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La Casa Service Apartment

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Preface

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

second semester of 2012. In this project is studying the feasibility of “Lacasa” Service apartment

in Thonglor, Bangkok province. This project include general information of service department,

industry profile, market strategies, the technical process in apartment business, the financial

feasibility of service apartment business and risk management of service apartment business.

This project makes people who interest to get information and knowledge of service

apartment business before makes decision to investment. This project support investor to get the

benefit in investment and profit in doing service apartment. We expect that our project will

provide benefits and interested person. We are thanks to Aj. Chaiyawat Thongintr that provide us

rich full knowledge and consultation for the project. Moreover, if the project has any error or

others, our group make apology for this chance.

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Executive Summary

The project of a business is a service apartment that tries to enter the market which is

situated in Thonglor in Bangkok. The reason we build service apartment at Thonglor is getting

profit and we believe we can do better than the competitors around there. The point that our

apartment can provide are safety, cleanliness, easy transportation, comfortable decorations,

convenient in using the service and latest technology. The interesting thing we hope for the

future is the time ASEAN opens; we can get more occupancy rates from different guests which

come into the country. Our service apartment is targeting the tourists mostly as around Thonglor,

there already business running with tourists. Our service apartment has 3 types of room. The type

A - for family, Type B&C - tourists who are business man and have no family. The best service

is that if guests request room service from housekeeping or other service like ordering the things,

the guests just need to order or request through online.

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Content

Preface 2

Executive summary 3

Chapter1: Introduction

Background and Signification of the project 8-11 Project Objective 11 Benefit of Project 11 Activities/Time frame 12-13

Chapter2: Industry Profile

Nature of Industry 15-17 Characteristic of Service 17-18 Situation of the industry 18-39 Conclusion 40

Chapter3: Marketing Analysis

Marketing analysis 42 General Environment Analysis

Political Factor 42-43 Economic Factor 43-44 Social and Environment Factor 44 Technology Factor 45

Competitive analysis 45-46 Customer Analysis 46-47 Competitor Analysis 47-54 STP Analysis 55

Geographic Segmentation 55-56 Behavioral Segmentation 57-60 Demographic Segmentation 61-64 Targeting 64-65 Positioning and Differentiation 66-69

Sale Forecast 70-74 Conclusion 75-76

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Chapter4: Investment Cost

Pre-Operating Cost 78 Investment Cost 78-80 Location 80 Facility and Facility 81-84 Machine/Tools/Equipment 85-126 Depreciation 127 Conclusion 128

Chapter5: Production and Operation Analysis

Product Characteristics 130-151

Chapter6: Administration Analysis

Administration and Management Analysis 153 Organization chart 153

Salary 154

Chapter7: Financial Analysis

Profit and Loss Statement 156-161 Income Statement 162 Cash Flow Statement 163-168 Balance Sheet 168-173

Chapter8: Risk Management

Risk Management 175 External Risk 175 Internal Risk 176

Sale decrease by 5% Income Statement 177 Sale decrease by 10% Income Statement 178 Sale decrease by 15% Income Statement 179 Sale increase by 5% Income Statement 180 Sale increase by 10% Income Statement 181 Sale increase by 15% Income Statement 182 Sale decrease by 5% Cash Flow 183 Sale decrease by 10% Cash Flow 184 Sale decrease by 15% Cash Flow 185 Sale increase by 5% Cash Flow 186 Sale increase by 10% Cash Flow 187

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Sale increase by 15% Cash Flow 188

Summary 190

Reference 191

Members 192

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Chapter 1

Introduction

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Introduction

Backgrounds and Significance of the Project

According to the globalization and world trading brings about the foreign direct investment (FDI) from foreign countries, nowadays, there are a lot of foreign investment and multinational companies so it brings about the flow of people from some place to some place worldwide so those people have to work and stay in their “non-home countries” so these group of people are called “expatriates” or “expat” for short.

Khun Alliwansa Pattanathabut, the Director of Richard Elis (Thailand) mentioned that if the investment from other countries is supported by the government and the stabilities of the world economics and economics of the country and politics can seduce the foreign investors to invest in Thailand.

Fortunately, the forecasting of the SCB Economic Intelligence Center showed that the Foreign Direct Investment from other countries tend to increase especially the FDI from Japan and the value of the FDI would equal to Four Hundred billion baht and the Japanese Investors always choose to invest in ASEAN community and Thailand is the target country that the Japanese Investors interest.

In addition, Thailand is the 8th ranked of the world for FDI so Thailand is still developing to attract the FDI from other countries, the things that make Thailand to be the world rank for FDI are a followings;

1. The strategic location of the country where is able to connect or trade to other countries

such as China, India and ASEAN members so the .

2. Thailand is a hub of AEAN and locates at the crossroad of ASEAN

3. Social and political stability in current time.

4. World-class infrastructure such as 7 international airports, wide range of mass transits, 3G

and Wi-Fi and broadband access.

5. FDI policy that focus on the liberalization and encourage the free trade area Foreign

Investments, and the contribution of the skills development, technology and innovation are

promoted by the government , and the World Bank’s 2012 Eases to access for doing the

business as the 17th of the world and 2nd ranked among ASEAN community .

6. Friendliness, Enrichment of culture and Hospitability of people.

According to the Work Permit Administration, Ministry of Labor, mentioned that the

nations that are allowed to work in Thailand are as following ranks (1) Japanese and followed

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by (2) China (3) Philippines (4) American (5) English and the nations that are allowed to work

in Thailand based on the investment are a following rank (1) Japanese and followed by (2)

China (3) India (4) American (5) Taiwanese.

The number one expat group in Thailand is Japanese expat because there are a lot of the

Japanese Investments and Companies in Thailand especially in “Bangkok” so the incoming of

the expat is very important for the real estate and residence business especially for the serviced

apartment business and the expats don’t have the right on the land ownership in Thailand; then,

this is the silver line of the serviced apartment in Thailand especially in Bangkok. Those expats

always come to work and stay temporarily depends on how long that they have to work in

Thailand and the Japanese expat always rent the serviced apartment rather than buying

condominium.

This picture shows that the number of the Japanese Company are in Bangkok , especially in

Pathumwan, Sathorn, Wattana, Klongtoey districts.

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Moreover, the ASEAN Economics Community (AEC) in coming 2015 , that is the

economics cooperation that brings about the Single Market and Production Base so it means that

there are the free flows of the factors of productions within the community , the investors can

move to invest in any country in ASEAN community easily , it’s so called Free Trade Area

( FTA) , there are a lot of ASEAN investors and Non- ASEAN investors who would like to

invest in this community so it brings about the free flows of skilled labor ; then, the new group of

expatriates are coming so this is a chance of the rental residence business and serviced apartment

for welcoming a new group of expatriates; moreover, the investment from ASEAN country is a

second large of the FDI which is follow the FDI from Japan ( Source: Kasikorn Research Center

and Board of Investment, Thailand).

According to the Prachachart Business Online (2012) mentioned that serviced apartment

in Sukhumvit and Phayathai still be demanded ( demands for serviced apartment ares 89 percents

and 84 percents in this area), the reason that make the demand of this area be stable at high level

because the customers was moving from Chid lom Ploenchit ,Silom and Sathorn and the reason

that make the customers move from those area because the rate of serviced apartment in those

area was increased(Prachachart Business Online, 2012). Moreover, this area was not flooded

because this area was protected from big flooding in 2011.

Thonglor ( Sukhumvit 55) is he area that has colorfulness where has a wide range of

businesses such as condominium , serviced apartment for expatrates, retail shop, office for rent

and entertainment complex. Thonglor is so called the little Tokyo where has a lot of Japanese

people reside in this area, Thonglor is a 2 kilometers road that can connect to any road nearby

such as Sukhumvit 49, 51, 53; moreover, Thonglor is considered as the safety and premium road

in Bangkok so there are a lot of expatriates reside here and Thonglor people have high

purchasing power.

According to the survey of the Sen Thang Set Thi, Thonglor has a lot of infrastructures

throughout the road such as Supermarket and Mall, Hospital, Entertainment Complex, Furniture

Shop , Wedding Studio, Bakery Shop, and Night Life business and there are lots of people

commute throughout he road all day and all night

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According to the information above, we would like to study the feasibility of the

Serviced Apartment or Expatriate on Thonglor Road because this area is the central area of

Bangkok where can get a lot of expatriates to be our customers and this business could be

feasible and get high revenues if our business locates on this road.

Project Objectives

The feasibility study on the Serviced Apartment in Sukhumvit 55 ( Soi Thonglor) all of the

processes of this projects is to collect the data and statistic data from reliable sources . The

project will be done in order to achieve the objective as per following;

1. To study how does this project feasible to invest.

2. To analyze the marketing and marketing strategic planning for this project.

3. To analyze the competitors of the project.

4. To analyze the service operation management for the project.

5. To create and designate the facilities and facilities management within the project

6. To analyze the finance of the project.

Benefits of the project

The benefits that we could get are to learn about how to create the Strategic Planning,

Marketing Planning Financial Planning, Operation and Service Planning and how to make this

project be feasible. Strategy is very important for this project; if the project has a good strategy,

we can plan for maximize the profitability.

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Activities/Time Frame

Table: 1-1: Gantt Chart for the project

Activities

November December January February

1. Topic submission

2. Introduction

submission -

Introduction to

project feasibility

study

3. Study the industry

profile

- Product

Characteristic

4. Analyze the market

feasibility

- Market Analysis

5. Topic presentation

6. Study technical

Feasibility

- Production and

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Operations

- Process of

Management

7. Analyze the

financial of our

business

- Financial

Statements

Generating

- Financial

Statement

Analysis

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Chapter 2

Industry Profile

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Industry Profile

Na ture of the Industry

Serviced Apartment is a one kind of apartment; normally the target groups are

foreigners and expatriates who earn high income. The length of stay normally is between 1 week

to 1 year (similar to the length of stay of Rental Apartment). Serviced Apartment always provide

the luxurious service to the customers and other kinds of supplementary products such as Fitness

Center, Swimming Pool, Restaurant and Laundry service and Room service and in room kitchen

zone and decorate much larger than hotel rooms and more-home like ( some serviced apartment

is more-hotel liked) . Normally Service Apartment rate is more expensive than other kinds of

normal rental apartment. Basically, service apartments always locate in Central Business District

such as Sukhumvit, Silom, Ratchadamri ,Yen Arkard in Bangkok ( Sources: Institute Of Small

and Medium Enterprises Development Center& Ekamai Garden Serviced Residence).

According to Colliers mentioned that serviced Apartment is graded as per followings; (1)

A Grade (2) B Grade (3) C Grade.

- A Grade Serviced Apartment; Are located in the prime location residential area or

where a lot of high-end residences have. Provide the high quality of facilities similar to

luxury hotel; moreover, the projects are managed by international luxury brands or

managed by the entrepreneurs who have adequate factors of production to invest and

manage such as Anantara Baan Ratchaprasong , Chatrium Suites Bangkok.

- B Grade Serviced Apartment; Normally located in the central business district but in

the less prime locations. Furnished with a high quality like Middle and Upper scale hotel,

always be managed by the entrepreneurs.

- C Grade Serviced Apartment; Located in secondary locations. Furnish in standardized

style but not luxury. Fewer facilities like the economy hotel.

Location of Serviced Apartment in Bangkok

According to the information of Colliers International, serviced apartment locations can be

classified into 6 main areas as per following;

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I. Serviced Apartment in Central Business District (CBD) so the Central Business District is Silom, Sathorn, Si Phraya, Surawong and Saladang, Soi Convent.

II. Central Lumpini Area (CLA) refers to the area along the Rama I road, Wireless Road, Pleonchit, Rajadamri so there are a lot of lucrative serviced apartment and residences around this area such as Anantara Baan Rajaprasong, St. Regis Residence Bangkok.

III. Early Sukhumvit area (ESA) refers to the section of Sukhumvit area between Sukhumvit Soi1 to Sukhumvit Soi 35 for the North and between Sukhumvit Soi 2 to Soi 24 for the South.

IV. Late Sukhumvit Area (LSA) refers to the section between Soi 37to Soi 77 for the North and between Soi 26 to 50 for the South and Thonglor road ( Sukhumvit 55) is in Late Sukhumvit.

V. Southern Fringe Area (SF) refers to the area along the Chao Phraya River on Charoen Krung Road and Naradhivas Rajanagarin Road and Rama III Road.

VI. Other areas cover Phayathai, Petchaburi, Rajadabhisek, Rajadhevi areas.

The Map of Serviced Apartment Zones in Bangkok

Serviced Apartment is the service business which totally relates to service management,

service psychology and service culture. Service Culture is to focus on serving and satisfying the

customers; thus, everyone in lodging business has to have the service culture, range from top

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management to front line staff, so the staff have to fulfill the customers ‘need and meet their

expectations according to the missions of the lodging organization that everyone in the

organization has to know that what is our business?, who are the customers? And what’s the best

value offered? So these questions are the questions that everyone in the lodging organization has

to answer.

Formerly, serviced apartment welcome for the guests who would like to rent the rooms

daily but the Act of Hotel B.E.2547 enforced on 12th May 2005 , Serviced Apartment do not

welcome the daily and weekly guests since the enforcement date. So most of serviced

apartment changed to welcome the monthly customers; however, some serviced apartment still

position themselves as the hotel (SOURCE: Thairath Online 13 th Oct 2010:

http://www.thairath.co.th/content/eco/118576)

Service business is totally different from production business which offers the

intangibility products so the labor-intensity; then, labor and staff is the things and it’s the main

thing that is utilized in order to serve and satisfy the customers ;thus, the service organizations

has to focus on the human resources management ( Sources: University of Thai Commercial

Chamber).

Characteristics of Service

According to Phillip Kotler et al. mentioned that Characteristics can be described in four

main terms as per following;

Intangibility

Alike the physical products, services cannot be seen, tasted, felt, heard or smelled before

they are purchased. Robert Lewis observed that someone who purchases the service may go

away with empty-handed, but they cannot go away with the empty-headed. They have the

memories in their brains to share to each others.

If the customers are going to buy or rent the room at serviced apartment , the customers

do not know what the customers will receive until they take the step in to the serviced apartment

to experience the services from the serviced apartment such as rooms, foods and beverages and

facilities, the customers always seen the tangible evidence that will provide information and

confidence about the service so the exterior of the serviced apartment is the first thing that the

arriving customers see but the condition of the grounds and landscape and overall cleanliness of

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the place so this is the indication that identify the service management within the serviced

apartment.

Inseparability

The customers are the part of the product. An implication of the inseparability, if the

service is that the customers and service providers have to understand the service delivery

systems because they are coproducing of the service.

Variability

Services are produced and consumed simultaneously; there are limits of the service

control. The fluctuating of the service demand makes it difficult to deliver in the peak demand

period. The high degree of contact between the service providers and the guests means that the

consistency depends on the service provider’s skills and the performance of that time of

exchange. The guests can receive the excellent service and mediocre in one day. In the case of

mediocre in service providing, the service person may not have felt well or emotional problems,

lack of communication and heterogeneity of the guests that brings about the service variability.

Variability of lack of consistency is the thing that make the customers upset. When variability is

no longer so it means that we the service delivery process has the consistency, this is the key

thing that leads service business to be success.

Consistency means the customers receives the expected products without unwanted

surprise; for example, in the customers of the serviced apartment require a wake-up call at 7

A.M. so the service provider have to perform it according to the planned service.

Perishability

Services cannot be stored or kept or inventoried; for example, A 100-room serviced

apartment that sells only 60 rooms on a particular night cannot inventor the 40 unused rooms and

then sell 140 rooms on the next day so the revenues from those 40 rooms are lost forever. If the

service businesses are to maximize the revenues, they must manage the capacity and the demand.

Situation of the Industry

We will express the time line of the serviced apartment situation from the 1 st half of 2009

till the 3rd quarter of 2012. (SOURCES: Colliers International Research and Business and

Economics Forecasting Center, the University of Thai Commerce Chamber, Work Permit

Division, Ministry of Labor, Thailand).

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Situation of Serviced Apartment in the 1st half of 2009 and the years before 2009

Due to the financial turbulences and problems affect toward the global economy and the

national political turbulences. There is a lot of the business that was affected by that economic

crisis. The key measures so far have included staff retrenchment and reduction of housing

budgets, which generally change in the demand of the serviced apartment market in Bangkok.

The Historical Supply from 2004 until 1st half of 2009 and the years before 2009

Total supply of serviced apartment was 14,043 units in the first half of 2009 which was

increased by 11.57% from 2008 and the sharp increase was found in the year 2007, representing

the increase of 17.76% from the total supply in 2006. The growth of supply was 13.04% from

2004 until 2009.

2004 2005 2006 2007 2008 2009(1sthalf)

8500 8678 915610782

12587

15499

Figure 3-1: Supply of Serviced Apartment Units from 2004 till first half of 2009

Moreover, in the first half of 2009, lots of A grade serviced apartment opened in

Bangkok (Supply Added) such as in Central Business Area (Silom and Sathorn), Central

Lumpini Area, Sukhumvit Area, Southern Fringe Area. The rest of the serviced apartments in

other areas are B & C grade serviced apartment such as in Phayathai and Phaholyothin,

Petchaburi, Rama 9 Rd.

Supply base on Location

The highest supply base location reveals that the highest amount of supply is in the

Sukhumvit area, with approximately 6,792 units, (48%) and followed by Lumpini area, with

2,182 units (16%) and Central Business District area, with 1,991 units (14%), respectively.

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Sukhumvit

49%

Southern Fringe14%

Other Areas9%

Central Bus Area14%

Central Lumpini14%

Supply of Serviced Apartment based on Lo-

cation

Figure 4-1: The Supply of Serviced Apartment by Location Supplied.

Supply of Serviced Apartment based on Grade of Service

As mentioned in the first chapter that the serviced apartments can be classified into 3 grades, (1).

A grade serviced apartment (2). B grade serviced apartment (3). C grade serviced apartment so

the grades of serviced apartment can determine the market share of the serviced apartment. The

market share of serviced for targeting expatriates can be categorized into A Grade (8,908 Units)

and B Grade (5,135 units).

Figure 5-1: The Supply of Serviced Apartment by Grade of Service

B Grade; 8,908

A Grade; 5,135

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Demands of Serviced Apartment

The demands for serviced apartment were normally from the expatriates who relocated

Thailand. Typical length of stay was range from one to three months, as the expatriates required

that time to select the permanent residence such as apartment,single house or town house to stay,

The demand for serviced apartments market could be categorized into two major groups; short-

stay tourists and business travelers (short-stay market) and there was the new expatriates arrivals

to Bangkok (long stay market). Some of the expatiates who would have formerly stayed in the

hotels had shifted to serviced apartment because serviced apartment offered the wide range of

service with quality facilities but were offered with reasonable prices in comparing with five-

stars hotel. The regressions of the economics brought about the prices concerns among the guests

who were seeking the lower-priced accommodation.

Number of New Expatriates in Bangkok

The office of foreign workers administration ( Work Permit),Department of Employment

revealed that Bangkok had lowest number of new expatriates in 2005 , with 1,872 persons

because the regressions of the economics which were caused by the increasing of the factors of

production , inflations and tsunami disaster; moreover, the slumps of the economics brought

about the decreasing of the expatriates in Bangkok because most of the companies implemented

the reorganization and retrenchment strategy and cash flow management brought about the

decreasing of the expatriates in Bangkok.

2004 2005 2006 2007 2008

7,478

1,872

4,589 4,557

10,401

Number of New ExpatriatesNumber of New Expatriates

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The Number of Tourists at Suvarnabhumi Airport in the year 2009

The short-stay demands for serviced apartments are from business travelers and leisure

tourists. According to the tourism department revealed that the number of international tourists

arrivals at Suvarnabhumi Airport during the first half of 2009 was 4,434,518 persons, it was

decreased by 26.8% from 5,623,119 persons in the first half of 2008.

From the breakdown of international travelers at Suvarnabhumi Airport, travelers from

East Asia (China, Japan) , South Asia ( India), Asean ( Malaysia, Singapore), Europe ( Germany,

UK, France), USA, Australia and Middle East was a majority of inbound travelers to Thailand.

Europe22% Scadinavia

4%America

8%Ocenia

7%Others4%Asean

16%

East Asia33%

South Asia5%

International Tourists Arrivals at Suvarnabhumi Airport based on Region

Sukhumvit has the highest number of A Grade serviced apartments, with 1,801 units, and

followed by central Lumpini , with 1,770 units and Central Business District, with 995 units

while B Grade serviced apartment are condensed in Sukhumvit area with 4,982 units, followed

by Southern Fringe Units and other areas as shown in the figure below.

Central Bus. District

Central Lumpini

Sukhumvit South. Fringe Other0

100020003000400050006000

9951770 1810

5600

996412

4982

1313 1205

A Grade B Grade

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The figure shows that in the Central Lumpini area has a lot of A Grade serviced

apartments; however, Sukhumvit has the most condense of serviced apartment in this area in

both A grade or B grade.

Occupancy and Rental Rates

Both Grades Occupancy rates of all serviced apartments in Bangkok was increased by

5.9% in comparing between the year 2004 and 2005 ( from 83.92% to 88.87%) but was declined

each year from 2006 to 2008

2004 2005 2006 2007 20080.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

83.92% 88.87% 87.35%80.48%

71.40%

Occupancy Rate

Occupancy Rate

Figure: The average occupancy rates from the year 2004 till 2008

Grade A and B Occupancy Rates

The average for A Grade serviced apartments in Bangkok increased between 2004 and

2005 by 7.37% (from 81.87% to 87.90%) , but declined each year from 2006 to 2008. See the

difference of A grade and B grade rental rate below. The graph shows that occupancy rate for B

Grade was highest in the year 2007.

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The

Situation of the industry of the year 2009-2010

Historical Supply based on year

For the first half of 2010 only around 20 serviced apartment units were added, and then

around 180 units were supplied in Q3 2010, but approximately 340 units were added in Q4 of

2010. Supply was in four locations, Central Lumpini, Early Sukhumvit, Late Sukhumvit and

Other areas. Total supply of serviced apartment units as of 2010 was approximately 16,300 in

around 125 apartments.

2004 2005 2006 2007 2008

81.87%

87.90% 86.06% 83.48%78.38%

85.44% 86.26%82.31%

91.92%

76.69%

A Grade B Grade

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Since 1995 and up until now, Early Sukhumvit area has been by far the most popular for

serviced apartments. Although no mass transit system existed until the end of 1999, the appeal to

western and Japanese expatriates meant that this area was the bulwark of the sector. Other areas

have also grown but on a lower trajectory. In the past few years the Late Sukhumvit area has

become a new prime location especially due to the rise of Thong Lor as a fashionable area to

reside.

Overall Sukhumvit road and its vibrant sois contain over half of all serviced apartment

units in Bangkok with nearly 40% of total supply being located in Early Sukhumvit area. The

mix of good transport links, entertainment, and retail and office facilities creates a strong lure for

people to stay in Sukhumvit.

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Nearly half of total supply is in the grade B category in Bangkok.

The distribution of serviced apartments differs according to location based on the

particular profile of each area. Central Lumpini contains many large embassies and is therefore

seen as being the most prestigious location to live and as such contains more grade Aunits. Late

Sukhumvit also contains more grade A units due to the location containing a number of luxury

branded apartments in Thong Lor road catering to the large Japanese community there. Early

Sukhumvit is the king of grade B apartments as it is a more unpretentious, relaxed location

which also explains the location of more Upper Scale rather than Luxury hotels. The ‘Other’

areas contain more grade C products due to the distance from the centre.

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Average occupancy rates in Q2 tumbled due to the April and May protests. This is mainly

a result of short term guests cancelling but also many longer term stays, especially Japanese,

leaving Thailand to escape from the perceived danger. While occupancy rates soared back in Q3

2010 they have since lost their momentum and have even fallen back in the case of grade

Aapartments. The holiday season should be a strong period for the serviced apartment market

due to the number of tourists. However this has not been translated into increased occupancy.

Higher spending tourists are choosing to avoid the city due to the myriad of problems the city

has in attracting this crucial demand segment.

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In all locations occupancy fell during Q2 2010 but were more pronounced in some areas

than others depending on the proximity to the protest area. Therefore Central CBDand Central

Lumpini suffered the most. In both these areas occupancy has since picked up especially in the

Central CBDbut Central Lumpini still remains quite depressed and is far behind the numbers

recorded in Q1 2010. The protests may have dented the kudos of staying in this area. However

the situation is bright for the Late Sukhumvit area which can boast the best occupancy rates

throughout the year. The area is becoming increasingly fashionable, especially Thong Lor with

easy access to the BTS and now the Airport Link; but far away from perceived trouble.

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Expatriates represent the primary source of demand for the serviced apartment medium

and long stay market. The global economic crisis affected expat numbers in Bangkok

significantly in 2009, reducing the number by around 15,000. The number of expatriates in

Bangkok in Q1 2010 decreased very slightly from last year, but in Q2 2010 dropped more than

10,000, due to the political problems in the centre of Bangkok. However in Q3 – Q4 2010 there

was an increase but the total number is still similar to 2009 and below 2008 prior to the Global

Financial Crisis or Hamburger Crisis.

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After the protests in Q2 work permits issued picked up in Q3 - Q4 of 2010 which

indicates a more positive trend going forward combined with global economic recovery.

Proportion of Expatriates in Bangkok in the 4st Quarter of 2010

The Japanese still represent the largest group of expatriates in Bangkok and are also the

main target group for serviced apartments with most of them staying along Sukhumvit road.

Other nationalities are often in the lower pay bracket and the rental rates of serviced apartments

would be beyond reach.

Rental Rates

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The protests at Rajprasong intersection directly impacted the occupancy rate and rental

rate in Q2 2010. The average rental rate in Central Lumpini area decreased by nearly 20% in Q2

and has remained at these lower levels. In fact the area has gone from second to fourth in terms

of rates over the course of the year. In the Q4 2010 average rental rate in Central CBD increased

approximately 7.4% from Q 2 and Q3while other areas remain similar to Q3.

Rental rate of grade A and B by room type, Q4 2010

The average rental rate of grade A unit are greater than grade B by approximately 1.7 –

12.7% depending on room type.

Situation of the industry during 2010 till 2011

Approximately 470 units were completed in 2011 which was less than last year’s total of

more than 600 units and the lowest in the past two years. The total supply of serviced apartment

units at the end of 2011 was approximately 17,300.

Additional Supply based on Quarter

Additional supply in Q4 was approximately 280 units bringing the total new supply in

2011 while the supply of the 3rd quarter in 2011 was around 100 units. More than 300 units were

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located in Early Sukhumvit area or approximately 65% of the total units completed in 2011. This

is mainly due to the location being very convenient for expatriates who rely on using the Sky

Train. In addition, many office buildings as well as shopping malls and supermarkets are easily

accessed from this location by Sky Train.

The Supply based on the location

The prime area or serviced apartment are Central Business District, Central Lumpini

Area while the late Sukhumvit the prime area is Sukhumvit 55 or Thong Lor Road where has an

good infrastructures and entertainment complex and good transportation links such as Sky Train,

Airport Link but the main area where has a lot of serviced apartment is Early Sukhumvit Area

which has 40% of the market.

40%

18%

13%

29%

Serviced Apartment based on Location

Early SukhumvitCentral Lumpini AreaCentra Business DistrictOther Central Business Zone

If we focus on the 29% of the other Central Business Zone so the Late Sukhumvit Area is the main area that has 12% of serviced apartment while the southern fringe has only 6%

41%

38%

21%

Central Business Zone

Late Sukhumvit ZoneSouthern FringeOther Area

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The Historical Occupancy Rates based on the quarter

The occupancy rates in Q1 – Q3 2011 of both grades were similar and increased around 11% for Grade A serviced apartments in Q4 while only 0.5% for Grade B.

Due to the floods in Bangkok, displaced residents were forced to stay temporarily in serviced apartments for the last two months of 2011.

Another factor is that many serviced apartment buildings reduced their rental rates in the last quarter of 2011 due to intense competition for residents between themselves, the hotel sector and the high-end apartments.

34

The Occupancy Rates based on the Area

All of the serviced apartment zones was not flooded at all so a lot of flood victims

evacuated to stay in serviced apartments in Bangkok because of the conveniences and good of

transportation commuting in Bangkok so the Late Sukhumvit Area has highest Occupancy rates

when compare with other areas ( See the figure in the last page).

The number of the expatriates in Bangkok

Although, there was flooding in Thailand so there are a lot of foreign investors, especially

the Japanese investors who was severe affected by the flooding but the number of the expatriates

still high and the number of the Japanese still at 8%, If we take a look at the 2nd quarter in 2010

there was the red shirt attack during the 2nd Q so there was a little number of expatriates in

Bangkok.

The Japanese people still are the main nation that resides in Thailand during the 4st

Quarter of the 2011.

35

Bangkok Serviced Apartment Market, Q3 2012

Historical Supply, Q3 2012

Approximately 420 units were completed in the first three quarters of 2012, and nearly

156 units are scheduled to complete by the end of the year. The total supply of serviced

apartment units at the end of 2012 is expected to be around 18,259 units. GM Serviced

Apartment, on Sukhumvit Soi 20, was completed in September 2012, with a total of 89 units

ready to rent.

Supply by location, Q3 2012

More than 50% of the serviced apartment supply in Bangkok is located along Sukhumvit

Road in the early and late Sukhumvit areas. The total supply in the early Sukhumvit area has

been more than in other locations for the past 20 years.

36

Historical occupancy rate by grade, 2010 toQ3 2012 by quarter

The average occupancy rates in Q3 2012 for Grade Aand B serviced apartments

increased slightly from the previous quarter. However, the average occupancy rates in the second

and third quarters were still lower than in the first quarter of this year.

Occupancy rates by location, 2011 toQ3 2012 by quarter

The average occupancy rates in Q3 2012 for Grade Aand B serviced apartments

increased slightly from the previous quarter. However, the average occupancy rates in the second

and third quarters were still lower than in the first quarter of this year. The average occupancy

rate in the third quarter in all locations was up slightly from the previous quarter, except in late

37

Sukhumvit and other areas which decreased slightly. Serviced apartment projects are trying to

retain their current clients for long periods by renewing contracts before the expiration dates at

the current rate. However, the Late Sukhumvit Area is the most popular for the customers of

serviced apartment.

Number of expatriates in Bangkok, Q3 2012

The number of expatriates in Bangkok continues to rise. The EU debt crisis is still a

major concern for investors and affects the entire global economy. However, Asia has shown it

has potential for investment, especially in the ASEAN region. Bangkok is highly attractive for

investors who wish to take a first investment step into ASEAN, especially the sub-region of

Myanmar, Laos and Cambodia. As a result, several international companies are looking for

regional office space in Bangkok. There is also good potential for serviced apartments. The total

number of expatriates in Bangkok in Q3 2012 was approximately 61,190.

Rental Rate

38

Rental rate for one-bedroom units by location, 2011 toQ3 2012 by quarter

Rental rates in Q3 2012 were similar to the previous quarter. Only the Central CBD and

early Sukhumvit areas saw rates fall by around 5% compared to Q2, although the Central CBD

still commands the highest rental rates.

Average rental rate by grade, 2011 to3Q 2012 by quarter

The average rental rate of Grade Aand B serviced apartments increased slightly from the

previous quarter, and the rental rates for Grade A serviced apartments are still higher than for

Grade B by more than 45%.

General Products and Services of Serviced Apartment

39

Serviced Apartment is a part of service business normally provide the Tangible Products

and Intangible Products, Intangible Products means the things that can’t be touched or smelled so

this case refers to service providing from service providers, the service providers that be able to

make the customers e pleasure at all times when they stay with us so it relates to emotional

factors so the service providers have to understand the customer’s needs.

Understanding intangible Products

Physiological Needs

This type of need is an basic needs of the people comprises with Air, Water or Residence,

if someone deprives from some need, they will find out it for satisfying themselves. If the human

lack of it, the human body cannot function properly, and will ultimately fail. Physiological needs

are thought to be the most important; they should be met first.

Safety and Security Needs

Humans want to be away from the threats so they might need the of Physical and

Emotional crime such as living in the safety residence and have the security guards to take care

of the customers’ needs.

Love and Belonging Needs

40

It so called the social needs, all of the human need friends and the one who love, the

people want to be accepted by any other people and become important or valued persons.

Self-Esteem

Esteem may be classified into internal and external esteem such as self respect and self

achievement and external esteem is an social status, recognition and reputations.

Self- Actualization

It means the self peak experience that the humans want to have than lower needs of the

people such as Truth, Justice, and Wisdom. On the other hand it refers to “Born to be” or ‘Born

to do”

Understanding intangible Products

The tangible products that the upper scale serviced apartment provides the wide range of

facilities and amenities such as

-1. Ipod docking station

2. Microwave Oven

3. Mini-bar with sink

4. Coffee and Tea making Failities

5. International Adapter in Every room

6. Bath Tub with separated room shower and hairdryers

7. Turndown Services

8. Internet access throughout the building and Video Conference in every room

Rooms Type can be classified as

1. Single Room

2. Twin Room

3. Hollywood Twin

4. Double Rom

5. Triple Room

6. Suite

Conclusion

41

Nowadays, serviced apartment businesses are compete together dramatically with both

direct competitors and indirect competitors (substituted products such as condominium) so the

last year (2011) the growth of the occupancy rates was slightly increase because some of the

investors was still suffered with the economic crisis (Hamburger crisis and Subprime crisis) and

the occupancy rates was at 85% ( especially at the Late Sukhumvit Area).

Moreover, the political crisis at the Central Business District and The Central Lumpini

Area at the Q,2 of 2010 brought about the decreasing of the expatriates in Bangkok and the

occupancy rates was decreased dramatically ; however, there was the silver line for the serviced

apartments in the Late Sukhumvit Area especially in the Thonglor road where is the new zone of

fashions and entertainment so the demand for the serviced apartment was shifted from the

Central Business Districts , Central Lumpini Area, Early Sukhumit( Has the most percentages of

supply side by serviced apartment ) to Late Sukhumvit area so the occupancy rates of all grades

of serviced apartment up to 80% until current time and most of the serviced apartment zones

were not flooded; then , this was the silver line for serviced apartments because most of the flood

victims choose to stay at serviced apartment in the year 2011.

Fortunately, the ASEAN Community will be opened in coming 2015 so the silver line

for serviced apartment because the market group of serviced apartment will be expanded

especially the foreign business persons from the investor groups (expatriates)

So we choose to build the serviced apartment for expats on the Main Thonglor road

where is the most important and prime area of the Bangkok

42

Chapter 3

Marketing

Feasibility

Study

43

Marketing Feasibility Study

Marketing Analysis

According to the last chapter the normal customer of the serviced apartment are the

expatriates who live and work in Bangkok so if the there are a lot of the investment from foreign

company, the number of expat would be increased. Bangkok is the big market for this kind of

business because there are a lot of international firms office locates in Bangkok, if there are a lot

of investments from other countries, it could bring about the increasing of the Occupancy Rates

of serried apartment.

General Environment Scanning is the strategic planning which is very important for all

kinds of business and investment selection and operation management. This is the first step for

business running because we are able to identify the threats and opportunities of the business

which come from outside or external of the business so opportunities are an advantage for the

business while threats are the disadvantage for the business.

Nowadays, Serviced Apartment should implement the General Environment Scanning for

our business running in order to know the external threats and opportunities of the business so

General Environment Scanning is comprised with four factors as followings; (1) Political Factors

(2).Economics Factors (3).Social and Environmental Factors (4). Technological Factors.

General Environment Analysis

Political Factors

According to the Government Housing Bank Journal mentioned that political problems are

the critical problems that affect directly to hotel and serviced apartment because some of the

political occurrences can affect to the decisions of the investors from foreign countries. If any of

the political problem happens, it may bring about the bad attitude amongst the foreign investors

then the serviced apartment and hotel business and condominium business could be affected

because all of these business rely on the foreign business customers mainly but Thai politics are

more stable than ever so this case can attract the investors invest in Thailand

44

In addition ,the investment policy from the foreign direct investors (FDI) that are supported

by the government organization such as Board of Investment which facilitates foreign investors

and ability to invite the investors from foreign countries to invest their capital and company in

Thailand.

Economic Factors

According to the Kasikorn Research Center (2012) mentioned that the main economic

opportunities are the coming AEC (ASEAN Economic Community) which is the community that

require the free flow of the production factors and Thai people can work or invest in other

ASEAN countries and another “Aseaner” from other ASEAN countries can invest and work in

Thailand, this case brings about the advantage to the serviced apartment business so the benefit

of ASEAN Economic Community are as followings:

1. ASEAN Framework Agreement on Service which requires all of the ASEAN countries

must open the Free Service Agreement and include the real estate business but for

Thailand can use CPC 82101 and CPC 82201. (1) Renting or leasing services involving

own or leased residential property (CPC 82101). (2) Residential property management

services on a fee or contract basis (CPC 82201). by the way “ the foreign shareholders

must not hold the shares more than 49 percents and number of foreign shareholder must

less than Thai people” so these could be the opportunities for entrepreneurs for

expanding the market especially the business persons or investors from other ASEAN

countries who want to relocate the factors of production to invest the business in

Thailand ;then most of the Serviced Apartment entrepreneurs would get the agency to

promote their Serviced Apartment to other Aseaners from other ASEAN countries.

2. Free Flow of Skilled Labor which requires to flow the skilled labors within the

communities , those labors are as followings ; dentistry, medicine, nursing, accountancy

services, engineering and architecture. Although the skilled labor that are flowed from

other ASEAN countries could can work and invest freely but they don’t have the right

to buy the land so they need the rental lodging then the demand for serviced apartment

could be increased.

45

Thus, AEC is an advantage of the business doing for economic purpose which brings about

the Free Trade Agreement Area within the community; moreover, there are a lot of non ASEAN

investors that are interested to invest in Thailand in order to use Thailand as a hub for setting the

plant or distribution center to distribute the goods or product to other ASEAN countries so in the

near future there are a lot of foreigners come to Thailand so this is an advantage for serviced

apartment business.

According to the Government Housing Bank and Kasikorn Research Center mentioned that

EU debt crisis which is the big problem that affects to many economy systems in many economic

regions in the world and brings about the drop down of the “World GDP in 2012” so the EU debt

crisis affects to Thai economy as well so the investors from EU countries couldn’t come to invest

in Thailand too much or gain the investment back to their countries during this moment so this is

an threats that the entrepreneurs of serviced apartment should concern.

Although the EU debt brings about the regression of the economic but for Thailand it does

not affect to Thailand directly because the first 6 months of the year 2012 the number of the

European tourists increased when compare with the last year ( Government Housing Bank

Journal).

Social and Environmental Factors

According to the big flooding in Thailand last year that destroy or damage the town so

the new trend of the residence should be sky scrap which is the best choice for the customers

who want to avoid the threats from flooding; moreover, the area around Sukhumvit and

Phayathai are very popular because these area are not affected by flooding situation (ประชาชาติ�

ธุรกิ�จ)

Moreover, the natural disasters in some particular area can bring about the occupancy

rates as the big flooding in 2011 there was bringing about the increasing of the Occupancy Rates

of A Grade serviced apartments in each area and some social occurrences such as the red shirt

attack in 2010 brought about the demand of the serviced apartment.

46

Technological Factors

According to Dr. Potjanee Muangsillapasart mentioned that business and lodging business

should be required to use the Property Management Systems for storing the data or database and

data mining or managing the wide range of room rates and facilitate the customers which are use

in the Front Office and Back Office serviced apartment is a kind of lodging business so Property

Management System should be conducted in order to facilitate the customers and business

running

Moreover, the impact of the Internet and E-Commerce Marketplace toward hospitality and

lodging business by setting up the own website or join the marketing website. Today, there are a

lot of lodging businesses and serviced apartments have invested in e-commerce and information

technology to variety of degree. These investments included in-room, high-speed internet online

direct booking website.

Nowadays, there are a lot of e-hotels, offering services, including high-peed internet

access , video on demand system, limited videoconferencing in al rooms, wireless access

throughout the building; internet kiosk for the customers.

And the impact of 3G that provide the anywhere and anytime for service offering some of

the lodging sections apply the opportunity of 3G such as St. Regis Hotel and Residence apply the

e- butler service or their in-house guests.

Competitive Analysis

Competitive Analysis

Since the year 2010 the demand for serviced apartment has shifted from Early Sukhumvit

and Central Lumpini Area and other business zones to Late Sukhumvit Area especially Thonglor

Road or Sukhumvit 55 so Thonglor is new darling for serviced apartment especially in A Grade.

Thonglor Area share the markets from the Central Lumpini Area where has a tot of embassies

and high-end serviced apartment condominium while the Early Sukhumvit Area has a tot of B

Grade Serviced apartment and high number of the serviced apartment business when compare

with other areas in Bangkok (The Early Sukhumvit has 40% of all serviced apartments in a

whole Bangkok) while Late Suhumvit has only 12% of the portion of the serviced apartment in a

whole Bangkok.

47

Unfortunately, the Occupancy Rates of the serviced apartment in Early Sukhumvit area has

dropped down while the Occupancy Rates of the serviced apartment in Late Sukhumvit has over

80% in all grades of the serviced apartments in those areas and the markets of serviced apartment

in Late Sukhumvit especially Thonglor Area ( Sukhumvit 55) would have a chance to growth

from now on. However, the rival competitors of serviced apartment are not the rival serviced

apartment but also the condominiums or leased residents are the competitors of the serviced

apartment; however, we can compete with the lease condominium by our services because the

customer who rent the lease condominium they cant get the services or assistances from the

condominium people so they have to contact the owner of the condominium rooms.

Moreover, any rival competitors always renew the contract for their existing customers so

we have to find out the market gap for attract the new customers; however, the politics and

economics of Thailand in current time is more stable than ever, there are a lot of new

investments from foreign countries invest their capital and companies in Thailand and some of

their investment is in the development process and especially , ASEAN community will be

opened in coming 2014 that could bring about the incoming of the expatriates in Thailand and

Bangkok and moreover, the Japanese people always rent the serviced apartment rather than

buying the lease apartment. The serviced apartment business today have to compete with direct

and indirect competitors ( GHB Journal and Colliers international and KSMEcare) however,

there are the organization that act as the intermediaries or agency to contact between serviced

apartments itself and potential customers.

Customers Analysis

Normally, the customers’ analysis is the analysis of the potential customers of the

serviced apartment by answering all of the questions as per following;

Who are the customers?

The Expatriates who reside in Thailand.

What are objects that the customers want? The place to reside

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Why the customers come to stay at the

apartment?

- Locate in a good/prime location.

- Good environment around the premise

- Able to access the transportation system

- Adequate and Good Facilities

- Good Safety Systems

When the customers rent the serviced

apartment?

When they relocate to work in Thailand

( When they become the expatriates)

Where the customers can contact?

- The Website

- Agency Website

- Walk-in to contact

- Social Networks

Who is the decision maker?

- The Customer themselves

- The Customers Friends or Siblings who

force the customers to choose the place

to stay.

How do the customers stay?

- Good marketing and promotion

planning.

(Sources: Institute of Small and Medium Enterprises Development and Chavalak Phumphukhieo;

The thesis on Apartment Rental Decision Process of High Class Foreign Customers Based on

Bangkok Transit System in Sukhumvit Line)

Competitor Analysis

In Thonglor road and late Sukhumvit area there are a lot of serviced apartments for

expatriates so they target at various markets of the customers so these are the lists and the

characteristics of the competitors who offer the same products and same rates.

49

The Oakwood Residence Sukhumvit Thonglor

The Products that they offers are Free WiFi, Restaurant, Safety Box, Elevator ,Kids, Room

Services, Receptionist, Fitness Center, Meeting Room, Outdoor Swimming Pool, Car Parking

Service, Parking lot, Laundry Services, Pets are allowed with 67 units(rooms)

The Location of the Oakwood Residence is in Soi Thonglor 13, Khlongton Nua, Wattana

District in the narrow sub-soi in Thonglor.

The review from Tripadvisor.com, most of the customers are the business customers and

most of them satisfy with this and consider it as an excellent residence.

The room rates and room type can be classified as per followings

Type Size (sqm) 4-6 Monthly 6-12Monthly Units

Studio Deluxe 46 66,000 B. 57,000 B. 7

Studio Excutive 53 72,000 B. 63,000 B. 5

1 Bedroom Superior 82 78,000 B. 69,000 B. 5

1 Bedroom Deluxe 76 84,000 B. 75,000 B. 14

1 Bedroom Excutive 88 90,000 B. 81,000 B. 6

2 Bedroom Deluxe 117 123,000 B. 108,000 B. 14

2 Bedroom Excutive 134 135,000 B. 120,000 B. 9

3 Bedroom Deluxe 160 156,000 B. 138,000 B. 1

3 Bedroom Excutive 183 174,000 B. 153,000 B. 6

Source: Kobayashi serviced Apartment agency

Somerset Sukhumvit Thonglor Bangkok

50

Somerset is an serviced residence under the umbrella of the Ascot Limited who provide the

serviced residence properties management under the name Somerset Residence and Citadines

worldwide in Thailand there are 9 properties of Ascot Limited as per following(1) Somerset

Lakepoint (2) Somerset Park Suanplu (3) Somerset Sukhumvit Thonglor (3) Asott Sathorn

Bangkok (4) Citadines Sukhumvit 11 (5) Citadines Sukhumvit 16 (6) Citadines Sukhumvit 23

(7). Citadines Sukhumvit 8 Bangkok (9) Vic3 Bangkok so the main competitor for this brand is

Somerset Sukhumvit Thonglor

The Location of Somerset Thonglor is located in Soi Thonglor 5 where is the narrow sub-

soi but near the main Thonglor road.

The products that the Somerset offers are the WiFi , Safety box , Bar and Pub, Smoking

Zone , Elevator, Kids Club, Meeting Room, Business Center, Bar Pool , Room Service, Laundry,

Family Rooms, Kid Clubs, Swimming Pool for Kids, Steamed Room, Sauna, Jacuzzi, Fitness

Center,

The Somerset Sukhumvit Thonglor provides 262 rooms (units)

Room Types Rates for Month

Studio Deluxe 85,000

Studio Room 90,000

Studio Premier 96,000

1Bedroom Executive 120,000

2 Bedroom Executive 190,000

Information from Kobayashi Company

51

According to the customer reviews from Agoda.com and Tripadvisors.com, most of the

customers satisfy with the Somerset Tangible products but some of the customers are not satisfy

with the foods and drinks and some of amenities.

Centre Point Sukhumvit Thonglor

Centre Point Sukhumvit Thonglor is under the umbrella of Centre point Hospitality which

manage the various properties in Bangkok such as Centre Point Petchaburi, Centre Point

Sukhumvit, Centre Point Silom , Centre Point Langsuan, Centre Point Saadang, Centre Point

Wireless road, Centre Point Sukhumvit Thonglor , Grande Centre Point Ratchdamri, Grande

Center Point Hotel and Residence- Terminal 21

The products that the Centre Point Sukhumvit Thonglor provides are the Restaurant, Salon,

Fitness Center, Elevator, Laundry Services, Rooms Services, Business Center, Meeting facilities,

Shuttle Services, WiFi, Fitness Center, Jacuzzi, Swimming pool, Garden, Kids Club , Daily Maid

Services.. The Centre Point Sukhumvit Thonglor is located on the Main Thonglor Road

The Centre Point Thonglor has 156 units (rooms) and the room rates and rooms type that

the Centre Point provides are

Type Size (sqm) 1-3 Month  4-12 Month  Units

Studio 38 52,000 B. 48,000 B. 19

1 Bedroom 68 78,000 B. 72,000 B. 19

1 Bedroom 80-87 80,000 B. 76,000 B. 80

2 Bedroom 131 130,000 B. 120,000 B. 19

Executive2 Bedroom

142 140,000 B. 130,000 B. 19

Capital residence

52

The capital residence is an Apartment for Foreigner where provides 74 units(rooms) with

24 floors , they provide Microwave, Electric stove, Exhaust hood, Dishwahers, Ovens,

Television, Refrigerator, washing machine, Swimming Pool, Gym , Sauna Kids Club, Tuk Tuk

service with 24 Hrs safety policy.

This apartment is next to the Camilian Hospital it’s decorated with modern style and has the

separated area for the bathroom. The room rates for Capital Residence are as per following;

Type Size (sqm) Monthly Units

1 bedroom 58 40-45,000 B. 14

2 bedrooms 93 65-75,000 B. 14

3 bedrooms 156-168 85-95,000 B. 41

4+1 bedrooms 318 150-160,000 B. 5

Pan Pacific Serviced Suite

The Pan Pacific is an premium serviced suites and hospitality brand worldwide in which

provide the excellent services with a wide range of rooms ; moreover, the facilities provided for

the customers as per following; bar and pub, family room, restaurant , smoking area, airport

transfer, coffee shop, elevator, laundry service, room service, shops, baby sitting, Business

Center, Concierge, Executive Floor, Meeting Facilities, Poolside Bar, Safety Boxes, WiFi,

Fitness, Massage Service, Jacuzzi, Outdoor Pool, Sauna, Steamroom, Kids Club, Spa, Free LAN

Access but has no in room kitchen. The Pan Pacific Thonglor provide the services same as 5star

hotel on the other hand, the Pan Pacific Thonglor is a substitute products or Five Star hotels in

Bangkok.

53

Type Size (sqm) Monthly Units

Studio 37 69,000 36

1 Bedroom

61 77-87,000 67

2 Bedrooms

118-180 118-180,000 42

3 Bedrooms

154 188,000 3

Grass Suites Thonglor

The Grass serviced suite is a small serviced suited in Thonglor where provides 46 rooms

with three room types, the grass is decorated with the green grass surrounded.

The Grass is a boutique serviced suites does not provide the in room kitchen and jus provide

only Studio room and one-bedroom type. The Grass also provides Pub and Bar, Restaurant, Wi-

Fi, Lan Services, Salon, Fitnes Center, Coffee shop, Elevator, Laundry Service, Meeting

Facilities, Safety Box, WiFi, Car Parking, Valet Parking .The Grass Thonglor locates on the

main Thonglor Road.

However, the customers of the grass don’t satisfy with this apartment too much (review

from Tripadvisor and Agoda.com).

Type Size (sqm) Monthly

Studio 30 33-37,000 B.

1 Bedroom 58 48,000 B.

1 Bedroom Deluxe 65 52,000 B.

54

Ekkamai Garden Serviced and Residence

Ekkamai Garden is an apartment that provides for the executive and their families, the

Ekkamai Garden is operated by the Colliers International who seeks a harmonious balance

between work and life family. The room rates are as per following;

Type Size (sqm) Monthly

1 Bedroom 100 55,000 B.

3 Bedroom 160-240 75,900-91,000 B.

3+Garden 240+64 101,000 B.

3+1 250 96,000 B.

3+1 Garden 250+64 103,000 B.

4 Bedroom 280 100,000 B.

4+1 Garden 290+170 140,000 B.

The Ascent Condominium (Indirect Competitor)

As we have mentioned that the substitute product of serviced apartment is a condominium.

Ascent Condominium, Ekkamai-Thonglor , this is he low rise condominium which

comprises with 90 units(rooms) ,located on the 1 rai and the minimum price is 2.39 million

baht , the facilities that they offer are the (1). Swimming pool ( 7 meters times 1.2 meters) ,

Fitness Center ( 28 sq.m with 5 facilities), two elevators, parking lot at G floor and B1 floor and

CCTV/Access Card., the target group of the Asent is the people who has the modern lifestyle

However, there are a lot of units for this condominium within 8 floor low rise building, the

room is very crowded and the location of this condominium is located in the slum and the traffic

55

jam area and has a lot of schools and locates next to the contaminated canal (Source:

ThinkOfLiving.com)

Location of the Ascent Thonglor

The Property of the Ascent Thonglor

Segmentation Targeting and Positioning Analysis

Segmentation, Targeting and positioning or so-called STP analysis is a kind of the

marketing strategy

56

According to Philip Kotler and Gary Amstrong mentioned that the form of segmentation

variables can be classified into 4 types as per following in the circle graph.

Geographic

BehaviorDemographic

Psychographic

Segmentation Variables

Geographic Segmentation

According to the iHotel Marketer.com mentioned that, the market segmentation based on

the Geographic Variables or so-called the Geographic Segmentation so the geographic

segmentation are the classifications of market in terms of country, region, state, province,

municipals.

Each of the group of people in different geographic area has different characteristics and

behaviors so the sum of serviced apartment always uses the criteria of the geographic

segmentation.

According to the GHB journal and Colliers international mentioned that serviced apartment

always target at the Japanese Market because the Japanese is the main group of expatriates in

Bangkok and Thonglor so some of the apartment in Thonglor always target at 100% at Japanese

customers such as the Grass Thonglor.

57

Number of Expat becomes increase

(Source: Colliers international)

Behavioral Segmentation

58

The Customer Behaviors in Thonglor

According to the Marketeer Magazine mentioned that the behavior of the consumers in

Thonglor Road are the people who has a modern lifestyle and has high income and willing to

live in the downtown so the products offered that they need the things that different from other

products in the market so the behavior of the consumers in Thonglor are as followings; (1)

Thonglor has the Thai and Expatriate and Tourist Consumers. (2) The consumers in Thonglor

have high purchasing power (3) Well managed in financial and choose the best choice for their

lifestyle.(4) The number in Thonglor are the people who always seek the information for new

place for hanging out (5) They have the different lifestyle (6) They are the “trend setting” (7)

Brand Image is the things that the consumers of the Thonglor concern to. According to the Sen

Thang Set Thi mentioned that the consumers in Thonglor don’t concern about price so they need

the qualified products. (8) There are a lot of Generations of people range from Baby Boomer to

Gen M.

Japanese Customer Behavior

According to GHB journal mentioned that the Japanese customers always choose to stay in

serviced apartment rather than buy the leased condominium

More ever, Asst. Prof. Dr. Krissatika Kongsomphong mentioned that the way to break the

ice of culture in order to market for deliver the products and services to Japanese market but

Japanese people are the nationalism people so it’s too complicate to market or this group;

however, Japanese people are the one who have high purchasing power and their tastes to buy

the products or services from the qualified products and services which is differ from other

products.

The marketing specialists also said that the Japanese customers always use their sense to

buy the products and services and fashions and always be tried of the things that they are using

and tend to shift to use other things so the factors that can make the Japanese Customers to buy

the products and services are (1) Quality (2) Value and (3). Color and they usually prefer the

products and services that have the universal style.

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The demographic of the Japanese in current time, the Japanese people always be single and

get divorce than ever, in the household there are only few people in one household.

The needs of the Japanese people and the driver that encourage them to choose the housing

in the destination, According to Kobayashi Magazine mentioned that the Japanese Customers

need the room maid for keeping and clean the room.

ASEAN Customers

ASEAN will be the single market base in coming 2015, new have to understand the

ASEAN consumers behavior with 580 people of a whole community because in each country or

each region have the different behaviors , demographics, lifestyles and beliefs and backgrounds

of economics.

As we mentioned in early page ASEAN will affect to the serviced apartment business in

term of the free flow of the people and investments that brings about the increasing of expatriates

in Thailand.

ASEAN has the identities among the community, there are various kinds of the Social

factors, Economic factors, Language and Local Traditional Culture like the European Union so

this is the things that affects the purchasing decision, the income that they willing to pay for

Singaporean Customers

Purchasing Decisions

They have high purchasing power so most of them would like to purchase the high-end

products and premium and services.

Taste

The lifestyle of Singaporean, their lifestyle is affected by the western culture especially for

the younger people and affected by the world market and universal fashion trend so they are the

fusionism market in the ASEAN community and they always take crew of their health and

hygiene a lot.

60

Brunei customers

Purchasing Decisions

They have high purchasing power and willing to buy the high-end and focus on the quality

of the products and services.

Taste

Brunei people have the constraint for their cultures because of the Muslim Culture but they

have the up-to-date fashion and take the culture from western countries.

Malaysia Customers

Purchasing Decision

Malaysian people tend to buy the products and services that facilitate them and incline to

buy the high-end products and services and focus on the new technology and new innovation

Taste

There are a lot of races and ethnic groups in Malaysia but the group that always follow

the western style always pay much more money to buy the high-end products and services.

Indonesian Customers

Purchasing Decision

The Indonesian people have the gap between the wealth and the poverty and have the price

sensitive and don’t want the high-end one.

Taste

The Indonesian consumers have the moderate or average income so they always need to

pay for food and beverage much more than others ( 51% of all expenses) and hang-out with their

friend at outside of their homes.

61

Philippines Customers

Purchasing Decision

They don’t want to buy the high-end but they always buy the private Label and have

different tastes according to their revenues that they earn and they always think about their health

and wellness and hygiene.

All of the customers behaviors above always take care of their health , hygiene, and want

the up-to-date products and services and think about the quality of the products or services and

the health-related product offers so the serviced apartment should offer the health-related offer to

them.

Vietnamese Customers

Vietnam is a big country that have a lot of regions in the country ,the behavior of buyers are

differ according to the region that each group dwell. The Northern Vietnam focus on the price

and the Middle Vietnam focus on the quality of the products and the Southern Vietnam focus on

the benefit that they might get (benefit sought)

The new generation of Vietnam peoples especially the working group which sensitive to the

world market trend.

Burmese, Laotian, Cambodian

The Purchasing Power among these countries are not too high so they always occasion the

benefit sought and have less choice to choose.

The taste of these countries looks like the taste of Thai people because of the culture and

traditions.

62

The Demographic Segment

Occupation

Income

Age

Size of Family

Family Life Cycle

Religious

Demogrphic Segmentatio Variable

The Segmentation Approach based on Occupation and Income and Family

According to the Marketer Magazine mentioned that the demographic data of the Thonglor

road are as following; (1) Population Size equals to 45,633 persons (2) Household Size equals

22,942 households (3) Density of population 6,464/ 1square kilometers.

The occupation of the customers of the serviced apartment always be the business person

and the expatriates who relocate to work in Bangkok. ( GHB journal) so the occupation of the

expatriates are as following (1) Operation Managers (2) Lectures and Instructors (3)

Accountancy and Lawyers (4) Business (5) Managing Director.

Moreover, the expatriates who works in the field of investment Thailand are as followings;

(1) Operation and Production Manager (2) Computer Engineering (3) Architecture (4) Managing

Director and Top Management (5) Operation Staff(Source: The Ministry of Labor, Thailand)

In addition, the research Industrial Council Thailand and Faculty of Business

administration, Sripathum University mentioned that the expatriates in Thailand have the high

income and most of them are the professional who work as the top managers in the organization

so from the latest survey in 2010/2011 showed that mot of the expatriates always gain the salary

more that 300,000 baht; moreover, they get the medical welfares educational welfares for their

families. (Source: Thai PBS)

63

As mentioned in earlier pages the Japanese expatriates are the main expat group in Thailand

and Bangkok.

According to the data from the Japanese embassy of Thailand shows that so the reasons of

staying in Thailand of Japanese expatriates are as followings;

Reasons of Staying in Thailand Number of Expat based on reasons

1. The Japanese who work for

Japanese Business Organization

with their family members.

35,019 persons

2. The Japanese who work in Mass

Communication fields with their

family members.

203 persons

3. Personal SMEs and entrepreneurs 1,819 persons

4. Students and Researchers 2,285 persons

5. Government staff with their family

members.

668 persons

6. Long-term settle down 1,019 persons

7. Others 1,019 persons

Total 47,251

Moreover, mentioned that the groups of expats who don’t have the family members are

also the market for serviced apartment in Bangkok , this group of expats works as the staff for

business organization and gain the revenues more than 50,000$ per year. .

Source: The Thesis on the topic Expectation and Satisfaction toward the Qualification of Thai

Graduates in Japanese Studies, National Institute of Development Administration (NIDA) and

the GHB journal and the thesis on the selection of the guest house among the foreign people by

สุวิ�ยดา สุ�งเจ�ม)

Demographic segmentation of ASEAN Customers

64

According to the classification of the world bank , the world bank classified the revenues of

ASEANERS in to 5 categories as per following (1) High Income Earning (2) High- Average

Income Earning (3) Average-Low Income Earning (4) Low Income so if the ASEAN

community open in coming 2015 the target market should be Singaporean and Brunei people .

The demographic (Age) structure of AEANERS are the working age ( age of 15-64 years

old) so there are 60-77 percents of a whole ASEAN community so this is the thing that fits to

many business especially for serviced apartment business because it may increase the number of

working expatriates ; moreover, the working age can earn much more money and have the

purchasing power to buy the products or services and they want to find the things that different

from the usual products and services that they use so they dare to accept a new things different.

65

Psychographic Segmentation

Psychographic Segmentation is the segment based on the psychology and demographic so

this segmentation approach refers to lifestyle, personality, cultures and traditions.

As mentioned earlier the consumer behaviors in Thonglor they have the specific

identification in their lifestyles , they are the Trend Setters so the products and services that they

need should have the identity that they like and they always concern about the Brand Image.

Targeting

Demographic

BehaviorPsy-cho-

graphic

Geo-graphic

Target Market

66

Reigion

Income

AgeSize of Family

Family

Occupation

Demogrphic Segmentatio Variable

We target by implementing the demographic segmentation strategy because we concern

about the market size ( This market size equals to 35,019 persons so this is the biggest market

size among expats) because the main expat groups in Bangkok are the Japanese expat groups so

if we focus on the Japanese expat group they are the business persons in the organization and

they have the family member with them so we target the Japanese expatriates with their families

as a main target group and followed by the expats who stay alone and don’t have the family and

have high purchasing power.

67

Positioning and Differentiation

Normally the quality of service of the service business depends on the quality of the

appearance products such as cleanliness of the property, location and atmospheres, quality of

amenities, and the quality and responsiveness of people (service providers).

Moreover, we concern about the differentiation of our products and services, there are lot of

the competitors in Bangkok so we must be differ from each other by implementing the “service

innovation”

According to Nattaporn Puripanyawanich mentioned that service innovation is a new

process of the service operation in order to deliver the value to the customers so the service

innovation is a differentiation strategy that many organizations implement for creating more

loyalty customers so we need to create the service innovation strategy by getting the Information

Technology to deliver the value to the customers by applying the Application on customers’

tablets , smart phones , the application that we use is to receive the customers’ order so the

customers can order the services in advance via Application although the customers are outside

68

of the apartment’s premise so the competitors are not using this strategy; moreover, we can

promote the information through this application to the customers.

Marketing Mix

Marketing Mix is a tools that is used to control the business, this is a tool that‘s used for

delivering the value to the target customers that are comprised with 1) Product 2) Place 3) Price

4) Promotion 5) People 6) Process 7) Physical Evidence

Products and services

The products and services are classified as followings (1) Wide range of rooms within room

facilities such as Kitchen set, Ipod dock, Internet TV, Bed, Wardrobe (2) Fitness Center, (3)

Business Center and Meeting Facilities for business customers (4) Jacuzzi (5) Internet Wi-Fi

throughout the premise (6) Kids Club for the families who has their own children (7) Minimart

and Grocery Shop. (8) Swimming Pool with pool side bar (9) Sauna Room. (10) Coffee shop.

Place

This part relates about the Location, Delivering the tangible products to the customers.

According to Service Marketing (2011), mentioned that the place of the service business is

to deliver to tangible products to the potential customers and the most common strategy that

service business always do are (1) Direct Sales (2) Sales via intermediaries

The apartment implements the direct sales by getting the salesperson to walk-in the

Japanese Company in order to sales the rooms and facilities directly to the business customers,

this approach the salespersons are able to control the sales process and service process and able

to get the feedback in return immediately.

In addition, the apartment can get the Agents who are the intermediary for selling the rooms

and facilities to the potential customers so the apartment get the agent website which are the

intermediary for our products to the Japanese Expats who are seeking the housing in Bangkok

such as Kobayashi.com, Plus Property.com ; moreover, in the future the ASEAN community will

be opened so we might get the agency who act as the intermediary to promote our apartment to

69

the ASEANERS especially Singaporean nd Brunei people who have the high purchasing power

for serviced apartment.

Moreover, our location is a key main thing, our apartment is located on the Main Thonglor

road across from Camillian Hospital where is the customers are able to access easily.

Price

We pricing based on the costs and expenses in order to avoid the loss but our room rates are

not too high when comparing with other competitors.

Promotion

We promote ( Communicate ) via advertisement, giving some souvenir, leaflet, Billboard

and Notice in the front of the premise and publicity via the application for the in-house

customers and utilize the Free social media such as FaceBook, YouTube, Instragram and our E-

Commerce website.

Physical Evidence

This physical evidence refers to the cleanliness, decoration, facilities layout, textures and

color using of the premise.

In this case may refer to the quality of the facilities and amenities of the apartment.

People

People can be referred the service providers so this is the main reputation of our Apartment

because we offer the butler position instead of the housekeeper position.

Butler is the one who serve the customers closer than the normal housekeeper such as

cleaning the room, print out the document, setting up the facilities , washing the clothes, dishes

and so on while the other competitors have no the exceptional butler.

Process

We have the application so the customers can order the services from the application and

the butler will complete the service immediately although the customers are outside of the

70

premise so this is the Customer Relation Management (CRM) program that collect the data from

the customers in order to serving them.

71

Sales Forecast

Room Type A = 38 Rooms, Room Type B = 12 Rooms, Room Type C= 8 Rooms

The Year Begin Year1

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecAnnual Totals

Room Type A

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

2,220,000

Sale @ room

26

26

26

24

24

24

25

25

25

26

26

26  

TOTAL 4,810,000

4,810,000

4,810,000

4,440,000

4,440,000

4,440,000

4,625,000

4,625,000

4,625,000

4,810,000

4,810,000

4,810,000

56,055,000

   Room Type B

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

1,800,000

Sale @ room

12

12

12

10

10

10

11

11

11

12

12

12  

TOTAL 1,800,000

1,800,000

1,800,000

1,500,000

1,500,000

1,500,000

1,650,000

1,650,000

1,650,000

1,800,000

1,800,000

1,800,000

20,250,000

   Room Type C

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

1,200,000

Sale @ room

5

5

5

5

5

5

5

5

5

5

5

5  

TOTAL 500,000

500,000

500,000

500,000

500,000

500,000

500,000

500,000

500,000

500,000

500,000

500,000

6,000,000

   

Monthly totals:

7,110,000

7,110,000

7,110,000

6,440,000

6,440,000

6,440,000

6,775,000

6,775,000

6,775,000

7,110,000

7,110,000

7,110,000

82,305,000

  Q1 more than 70% Q2 about 65% Q3 about 68% Q4 about 70%

The increase in Foreign Direct Investment (FDI) and the political stability during the past two to three years are main drivers

of demand for serviced apartments. Many foreign investors may be new to investing in Thailand and are in the development stage of

their businesses, but it is a good sign for the future of the serviced apartment business in Bangkok. The global economic slowdown has

directly affected company budgets for staff accommodation and is driving people towards lower-cost residences, such as

72

condominiums for lease and apartments for foreigners in the City Area; moreover, most of serviced apartment try to renew the

contract with the existing customers.

Year 2

12-month Sales Forecast

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Totals

Room Type A 185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

2,220,000

Sale @ room 30

30

30

32

32

32

34

34

34

36

36

36  

TOTAL 5,550,000

5,550,000

5,550,000

5,920,000

5,920,000

5,920,000

6,290,000

6,290,000

6,290,000

6,660,000

6,660,000

6,660,000

73,260,000

   

Room Type B 150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

1,800,000

Sale @ room 13

13

13

14

14

14

15

15

15

16

16

16  

TOTAL 1,950,000

1,950,000

1,950,000

2,100,000

2,100,000

2,100,000

2,250,000

2,250,000

2,250,000

2,400,000

2,400,000

2,400,000

26,100,000

   

Room Type C 100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

1,200,000

Sale @ room 5

5

5

6

6

6

7

7

7

8

8

8  

TOTAL 500,000

500,000

500,000

600,000

600,000

600,000

700,000

700,000

700,000

800,000

800,000

800,000

7,800,000

   

Monthly totals: 8,000,000

8,000,000

8,000,000

8,620,000

8,620,000

8,620,000

9,240,000

9,240,000

9,240,000

9,860,000

9,860,000

9,860,000

107,160,000

  Q1 about 80% Q2 about 85% Q3 about 90% Q4 about 95%

During the year 2014 and 2015, most of the FDI tend to relocate the resources to ASEAN community and Bangkok and most

of those FDI still develop their projects in Bangkok; then, it brings about the increasing of the expatriates in Thailand.

Year 3

73

12-month Sales Forecast

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Totals

Room Type A 185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

2,220,000

Sale @ room 38

38

38

38

38

38

38

38

38

38

38

38  

TOTAL 7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

84,360,000

   

Room Type B 150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

1,800,000

Sale @ room 16

16

16

16

16

16

16

16

16

16

16

16  

TOTAL 2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

28,800,000

   

Room Type C 100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

1,200,000

Sale @ room 8

8

8

8

8

8

8

8

8

8

8

8  

TOTAL 800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

9,600,000

   

Monthly totals: 10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

122,760,000

  Q1 about 100% Q2 about 100% Q3 about 100% Q4 about 100%

Year 4

74

12-month Sales Forecast

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Totals

Room Type A 185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

2,220,000

Sale @ room 38

38

38

38

38

38

38

38

38

38

38

38  

TOTAL 7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

84,360,000

   

Room Type B 150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

1,800,000

Sale @ room 16

16

16

16

16

16

16

16

16

16

16

16  

TOTAL 2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

28,800,000

   

Room Type C 100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

1,200,000

Sale @ room 8

8

8

8

8

8

8

8

8

8

8

8  

TOTAL 800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

9,600,000

   

Monthly totals: 10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

122,760,000

  Q1 about 100% Q2 about 100% Q3 about 100% Q4 about 100%

From this year on, these are the official years of ASEAN Economics Community so, there are the free flows of the skilled

labor and free flows of the investment , there are the ASEAN FDI and other FDI from non-ASEAN community so it brings about the

full occupancy rates of the serviced apartment because f the increasing of the expat .

Year 5

75

12-month Sales Forecast

  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual Totals

Room Type A 185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

185,000

2,220,000

Sale @ room 38

38

38

38

38

38

38

38

38

38

38

38  

TOTAL 7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

7,030,000

84,360,000

   

Room Type B 150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

150,000

1,800,000

Sale @ room 16

16

16

16

16

16

16

16

16

16

16

16  

TOTAL 2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

2,400,000

28,800,000

   

Room Type C 100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

1,200,000

Sale @ room 8

8

8

8

8

8

8

8

8

8

8

8  

TOTAL 800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

800,000

9,600,000

   

Monthly totals: 10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

10,230,000

122,760,000

  Q1 about 100% Q2 about 100% Q3 about 100% Q4 about 100%

(Sources: Colliers International and Kasikorn Research Center)

76

Conclusion

Marketing is the approach that to offer the value to the potential customers and how to

maintain the customers with us and creations of the loyalty customers so we must take care and

satisfy the customers at all times; however, the marketing is always affected by the internal and

external so the external are the threats that could affect the marketing.

The first thing that to create the serviced apartment or other kinds of the apartment is to

surveying of the market needs in the location of the apartment that will be built and we can

position ourselves rightly for the target market so the biggest market for serviced apartment

business is in Bangkok that are place that has a lot expats that prefer to choose to stay in the

serviced apartment ;then, the factors that brings about the incoming of the expatriates in

Bangkok are the economic factors and political factors because these expatriates always come

with the Foreign Direct Investment(FDI) from other countries in Bangkok so the FDI policy of

the Thai Government and Political problems that could brings about the decreasing of the

expatriates and occupancy rates ; furthermore, the social and environmental factors may bring

about the increasing of the occupancy rates such as the flooding in Thailand so the victims of the

flood moved to stay in the serviced apartment in Bangkok in the non-flooded areas and the

technology factors such as the opportunities from 3G factors that facilitates the marketing

activities such as E-commerce Website, Application on tablets, smart phones and free social

networks such as FaceBook, YouTube and Instragram application.

In addition, the main our target markets are the Japanese expats who come along with

their family members so this is the biggest market size of the market segments ( 35,019 persons

and have high purchasing power) and they always stay in Thonglor road; moreover, the ASEAN

Econmics Community will be opened in the coming 2015 so there are the opportunities for us

and serviced apartment business that to get more customers so these are the silver line for

serviced apartment business so the our ASEAN customer could be he Singaporean and Brunei

because they have high purchasing power.

Our competitors are the direct and indirect competitors such as the rival serviced

apartment in the same area and so we need to differentiate ourselves from other competitors. We

differ from the condominium because we have the advantage about the service providing whle

77

the condominium can’t offer the full range of services like serviced apartment ; for example, if

the customers have the problems about the in-room equipment the condominium staff don’t have

the right to fix anything while the serviced apartment staff willing to assist the customers

Moreover, we have the butlers who offer the personalized service to all rooms and we

have the application for them to contact and promote the serviced apartment for the customers

and get the information of the customers to create the Customer Relations Management.

78

Chapter 4

Investment Cost

79

Investment Cost

Pre- Operating

- Land 128,000,000Baht (1 Square yard)- Transfer fee 2,560,000 Baht

Total 130,560,000Baht

References: http://www.nakornthong.com/

http://www.hometophit.com

Investment cost

Cost per each Total cost(Baht)

Investment cost- Land (1 Square yard= 320,000Baht) 400 Square

yard128,000,000

- Transfer fee (Land x 2%) 2,560,000- Apartment label (3mx1.5m) 30,000- The plumbing fixtures(include TAX) 680,000+7% 727,600- Electronic fixtures (100Amp)- 100 Amp- Insurance (100KV for High voltage meter)- Insurance for using electronic

300400

37,20030,00040,000105,000

- Electronic Install all buried (2,500 space) 270 675,000- Telephone fixture - Cabal (4m per each) total 80 phones- Telephone Surge Protection Box

(8,000per24phones)- Telephone install fee (distance 11km-200km)- WIFI, WLan and phone (80space)- Phone (80 phones)

4808,000

5002,590

153,60032,000

30040,000207,200

- CCTV install fee (20 units)- CCTV (20 units) (99,000per16units)

3,00099,000

60,000198,000

- Construction of building (including labor cost, swimming pool, etc.)

228,008,000

Furniture and decorate inside-room costRoom type A (38 rooms)

- Kitchen Zone- Living room- Bathroom- Bedroom

197,160128,755120,387480,250

7,492,0804,892,6904,574,70618,249,500

Room type B (12 rooms)- Kitchen Zone 199,540 2,394,480

80

- Living room- Bathroom- Bedroom

63,440120,387284,120

761,2801,444,6443,409,440

Room type C (8 rooms)- Kitchen Zone- Living room- Bathroom - Bedroom

189,54047,735120,387102,960

1,516,320381,880963,096823,680

Office furniture and equipments- Office table set- Furniture set- Computer set

27-inch iMac

Apple Wireless KeyboardApple Magic Mouse

- Printer brother MFC-9970CDW

- Fax Machine FAX-2820

75,00045,000

66,9002,3902,39039,9006,990

75,00045,000

66,9002,3902,39039,9006,990

Fitness equipment 1,756,565Other equipmentAir condition

- Samsung ร �น Vivaldi Inverter (ASV24 ESWMNXST)

24,000 BTU, including install cost (210 units)

De-aerator- Samsung / SA605CBXST (80 units)

CS-D50DB4Q (CU-D50DBQ7) (6.0HP)Cassette Type – Neat Installation and 4-Way Airflow Comfort (15 units)

Television

- 55 inch HX925 Series BRAVIA Full HD 3D *1 TV (70 units)

- 40 inch NX720 Series BRAVIA Full HD 3D *1 TV (62 units)

38,400

4,900

99,750

129,990

47,240

8,064,000

392,000

1,496,250

9,099,300

2,928,880

Total investment cost 531,783,261

Reference: http://www.mwa.co.th/ewt_news.php?nid=301&filename=index

http://www.pea.co.th/th/services/services_fee_rates.htm

http://www.eakpai.com/index.php/2011-03-08-05-20-37.html

http://www.telepart.net/

81

http://www.bd.co.th/service.php

http://sabuy.sanook.com/product/6956201?utm_source=priceza.com&utm_medium=productlist-

http://www.cctvbangkok.com/

http://www.shoppingbycom.com/%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B8%9E%E0%B8%B1%E0%B8%92%E0%B8%99%E0%B8%B2%E0%B8%87%E0%B8%B2%E0%B8%99/contractors.html

http://www.srangsookjai.com/index.php?lay=show&ac=article&Id=538802004

Location

Thonglor road, Bangkok, Thailand

82

Layout and Facility

The 7-storey U-shaped building

- The one with the front office, mini-mart, coffee shop, and a customer management (zero rent), and the service.

-  A grade 2-3 class room C, the room is 4-5 grade B, grade 6-7 and grade rooms A.- What deck is decorated with plants to shady corner benches for residents to relax. And

the facilities (pool, gym) to support the top. For privacy and convenience of the residents.- Building a modern style, adding a little touch of sweetness. White plus gray. To make

sense to stay clean. Decorated with shady trees because the Bangkok area, which is a rare tree in our apartment, so it makes a difference, like the forest in the middle of the city so that residents feel most, relaxed.

- Parking is separate to the building. Beauty and the noise (car audio, car to car) to the residents.

Floor Plan

83

84

Room TypeGrade A

Grade B

85

Grade C

86

Machine/Tools/ Equipments

Room type AKitchen zone

This kitchen is u shape and has cabinet in the down that make you easy to catch something that you want and it can use to be counter bar too.

Reference: http://onlinecatalogueasia.ikea.com/TH/th/Range_Brochure_Kitchen/

Living room zoneSofa

Large and deep seat was comfortable and backrest supports your back well. Give the soft touch and is durable and easy to careful.

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

87

TV cabinet

In the front of cabinet made from safety glass. Do not block the remote control signal or control electronics. Leg of cabinet can adjustable so it can put on uneven areas.

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Carpet

This carpet is tightly woven wool and can give the soft touch of the foot and can reduce noise well.

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

88

Lamp

The fabric lamp can provide soft lighting.

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Blinds

The blinds have 250 cm in length but if you want the short one you can easy to cut it by the scissors and keep the seam by use adhesive tape.

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Bed cover

Can use to be large blanket or can be bedspreads for single bed.

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

89

Pillow

Pillows feather give the feeling full, soft and flexible like you have a good night.

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Extra Chair

This chair is extra wide seat it can squat on the seat comfortably.

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

90

Bedroom

Included:- Bed 6 feet- 2 Bedside cabinets- Wardrobe- Vanity

Reference:http://www.udomfurniture.co.th/shop/%E0%B8%AB%E0%B9%89%E0%B8%AD%E0%B8%87%E0%B8%99%E0%B8%AD%E0%B8%99/%E0%B8%8A%E0%B8%B8%E0%B8%94%E0%B8%AB%E0%B9%89%E0%B8%AD%E0%B8%87%E0%B8%99%E0%B8%AD%E0%B8%99%E0%B8%AB%E0%B8%A5%E0%B8%B8%E0%B8%A2%E0%B8%AA%E0%B9%8C.html

91

BathroomMirror

Width: 60 cmDepth: 11 cmHeight: 78 cmMax / tracks: 2 kg

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Laundry cabinet

Width: 40 cmDepth: 38 cmHeight: 194 cm

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

92

Light

The light shines steadily suitable for installation in front of the mirror and sink.

Lamp is light distribution so the lighting will throughout.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Basin with 4 drawers

Drawers made from real wood the surface coated with melamine so it resistant to scratches as well.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

93

Corner shelf

Cleaning by use a soft cloth moistened with water or water mixed with a mild soap to wipe clean can’t use abrasive cleaners.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

The hanging back of the door

Hang it up to the door for hanging or storage. The rear door panels prevent scratching.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

94

Fabric shower curtains

Polyester fabrics coated prevent the water.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Jacuzzi

Jacuzzi tub is not in use on a large scale, rounded down to 160 cm between the two is the amount of water and compressed air. And adjust to the new pressure.

Reference:http://www.treetouch.com/index.php?lay=show&ac=article&Id=538818602

95

Toilet boil

Reference:http://www.atsiam.com/reviews/review_detail.asp?RV_ID=6355&LANG=th

96

Room type BKitchen zone

In this set include cabinet, Hanging cabinet, cooker hood, oven, microwave and some tool that are nessesory.

Reference: http://onlinecatalogueasia.ikea.com/TH/th/Range_Brochure_Kitchen/

Living room zoneTV cabinet

This TV cabinet used for mounting flat screen LCD TVs 37 to 60 inches and have many shelf for drawer. Have many cabinet sizes can choose a size that fits the space available for efficient to use of space.

Referencehttp://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

97

Sofa

Large and deep seat was comfortable and backrest supports your back well. Give the soft touch and is durable and easy to careful.

Referencehttp://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Carpet

This carpet is nylon carpet wool blend skin soft and very durable. It is tightly woven wool and can give the soft touch of the foot and can reduce noise well.

Referencehttp://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Lamp

The light shines through the bamboo spokes it make a beautiful shadow on the wall.

Referencehttp://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

98

Extra chair

This chair can take a rest comfortably because this chair has the high backrest that can support the neck well.

Referencehttp://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Pillow

Pillows feather give the feeling full, soft and flexible like you have a good night.

Referencehttp://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Blinds

The blinds have 250 cm in length but if you want the short one you can easy to cut it by the scissors and keep the seam by use adhesive tape.

99

BathroomMirror

Width: 60 cmDepth: 11 cmHeight: 78 cmMax / tracks: 2 kg

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Laundry cabinet

Width: 40 cmDepth: 38 cmHeight: 194 cm

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

100

Light

The light shines steadily suitable for installation in front of the mirror and sink.

Lamp is light distribution so the lighting will throughout.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Basin with 4 drawers

Drawers made from real wood the surface coated with melamine so it resistant to scratches as well.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

101

Corner shelf

Cleaning by use a soft cloth moistened with water or water mixed with a mild soap to wipe clean can’t use abrasive cleaners.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

The hanging back of the door

Hang it up to the door for hanging or storage. The rear door panels prevent scratching.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

102

Fabric shower curtains

Polyester fabrics coated prevent the water.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Jacuzzi

Jacuzzi tub is not in use on a large scale, rounded down to 160 cm between the two is the amount of water and compressed air. And adjust to the new pressure.

Reference:http://www.treetouch.com/index.php?lay=show&ac=article&Id=538818602

103

Toilet boil

Reference:http://www.atsiam.com/reviews/review_detail.asp?RV_ID=6355&LANG=th

104

Bedroom

Bed

Bed made from carved teak 5 feet

Reference:http://www.udomfurniture.co.th/shop/%E0%B8%AB%E0%B9%89%E0%B8%AD%E0%B8%87%E0%B8%99%E0%B8%AD%E0%B8%99/%E0%B9%80%E0%B8%95%E0%B8%B5%E0%B8%A2%E0%B8%87%E0%B8%99%E0%B8%AD%E0%B8%99/%E0%B9%80%E0%B8%95%E0%B8%B5%E0%B8%A2%E0%B8%87%E0%B8%AB%E0%B8%A5%E0%B8%B8%E0%B8%A2%E0%B8%AA%E0%B9%8C.html

Wardrobe

Reference:http://www.udomfurniture.co.th/shop/

105

Bedside cabinet

Reference:http://www.udomfurniture.co.th/shop/%E0%B8%AB%E0%B9%89%E0%B8%AD%E0%B8%87%E0%B8%99%E0%B8%AD%E0%B8%99/%E0%B8%95%E0%B8%B9%E0%B9%89%E0%B8%82%E0%B9%89%E0%B8%B2%E0%B8%87%E0%B9%80%E0%B8%95%E0%B8%B5%E0%B8%A2%E0%B8%87/%E0%B8%95%E0%B8%B9%E0%B9%89%E0%B8%82%E0%B9%89%E0%B8%B2%E0%B8%87%E0%B9%80%E0%B8%95%E0%B8%B5%E0%B8%A2%E0%B8%87-ud94.html

106

Room type CKitchen zone

You can do everything here – cook, eat, bake, surf and play. Because when space is small, ideas get bigger. Like a drop-leaf table that folds down when you’re not eating. And the tablet storage on the wall.

Reference:http://www.ikea.com/th/en/catalog/categories/departments/kitchen/roomset/20132_kiro02j/

Living room zone

Sofa

Generous seating series with a soft, deep seat and comfortable support for your back.

Reference:http://www.ikea.com/th/en/catalog/products/S69908184/

107

TV cabinet

Vents at the top of the TV bench; helps improve air circulation around electronic components.

Reference:http://www.ikea.com/th/en/catalog/products/20188789/#/30174616

Carpet

The dense, thick pile provides a soft and warm surface for your feet and also dampens sound.

Reference:http://www.ikea.com/th/en/catalog/products/20188789/#/30174616

108

Lamp

Gives a soft mood light.

Reference:http://www.ikea.com/th/en/catalog/products/20213595/

Curtain

Thin curtain defuses light softly; perfect to use in a layered window solution.

Reference:http://www.ikea.com/th/en/catalog/products/90221554/

109

Bedspread

The bedspread has a lively texture created by thicker jute threads interwoven into the cotton fabric and looks decorative on your bed.

Reference:http://www.ikea.com/th/en/catalog/products/70229419/

Pillow

Support pillow to sit up, recline, relax and read comfortably in bed or on the sofa.

Reference:http://www.ikea.com/th/en/catalog/products/20166117/

Extra chair

Easy to keep clean; removable dry-clean cover.

Reference:http://www.ikea.com/th/en/catalog/products/00188115/

110

Bedroom

Bed

Bed made from carved teak 5 feet

Reference:http://www.udomfurniture.co.th/shop/%E0%B8%AB%E0%B9%89%E0%B8%AD%E0%B8%87%E0%B8%99%E0%B8%AD%E0%B8%99/%E0%B9%80%E0%B8%95%E0%B8%B5%E0%B8%A2%E0%B8%87%E0%B8%99%E0%B8%AD%E0%B8%99/%E0%B9%80%E0%B8%95%E0%B8%B5%E0%B8%A2%E0%B8%87%E0%B8%A7%E0%B8%B4%E0%B8%84%E0%B8%95%E0%B8%AD%E0%B9%80%E0%B8%A3%E0%B8%B5%E0%B8%A2.html

Wardrobe

Reference:http://www.udomfurniture.co.th/shop/

111

Bedside cabinet

Reference:http://www.udomfurniture.co.th/shop/%E0%B8%AB%E0%B9%89%E0%B8%AD%E0%B8%87%E0%B8%99%E0%B8%AD%E0%B8%99/%E0%B8%95%E0%B8%B9%E0%B9%89%E0%B8%82%E0%B9%89%E0%B8%B2%E0%B8%87%E0%B9%80%E0%B8%95%E0%B8%B5%E0%B8%A2%E0%B8%87/%E0%B8%95%E0%B8%B9%E0%B9%89%E0%B8%82%E0%B9%89%E0%B8%B2%E0%B8%87%E0%B9%80%E0%B8%95%E0%B8%B5%E0%B8%A2%E0%B8%87-1-%E0%B8%A5%E0%B8%B4%E0%B9%89%E0%B8%99%E0%B8%8A%E0%B8%B1%E0%B8%81-1-%E0%B8%9A%E0%B8%B2%E0%B8%99%E0%B9%80%E0%B8%9B%E0%B8%B4%E0%B8%94.html

112

BathroomMirror

Width: 60 cmDepth: 11 cmHeight: 78 cmMax / tracks: 2 kg

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Laundry cabinet

Width: 40 cmDepth: 38 cmHeight: 194 cm

Reference: http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

113

Light

The light shines steadily suitable for installation in front of the mirror and sink.

Lamp is light distribution so the lighting will throughout.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Basin with 4 drawers

Drawers made from real wood the surface coated with melamine so it resistant to scratches as well.

114

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Corner shelf

Cleaning by use a soft cloth moistened with water or water mixed with a mild soap to wipe clean can’t use abrasive cleaners.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

The hanging back of the door

Hang it up to the door for hanging or storage. The rear door panels prevent scratching.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

115

Fabric shower curtains

Polyester fabrics coated prevent the water.

Reference:http://www.ikea.com/webapp/wcs/stores/servlet/InterestItemDisplay?storeId=44&langId=-55

Jacuzzi

Jacuzzi tub is not in use on a large scale, rounded down to 160 cm between the two is the amount of water and compressed air. And adjust to the new pressure.

Reference:http://www.treetouch.com/index.php?lay=show&ac=article&Id=538818602

116

Toilet boil

Reference:http://www.atsiam.com/reviews/review_detail.asp?RV_ID=6355&LANG=th

117

Fitness

Units Price Total PriceG6421C RT AERO PRO 5 48,000 240000G661 LUXOR Treadmill 5 71,200 356000

G235A NDE Elliptical 5 16,000 80000

G865M Manual Crosstrainer 5 35,000 175000

R306 Regatta 3 17,520 52560G152X Home-Use Training Station 2 43,900 87800SK2000TV Stepper R200TV 5 60,000 300000SK9900TV Recumbent BikeH990TV 5 63,200 316000

L800 Abdominal flexor bench 2 19,000 38000

Vibration Active power YV16 1 16,900 16900

Vibration Active PowerCombo YV55 1 19,000 19000

Vibration Tactiletonic Pro G225 1 15,900 15900

Vibration Plate V109 1 15,215 15215

Indoor Cycle S3 2 9,900 19800

AB coaster CS3000 1 5,990 5990

AB Circle Pro 1 3,900 3900

Rip 60 2 2,500 5000

118

Bodi Rocker 2 1,290 2580

Gym Ball

65 CM. 2 490 980

75 CM. 2 590 1180

85 CM. 2 690 1380

95 CM. 2 790 1580

Massage Ball 90 CM. 2 900 1800Total 1756565

119

Other equipmentAir conditional

- Samsung ร �น Vivaldi Inverter

Air-conditioning and health care. Get rid of bad bacteria. And destroy the virus. The weather was perfect. Samsung inverter air conditioning technology as many of the Virus Doctor, Filter 80 and Anti-Virus Filter, Zeomic Pre-Filter filters SARS virus infection and avian DNA Filter filter carcinogens Catecchin Filter filter Karen State Route. Green tea extract trap bacteria and air conditioning mode, Intelligent and energy are saving.

Reference: http://guaranteelogo.com/air/samsung/samsung_wall_type_inverter.php

De-aerator- Samsung / SA605CBXST

Protect the virus spread in the air. Samsung Virus Doctor is the proper way to protect yourself from germs in the air. Thus eliminating the cause of disease in respiratory efficiency, the BAF (Foundation allergies of England) to guarantee efficient in removing allergens of S-Plasma ion the air you breathe clean and healthy. With Samsung Virus Docto. To get rid of the virus. Samsung Virus Doctor removal, malicious virus. The cause of the disease in the respiratory tract to fatal diseases such as swine flu (Influenza A) strain H1N1, and even disease SARS research organizations, academic and proved that S-plasma ion efficiency superior to 99.9% now. You can feel completely safe on the tiny invisible enemy in the air.

120

Reference: http://www.narathiwatsurin.com/home/index.php?option=com_content&view=article&id=126:airpurifier-samsung-sa605cbxst&catid=32:airpurifier&Itemid=51

Television- 55 inch HX925 Series BRAVIA Full HD 3D *1 TV

Powered by Sony’s new X-Reality™ PRO Engine and Intelligent Peak LED technology, the HX925 is one television that definitely redefines home entertainment at its best.

Intelligent Peak LED

Motionflow™ XR 800

X-Reality™ PRO picture engine

OptiContrast and CORNING's Gorilla Glass Panel

Full HD 3D *1 features a built-in 3D Transmitter and 2x 3D Glasses supplied

Wi-Fi Integrated

Reference: http://www.sony.co.th/product/kdl-55hx925?site=hp_en_TH_i

121

- 40 inch NX720 Series BRAVIA Full HD 3D *1 TV

The NX series BRAVIA wraps all of Sony’s redefining TV technologies into a stunning looking TV. The striking Monolithic design of the NX series looks great both on and off.

Edge LED

OptiContrast and CORNING's Gorilla Glass Panel

Wi-Fi Integrated

Monolithic Design

Full HD 3D *1 features a built-in 3D Transmitter

X-Reality™ picture engine

Reference: http://www.sony.co.th/product/kdl-40nx720?site=hp_en_TH_i

122

CS-D50DB4Q (CU-D50DBQ7) (6.0HP)Cassette Type – Neat Installation and 4-Way Airflow Comfort

- 49,500 Btu/h- Multi-Comfort Air Control- Weekly Timer

123

- Odour Wash- Ecomony Mode

Multi-Comfort Air ControlNewly Developed control technology offers the various selection of fine air blowing angle. Select from the 3-pattern autoswings not to expose to the air directly (total 50-degree swing width).Odour WashOdour Wash reduces any unpleasant odours produced from the air conditioner&s heat exchanger.Newly Designed Turbo FanThe cassette indoor unit is equipped with a newly-developed turbo fan; the new shape produces low noise and high air flow rate.Selectable Remote Controller (wired or wireless)Customer needs to choose either wired or wireless remote controller.

General Information

Indoor Model Number CS-D50DB4Q

Power Source 60 [Hz]

Panel Model Number CZ-BT03P

Outdoor Model Number CU-D50DBQ7*

Cooling Capacity

Indoor [kJ/h] 52,200

Indoor [Btu/h] 49,500

Current

A 18.0

Power Input

kW 6.20

EER

[kJ/hW] 8.427.98

Indoor Unit

Air Volume m3/min 34.0

Sound Pressure Level* (Hi/Lo) dB (A) 47/43

Dimension Indoor (HxWxD) mm 288 x 840 x 840

Dimension Panel (HxWxD) mm 950 x 950 x 45

Net Weight Indoor kg 30.0

124

Net Weight Panel kg 4.5

Outdoor Unit

Sound Pressure Level* (Hi) dB (A) 56

Dimension Outdoor (HxWxD) mm 1,170 x 900 x 320

Net Weight kg 83.0

Piping Connections Gas Pipe mm (inch) 19.05 (3/4)

Piping Connections Liquid Pipe mm (inch) 9.52 (3/8)

Pipe Length Min-Max m 7.5 - 50.0

Evaluation Difference (CU up)** CU down m (30.0) 20.0

Maximum Chargeless Length Max m 30.0

Additional Gas g/m 25

Operating Range, Outdoor Min-Max oC 16 - 43

Reference: http://www.panasonic.com.ph/wps/portal/home/products/homeappliances/airconditionerfan/industrialairconditioner/cassettetype/CSD50DB4QCUD50DBQ76HP

125

Office equipment

Office table set

Working table 180 * 90 * 75 cmSide cabinet: 120 * 48 * 70.The drawer 42 * 60 * 65.Low cabinet 180 * 48 * 80.High cabinet 185 * 45 * 165.

Reference: http://ong-in-furnish.tarad.com/product-th-537323-2432307-EXC+SERIES.html#

Furniture set

Reference: http://www.lannamarket.com/set_of_living-set_field.html

126

Computer set- 27-inch iMac

3.2GHz quad-core Intel Core i5Turbo Boost up to 3.6GHz8GB (two 4GB) memory1TB hard drive1

NVIDIA GeForce GTX 675MX with 1GB

Reference: http://store.apple.com/th/browse/home/shop_mac/family/imac

- Apple Wireless Keyboard

Reference: http://store.apple.com/th/browse/home/shop_mac/mac_accessories/mice_keyboards

- Apple Magic Mouse

Reference: http://store.apple.com/th/browse/home/shop_mac/mac_accessories/mice_keyboards

127

Printer brother MFC-9970CDW

Professional Colour Laser Multi-Function Centre with Automatic Double-Sided Printing and Wireless NetworkingPrint, Fax, Copy, Scan, PC Fax with Automatic Double sided, Wired and Wireless networking

Reference: http://welcome.brother.com/th-en/products-services/multi-function-centres/mfc-9970cw.html

Fax Machine FAX-2820

Compact fax machine with copying capabilities and an integrated handset.

Reference: http://welcome.brother.com/th-en/products-services/fax-machines/fax-2820.html

128

129

Depreciation

Total Depreciation Janurary February March April May June July August September October November DecemberBuilding 70,401.07 70,401.07 70,401.07 70,401.07 70,401.07 70,401.07 70,401.07 70,401.07 70,401.07 70,401.07 70,401.07 70,401.07 844,812.80Kitchen equipments 237,575 237,575 237,575 237,575 237,575 237,575 237,575 237,575 237,575 237,575 237,575 237,575 2,850,900Living Facilities 5,029.88 5,029.88 5,029.88 5,029.88 5,029.88 5,029.88 5,029.88 5,029.88 5,029.88 5,029.88 5,029.88 5,029.88 60,358.80Bathroom equipments 5,818.71 5,818.71 5,818.71 5,818.71 5,818.71 5,818.71 5,818.71 5,818.71 5,818.71 5,818.71 5,818.71 5,818.71 69,824.46Bedroom facilities 18,735.53 18,735.53 18,735.53 18,735.53 18,735.53 18,735.53 18,735.53 18,735.53 18,735.53 18,735.53 18,735.53 18,735.53 224,826.20Office table set 62.5 62.5 62.5 62.5 62.5 62.5 62.5 62.5 62.5 62.5 62.5 62.5 750Furniture set 37.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5 37.5 450Computer set 2,468.33 2,468.33 2,468.33 2,468.33 2,468.33 2,468.33 2,468.33 2,468.33 2,468.33 2,468.33 2,468.33 2,468.33 29,620Air condition 31,868 31,868 31,868 31,868 31,868 31,868 31,868 31,868 31,868 31,868 31,868 31,868 382,410Elevator 1,306.67 1,306.67 1,306.67 1,306.67 1,306.67 1,306.67 1,306.67 1,306.67 1,306.67 1,306.67 1,306.67 1,306.67 15,680Television 40,093.93 40,093.93 40,093.93 40,093.93 40,093.93 40,093.93 40,093.93 40,093.93 40,093.93 40,093.93 40,093.93 40,093.93 481,127.20Fitness equipment 5,855.22 5,855.22 5,855.22 5,855.22 5,855.22 5,855.22 5,855.22 5,855.22 5,855.22 5,855.22 5,855.22 5,855.22 70,262.60CCTV 660 660 660 660 660 660 660 660 660 660 660 660 7,920Telephone 690.67 690.67 690.67 690.67 690.67 690.67 690.67 690.67 690.67 690.67 690.67 690.67 8,288

Total 420,602.49 420,602.49 420,602.49 420,602.49 420,602.49 420,602.49 420,602.49 420,602.49 420,602.49 420,602.49 420,602.49 420,602.49 5,047,230.06

Month

Some of the equipment has to be calculated for depreciation based on the ministry of finance while some of them must be calculated according to the estimated lifetime and salvage value

130

Conclusion

From the cost information, we will make a new building of service apartment in Thonglor

road of Bangkok. We need to buy land, building, and equipment such as furniture, computers,

telephone, faxes and print machine, television, refrigerators and others. We need money to invest

about 531,783,261 Baht. For facility layout, we have one office, one swimming pool, one fitness

center, 62 rooms and parking area. For the apartment we have 7 Floors.

131

Chapter 5

Operation Analysis

132

Operation Analysis

Product Characteristic

Premise Planning and Facility Management

The good planning for serviced apartment is the thing that facilitates the business

running and facilitates and to manage the space properly and the corridor must not be too

narrow and wide range of in-room facilities and adequate space for parking lot so the space

can be classified into 5 types

o Residence Zones

The residence zone is the room zone for the customers that can be

classified into 3 types with all 62 rooms

Room Type A

The room type A normally for the family customers which provide two king size bed

in two large master bedroom with dining zone and two balconies and the closet room and

pantry or kitchen room and two bathrooms and large Living and Dining room.

133

Room Type B

The room type B where provides the one large master bedroom and small bedroom

and bathroom and kitchen with large balcony and living area so this room is suited for small

family or it may be suited for customers who don’t have the family.

134

Room Type C

This room type provides one large master bedroom with the kitchen and large living

area with the bathroom and balcony. This room is suited for small family or it may be suited

for customers who don’t have the family.

Fitness Center Zone

Not only room providing but also we provide the health and fitness service for the

customers at the first floor

G6421C RT AERO PRO

Hyper-size 12 cm stand post design the

durable and firm oval-shaped stand

posts reach 12cm! It's the same level

with commercial use treadmill.

Except for enhancing the toughness

of frame, it could also prevent users

from injuries while exercising.

14 pre-set program swarm up and cool

down are the basic principles of

running training, all the pre-set programs of G6421C treadmill lower the

intensity at the beginning and end. It helps you to protect your body while

exercising. Every athlete has his/her own goal, and BH integrates the

characteristics of different needs to design different training programs with

suitable speed and incline setting.

Motor 2.25 HP / 5.0HPP Green Power

motor

Speed 1- 20 km/h

Elevation 15 levels

Running surface 142 x 50 cm

Monitor Blue backlit Grid LCD design

Display Information distance/ time/ speed/ incline/

135

pulse/ calories/ programs

Instant speed keys 2/4/6/8/10/14/16 km/hr

G661 LUXOR Treadmill

Luxury, power and comfort combined Homey, Stylish treadmill

AmbilightBlue ambilight effect helps to create a unique ambient atmosphere and fully

presents high-tech design.

ButtonWith buttons easy to operate for more comfortable exercise

Four steps of cushioning system

Handrailinnovative design of eagle-wings handrails satisfies your fashionable taste.

Body Fat Program Helps to control your figure.

HRC Program Ideal to achieve effective cardiovascular exercise.

SDS (Soft Drop System) safe vertical unfolding system powered by a hydraulic

system to prevent back injuries.

3.5HP motor(peak)

0,8 and 18km/h

136

Max. electric incline-15 level

Treadmill Length: 190 cm

Treadmill Width: 93 cm

Treadmill Height: 135 cm

G235A NDE Elliptical

Contact pulse measurement system

Grip pulse to measure pulse rate during training

Recovery test

Helps to control your fitness and

conditioning through controlled

recovery

Elliptical movement

Brings non-impact C.V. exercise

to more than 200 muscles

Heart Rate Control (HRC)

Allows cardiovascular zones to be

targeted during your workout

Telemetric pulse measurement

system (Chest belt optional)

For an accurate and comfortable control of the heart pulse via use of a chest belt

Handpulse measure system

Four machines in oneCombines walking, running, cross training, stair climbing and pushups

at the same timeMagnetic brake system

G865M Manual Crosstrainer

Oversized LCD monitor

- Displaying with time, RPM,speed,

distance,calories and pulse helps track

your workout progress

- Ergonomic elliptical movement : Brings

non-impact C.V.exercise to more than

200 muscles

137

- Magnetic brake system : Provides quiet and smooth pedaling

- Equipped with tension knob with 8 levels : Allows users to select the most

suitable workout intensity

- 20" (50 cm) Stride training: Provides fit stretch to all muscle groups and helps to

slim your figure through training the muscles of hips and legs.

Ergonomic grips with hand pulse control

- Enjoy more comfortable exercise and provide accurate pulse measurement

Track and Track structure

- Combining 3-section assembly structure with heavy duty bearings brings non-

impact exercise to the joints and spinal cord and also arms, abdominals, thighs and

hips.

Dual tracks

- Combining with large-sized pulleys helps balance the pedals and offer greater safety

while exercising

- Oversized anti-slip foot pedals

- Transportation wheels

- Easy to move around the house

- Lowering the high of the pedal structure :

Designed to offer easy access to the machine

- Space-saving structure design

- Front drive cross trainer (easy access)

Specification

Weight: 85 kg

Flywheel weight:8 kg

L 185cm. / 72.8” W 70cm. / 27.6” H 170cm. / 67”

138

R306 Regatta

Total body stretch movement

Aluminum sliding track

Exclusive magnetic brake system

8 levels of resistance control

Multi Functions

Ergonomic saddle

user friendly LCD monitor : Displaying with time, calories, pulse, strokes per minute, total

strokes helps you track your workout progress

Total body stretch movement: Allows training all muscle groups: arms, legs, abdominals and

waist and also provides fit back stretch.

Exclusive magnetic brake system : Provides quiet and smooth rowing through multiple tension

levels

Tension knob with 8 levels: Allows users to select suitable intensity of workout.

Aluminum sliding track: Extremely smooth, durable and no rust problem.

Ergonomic saddle : Comfortable and safe saddle helps users prolong training time

Telemetric pulse control (chest belt optional) : For an accurate and comfortable control of the

heart rate through the use of a chestbelt

Multi Functions: Frontal earflaps allow the possibility to make anaerobic training (i.e. biceps

curl).

Specification:

Weight: 26Kg / 57 lbs.

Flywheel weight: 5 kg / 11 lbs

 

Unfolded:

Length: 187 cm / 73.6”

Width: 58 cm / 22.8”

Height: 50 cm / 19.7”

139

Folded:

Length: 80 cm / 31.5”

Width: 58 cm / 22.8”

Height: 133 cm / 52.4”

G152X Home-Use Training Station

Specification

WEIGHT180 kg / 397 lbs.

LENGTH174 cm / 68.5"

WIDTH200 cm / 78.7"

HEIGHT212 cm / 83.5"

The most complete home-use training station.

Combines a multistation with a seated leg press and abdominal flexor with dip Exercise

control with a maximum tension of 100 kg / 221 lbs.

140

Ample weight for progressive training.

Adjustable seated leg press with holding grips.

Maximum comfort and protection while training Foldable seat.

The multi-gym takes up very little space Completely streamlined.

Greater protection and safety whilst exercising Controlled exercise.

Due to its exclusive guided work system, exercise can be done with maximum security Use

of CAMS.

These profiles help to make the exercise ergonomically Pulley system with bearings.

It provides very smooth and direct exercise Special metal protection.

Allows quality and rigidity with the best looking design.

SK2000TV Stepper R200TV

141

Variable geometry low-impact steps

Concealed transportation wheels

Top quality finishes on all components

The fully featured SK Line monitor and convenient Handpulse

Programs: 40 different programs including Fitness Test and HRC Heart

Rate Control (for working ‘cardiovascular target areas’)

HR Monitoring: Monitored pulse control: POLAR hand-grip system and

POLAR telemetric system (optional chest-band)

Equipped with TV monitor

Casing:Painted ABS plastic using automobile technology

Technology: Steady rate technology SCT

Workload System:Independent workload system

SK9900TV Recumbent BikeH990TV

Sliding motion and seat inclination controlled by reliable, precision

mechanisms

142

Ergonomically designed to provide easier use and total comfort

Rear seat fairing. Protection and stylish finish in a single component

2 SF (Double Speed Fan) for a rewarding exercise experience

The SK Line frame characteristic feature of a whole concept in

fitness

Programs: 40 different programs including Fitness Test and HRC Heart

Rate Control (for working ‘cardiovascular target areas’)

On-screen information: Time, distance, calories and pulse rate

HR Monitoring: Monitored pulse control: POLAR hand-grip system and

POLAR telemetric system (optional chest-band)

Equipped with TV monitor

Casing:Painted ABS plastic using automobile technology

Double “comfort” handlebar: “Comfort” with pulse sensors

Drive system: Easy maintenance Poly-V belt, with self tensioning system

143

2 machines in 1：the definitive fitness solution for women Exclusive and unique fitness

machine –combines the vibration platform's advantages with the benefits of a belt massage

machine

L：70 cm

W：64 cm

H：134 cm

Weight：52 kg

 

Belt massage machine

Helps to relax stiff muscles and sore joints. Ideal for use both before and

after exercising. Improves blood  circulation.

Six speed motor

144

Offers controlled massage settings based on the user and application area.

3 massage and relax bands.

Designed to provide various types of massage to different parts of the

body.

Plexiglass platform and advanced stable structure. 

Modern, attractive design for the home.

Fully enclosed and top quality material

Smooth, quiet operation

Indoor Cycle S3

Proven bicycle ergonomics and features, make this bike smooth, elegant and comfortable.

- Adjustable seat (vertical and horizontal) and handlebar (vertical) help users with different

body shapes to find the perfect riding position.

- Micro-Adjustable tension control knows provides smooth resistance and easy push-down

emergency braking.

- Compact design and build-in transport wheels allow users to work out anywhere, anytime.

145

Vibration Plate V109

The new Treo V109 Vibration plated, with their horizontal/ vertical movements, help

you lose weight and tone up your whole body. Combined with cardiovascular/ strength

routines, a controlled, balanced diet, you will start to look and feel great. 

Features

Vibration type Horizontal

Color White

Vibration frequency 20 - 45 Hz

Programs 4 (Lower Body, Upper Body, Abdominals and Manual)

Speed Speed 1-16

No. of console 2

Handlebar Yes

146

Ab Coaster CS3000

The flagship product of the Ab Coaster Commercial Series product line has been re-

designed for 2010. The new features of the Ab Coaster 3000 include stainless steel rails for

an ultra-smooth ride, adjustable hand grips, and a free-style motion seat.

FEATURES:

Heavy-Duty Steel Construction

Stainless Steel Rails

Ultra-Glide Nylon Rollers

Sealed Steel Bearings

Urethane Molded Foam Arm Pads

Adjustable Hand Grips

Free-style Motion Seat

450 lb. User Weight Capacity

40 lb. Olympic Weight Capacity

Easy-Move Casters

Extended Warranty

147

Ab Circle Pro

The Ab Circle Pro is designed to be less taxing on the lower abdomen region while

giving the stomach muscles the same amount of exercise as achieved through conventional

modes. It is effectively the “treadmill for your abs”. Why perform countless crunches and sit-

ups when you can gyrate from side to side on the Ab Circle Pro and flatten down your

bulging tummy? Washboard abs are what any Ab Circle Pro review promises using a unique

friction free track that challenges the lower, middle and side abs while boosting the heart to

give you a complete cardio workout. The machine is also designed for obliques and it even

acts on the thighs, bums and hip regions. The Ab Circle Pro is fast, fun and relatively simple

to use. The Ab Circle Pro also provides you with three resistance levels for more challenging

workouts, and it features the much touted “Loose Your Love Handles” nutrition guide plus a

3 minute long “Express Workout” DVD.

Rip 60

148

Week 1: Wake Up Your Body :During week 1, you'll prepare

your body for the upcoming workouts. You'll learn specific movements to correct

common physical imbalances.

Week 2: Hyper Burn :Turn it up in week 2 with a workout that

increases your stability and endurance. You'll perform exercises longer and

strengthen your stabilizer muscles.

Week 3: Turn and Burn

This week is full of exercises that require longer reps for increased

endurance. You'll utilize the Optimization Zone principle for your

dramatic transformation.

Week 4: Recharge :This week is about recovery. Filled with yoga and tai

chi, week 4 will change up your routine and give your body a break.

Week 5: Build it up: This is the beginning of the hypertrophy phase or

muscle growth. You'll be introduced to heavier weight with accessories like

kettlebells and prepare your body for more power.

149

Week 6: Power and Strength: This week will focus on power

moves, introducing faster movements and more reps.

Week 7: Pedal to the Metal: The Explosive Moves DVD utilizes

the moves you learned in week 6 and integrates them into longer reps.

You'll work in the Optimization Zone again, adjusting your angle to

maximize muscle activation.

Week 8: The Peak :This is the finale workout, the DVD that brings it all together.

You'll combine the strength, power and endurance you've gained for a timed

assessment-the rip:60™ combination.

 

rip:60™ Power Yoga Workout DVD : This DVD is designed with

lengthening and strengthening moves to improve your overall

balance and physical wellbeing. It's perfect for recovery after your 8-week body

transformation!

rip:60™ for Runners Workout DVD : Strengthen your

stabilizer muscles with this DVD designed to enhance your running training. Led by

a rip:60™ expert, you'll get the expertise you need to train for success!

BodiProBodiRocker

150

Product Features

Simultaneously trains total upper body and core to deliver a 2-in-1 fat-burning workout!

Offers more than 70 exercises to help you strengthen abs, chest, arms, shoulders and

back.

Your core stabilizing muscles are engaged to control the rocking and twisting motions

offered by Bodi Rocker.

Built-in Bodi Balance Meter with multiple grip positions for full-body toning!

Bonus: Includes a set of 10-Minute Workout Cards and a 30-Exercise Workout DVD

151

Gym Ball

Product Description

Gym Ball / Exercise Ball/Yoga ball (EN71) _ For shaping, body building and fitness

purposes. 

1)Material: Non-toxic PVC/Non-toxic Anti-burst PVC; 

2)Diameter size: Φ45cm, Φ55cm, Φ65cm, Φ75cm, Φ85cm, Φ95cm Φ100cm, Φ120cm-

Φ150cm; 

3)Weights: 550g, 650g, 750g, 850g, 900g, 1000g, 1100g, 1200g-2600g or customerized

weights; 

4)Color: Any color available or customized color as your minds; 

5)Logo print: Can print any of your company's logo on ball and pump; 

6)Accessories: Pump( foot and hand) poster chart, disk, etc;

152

DesJoyaux Swimming Pool

Desco Casting

A strong and durable structure 10 year

guarantee under the verification of

Bureau Veritas, France

Pipeless Water Filtration System

Pipeless Water Filtration Unit is

Easy to maintain and crack free

No drilling and digging needed

Work silently and environmental friendly

Reinforced PVC Liner

Harmless and easy to clean up

Leakage protected

All colors and patterns of your choice

Lobby Area

153

The lobby area is for welcoming the customers and the office for servicing the customers

and to receive the customer’s order and complaint.

The Garden Area

We set up the park area at the top of the building so this is the recreational zone for the

customers.

The Garden Area

Outside of the Building

154

Chapter 6

Administration Analysis

Administration Analysis

155

Administration and Management Analysis

Our management can be analyzed in two ways as per following;

1. Business Pattern

2. Organization and Management

3. Human Resource Management

Business Pattern

We operate our business as the Partnership business pattern, According to the department

of the business development, ministry of commerce mentioned that there are 2 persons or above

willing to do the business together.

Organization and Management

Organization Chart

General Manager

Marketing and Sales

person

Butler

Engineering

Security

Finance and

Acounting

Receptionist

156

Human Resource Management

Employees Salaries for our organization

Year 1 Janurary

Feburary

March April May June July

August

September

October

November

December Totals

General Manager30,00

0 30,00030,00

030,00

030,00

030,00

030,00

030,00

0 30,00030,00

0 30,000 30,000360,00

0 Marketing department

120,000

120,000

120,000

120,000

120,000

120,000

120,000

120,000 120,000

120,000 120,000

120,000

1,440,000

Butler180,0

00180,00

0180,0

00180,0

00180,0

00180,0

00180,0

00180,0

00 180,000180,0

00 180,000180,00

02,160,0

00

Security40,00

0 40,00040,00

040,00

040,00

040,00

040,00

040,00

0 40,00040,00

0 40,000 40,000480,00

0Engineering & Maintenance

60,000 60,000

60,000

60,000

60,000

60,000

60,000

60,000 60,000

60,000 60,000 60,000

720,000

Financial & Accounting

20,000 20,000

20,000

20,000

20,000

20,000

20,000

20,000 20,000

20,000 20,000 20,000

240,000

Receptionists 36,00

0 36,00036,00

036,00

036,00

036,00

036,00

036,00

0 36,00036,00

0 36,000 36,000432,00

0

Totals 486,0

00486,00

0486,0

00486,0

00486,0

00486,0

00486,0

00486,0

00 486,000486,0

00 486,000486,00

05,832,0

00

- General Manager has to responsible for overall management of the organization (1 person)

- Marketing Department has to responsible for the sales call and creating the marketing strategic planning (10 persons)

- Butlers are the one who offer the personalized services to all customers at their rooms such as housekeeping, laundry and

public area and they must have a good command in English is preferable (20 persons)

- Engineering and Maintenance have to responsible for fixing and caring the equipment (7 persons).

157

- Financial and Accounting have to responsible to take care and control the finance (2 persons)

- Receptionist have to responsible to the collecting the money and customers service and they must have a god command in

English (3 persons)

- Security have to responsible for the security (5 persons)

158

Chapter 7

Financial Analysis

159

Profit-Loss Statement

Statement Of Profit-lossService Apartment

 Year

1 2 3 4 5Revenue from operating          Revenue from renting 44,160,000 58,200,000 66,720,000 66,720,000 66,720,000Revenue fron service 3,114,000 3,834,000 4,374,000 4,914,000 5,630,000Total Revenue 47,274,000 62,034,000 71,094,000 71,634,000 72,350,000           Expense for operating          Salary and labor cost 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000Depreciation 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88Expense during operating 6,072,000 6,072,000 6,072,000 12,072,000 12,072,000

Total Expenses16,952,069.8

816,952,069.8

816,952,069.8

823,360,069.8

823,360,069.8

8           

Profit from operating30,321,930.1

245,081,930.1

254,141,930.1

248,273,930.1

248,989,930.1

2Less; interest 3,032,193.01 4,508,193.01 5,414,193.01 4,872,393.01 4,898,993.01

Total Interst27,289,737.1

140,573,737.1

148,727,737.1

143,401,537.1

144,090,937.1

1           Less; interest 5% 2,728,973.71 4,057,373.71 4,872,773.71 4,344,653.71 4,409,093.71

profit (Loss)24,560,763.4

036,516,363.4

043,854,963.4

039,056,883.4

039,681,843.4

0Dividend          Profit (loss) for the period has not been allocated          Profit (loss) for the period has not been allocated

24,560,763.40

36,516,363.40

43,854,963.40

39,056,883.40

39,681,843.40

160

Year 1

161

Year 2

162

Year 3

163

Year 4

164

Year 5

165

Income Statement

Income Statement Service Apartment

Year1 Year2 Year3 Year4 Year5RevenueSales 44,160,000 58,200,000 66,720,000 66,720,000 66,720,000Service 3,114,000 3,834,000 4,374,000 4,914,000 5,630,000Total Revenue 47,274,000 62,034,000 71,094,000 71,634,000 72,350,000

Cost of Goods SoldLabor/ Salary 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000Total Cost of Goods Sold 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000

Gross Income 41,442,000 56,202,000 65,262,000 65,394,000 66,110,000

Operating Expenseexpense during operting 6,072,000 6,072,000 6,072,000 12,072,000 12,072,000Depreciation 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88

Total OperatingExpense11,120,069.8

811,120,069.8

811,120,069.8

817,120,069.8

817,120,069.8

8

Net Income before Operating

30,321,930.12

45,081,930.12

54,141,930.12

48,273,930.12

48,989,930.12

Operating IncomeInterest expense 3,032,193.01 4,508,193.01 5,414,193.01 4,827,393.01 4,898,993.01Total Operating Income 3,032,193.01 4,508,193.01 5,414,193.01 4,827,393.01 4,898,993.01

Tax 7% 212,253.51 315,573.51 378,993.51 337,917.51 342,929.51

166

Net Income 2,819,939.50 4,192,619.50 5,035,199.50 4,489,475.50 4,556,063.50

Cash Flow

Cash flows from operating activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash received from customers - 86,058,000

111,723,000

128,043,000

128,673,000

129,483,000

583,980,000

  Cash paid for salary   -

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 29,160,000

  Expense during operation - - 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 30,360,000

Net cash used in operating activities - 74,154,000

99,819,000

116,139,000

116,769,000

117,579,000

524,460,000

Cash flow from investing activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash paid for capital asset 130,560,000 - - - - -

130,560,000

  Cash paid for fix asset 401,223,260 - - - - -

401,223,260

Net cash used in investing activities 531,783,260 - - - - -

531,783,260

Cash flows from financing activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Payment of long-term borrowings 600,000,000

- 80,000,000

- 80,000,000

- 80,000,000

- 100,000,000

- 100,000,000

160,000,000

  Payment of Dividend - - 33,000,000

- 31,200,000

- 26,400,000

- 21,600,000

- 15,600,000

-127,800,000

Net cash used in financing activities 600,000,000

-113,000,000

- 111,200,000

- 106,400,000

- 121,600,000

- 115,600,000

32,200,000

167

Year 1

168

Year 2

169

Year 3

170

Year 4

171

Year 5

172

Balance Sheet

Year 1

173

Year 2

174

Year 3

175

Year 4

176

Year 5

177

178

Chapter 8

Risk Management

179

Risk Management

Risk Management

Risk is an unwanted occurrence that we don’t need, it may be the mistakes, damaging

that could happen in the uncertain situation so the risks can be classified as external and internal

risks; although, the Institute of Small and Medium Enterprise Development mentioned that

serviced apartment and other apartment has low risks but we have to concern the risks.

External Risks

Economics

The external risks are the uncontrollable risks that could affect to the business organization

normally, serviced apartment business always face with the decreasing of the expatriates in

Bangkok so the risk factors that brings about the decreasing of the expatriates are Political and

Economic factors such as the FDI support policy is poor or the FDIs itself have a problem we

should change the target market immediately so we could try to target at the “niche market”

instead of the business expats so the niche market in Thonglor area is the medical tourists that

come to have the therapy in Thailand so this is the way to reduce the risks from Economics.

Political

This is the biggest threat that can’t avoid, from the past history the political uncertain in

Bangkok in 2010 brought about the decreasing of the occupancy rates and may bring about the

permanent decreasing of the occupancy rates in that specific area.

Environment

The Environmental threats can bring about the decreasing of the occupancy rates, If our

apartment were flooded, our apartment could be damaged so we need to have the insurance

policy for transfer the risk of flooding.

180

Internal Risks

Technological Used

We utilize the opportunities of 3G so we get the application for the customers so the system

could be failed; then, the customers can’t contact to us so we need to take care of the system

very well.

Safety Risks

The firing on the premise can be happen at all times so we need to hold the fire escape and

fire extinction planning for the customers’ safety and their life and purchase the insurance

package; moreover, the risks of flooding that can be transferred by purchasing the insurance

policy that transfer the risk of fire and other safety concern.

Human Resources

Human is very important to serviced apartment business and other kinds of service firm that

can create the competitive advantage for the organization itself so we need to focus on the

Human Resource Threats as the priority, the Human Resources Threats can be categorized as per

following

(1). Risks of the policy of the poor strategic HR planning and poor HR practices.

(2). Lack of the skilled labors in the labor market.

(3). Poor HR Functions

(4). Conflicts within the organization and organizational culture.

As we mentioned in the Risks of Human Resources, the organization have to action in

4 strategies as following;

(1). Employee Champion Strategy is the way to manage and force the employees to be

the good and valued employees

(2). Administrative Expert Strategy or so called the employees center strategy that make

the employees to have the competency in their job.

181

Sale decrease by 5% Income Statement

Income Statement Service Apartment

  Year1 Year2 Year3 Year4 Year5Revenue          Sales 44,160,000 58,200,000 66,720,000 66,720,000 66,720,000Service 3,114,000 3,834,000 4,374,000 4,914,000 5,630,000Total Revenue 47,274,000 62,034,000 71,094,000 71,634,000 72,350,000           Cost of Goods Sold          Labor/ Salary 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000Total Cost of Goods Sold 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000           Gross Income 41,442,000 56,202,000 65,262,000 65,394,000 66,110,000           Operating Expense          expense during operating 6,072,000 6,072,000 6,072,000 12,072,000 12,072,000Depreciation 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88Total Operating Expense (Increased 15%)

12,788,080.36

12,788,080.36 1,278,808.36

19,688,080.36

17,120,069.88

           

Net Income before Operating28,653,919.6

443,413,919.6

463,983,191.6

445,705,919.6

448,989,930.1

2           Operating Income          Interest expense (Decrease 5%) 2,880,583.36 4,282,783.36 5,143,483.36 4,875,666.89 4,654,043.36Total Operating Income 2,880,583.36 4,282,783.36 5,143,483.36 4,875,666.89 4,654,043.36           Tax 7% 201,640.84 299,794.84 360,043.84 341,296.68 325,783.04Net Income 3,082,224.19 4,582,578.19 5,503,527.19 5,216,963.57 4,979,826.39

182

Sale decrease by 10% Income Statement

Income Statement Service Apartment

  Year1 Year2 Year3 Year4 Year5Revenue          Sales 44,160,000 58,200,000 66,720,000 66,720,000 66,720,000Service 3,114,000 3,834,000 4,374,000 4,914,000 5,630,000Total Revenue 47,274,000 62,034,000 71,094,000 71,634,000 72,350,000           Cost of Goods Sold          Labor/ Salary 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000Total Cost of Goods Sold 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000           Gross Income 41,442,000 56,202,000 65,262,000 65,394,000 66,110,000           Operating Expense          expense during operating 6,072,000 6,072,000 6,072,000 12,072,000 12,072,000Depreciation 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88Total Operating Expense (Increased 15%)

12,788,080.36

12,788,080.36 1,278,808.36

19,688,080.36

17,120,069.88

           

Net Income before Operating28,653,919.6

443,413,919.6

463,983,191.6

445,705,919.6

448,989,930.1

2           Operating Income          Interest expense (Decrease 10%) 2,728,973.71 4,057,373.71 4,872,773.71 4,875,666.84 4,409,093.71Total Operating Income 2,728,973.71 4,057,373.71 4,872,773.71 4,875,666.84 4,409,093.71           Tax 7% 191,028.16 284,016.16 341,094.16 341,296.68 308,636.56Net Income 2,920,001.87 4,341,389.87 5,213,867.87 5,216,963.52 4,717,730.27

183

Sale decrease by 15% Income Statement

Income Statement Service Apartment

  Year1 Year2 Year3 Year4 Year5Revenue          Sales 44,160,000 58,200,000 66,720,000 66,720,000 66,720,000Service 3,114,000 3,834,000 4,374,000 4,914,000 5,630,000Total Revenue 47,274,000 62,034,000 71,094,000 71,634,000 72,350,000           Cost of Goods Sold          Labor/ Salary 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000Total Cost of Goods Sold 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000           Gross Income 41,442,000 56,202,000 65,262,000 65,394,000 66,110,000           Operating Expense          expense during operating 6,072,000 6,072,000 6,072,000 12,072,000 12,072,000Depreciation 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88Total Operating Expense (Increased 15%)

12,788,080.36

12,788,080.36 1,278,808.36

19,688,080.36

17,120,069.88

           

Net Income before Operating28,653,919.6

443,413,919.6

463,983,191.6

445,705,919.6

448,989,930.1

2           Operating Income          Interest expense (Decrease 15%) 2,577,364.06 3,831,964.06 4,602,064.06 4,875,666.79 4,164,144.06Total Operating Income 2,577,364.06 3,831,964.06 4,602,064.06 4,875,666.79 4,164,144.06           Tax 7% 180,415.48 268,237.48 322,144.48 341,296.68 291,490.08Net Income 2,757,779.54 4,100,201.54 4,924,208.54 5,216,963.47 4,455,634.14

184

Sale increase by 5% Income Statement

Income Statement Service Apartment

  Year1 Year2 Year3 Year4 Year5Revenue          Sales 44,160,000 58,200,000 66,720,000 66,720,000 66,720,000Service 3,114,000 3,834,000 4,374,000 4,914,000 5,630,000Total Revenue 47,274,000 62,034,000 71,094,000 71,634,000 72,350,000           Cost of Goods Sold          Labor/ Salary 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000Total Cost of Goods Sold 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000           Gross Income 41,442,000 56,202,000 65,262,000 65,394,000 66,110,000           Operating Expense          expense during operating 6,072,000 6,072,000 6,072,000 12,072,000 12,072,000Depreciation 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88Total Operating Expense (Increased 5%)

11,176,073.37

11,176,073.37

11,176,073.37

17,976,073.37

17,976,073.37

           

Net Income before Operating30,265,926.6

345,025,926.6

354,085,926.6

347,417,926.6

348,133,926.6

3           Operating Income          Interest expense (increase 5%) 3,183,802.66 3,183,802.66 3,183,802.66 3,183,802.66 3,183,802.66Total Operating Income 3,183,802.66 3,183,802.66 3,183,802.66 3,183,802.66 3,183,802.66           Tax 7% 222,866.19 222,866.19 222,866.19 222,866.19 222,866.19Net Income 3,406,668.85 3,406,668.85 3,406,668.85 3,406,668.85 3,406,668.85

185

Sale increase by10% Income Statement

Income Statement Service Apartment

  Year1 Year2 Year3 Year4 Year5Revenue          Sales 44,160,000 58,200,000 66,720,000 66,720,000 66,720,000Service 3,114,000 3,834,000 4,374,000 4,914,000 5,630,000Total Revenue 47,274,000 62,034,000 71,094,000 71,634,000 72,350,000           Cost of Goods Sold          Labor/ Salary 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000Total Cost of Goods Sold 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000           Gross Income 41,442,000 56,202,000 65,262,000 65,394,000 66,110,000           Operating Expense          expense during operating 6,072,000 6,072,000 6,072,000 12,072,000 12,072,000Depreciation 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88Total Operating Expense (Increased 10%) 1,232,076.37 1,232,076.87 1,232,076.87

18,832,076.87 1,832,076.87

           

Net Income before Operating40,209,923.6

354,969,923.1

364,029,923.1

346,561,923.1

364,277,923.1

3           Operating Income          Interest expense (increase 10%) 3,335,412.31 3,335,412.31 3,335,412.31 3,335,412.31 3,335,412.31Total Operating Income 3,335,412.31 3,335,412.31 3,335,412.31 3,335,412.31 3,335,412.31           Tax 7% 233,478.86 233,478.86 233,478.86 233,478.86 233,478.86Net Income 3,568,891.17 3,568,891.17 3,568,891.17 3,568,891.17 3,568,891.17

186

Sale increase by15% Income Statement

Income Statement Service Apartment

  Year1 Year2 Year3 Year4 Year5Revenue          Sales 44,160,000 58,200,000 66,720,000 66,720,000 66,720,000Service 3,114,000 3,834,000 4,374,000 4,914,000 5,630,000Total Revenue 47,274,000 62,034,000 71,094,000 71,634,000 72,350,000           Cost of Goods Sold          Labor/ Salary 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000Total Cost of Goods Sold 5,832,000 5,832,000 5,832,000 6,240,000 6,240,000           Gross Income 41,442,000 56,202,000 65,262,000 65,394,000 66,110,000           Operating Expense          expense during operating 6,072,000 6,072,000 6,072,000 12,072,000 12,072,000Depreciation 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88 5,048,069.88Total Operating Expense (Increased 15%)

12,788,080.36

12,788,080.36 1,278,808.36

19,688,080.36

17,120,069.88

           

Net Income before Operating28,653,919.6

443,413,919.6

463,983,191.6

445,705,919.6

448,989,930.1

2           Operating Income          Interest expense (Decrease 15%) 3,487,021.96 3,487,021.96 3,487,021.96 3,487,021.96 3,487,021.96Total Operating Income 3,487,021.96 3,487,021.96 3,487,021.96 3,487,021.96 3,487,021.96           Tax 7% 244,091.54 244,091.54 244,091.54 244,091.54 244,091.54Net Income 3,731,113.50 3,731,113.50 3,731,113.50 3,731,113.50 3,731,113.50

187

Sale decrease by5% Cash Flow

Cash flows from operating activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash received from customers - 81,755,100

106,136,850

121,640,850

122,239,350

123,008,850

554,781,000

  Cash paid for salary   -

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 29,160,000

  Expense during operation - - 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 30,360,000

Net cash used in operating activities - 69,851,100

94,232,850

109,736,850

110,335,350

111,104,850

495,261,000

Cash flow from investing activities Beginning Total Total Total Total Total Total

  Cash paid for capital asset 130,560,000

-

-

-

-

-

130,560,000

  Cash paid for fix asset  

401,223,260

-

-

-

-

-

401,223,260

Net cash used in investing activities 531,783,260

-

-

-

-

-

531,783,260

Cash flows from financing activities Beginning Total Total Total Total Total Total

  Payment of long-term borrowings 600,000,000

- 80,000,000

- 80,000,000

- 80,000,000

- 100,000,000

- 100,000,000

160,000,000

  Payment of Dividend  

-

- 31,350,000

- 29,640,000

- 25,080,000

- 20,520,000

- 14,820,000

- 121,410,000

Net cash used in financing activities 600,000,000

- 111,350,000

- 109,640,000

- 105,080,000

- 120,520,000

- 114,820,000

38,590,000

188

Sale decrease by10% Cash Flow

Cash flows from operating activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash received from customers - 77,452,200

100,550,700

115,238,700

115,805,700

116,534,700

525,582,000

  Cash paid for salary   -

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 29,160,000

  Expense during operation - - 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 30,360,000

Net cash used in operating activities - 65,548,200

88,646,700

103,334,700

103,901,700

104,630,700

466,062,000

Cash flow from investing activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash paid for capital asset 130,560,000

-

-

-

-

-

130,560,000

  Cash paid for fix asset  

401,223,260

-

-

-

-

-

401,223,260

Net cash used in investing activities 531,783,260

-

-

-

-

-

531,783,260

Cash flows from financing activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Payment of long-term borrowings 600,000,000

- 80,000,000

- 80,000,000

- 80,000,000

- 100,000,000

- 100,000,000

160,000,000

  Payment of Dividend  

-

- 29,700,000

- 28,080,000

- 23,760,000

- 19,440,000

- 14,040,000

- 115,020,000

Net cash used in financing activities 600,000,000

- 109,700,000

- 108,080,000

- 103,760,000

- 119,440,000

- 114,040,000

44,980,000

189

Sale decrease by15% Cash Flow

Cash flows from operating activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash received from customers - 73,149,300

94,964,550

108,836,550

109,372,050

110,060,550

496,383,000

  Cash paid for salary   -

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 29,160,000

  Expense during operation - - 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 30,360,000

Net cash used in operating activities - 61,245,300

83,060,550

96,932,550

97,468,050

98,156,550

436,863,000

Cash flow from investing activities   Total Total Total Total Total  

  Cash paid for capital asset 130,560,000

-

-

-

-

-

130,560,000

  Cash paid for fix asset  

401,223,260

-

-

-

-

-

401,223,260

Net cash used in investing activities 531,783,260

-

-

-

-

-

531,783,260

Cash flows from financing activities   Total Total Total Total Total  

  Payment of long-term borrowings 600,000,000

- 80,000,000

- 80,000,000

- 80,000,000

- 100,000,000

- 100,000,000

160,000,000

  Payment of Dividend  

-

- 28,050,000

- 26,520,000

- 22,440,000

- 18,360,000

- 13,260,000

- 108,630,000

Net cash used in financing activities 600,000,000

- 108,050,000

- 106,520,000

- 102,440,000

- 118,360,000

- 113,260,000

51,370,000

190

Sale increase by5% Cash Flow

Cash flows from operating activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash received from customers - 90,360,900

117,309,150

134,445,150

135,106,650

135,957,150

613,179,000

  Cash paid for salary   -

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 29,160,000

  Expense during operation - - 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 30,360,000

Net cash used in operating activities - 78,456,900

105,405,150

122,541,150

123,202,650

124,053,150

553,659,000

Cash flow from investing activities Beginning Total Total Total Total Total Total

  Cash paid for capital asset 130,560,000

-

-

-

-

-

130,560,000

  Cash paid for fix asset  

401,223,260

-

-

-

-

-

401,223,260

Net cash used in investing activities 531,783,260

-

-

-

-

-

531,783,260

Cash flows from financing activities Beginning Total Total Total Total Total Total

  Payment of long-term borrowings 600,000,000

- 80,000,000

- 80,000,000

- 80,000,000

- 100,000,000

- 100,000,000

160,000,000

  Payment of Dividend  

-

- 34,650,000

- 32,760,000

- 27,720,000

- 22,680,000

- 16,380,000

- 134,190,000

Net cash used in financing activities 600,000,000

- 114,650,000

- 112,760,000

- 107,720,000

- 122,680,000

- 116,380,000

25,810,000

191

Sale increase by10% Cash Flow

Cash flows from operating activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash received from customers - 94,663,800

122,895,300

140,847,300

141,540,300

142,431,300

642,378,000

  Cash paid for salary   -

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 29,160,000

  Expense during operation - - 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 30,360,000

Net cash used in operating activities - 82,759,800

110,991,300

128,943,300

129,636,300

130,527,300

582,858,000

Cash flow from investing activities Beginning Total Total Total Total Total Total

  Cash paid for capital asset 130,560,000

-

-

-

-

-

130,560,000

  Cash paid for fix asset  

401,223,260

-

-

-

-

-

401,223,260

Net cash used in investing activities 531,783,260

-

-

-

-

-

531,783,260

Cash flows from financing activities Beginning Total Total Total Total Total Total

  Payment of long-term borrowings 600,000,000

- 80,000,000

- 80,000,000

- 80,000,000

- 100,000,000

- 100,000,000

160,000,000

  Payment of Dividend  

-

- 36,300,000

- 34,320,000

- 29,040,000

- 23,760,000

- 17,160,000

- 140,580,000

Net cash used in financing activities 600,000,000

- 116,300,000

- 114,320,000

- 109,040,000

- 123,760,000

- 117,160,000

19,420,000

192

Sale increase by15% Cash Flow

Cash flows from operating activities Beginning Year1 Year2 Year3 Year4 Year5 Total

  Cash received from customers - 98,966,700

128,481,450

147,249,450

147,973,950

148,905,450

671,577,000

  Cash paid for salary   -

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 5,832,000

- 29,160,000

  Expense during operation - - 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 6,072,000

- 30,360,000

Net cash used in operating activities - 87,062,700

116,577,450

135,345,450

136,069,950

137,001,450

612,057,000

Cash flow from investing activities Beginning Total Total Total Total Total Total

  Cash paid for capital asset 130,560,000

-

-

-

-

-

130,560,000

  Cash paid for fix asset  

401,223,260

-

-

-

-

-

401,223,260

Net cash used in investing activities 531,783,260

-

-

-

-

-

531,783,260

Cash flows from financing activities Beginning Total Total Total Total Total Total

  Payment of long-term borrowings 600,000,000

- 80,000,000

- 80,000,000

- 80,000,000

- 100,000,000

- 100,000,000

160,000,000

  Payment of Dividend  

-

- 37,950,000

- 35,880,000

- 30,360,000

- 24,840,000

- 17,940,000

- 146,970,000

Net cash used in financing activities 600,000,000

- 117,950,000

- 115,880,000

- 110,360,000

- 124,840,000

- 117,940,000

13,030,000

193

Summary

194

Summary

According to the globalization there are a lot of foreign people who work and stay in

Thailand so this group is called “expatriates” or so called “expats” for short, these expats come

with the Foreign Direct Investor ( FDI ) from other countries so according to the Work Permit

Administration , Ministry of Labor, Thailand declared that the main expat group is the Japanese

expat along with their family members this is the main expat group. Serviced apartment is the

apartment that is designed for target at expatriates who work and stay in Thailand so the main

market of the serviced apartment is in Bangkok and normally the zones of serviced apartments

are Early Sukhumvit Area, Late Sukhumvit Area, Central Business District , since the year 2010

the demand of the serviced apartment was shifted from Central Business District and Early

Sukhumvit Area to Late Shukhumvit Area especially in Thonglor road where is the trendiest and

the new prime area of Bangkok where has a good transportation systems and a lot of trendy retail

shops and this is the central area for expatriates especially the Japanese expatriates so Thonglor

is our location for our serviced apartment is located. We offer the wide range of services such as

the wide range of rooms and services. We invested 531,783,261 baht we invest in the building

and equipments such as the furniture and the equipments throughout the building and the internet

setting up throughout the building so we are the serviced business we have a lot of the

equipments and in-room facilities and during the operation the project 122,760,000 baht per year

after the ASEAN Community is opened ; however, the serviced apartment and apartment

business has low level of the risk we still have to prepare our self for the risks and negative

uncertain situation.

195

Reference

1. สุวิ�ฒน� พั�ฒนไพับู�ลย� . กิารบูร�หารโครงกิาร. พั�มพั�คร�!งที่#$ . กิรงเที่พั : :ซี#เอ็'ดย�เคช�$น , 2539

2. สุถาบู�นพั�ฒนาวิ�สุาหกิ�จขนาดกิลางและขนาดย�อ็ม. ธุรกิ�จอ็พัารที่�เม+นที่�ให+เช�า , กิรงเที่พั 2553

3. สุถาบู�นพั�ฒนาวิ�สุาหกิ�จขนาดกิลางและขนาดย�อ็ม . แกิะรอ็ยธุรกิ�จเง�นล+าน. , กิรงเที่พั 2553

4. ปร#ชา แดงโรจน� . กิารบูร�หารจ�ดกิารและปฏิ�บู�ติ�งานโรงแรม, กิรงเที่พั 2553

5. ภี#ม ล�$วิลม, กิารศึ0กิษาควิามเป2นไปได+ในกิารลงที่นในธุรกิ�จหอ็พั�กิเอ็กิชนบูร�เวิณมหาวิ�ที่ยล�ยธุรรมสุาสุติร�ศึ�นย�ร�งสุ�ติ จ�งหวิ�ดปที่มธุาน# วิ�ที่ยาน�พันธุ� มหาวิ�ที่ยาล�ยเช#ยงใหม�

6. Roger A. Kerin. Marketing in Asia. 2nd ed. Singapore; Mc GrawHill7. Kotler, Marketing for Hospitality and Tourism

8. กิารลงที่นจากิติ�างประเที่ศึขอ็งประเที่ศึสุมาช�กิอ็าเซี#ยน ( ระบูบูอ็อ็นไลน�) www.thai-aec.com

กิ�นยายน 2555

9. พัฤติ�กิรรมผู้�+บูร�โภีคในอ็าเซี#ยน ติ�วิแปรที่#$สุ6าค�ญที่#$ธุรกิ�จขนาดกิลางและขนาดย�อ็มควิรร� +กิ�อ็นเกิ�าเข+าสุ�� AEC(ระบูบูอ็อ็นไลน�) www.takchamber.com

10. Colliers International Market Report on Serviced Apartment in Bangkok

11. Ksmecare (อ็อ็นไลน�) ธุรกิ�จเวิอ็ร�วิ�สุอ็พัารที่�เม+นที่�กิ�บูกิารเข+าสุ��ประชาคมอ็าเซี#ยน พั.ศึ. 2558

12. กิระบูวินกิารติ�ดสุ�นใจเช�าเซีอ็ร�วิ�สุอ็พัารที่�เม+นที่�ระด�บูบูนขอ็งชาวิติ�างชาติ�ติามเสุ+นที่างรถไฟฟ9าบู#ที่#เอ็สุสุายสุขมวิ�ที่ , ชวิล�กิษณ� ภี�ภี�ม�เข#ยวิ ,งานวิ�จ�ยมหาวิ�ที่ยาล�ยราชภี�ฏินครสุวิรรค�

13. เช�าอ็าพัารที่�เม+นที่�.;วิ�ที่ยาน�พันธุ�เศึรษฐศึาสุติร�บู�ณฑิ�ติ มหาวิ�ที่ยาล�ยหอ็กิารค+าไที่ย(2549)

14. สุวิ�ยดา สุ�งเจ�ม (2546) ป<จจ�ยที่#$ม#ผู้ลติ�อ็กิารเข+าพั�กิเกิสุติ�เฮ้+าสุ�ย�านสุขมวิ�ที่ขอ็งน�กิที่�อ็งเที่#$ยวิชาวิติ�างชาติ� . สุารน�นธุ� มหาวิ�ที่ยาล�ยศึร#นคร�นที่รวิ�โรฒ

15. ควิามคาดหวิ�งและควิามพั0งพัอ็ใจติ�อ็คณสุมบู�ติ�ขอ็งผู้�+จบูกิารศึ0กิษาด+านญ#$ป>นศึ0กิษาในประเที่ศึไที่ย,

สุ6าน�กิวิ�จ�ย, สุถาบู�นบู�ณฑิ�ติพั�ฒนบูร�หารศึาสุติร� 16. Maketeer Magazine, พัฤติ�กิรรมผู้�+บูร�โภีคยานที่อ็งหล�อ็

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By

1. Miss Jittra Kaewchalua 51312070432. Mr. Apimouk Kumsura 53312070503. Miss Kanrawee Keeratinirandorm 53312070054. Miss Yodsawadee Sidtisa-nguanpan 53312070335. Miss Mookparat Promariva 53312070376. Miss Saifon Saeching 53312070417. Miss Ei Nang Woe Tit 53312070588. Mr. Sai Han Woon 5331207066

School of Management

Major Hospitality Industry Management

Mae Fah Luang University

Semester 2, Academic Year 2012