding increasingly and spare part business is the interested business.

Mae Korn Alaiyont located at Mae Korn area where is has more area and appropriate to
located the spare part business. Thus in this area is near the Chiang Rai bus station, it is the centre of
transportation and it suitable for customers include who live in around there and makes them
convenience and easy to go there. According to the research of customer behavior in Chiang Rai
from 400 people is the customers has high buying power and need spare part products in high
demand. Moreover, Mae Korn Alaiyont has the opportunity to expand the market. According to the
research the main of Mae Korn Alaiyont customers are general customers, garage and retailers
follower has the high demand for spare part.

According to to the research of customer behavior in Chiang Rai. The customers is general
customers is 70 %, garage is 25% and retailer is 5% in the market.

Thus, the customers have the high demand of the spare part products that affect to the
market share is growing up and expand increasing. That is the best opportunity to do the spare part
business.

From the expanding of spare part market, the business has marketing management combine
the service is very importance to compete with the competitors.

According to the products of Mae Korn Alaiyont is general spare parts are the product that
about car such as Engine, Fuel tanks, Intake, Air system, Cvt continuos various transmission, Front

Page | 153
suspension, Under rear, Wheel and Brake system and Accessory Spare parts are the accessories for
customer who want to modified car, they use them for decorate car to modern and look suitable for
they want and Large spare parts are the big spare part of a car such as Front wind shield, Front
Bumper, Back Bumper. They are important for all cars because this part is component of style of car.
If cars don’t have this, they aren’t perfectly.

In the marketing strategies of the business for Mae Korn Alaiyont has many strategy to apply
such as product, price, distribution channel and support sales by discount, guarantee and mass
media on the radio in Chaing Rai radio station FM 95.75 for 12 months in 5 years and car
broadcasting to advertise the products in each area to promote the products and motivation the
customers in low period of sales

Moreover, the motivation strategy for the employees is the bonus if their work on efficiency
works and stimulates to service the customers. The employees have employees training course for
employee’s full skills and offer the customers most satisfaction. The business has the entrepreneurs
and 1 technician, 1 accountant and 2 general employees so the payment for employee’s salary is
23,360 Baht per month

In the business technical analysis of Mae Korn Alaiyont, our business has a good quality
product to the customers and applies technology in soft ware program such as barcode system to
support for accuracy.

In the financial analysis, these are an initial investment for operations Maekorn Alaiyont
7,500,000 baht. It can separate in the fixed asset for 6,589,304 baht, pre-operating expense for
21,700 baht. All of capital was loan from Krung Thai Bank, and the interest rate is 10.375% per year,
and the period of debt payment is 30 years. According to the net sales of Maekorn Alaiyont from
year 1 to year 5 has increase yearly as following:

Net sales in year 1 = 7,263,191 baht

Net sales in year 2 = 21,204,886 baht

Net sales in year 3 = 53,537,683 baht

Net sales in year 4 = 110,505,337 baht

Net sales in year 5 = 288,557,461 baht

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 Under the consideration of overall cost and total sales forecasting, our company get the net
income as following:

Net income in year 1 = 2,481,095 baht

Net income in year 2 = 10,090,890 baht

Net income in year 3 = 27,693,901 baht

Net income in year 4 = 58,754,744 baht

Net income in year 5 = 155,753,694 baht

According to the company’s financial estimating within 5 years, the payback period is equal
5 years. It is appropriate with the capital that has invested with Maekorn Alaiyont.

Conclusion

According to the study for Mae Korn Alaiyont spare part business. The business has high
feasibility in many part of the business such as marketing, technical, financial of Mae korn Alai Yont
spare part business. In the investment of Mae Korn Alaiyont that is high risk but our decided to
accept the risk for high return. About financial analysis is we have profit and return on investment in
high rate and has the payback period for 5 years.

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