section 1, seat no.3 : mee sub market

MAE FAH LUANG UNIVERSITY

Mee Sub Market

Project Feasibility Study and Evaluation (1203302)

by

1. Miss Julalak Srijun 5331203014

2. Miss Phannarat Bunrattanathanakorn 5331203074

3. Miss Maliwal Thamrongphasuk 5331203093

4. Miss Mussabol Chaichana 5331203094

5. Miss Suangsuda Wangpiang 5331203129

6. Miss Arisa Saynak 5331203143

7. Mr. Ukrist Singkaew 5331203150

8. Mr. Palupol Meesub 5131207019

Group 3 Section 1

A term paper submitted in partial fulfillment

of the course 1203302 project feasibility study and evaluation

MAE FAH LUANG UNIVERSITY

Second semester, academic year of 2012

15 February, 2013

Content

EXCUSIVE SUMMARY A

1. CHAPTER ONE INTRODUCTION

1.1 Background and Significance of the Project 2

1.2 Project Objective(s) 3

1.3 Benefits of Project Identify the benefits of this study 3

1.4 Activities/Time Frame Gantt chart and Time frame of the study 4

2. CHAPTER TWO INDUSTRY PROFILE

2.1 Nature of Industry 8

2.2 Situation of Industry 9

2.3Product/Service 12

3. CHAPTER THREE MARKET FEASIBILITY STUDY

3.1 Market Analysis 15

3.2 General Environment Analysis Political, Economy, Social

and Environment, and Technology 15

3.3 Competition Analysis (3C Analysis) 23

3.4 STP Analysis-Marketing Mix Strategy 34

3.5 Sales Forecast/Profit Estimation 44

3.6 Marketing Expenses (Sales Incentive) 56

3.7 Conclusion 56

4. CHAPTER FOUR INVESTMENT COST

4.1 Cost of Investment 58

4.1.1 Pre Operating Cost 58

4.1.2 Investment Cost 61

4.1.2.1 Land 63

4.1.2.2 Buildings 64

4.1.2.3 Equipments 65

4.2 Facility Layout

4.3 Machine/Tools/ Equipments 70

4.4 Depreciation 76

4.5 Conclusion 78

5. CHAPTER FIVE TECHNICAL ANALYSIS

5.1 Product Characteristics 80

5.2 Specification, Feathers, Dimension, Life Time, etc. 81

5.3 Production/Services Process 81

5.4 Administration Analysis 82

5.4.1 Facility Cost (Electricity, Telephone, Fax, etc.) 82

5.4.2 Administration Cost 84

5.5 Conclusion 87

6. CHAPTER SIX FINANCIAL ANALYSIS

6.1 Financial Assumption for Business. 89

6.1.1 Financial Statement in 5 years 90

6.2 Ratio Analysis 107

7. CHAPTER SEVEN RISK MANAGEMENT

7.1 External Risk 109

7.1.1 Economic 109

7.1.2 Environment 109

7.1.3 Competitor 109

7.2 Internal Risk 109

7.2.1 Financial Risk 109

7.2.2 Strategic Risk 110

7.2.3 Operating Risk 110

7.2.4 Compliance Risk 110

7.2.5 Credit Risk 111

7.2.6 The policy for reducing risk 156

7.2.7 Risk assessment 156

8. CHAPTER EIGHT SUMMARY

8.1 Environment Feasibility Analysis Summary 158

8.2 Marketing Feasibility Analysis Summary 158

8.3 Financial Feasibility Analysis Summary 159

REFERENCES

A

Executive summary

From increasing and expanding of business about healthy like spas, beauty clinics,

healthy restaurants and supplementary food, it shows that people concern more about their

health in Nowadays and have the trend to increase more and more. In term of consumption

behavior, fresh food and healthy food are popular among a lot of people. Combine with

lifestyle of Thai people still cook at their home. Especially, Chiang Rai people are prefer to go

to a fresh market where people can trade the raw material used in cooking both fresh food and

dry food. Although there are many fresh markets in Chiang Rai, many fresh markets have

problems like cleanness and fresh of food. Moreover, the increasing number of the population,

it leads to an increasing in the need of food of people. So, we find an opportunity to do a

business that is the fresh market for healthy.

Mee Sub Fresh Market is a healthy market that is located on the bypass of Chiang Rai

province which closed to the airport and community which provides the Fresh food for

consumer by toxin test procession in every two weeks because according to the population in

Chiang Rai found that people turns to be focusing on their health by watching what they will

be eaten, and this would be an opportunity to open the Mee Sub Fresh Market for meet with the

consumer need. Therefore, the target market is housewives who are female in age between 35-

60 years old and also concerning of health. For the Manage Strategy, we have a good of

garbage and infrastructure management. For the Marketing Strategy, our firm provides the

advertising on local radio, local newspaper and cars radio before and after the Mee sub Market

Grand opening date, we also set the winner award for the Walking for health activity with

inviting the under-secretary of a health ministry to open our Fresh Market. For the Promotion

Strategy, our firm will give the fifty percent discount stall on the agreement for the header who

can find the retailer for rent stall. Moreover, for the Financial Statement, the firm has to payoff

debt on 6 percent of the interest and principle money within twelve years.

Chapter 1

Introduction

2

Background and significant of the project

Chiang Rai province is located in the northernmost of Thailand. Surrounding provinces

are Phayao, Lampang and Chiang Mai. The north border of Chiang Rai is next to Shan

State of Myanmar which has the highway cut through Myanmar in Mae Sai border that would

have the forth Thai-Laos Friendship Bridge at Chiang Khong in the future. In the northeast

border is next to the Mekong River and in the east is next to Luang Prabang Hill of Thai-Laos

border. Chiang Rai is a scenery town which is a big province in Thailand that has a large area

ranked as the 12th of the country (Wikipedia, 2012).

In the past, human society fosters itself by sufficiency economy system that every

household can produce and consume productivities within their family. In order to do that, they

use materials from natural resources in their local area even weave their own clothes. Then, the

society has become bigger and the productivities they produced are greater than their needs so,

that surplus has brought to exchange with other productivities the household cannot be

produce. At that time there is no certainly place where people can exchange their productivities

therefore they exchange their products at the source. After that, the society has been growing

and become a big city that has an influence on trading; the demand of products has been

increasing while trade has been expanding. Thus, there need to be a place where people can

exchange those products that is called ‘Market’. Fresh market is a distribution of products in

category of food and other consumer goods which are necessary for daily life.

According to the definition of Public Health Act, B.E. 2535 (1992) in section 4,

‘Market place means a place ordinarily arranged for merchants to assemble to offer for sale

goods consisting of animal, meat, vegetable, fruit, fresh or already prepared or cooked food, or

perishable foodstuff, with or without other kinds of goods for sale, and includes an area

arranged for merchants to assemble to offer said goods for sale regularly or from time to time

or on appointed dates.’

In the next three years (2015), Thailand will participate in the AEC completely. The

country will have an opportunity in order to import and export with 0% tariff. Thailand will be

the country of the tourist destination and the airline center of ASEAN. Chiang Rai province is

the one of the province which has an effect from AEC. Because of Chiang Rai is the tourist

destination which has many beautiful and interesting places for traveler. Furthermore the

border of Chiang Rai is close to Loas and Myanmar. Chiang Rai also has an important port

which is called Chiang San Port (Ministry of Commerce, 2013) Becoming one of the countries

http://en.wikipedia.org/wiki/Phayao_Province

http://en.wikipedia.org/wiki/Lampang_Province

http://en.wikipedia.org/wiki/Chiang_Mai_Province

http://en.wikipedia.org/wiki/Shan_State

http://en.wikipedia.org/wiki/Shan_State

http://en.wikipedia.org/wiki/Myanmar

3

which participate in AEC will extend in a trend of the economics of Chiang Rai which the

border trade at Chiang Khong district tends to be increase from 2012 at 4,800 million Baht.

This will cause to increase in purchasing power of Chiang Rai people (Sivarak, 2013) So, to do

a fresh market business might be a good alternative in business because the life style and basic

of life of people need food. This is the reason why we choose the fresh market business.

Project Objectives

• To bring out the business knowledge in order to create a business plan.

• To study the process of doing business including with all business activities.

• To be the alternative market for consumer in Chiang Rai province.

• To increase jobs and revenue for people in the province.

• To study the feasibility and opportunity of the fresh market in Chiang Rai.

Benefits of the project

1. Benefit for group members

• To use the knowledge and gain more experience of the business.

• An opportunity to survey in a real situation for coordinating with different kind

of divisions which it helps to operate the business project.

• To reinforce a skill of thinking that is step by step method.

2. Benefit for customer To reinforce the local people to have a better quality of life.

To improve a standard of local people consumption.

To expand the economy.

A lifestyle of people will change and go along with a behavior of goodwill.

3. Benefit for entrepreneur

For the entrepreneur who is interested in Fresh market investment, this project

can be a guide planning of Fresh market.

4

Gantt chart and Time frame of the study

Chapter 2

Industry profile

8

Nature of industry

‘Market’ was founded in Thailand since Sukhothai period as the stone inscription said

‘Whoever wants to trade in elephants, so trades. Whoever wants to trade in horses, so trades.

Whoever wants to trade in silver and gold, so trades.’ It shows that trade is also occurs for a

long time started from an exchange of things like goods or other stuff. After that, there is a

regulation of determining something as a medium of exchange which are; cowrie shell, coin

and money in the present time (Phattanarat, 2003).

Market in the former time is the economy source of Thai people because market is

known as the place where anything can be found. When you lack of something, you can find it

in the market. The market that has obvious evidence is the market in Ayutthaya period which is

the period that the foreign came to trade in Thailand. So, Thai people have a relationship with

trade for a long time.

The market is the place where people in the community come to contract with each

other in order to trade and exchange information so that it is a center of communication by land

and water. In every communities of the country, people who have involve in the market are

people who bring products into the market to sell and people who come to buy products such

as the end-users and retailers. People who related to the market are an entrepreneur or the

market’s owner, trader, shipper, labor and the consumer who come to buy the product. At this

point, the market is an important business sector which can create more jobs and generate

income in economy system of the country.

Nowadays, there are changes in economy and society that encourage the expansion of

trade lead to many types of market such as clothes market, fresh market, flower market etc.

According to the fresh market, it is the place where people trade the raw materials used in

cooking, both fresh food and dry food and including instant food. In Thailand, fresh market can

be found in the area of communities around the country. The growth and the recession of fresh

market depend on the change in economy factors and social factors of each community such as

the change in transportation system from transport by water to by land, expanding of

community, crowded traffic system, high price of land, occurrence of a big and modern retail;

department store, discount store and supermarket, and including the change of customer

behavior from preparing a meal at home to eating in the restaurant or consuming instant meal.

However, fresh market should be acquainted to people in that community and should be

convenience to travel to. The size of fresh market also depends on the size of that community

9

where the market located or depends on number of product placed in the market. Moreover, the

type of market is depends on environment and habitation of that community. For example, if

the community has communicated by water, the market would be known as floating market. If

the community has communicated by land, the market would be known as land market. In this

case, fresh market is the place of culture that shows the livelihood of people in that society

(Siritarungsri, 2009).

Situation of industry

According to the rapid growth hog the cities, people way of life has been change. An

increasing number of the supermarket and superstore affect to the change of customer behavior

including; increasingly focused on the convenience, more concern about health, wellness, and

safety food and consuming more ready to eat and prepared foods (Salsberg, 2010).

(Source:http://csi.mckinsey.com/knowledge_by_region/asia/rest_of_asia/thailands_modern_grocery_at_a_crossroads)

10

From this figure, it can be seen that the trend of the growth number of retail market or

supermarket in Thailand is gradually increasing. This situation influence to the fresh market

and many grocery shop significantly. In case of the increasing number of customer go to the

market. Although, there are increasing numbers of supermarket, most of Thai people still go to

the fresh market because of there are some local product that the supermarket did not have.

And the price of the product in supermarket is more expensive than in the fresh market which

conforms to customer behavior that more economizing and searching for value.

According to a preliminary survey, most of the popular fresh market has variety choices

of food such as vegetable, fruit, meat, dried food and etc. Moreover, most of them have a very

competitive pricing strategy which has a huge effect on consumer decision. However, there are

some weaknesses for those markets that they had over look. For example; bad water irrigation,

poor air ventilation system, unplanned zoning and improper parking space. It can be seen that

there still has a gap for some improvement and we will focus on turn their weakness into our

strength which provides a standard of structure by having a public utility system along with

clear divided zones and always keep a clear place because nowadays, most people in Chiang

Rai are more concern about the hygienic condition and the trend of goodwill has been changing

by time which means the lifestyle of consumption adjust to higher level. And this is the reason

why we are interested to invest on a fresh market.

From the discussion with the officer of Chiang Rai Municipal government, there are 12

important fresh market which under the control of the municipal. It can divide in to two

categories:

Private market

• Sri-sai-moon Market

• Fah Sawad Market

• Nim Si Seng Market

• Den-Hah Market

• Ma-Na Market

• Baan Mai Market

• Pah Kong Market

• Huay Pah Gang Market

• Chock Chareun Market

11

Municipal Market

• Tet Sa Barn neung Market

• Tet Sa Barn Song Market (Sirikorn)

Almost of those markets that we indicated have different advantages and disadvantages.

Such as in some of those market has wide variety of products with a limited area. Due to the

crowded it causes problems about parking and traffic jam. In some market has a huge location

and a parking space but only a few people use their service. Because of the life style of Chiang

Rai people and their behavior, most of them have an easy life style and economical. They like

to expense their money with many alternative products.

So, doing a business in Chiang Rai especially in a fresh market business, we have to

know the customer behavior of Chiang Rai people. In order to construct a fresh market which

match with their life style and behavior.

12

Product and service

Product

In the fresh market most of the product is fresh meat, sea food, vegetable, fruit and

prepared foods. Some of the products which cannot find in the supermarket such as local

vegetable and local food are founded in our fresh market.

Market with infrastructure

Market with non-infrastructure

13

Service

Almost the fresh market in Thailand has an improper and unclear zone. Most of the

zone is depend on the relationship between sellers. For example, although they sell different

type of products but they have a close relationship and stay in the same zone. This causes the

disorganized and messy to the market. Moreover, most of the markets are lack of cleanness and

maintenance. For example in the fresh meat zone, there are some problems about dirty ground

and fishy smell. This cause people did not want to go to this zone of market. In some fresh

market located in the community with crowded people that can cause the traffic jam.

Parking Public toilet

Garbage pail Weighing scale

(Source:http://www.nwmc.go.th/market_1.html)

(Source:http://www.teeteawthai.com/

Chapter 3

Market Feasibility Study

15

Market Analysis

General environment analysis

Political

According to ministerial regulations about market hygiene B.E. 2551 (2008) in section

1 that types of fresh market can be classified into 2 categories;

Category 1 : The market with infrastructure and operate regularly or at least once a week

which meets the requirements of Ministry of Public Health.

Category 2 : The market with non-infrastructure and operate regularly or at least once a week

which meets the requirements of Ministry of Public Health.

Fresh market of municipal government that plan to build or develop in the future must

be a market with permanent infrastructure classified as market in category 1. The market have

to be clean and sanitary, proper number of stall which is suit to local area condition and eating

culture and living of each region. The market has to be safe and easily access. Moreover, it has

to be a place that has no effect to environment and society nearby such as bad smell, polluted

water and trash.

However, there are three requirements under Healthy Market from Department of

Health B.E. 2551 (2008):

Environmental health requirement

The marketplace should be well-ventilated, floors in all market areas should be sloped

to drain and Infrastructure should be well-maintained in good and hygienic condition. Pathway

in the marketplace should be at least 2 meters width. Food and stuff should be placed for sale at

least 60 centimeters above the floor. All goods and equipment using in marketplace should be

placed properly and should be zoned. Each stall should have the number and the name of the

owner and they should be easily seen. Trash containers should be separated from garbage,

adequate in number, insanitary condition, and regularly cleaned. Toilet for male and female

should be separated, well-ventilated and free from bad odors. Wastewater treatment should

meet the standard (for marketplace with area at least 2500 m² or above). Pest control should be

conducted at least twice a year. Routine cleaning shall be done after each use every day and

sanitary cleaning should be conducted at least once a month. Person who sells merchandise

16

should perform good hygienic practices and dress with good personal hygiene during all

working periods.

Food safety requirement

All food sold in the market must free from 5 chemical contaminants; Borax, Formalin,

Salicylic acid, Sodium hydrosulfite, Beta agonist.

Consumer protection requirement

Person in charge for contamination screening test should be provided in designated area. It

should provide an information boards and weighing scale for consumers.

Chiang Rai government agencies can be divided in to 3 agencies.

1. The Regional Administration

2. The Central Administration

3. The Local Administration

Include: 1 City Municipal

26 Local Municipal

1 Provincial Administration

116 Locality Administration

The Mee Sub Fresh market is located and under the control of Chiang Rai City

municipal.

To be a standard fresh market must follow by the ministry of Public Health which is

mentioned about the structure of the market, location, store management, waste disposal

system and also health and environment standard. This point we have to concern on population

and the need of consumer.

Economy

The economic circumstance of Chiang Rai at this time tends to expanded continuously

follow by the government policy which encourage people to spend their money such as;

increase minimum wage, raise the salary of government officer and reduce the corporate

income tax to raise the demand and the purchasing power. According to the report of economy

estimation of Chiang Rai in 2012, the investment of private sector in Chiang Rai has been

expanded to 17.1% due to the expanding and introducing of new project of real estate business

to support the economic expansion in Chiang Rai.

17

Moreover, there is an ASEAN Economic Community in 2015 which is an association

of ASEAN country to create their own market and production base. There is a freedom

movement of product, service, investment, capital and high skill labor. Besides, Chiang Rai is

an important fortress area where is a stronghold in tourism and transportation due to the fact

that it has a boundary connected to many countries. From these economic factors, it shows that

establishing a fresh market is required by consumers (The Chiang Rai Provinceal Office of the

Comptroller General, 2012).

Social

According to the increasing number of employment1 and an increasing in population

2 in

Chiang Rai, people have more income and more quality of life. It can increase in the

purchasing power of people to buy the product which match with their need. People in the

Northern of Thailand has the characteristic of living as a big family, living near their

neighborhood, mutually depend on each other, has simple lifestyle , still preserve the local

culture and traditional custom. Although society nowadays is developing to be urban society;

an increasing of housing development, development of technology and economy, but these

change cannot cause an effect to the way of live of people that much. Due to people in Chiang

Rai has a simple lifestyle, they does not live as a big family like in the past anymore.

Nowadays, people are more concern on health not only the older person but also working

persons and teenagers. They also pay attention to the healthy functional food in order to be

good in health (SMEs Article, 2012) whether it is more expensive. People in Chiang Rai living

as a single family and still prepare the meal in their household. So, the fresh market still is an

alternative of Chiang Rai people to use the service in purchasing raw material for cooking or

other consumption goods. As mentioned above, it shows that fresh market business still is

required to meet the customer’s needs. To respond to the needs of customers, the entrepreneur

has to focus on customer behavior and merchants or seller who rent the stall and use the fresh

market service, in order to survey the needs of customers in many factors. So that, they can

specify the form and characteristic of fresh market follow by the regulation and customer’s

needs.

18

Table of Economic and Chiang Rai trend.

(Source:http://www.klangcri.com/team/team3/data/ManagementChart/Report_MC/2555/Mana

gement_2_55.pdf)

(Source:http://www.thaifranchisecenter.com/document/show.php?docuID=526)

1

2

19

Environment

In term of environment, Chiang Rai city has traffic jam in community areas. However,

the location of our fresh market has clear and nice weather and not crowded community since it

located on the bypass that close to government sectors, school, university and the airport that

suitable to build the market. Moreover, we found the building instruction of row houses has

been increasing even on the opposite and beside our Fresh Market which means this area will

become the crowd community in the future and also found the developed housing with 200

houses in the area around our Fresh Market.

Government Sectors

Chiangrai Provincial Administrative Organization

Chiangrai Government Service Ministry of Labour Department of Rural Roads No.17 (Chiang Rai)

Chiangrai Provincial Labour Protection and Welfare Office

20

University/ School

Chiangrai Department of Skill Development

Chiangrai Municipality School 6 (Junior High School) Chiangrai Municipality School 6 (Senior High School)

Chiangrai Department of Fisheries Department of Public Works and Town & Country

Planning Chiangrai Office

Chiangrai Department of Probation

21

Row housing

Wisanusorn School

Chiangrai Special Education Center Ramkhamhaeng University Chiangrai Campus

22

Technology

At this time, technology and communication are growing that make the marketing

easily reach to the real customer more than ever. Since there are variety of alternatives in

receiving the information such as radio, television, newspaper, billboard and including internet,

therefore, our group has studied advertising method to introduce The Mee Sub market and

persuade sellers and buyers to know and come to the fresh market. The advertising can be

conducted through many types of technology which is suit to the geographic features and target

market behavior.

Developed housing

Koolpuntville (234 Households) Greenville

Suwanraya Village (60 Households)

23

Competition Analysis

1. Competitor analysis

Ban-Du Market

Category Details

Location Bandu District, Muang, Chiang Rai

Surrounding 7/11, Banks, University

Amount of stall 500 stalls

- Meat 10 Sellers

- Fish 6 Sellers

- Others

Stall Payment - 2 Baht in the Moring since 4 a.m. – 10 a.m.

- 5 Baht in the afternoon since 1 p.m. – 8 p.m.

General information Ban-Du is an economic area with the market is near the community

area and Chiangrai Rajabhat University. It is crowded in the

evening. Fresh products can be found in the morning and cooked

food can be found in the evening. The market planned to expand the

flooring but cannot be done.

Pros - Convenience to stop by

Cons - There always has a traffic jam in the front of the market

especially in the morning and evening which causes

accidents many times.

- It is not organized

- There is bad smell of the garbage since it is no proper

storage.

http://www.google.co.th/url?sa=t&rct=j&q=%E0%B8%A1%E0%B8%AB%E0%B8%B2%E0%B8%A7%E0%B8%B4%E0%B8%97%E0%B8%A2%E0%B8%B2%E0%B8%A5%E0%B8%B1%E0%B8%A2%E0%B8%A3%E0%B8%B2%E0%B8%8A%E0%B8%A0%E0%B8%B1%E0%B8%8F%E0%B9%80%E0%B8%8A%E0%B8%B5%E0%B8%A2%E0%B8%87%E0%B8%A3%E0%B8%B2%E0%B8%A2&source=web&cd=1&ved=0CCwQFjAA&url=http%3A%2F%2Fwww.cru.in.th%2F&ei=NYQJUY2FNYLtiAfU5YGYBQ&usg=AFQjCNFDNELTBe66-QiVFC0JwysH5HVZtw&sig2=nM0riB0d-xI0XyRk-AyH_g

24

Pah Kor Market

Category Details

Location Phahon Yothin Rd., Rop Wiang District, Muang, Chiang Rai

Surrounding - 7/11 in both side of the road

- Food area in the evening


- Meat 3 Sellers

- Fish 2 Sellers

- Vegetables, fruits, cooked food etc.

Stall Payment 10 Baht/stall

General information Pah Kor Market is a small market which is close to the community.

The market is open since 5 a.m. – 10 p.m. and crowded in the

evening. Mostly sold cooked food. The area has a good commercial

interaction.

Pros - There are varieties of food for people who looking for

cooked food to be take home.

Cons - Traffic jam in the evening

- No parking lot

- Not clean

- No waste disposal system

25

Tet Sa Barn Neung Market

Category Details

Location Tet Sa Barn Neung, Thanalai Rd., Rop Wiang District, Muang,

Chiang Rai

Surrounding It is a trading center area of Chiang Rai; there are trading all the

time. It is near to Chiang Rai Clock Tower.


Stall Payment 50 Baht/stall

General information Because Tet Sa Barn Neung Market is the biggest market in Chiang

Rai, so there is a trade interaction all the time. There are Market

inside and Market outside.

Market inside;

- Open since 4 a.m. – 6 p.m.

- Product sold are; clothes, food, snack and grocery.

- Some area also trade at night.

Market outside;

- Open since 2 a.m – 8 a.m. in the morning.

- Fresh products can be found in the morning e.g. vegetables.

- Open 4 p.m. – 3 p.m. in the evening.

- Cooked food, vegetables, meat etc. can be found in the

evening.

Pros - There is a trade interaction all the time.

- Good economic area

Cons - There is bad smell of the garbage.

- It is quiet dirty and it is the source of pest such as mice.

- The management is not so good such as drains, waste

disposal system etc.

- Unsystematic stalls which are trade on the road, it may cause

dangers to both sellers and customers.

- Traffic jam and Lack of parking lot.

26

Tet Sa Barn Song Market (Sirikorn Market)

Category Details

Location Rop Wiang District, Muang, Chiang Rai

Surrounding Bus Terminal, Suan Tung and Chiang Rai Nigh Bazaar


- Meat 28 Sellers

- Fish 27 Sellers

- Fruit ,Flowers, Vegetables, cooked food, etc.

Stall Payment Monthly : 156 Baht/stall

General information Sirikorn Market is located in the community with crowded people

stop by so it is good trading area. Mostly there are make to order

restaurants and gift shop. It is open since 4 a.m. – 7 p.m.

Pros

- It is located in the entrance way of the city which is close to

community and a lot of trading nearby.

- It is a well-known source of flower shops.

Cons - No parking lot

- Not clean

- No fences to prevent animals

- No segment of garbage and waste

27

Huay Pah Gang Market

Category Details

Location Mae Sai – Mae Fah Luang Rd., Rop Wiang District, Muang, Chiang

Rai

Surrounding 7/11 on the left and Lotus Express on the right


- Meat 2 Sellers

- Fish 1 Sellers

- Vegetables, cooked food, etc.

Stall Payment 300 Baht/Month

General information Huay Pah Gang Market is close to the community but not so

crowded since it is a small market. It is open since 5 a.m. – 8 a.m. in

the morning and 3 p.m. – 6 p.m. in the evening.

Pros - It is quiet clean.

- Not crowded.

Cons - No toilet

- No waste disposal system

- Difficulty in traffic

28

Baan Mai Market

Category Details

Location Baan Mai Crossroads, Rop Wiang District, Muang, Chiang Rai

Surrounding - Many stores aside

- Lotus Express in the opposite

- Close to Baan Mai community and St.Mary School

(Primary) Chiang Rai


- Meat 10 Sellers

- Fish 6 Sellers

- Others

Stall Payment Daily : 10 Baht/stall

Monthly : 300 Baht/stall

General information Baan Mai Market mostly sell vegetables, fresh products, cooked

food in the morning.

Pros - Segment the parking lot between motorcycles and cars.

- Convenience to stop by

- Tidy and orderly

- Good waste management

Cons - No toilet

- No cement parking lot

29

Den-Hah Market

Category Details

Location Den Hah Crossroads, Rop Wiang District, Muang, Chiang Rai

Surrounding 7/11, Lotus Express


- Meat 2 Sellers

- Fish 1 Sellers

- Others

Stall Payment Collect both in the morning and in the evening 10 Baht/stall

General information Den-Hah Market mostly sells vegetables and cooked food. The

market is located under the building which is very stuffy.

Pros - Close to the community

- Crowded people in that area

- Good economic area

Cons - There is a traffic jam in the evening.

- No parking lot

- No toilet

- Stuffy

- Quiet dirty

30

Nim Si Seng Market

Category Details

Location Next to the main road, Rop Wiang District, Muang, Chiang Rai

Surrounding Green Wing in the front and 7/11 on the left.


- Meat 4 Sellers

- Fish 3 Sellers

- Others

Stall Payment 20 Baht/day/stall

General information Nim Si Seng Market is a small market located in community area.

The customers who come to the market are local people in the

community. It is open since 5 a.m. – 6 p.m. Cooked food can be

found both in the morning and in the evening.

Pros - Quiet clean

- Developing market

Cons - Bad smell of garbage

- Bad waste management

- No safety parking lot

- Dirty aside the market


31

Sri-Sai-Moon Market

Category Details

Location 20 M.1 Rop Wiang District, Muang, Chiang Rai

Surrounding 7/11 on the left, Lotus Express on the right, and Glasses store in the

opposite.


- Meat 3 Sellers

- Fish 2 Sellers

- Fruit 4 Sellers

- Vegetables, cooked food, etc.

Stall Payment Daily : 10 Baht/stall

Monthly : 300 Baht/stall

General information Sri-Sai-Moon Market is located in the community with crowded

people stop by so it is good trading area. Mostly there are make to

order restaurants and dormitory close to the market. It is open since

6 a.m. – 8 p.m. crowded people in the morning and in the evening.

Pros - It is located in the entrance way of the city which is close to

community and a lot of trading nearby.

- The market is not influence to the community since it is no

village there. Most people just come and go.

Cons - No parking lot

- Dangers and Difficulty of traffic in the front of the market

- Not clean


- No segment of garbage and waste

- The toilet only have 2 rooms

(Source: From our survey)

32

According to the primary survey the table shows the strength and weakness of

competitors who open the Fresh Market companies in Mueng district Chiang Rai. We found

that, the most of Fresh Market weakness on the parking lot allocate of garbage, bad ventilate

air and zones dividing. However, they still have a strong strength such as place close to the

highway and in the center of community where is suitable for local people to drive or ride their

own vehicle from their place to the Fresh Market. The last but not least, we also found the

convenient store around the Fresh Market which is comfortable for customer of come at one

place and can get what they need to buy. Moreover, we are wonder why the customer still to go

the same market with the high weakness or they don’t have other alternative of Fresh Market,

this is the reason why we are interested to do the Fresh Market with turning their weakness to

our strong strength which provides allocate of garbage with a good of ventilate air and having a

clear zone of products along with sink placed in the meat and seafood zone to customer for

washing their hands after buying the raw meat, parking lot is the important thing for customer

to have a convenient parking so they won’t feel rush moving their vehicle. But the most

importantly is the variety product with a quality check and a fair price for customer which

based on Ministry of health standard in our Fresh Market to meet with customer needs.

2. Customer Analysis

Nowadays, trend of healthy is fever around the world and including Thailand. Thai

people are concern more about their healthy in term of consumption. Especially, a group of

people that is working age have behavior in choosing the healthy food more and more. They

focus on fresh, quality, and nutrition of food.

So, the characteristic of the customers who come to the fresh market in Chiang Rai

mostly are; female, age 30 and above, working people including housewife who likes to

expend and purchase instant food and raw materials to prepare the meal in her household to

make sure that the food is safe and healthy. Most of the customers are price concerns and

quality is significant in order to make decision too. Variety of goods is also relevant.

Moreover from statistic of income and expense of Chiang Rai people show that the

people have more income and have expense that more than half of income. It means that people

have more power to buy.

33

Income of Chiang Rai people during 2006-2009

Expense of Chiang Rai people during 2006-2009

34

3. Competitive Analysis

There are three competitive have found in the Fresh Market in Chiang Rai. First of all,

stall price rate of each Fresh Market is different because its depend on demand of retailer if the

Fresh Market has a cheap price of stall so, most of the retailer would like to get stall for their

product sales which means the demand of customer follow the retailer for buying products.

Second of all, the Fresh Market this got the award from Ministry of health to warranty itself of

a clean Fresh Market for customer to purchase, so this factor can increase the amount of

customer. Third of all, demands of customers are depending on the variety products in the

Fresh Market. If the Fresh Market have variety products sale, demand of customer will be

increased because variable market attracts customer to purchase at that market.

STP Analysis

Segmentation

The segmentation of the users of Fresh Market can be classify in 3 categories by

segmentation from demographic including occupation, age and lifestyle;

1. A group of people age 15-22 years old or a group of student. The characteristics of this

group are; prefer convenience, emphasize on consuming instant food and mostly come

to fresh market in the evening to late night.

2. A group of people age 23-34 years old; mostly are working people or salary man such

as private sector employees, employees work in the government service etc. This group

of people has a hurry-up lifestyle that has no time to prepare the meal so, they tend to

consume instant food and come to fresh market in the morning since 6 A.M. to 8 A.M.

and in the evening since 4 P.M. To 10 P.M. They also concern about healthy food.

3. A group of people age 35-60 years old and above; female who is a housewife. This

group of people tends to purchase raw materials to prepare the meal in the household.

They also concern about healthy food for their household. Mostly, they come to fresh

market in the morning since 4 A.M. To 10 A.M. and in the evening since 3 P.M. To 6

P.M.

The segmentation of the people who are seller in the fresh market can be classified into 2

categories;

1. A group of sellers who want to rent the stall(s) in temporary.

2. A group of sellers who want to rent the stall(s) in permanent.

35

Target Market

According to the segmentation of the fresh market, can be assumed that the target

market of the fresh market Mee Sub is a group of people age 35-60 years old and above;

female who is a housewife, because of the behavior of this group of people that always comes

to the fresh market and also health concern, always seek for healthy food. And from the

segmentation of the users who are seller can be assumed that the target market is a group of

sellers who want to rent the stall(s) in permanent.

Product positioning

1. Mee Sub Market would be one of the Very Good Level Healthy Market out of 228

markets in Thailand.

According to the information from Thai Health Promotion Foundation (2012) shows

that there are 1,533 of fresh markets all over Thailand. Those markets which meet the

benchmark standard of Healthy Market are 1,302 markets that are 85 percent and can be

classify into 2 levels; Good Level 1,074 markets and Very Good Level 228 markets.

To be a Very Good Level (5 Stars), the market should be developed to be a Healthy

Market that meet three requirements under Healthy Market from Department of Health B.E.

2551 (2008):

1) The market has to meet the first 17 sections of Environmental health requirements

and other 18 sections or above which is not less than 35 sections in total.

2) The market has to meet the Food safety requirement.

3) The market has to meet the Consumer protection requirement.

These are 40 sections of Environmental health requirement for Healthy Market;

1. Marketplace shall be well-ventilated.

2. Stalls, pathways, and outside garbage storage areas or enclosures shall be kept clean.

3. Floors in all market areas and proximity shall be sloped to drain.

4. All drains in marketplace shall be opened. Although drains around the market shall be

kept covered with metal screens and easily cleaned.

5. Toilets shall be well-ventilated, to be free of obnoxious odors.

6. Septic tanks are in sanitary condition.

7. Routine cleaning shall be done after each use every day.

8. Tap water shall be provided adequately.

9. Toilets for male and female shall be separated.

10. All goods and equipment using in marketplace should be placed properly. Do not

obstruct the pathways.

11. Food and stuff should be placed for sale at least 60 centimeters above the floor.

36

12. Sanitary cleaning should be conducted at least once a month.

13. Public trash receptacles should be adequate in number, in sanitary condition, and

regularly cleaned.

14. Trash screening and grease trapping should be conducted before discharging to public

sewage system or environment.

15. Infrastructure should be strong and durable. Floors should be constructed of smooth

durable material and easily cleaned.

16. Post control shall be regularly conducted.

17. Person in charge should take action in cleanliness and safety in marketplace.

18. Light at the stalls should be at least 200 Lux.

19. Stalls should be constructed of smooth durable and easily cleanable material, and at

least a height of 60 centimeters.

20. Each stall should have the number and the name of the owner and they should be easily

seen.

21. A trash receptacle should be present at each stall with sanitary condition and regularly

cleaned.

22. Trash containers should be adequate in number, insanitary condition, and regularly

cleaned.

23. Water storage containers should be adequate in number for daily use.

24. Toilets for male and female and sinks with soap should be clean, adequate in number,

and conveniently located.

25. There should be a person in charge of cleaning toilet at least twice a day.

26. Waste receptacles in the toilets should be durable and leak-proof material and kept in

covered.

27. Pest control should be conducted at least twice a year.

28. The number of pet and pest should not excess standard level.

29. Goods should be zoned.

30. Fire extinguisher should be adequate in number, placed in proper location, and easily

accessible.

31. Infrastructure should be well-maintained in good and hygienic condition.

32. Traffic around the market should be properly provided.

33. Person who sells merchandise or assistant should properly dress with good personal

hygiene.

34. Person who sells merchandise or assistant should perform good hygienic practices

during all working periods.

35. There should be a designated place for comments from public.

36. Pathway in the marketplace should be at least 2 meters width.

37. Trash should be separated from garbage.

38. A group or association of market’s owners, persons who sell merchandise or assistants,

or consumers should be required.

39. Environmental or sanitary training course should be provided for persons who sell

merchandise or assistants.

40. Wastewater treatment should meet the standard. (for marketplace with area at least

2500 m² or above)

37

Food safety requirement

All food sold in the market must free from 5 chemical contaminants; Borax, Formalin,

Salicylic acid, Sodium hydrosulfite, Beta agonist.

Consumer protection requirement

Person in charge for contamination screening test should be provided in designated

area. The market also has information boards and weighing scale for consumers.

2. Mee Sub Market would be known as safe and clean fresh market where the

products found are clean, safe, fresh, and free from any toxic residues and contaminant

substances.

Mee Sub Market concerns about safety of consumers to reduce illness rate and death

rate of people in the area. Especially food is to be concern since food is an important factor

people consume every day which can be create and destroy a good health at all time. So, our

market needs to collaborate with Ministry of Agricultural and Cooperatives, Department of

Health and community to provide safe and clean food for consumers.

2.1 Product Certification

In order to achieve this positioning, the sellers require Product Certification for

agricultural products and food from the Ministry of Agricultural and Cooperatives. Due to the

institutes in the Ministry of Agricultural and Cooperatives use the certification of agricultural

products and food as the same mark called ‘Q Mark’ which represent the quality of agricultural

products and food as safe and high quality products. Moreover, it also communicate to

consumers within the country and trading partners from other country to trust in production

system and agricultural products and food which is meet the standard and to be accepted in

other countries.

This Product Certification covers taking random samples, testing products, and

inspecting the product whether the product characteristics of quality and safety follow the

agricultural products and food standard or not. The safety standard concerns about toxic

residues and contaminant. Moreover, there is an assessment of operation system of the

producers if they can maintain their quality and safety of products or not.

38

The Q Mark symbol

The National Bureau of Agricultural Commodity and Food Standards (ACFS) suggest

that the size of Q Mark should not smaller than 15 mm. in order to be clearly visible and

readable by the naked eye.

The color of Q Mark

Figure 1: An example of the appearance of Q Mark Type A.

Figure 2: An example of the appearance of Q Mark Type B

Color Code

Green C100,Y100BL60

39

1. Certification Body (CB)

- Prepare condition of certificate

- Identify type of certificate

- Identify standard used

The process of issuing Q Mark

The assurance of operating system or to assure agricultural products and food can be

summarized as the steps shown in the chart below;

The chart of process of issuing Q Mark for agricultural products and food

Means the process of issuing Q Mark

Means the process of linking information as a central database

2. National Bureau of

Agricultural Commodity and

Food Standards (ACFS)

Consider

3. Give the code (Code No.3)

and Certification Body (CB)

4. Certification Body (CB)

issues the certificate

Submit

Incorrect or

incomplete

document

Document is correct and complete

Inform certificate

information as the

central database

40

2.1 Provide screening test for food safety

Under Food safety requirement of Healthy Market, the food sold in the market must

free from 5 chemical contaminants; Borax, Formalin, Salicylic acid, Sodium hydrosulfite, Beta

agonist. However, Mee Sub Market will collaborate with Ministry of Public Health to make

random inspection of 7 contamination substances including; Red meat catalyst, Borax,

Formalin, Salicylic acid, Sodium hydrosulfite, Beta agonist and repeated use of frying oil.

Besides, our market also has more inspections on drinking water quality, ice, microbial

pathogens and other contaminants such as Aflatoxin, Acetic Acid, synthetic coloring agent and

preservative agent. All these should be inspected every month.

Mr.Pachara KaewKla (2012), the coordinator of the strengthening mechanisms of food

safety project from Foundation for Consumers said “Most of vegetables in general markets and

street stall found the residual of pesticide exceed the maximum rate for 38.1%. This is similar

to the result of the Department of Agriculture inspection which has a random check on

vegetables with the ‘Q Mark’. Moreover, the vegetables sold in supermarkets are also found

the residual of pesticide exceed the maximum rate for 43% while these vegetables sold in

higher price compared to vegetables sold in fresh markets for 2x-10x.”

In this case, our market is realize for these safety to protect the benefits for consumers

and all these protections is aimed to meet customer satisfactions of our target market who

concern about healthy products.

3. The analysis of target market characteristic is the target that are housewives,

female, age 35-60 years old and above who is healthy concern.

4. To specify the product position of the fresh market, using price and quality as the

determination.

Mee Sub Market is known as Healthy Market which the product sold are free from

chemical contaminants so, the price of the product is quiet above the price of the product sold

in general markets according to the quality of the products.

41

Marketing Strategy

Integrated Marketing Communication

The important thing that should be focused on of the Fresh market business is to

communicate the marketing activities to consumer to understand and accepted. Marketing

activities of Mee Sub Market are;

1. Public Relations and Advertising

Our market will provide public relations and advertising on the new opening fresh market

in order to communicate and invite sellers and people who interested to sell their products in

the market. We offer some promotions to create the awareness and to persuade those sellers to

come and use our service. The tools we use in advertising are;

1. Advertising on local radio FM. 95.75 MHz 3,000 baht per month for the retailer

who want to rent stall at the Fresh Market 3 months between 01/05/2013 – 31/07/2013.

2. Local newspaper 500 baht/month (buy 1 month free for 1 month ads) for grand new

open fresh market 1 month between 15/07/2013 – 15/08/2013.

3. Three Radio cars advertising for 6 days between 29/07/2013 – 04/08/2013.

Total time for each car in 1 day = 9 hours

Driving time: 06:30am – 09:00am/ 11:30am – 13:30pm/ 15:30pm – 18:00pm

- First car, will drive all the way from Rop Wiang District to Chiang Rrai

- Second car, will drive around down town Chiang Rai on the west side

- Third car, will drive around the city in Chiang Rai on the east side

4. Grand Opening

- Invite the under-secretary of a health ministry to open the Fresh Market on

01/08/2013 and test or measure the toxic value in the vegetables and fruits, which show how

safe and healthy of the products in our Fresh Market.

- Walking for Health activity, the distance start from our Fresh Market and will

end up at our Fresh Market within 2 km distance.

Grand slam: receive gold 0.50 baht as a prize

Honorable mention 1: receive 5,000 baht

Honorable mention 2: receive 3,000 baht

- Activities of students’ performance form Chiang Rai Municipality School 6

42

2. Promotion

For buyers who come to buy the products in our market, we will provide an

advertisement to inform them about the strength of Mee Sub market that focus on facilities

such as large area of parking lot, cleaned toilet, proper layout of goods category for

convenience of buyers. Also, there are security officers who responsible to the safety of the

market. These are the ways to draw attention from people to come to our market.

1. Advertising of free stall to retailer for the first 3 months sales board on roadside

between 01/08/2013 – 31/10/2013.

2. Discount 50% price of stall on the agreement for the header who can find the retailer

to sell at the Fresh Market forever.

3. Price

Description Stalls

Rent per

month Total

Food court 20 4,500 90,000

Prepared food 20 1,500 30,000

Processed food 16 1,200 19,200

Fresh food 64 5,400 345,600

Fresh vegetable 30 780 23,400

Fruits 30 1,200 36,000

Miscellaneous goods 20 2,000 40,000

Price (Market with infrastructure)

Description Stalls Rent per day Total per day

Shop stall 100 100 10,000

Price (Market with non-infrastructure) There are free areas for 100 stalls

43

4. Place

Location background

The Mee Sub Market will be located on the bypass of Chiang Rai province. This fresh

market will be located in the community which closed to the airport, the city hall, the school

and the Payao University (branch in Chiang Rai). We have contact with the land owner for

asking to buy the land. This land including with 25 acres 32 square meters. There are some

criteria in choosing the location;

Social and cultural factor

The location is close to the community.

The fresh market is consistent with characteristics of population around the area

together with participation that is not go against routine, religion and social

value of people in that community.

Environmental factor

The convenience entrance for the customer and the user.

The area is not crowed and can be continuously extended.

The area is open and ventilated.

The area is unaffected by pollution from noise, toxic fumes, sewage and odor.

Technical factor

1. It is convenience for transporting goods.

2. It is convenience in case of labor and staff.

3. It is easy to access and it will not have a traffic problem.

Trend of the community

There is the growth trend of the community.

There is an increasing number of the population.

(Source: http://www.sumc.in.th/images/document/20070607155210bifhc.pdf)

44

Revenue Forecast (from renting stall)

Year 1 คา่เซง้ Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Total

Food court 735,000 - - - 60,750 60,750 60,750 60,750 60,750 60,750 60,750 60,750 60,750 1,281,750

Prepared Food 511,000 - - - 20,250 20,250 20,250 20,250 20,250 20,250 20,250 20,250 20,250 693,250

Processed Food 357,500 - - - 12,600 12,600 12,600 12,600 12,600 12,600 12,600 12,600 12,600 470,900

Fresh Meat 2,362,500 - - - 240,300 240,300 240,300 240,300 240,300 240,300 240,300 240,300 240,300 4,525,200

Fresh Vagetable 420,000 - - - 15,990 15,990 15,990 15,990 15,990 15,990 15,990 15,990 15,990 563,910

Fruits 682,500 - - - 24,600 24,600 24,600 24,600 24,600 24,600 24,600 24,600 24,600 903,900

Miscellaneouse 560,000 - - - 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 27,000 803,000

Temporary Stalls - - - - 180,000 180,000 180,000 180,000 150,000 150,000 150,000 150,000 150,000 1,470,000

TOTAL 5,628,500 - - - 581,490 581,490 581,490 581,490 551,490 551,490 551,490 551,490 551,490 10,711,910


Food court 157,500 76,500 76,500 76,500 76,500 76,500 76,500 76,500 76,500 76,500 76,500 76,500 76,500 1,075,500

Prepared Food 109,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 25,500 415,500

Processed Food 97,500 16,800 16,800 16,800 16,800 16,800 16,800 16,800 16,800 16,800 16,800 16,800 16,800 299,100

Fresh Meat 525,000 297,000 297,000 297,000 297,000 297,000 297,000 297,000 297,000 297,000 297,000 297,000 297,000 4,089,000

Fresh Vagetable 100,000 20,280 20,280 20,280 20,280 20,280 20,280 20,280 20,280 20,280 20,280 20,280 20,280 343,360

Fruits 162,500 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200 31,200 536,900

Miscellaneouse 120,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 34,000 528,000

Temporary Stalls - 90,000 90,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 117,000 99,000 99,000 1,314,000

TOTAL 1,272,000 591,280 591,280 618,280 618,280 618,280 618,280 618,280 618,280 618,280 618,280 600,280 600,280 8,601,360


Food court 157,500 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 1,237,500

Prepared Food 109,500 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 469,500

Processed Food 65,000 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 295,400

Fresh Meat 472,500 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 4,619,700

Fresh Vagetable 80,000 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 360,800

Fruits 130,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 562,000

Miscellaneouse 120,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 600,000


TOTAL 1,134,500 683,200 683,200 710,200 710,200 710,200 710,200 710,200 710,200 710,200 710,200 692,200 692,200 9,566,900

Revenue from renting stall

45


Food court - 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 1,080,000

Prepared Food - 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

Processed Food - 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 230,400

Fresh Meat - 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 4,147,200

Fresh Vagetable - 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 280,800

Fruits - 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 432,000

Miscellaneouse - 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 480,000


TOTAL - 692,200 692,200 719,200 719,200 719,200 719,200 719,200 719,200 719,200 719,200 701,200 701,200 8,540,400


Food court - 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 1,080,000

Prepared Food - 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

Processed Food - 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 230,400

Fresh Meat - 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 345,600 4,147,200

Fresh Vagetable - 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 23,400 280,800

Fruits - 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 432,000

Miscellaneouse - 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 480,000


TOTAL - 701,200 701,200 728,200 728,200 728,200 728,200 728,200 728,200 728,200 728,200 710,200 710,200 8,648,400

46

Total Revenue

Year 1 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Total

Revenue

Revenue from lease 5,628,500 - - - - - - - - - - - 5,628,500

Revenue from renting stall - - - 581,490 581,490 581,490 581,490 551,490 551,490 551,490 551,490 551,490 5,083,410

Revenue from providing toilet 17,580 16,080 16,080 17,580 16,080 16,080 16,080 21,750 16,080 17,580 16,580 17,580 205,130

Revenue from ATM area renting - - - - 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 120,000

Total revenue 5,646,080 16,080 16,080 599,070 612,570 612,570 612,570 588,240 582,570 584,070 583,070 584,070 11,037,040


Revenue


Revenue from renting stall 642,990 642,990 687,990 687,990 687,990 687,990 687,990 687,990 687,990 687,990 657,990 657,990 8,105,880


Revenue from ATM area renting 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 180,000

Revenue from area renting - - - - - - - - - - - - -

Total revenue 1,946,070 674,070 719,070 719,070 719,070 719,070 719,070 719,070 719,070 719,070 689,070 689,070 9,750,840


Revenue





Revenue from area renting - - - - - - - - - - - 28,000 28,000

Total revenue 1,907,990 771,990 816,990 816,990 818,490 818,490 818,490 816,990 818,490 816,990 786,990 816,940 10,825,830

Table: Total of revenue

47


Revenue





Total revenue 788,490 786,990 831,990 831,990 833,490 833,490 833,490 831,990 833,490 831,990 801,990 833,940 9,873,330


Revenue





Total revenue 803,490 810,280 855,280 855,280 856,780 856,780 856,780 855,280 856,780 855,280 825,280 857,230 10,144,520

48

Show calculation of each number from

Lease per

Stall

Food Court 20 52,500.00 1,050,000.00

Prepared Food 20 36,500.00 730,000.00

Processed Food 16 32,500.00 520,000.00

Fresh Meat 64 52,500.00 3,360,000.00

Fresh Vegetable 30 20,000.00 600,000.00

Fruits 30 32,500.00 975,000.00

Miscellaneous goods 20 40,000.00 800,000.00

200 266,500.00 8,035,000.00

Description Stalls Total

Table show total revenue from lease

Year 1 Year 2 Year 3 Year 4 Year 5

Stalls Stalls Stalls Stalls Stalls

Food Court 14 17 20 20 20

Prepared Food 14 17 20 20 20

Processed Food 11 14 16 16 16

Fresh Meat 45 55 64 64 64

Fresh Vegetable 21 26 30 30 30

Fruits 21 26 30 30 30

Miscellaneous goods 14 17 20 20 20

140(70%) 172(85%) 200(100%) 200(100%) 200(100%)

Description

Table show amount of stall that rented in each year

49

Year1: Revenue from lease

We forecast that in year 1 there are vendors rent stall around 70% of total stall, so we

can calculate revenue from lease in year 1 as following.

Year 1 Lease Total

Stalls per stall

Food Court 14 52,500 735,000

Prepared Food 14 36,500 511,000

Processed Food 11 32,500 357,500

Fresh Meat 45 52,500 2,362,500

Fresh Vegetable 21 20,000 420,000

Fruits 21 32,500 682,500


Total 140 266,500 5,628,500

Description


We forecast that in year 2 there are vendors rent stall around 85% of total stall, so we

can calculate revenue from lease in year 2 as following.

Year 2 Lease Total

Stalls per stall

Food Court 3 52,500 157,500

Prepared Food 3 36,500 109,500


Fresh Meat 10 52,500 525,000


Fruits 5 32,500 162,500


Total 31 266,500 1,239,500

Description

50


We forecast that in year 3 there are vendors rent stall 100 % of total stall, so we can

calculate revenue from lease in year 3 as following.

Year 3 Lease Total

Stalls per stall

Food Court 3 52,500 157,500

Prepared Food 3 36,500 109,500


Fresh Meat 9 52,500 472,500


Fruits 4 32,500 130,000


Total 28 266,500 1,134,500

Description

Year1: Revenue from renting permanent stall

Total rent

(AxB)-C = D

Food court 14 4,500 2,250 60,750

Prepared food 14 1,500 750 20,250

Processed food 11 1,200 600 12,600

Fresh food 45 5,400 2,700 240,300

Fresh vegetable 21 780 390 15,990

Fruits 21 1,200 600 24,600

Miscellaneous goods 14 2,000 1,000 27,000

Total 140 16,580 8,290 401,490

Stalls

70%*(A)

Rent per

month (B)

Promotion for

Header**(C)Description

* 70% are a forecast for opening new fresh market. **Promotion for header is a forecast from one header per a zone.

51


Total rent

(AxB)-C = D

Food court 17 4,500 2,250 74,250

Prepared food 17 1,500 750 24,750

Processed food 14 1,200 600 16,200

Fresh food 55 5,400 2,700 294,300


Fruits 26 1,200 600 30,600


Total 172 16,580 8,290 492,990

Stalls

85%*(A)

Rent per

month (B)

Promotion for

Header**(C)Description

* 85% are a forecast for opening new, and are growing our market.

**Promotion for header is a forecast from one header per a zone.


Total rent

(AxB)-C = D

Food court 20 4,500 2,250 87,750

Prepared food 20 1,500 750 29,250

Processed food 16 1,200 600 18,600

Fresh food 64 5,400 2,700 342,900


Fruits 30 1,200 600 35,400


Total 200 16,580 8,290 575,910

Description

Stalls

100%*(A)

Rent per

month (B)

Promotion for

Header**(C)

* It is a constant stall. **Promotion for header is a forecast from one header per a zone.

Note: Year 4 and Year 5 are same with year3.

52

Show calculation of rent of shop stall (Temporary)

Stall for year 1

Nov13, Dec13, Jan14, Feb14 10,000 Baht per day

Forecast 60% of total* (10,000 x 60)/100 Baht per day

Total of rent 6,000 Baht per day

Or total of rent (x30) 180,000 Baht per month

*60% are a forecast for opening new fresh market.

Mar14,Apr14,May14,Jun14,Jul14 10,000 Baht per day




*50% are a forecast of season example Mar57, Apr57 are a period of end of semester in the

school and our market is located near Tesaban6 School, and May57, Jun57, Jul57 are the rainy

season in Thailand.

Stall for year 2

Aug14, Sep14 10,000 Baht per day




*50% are a forecast of season example Aug57, Sep57 are the rainy season in Thailand.

Number of Stalls

(A) Rent per day (B)

Total baht per day

(AxB) = D

100 100 10,000

53

Oct14-Dec14, Jan15-May15 10,000 Baht per day




*65% are a forecast for growth our market, and fresh market is a slow-growth or constant

business.

Jun15, Jul15 10,000 Baht per day





business, however Jun58, Jul58 are a period of end of semester in the school by according to

Chiangrai Montessori School about ASEAN and our market is located near Tesaban6 School

and it is the rainy season in Thailand.

http://www.thaischool.in.th/57010002/newseducation/19004/

Stall for year 3

Aug15,Sep15 10,000 Baht per day

Forecast 55% of total* (10,000x 55)/100 Baht per day









business.

54







Chiang Rai Montessori School about ASEAN and our market is located near Tesaban6 School

and It is the rainy season in Thailand.


Stall for year 4











business.

Jun17, Jul 17 10,000 Baht per day







and it are the rainy season in Thailand.


55

Stall for year 5






Oct17-Dec17,Jan18-May18 10,000 Baht per day





business.








and they are the rainy season in Thailand.


56

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

Advertising on local radio 3 months 3,000 3,000 3,000 9,000

Local newspaper 1 months 500 500

Radio car advertising 6 days 32,400 32,400

(1,800 baht per car per day)

Board on roadside 30,000 30,000 60,000

Grand opening 60,000 60,000

Total 33,000 33,000 35,900 60,000 161,900

Calculating Income of the toilets

- Collect 3 baht per 1 time

- Predict the number of the customers who will use the toilets per a day.

Week No. of

customer

Price per

time

Total

Mon 270 3 810

Tue 130 3 390

Wed 150 3 450

Thu 140 3 420

Fri 220 3 660

Sat 250 3 750

Sun 180 3 540

Total 1,340 3 4,020

- Total per month 4,020 * 4 = 16,080 Baht

- Total per Year 16,080*12 = 192,960 Bah

Market Expense

Conclusion

From the market analysis in term of Environment, Social, Economic, Technology and

Political Analysis founded that Mee Sub Market has an opportunity to grow and generate profit

in this business. Mee Sub Market has the competitive advantage on the location. It located in a

wide open area with a parking space. Mee Sub market positioning is the fresh market that

concern about health of customers like cleanness, the conveniently, the variety of product with

the quality price. The target market of the product is woman who has 35-60 years old. Mee Sub

Market use IMC strategy to communicate with seller and consumer. It also provide the benefit

which suitable for sellers. Moreover, from the information, we forecast that the income

received from sale is continuous increasing until renting stall is full. After that we will have

revenue as stable amount in long term.

Chapter 4

Investment Cost

58

Cost of Investment

Pre-operating Cost

Pre-operation

No. Documents Copy Qty Cost/Baht

Step 1: Contact City Municipal (Department of Public

Works and Town & Country Planning)

Documentation of construction permits(Form อ.1)

1.1 Identity Card 1 0.25

1.2 House registration 2 0.50

1.3 Land title deed (title deed, นส3ก., 1 2.00

actual size paper(front-back)

1.4

License for Architecture (fellow

architecture 1 277,705.05

or second level)

1.5 License for Professional Practice or 1 277,705.05

Controlled Engineer Lincence (

Diploma,

Identity Card, Licence)

1.6 List of Engineering calculations 1 158,688.86

1.7

License for Civil Engineer or

Architect 1 277,705.05

1.8

Blueprint or Construction

drawings 3 15.00

1.9 Layout plan 3 15.00

1.10 Form อ.1 fee 1 2,963.00

Step 2: Airport office

2.1

Construction permit for hover craft

area -

*Identity Card 1 0.25

*House Card 1 0.25

Step 3: Provincial Electricity Authority &

Provincial Waterworks

Authority

3.1

Installation for temporary

electricity 26,000.00

*Cost of insurance = 6,000.00

*Installation of 15 M 3 Fed rate:

6.4343

20,000 baht

(6,000+20,000)

3.2 Installation for temporary water 12,190.00

59

supply

*Cost of insurance = 4,700.00

*Installation fee = 7,490.00

(4,700+7,490)

Step 4: Land -

4.1 Land (5)

4.2

To construction the Fresh

market

Step 5: District Office

5.1 Office registration number

*Form 0.1 construction permit 1 0.25

*Identity Card 1 0.25

*Own house registration 1 0.25

*Land title deed(front-back) 1 1.00

*Layout area map 1 5.00

*Photo of Layout area(color) 2 10.00

Step 6: Provincial Electricity Authority &

Provincial Waterworks Authority

and

TOT (office telephone &

internet)

6.1

Installation for permanent

electricity

*Cost of insurance = (6,000.00) -6,000.00

*Metre 1 4,621.50

*Transformer 50 KVA 1 250,000.00

*MDB (80M) 1 50,000.00

*Expand high voltage system 100

SQM = 500,000.00

100,000 baht (500 SQM*100,000)

*Expand high voltage system into

the 250,000.00

building

6.2

Installation for permanent water

supply

*Cost of insurance = (4,700.00) - 4,700.00

*Installation fee 1,070.00

6.3

Installation for the telephone and

internet 374.50

line

Step 7: District Public Health Office

7.1 Public Health permit 1 20.00

60

Step 8: Opening the Fresh Market -

Step 9: Tax registration

9.1 House and building tax -

(contact after 1 year opening)

9.2 Signboard Tax -

(contract within 15 days after

opening)

TOTAL 2,078,393.01

Calculation

1.4 License for Architecture (fellow architecture

or second level)

The rate of percentage is from Act of Architecture legislation 2542

Budget X 1.75% = Price

15,868,860 x 1.75% = 277,705.05 baht

1.5 License for Professional Practice or

Controlled Engineer License



15,868,860 x 1.75% = 277,705.05 baht

1.7 License for Civil Engineer or Architect



15,868,860 x 1.75% = 158,688.86 baht

1.8

Blueprint or Construction

drawings

Budget X 1% =

Price

15,868,8860 x 1% = 277,705.05 baht

1.10 Form อ.1 fee

Building area = 1,664 SQM

Parking lot = 462 SQM

Toilet area = 144 SQM

Signboard = 18

SQM

Paper fee = 20

baht

61

* Building higher that 2 stories but not exceed than 12 SQM pay

Area 1,664 SQM x 0.50 baht = 832 baht

* Parking lot

Area 462 SQM x 0.50 baht = 231 baht

* Culvert of building which includes toilet

Area 1,664 SQM + 144 SQM = 1,808 SQM x 1.00 = 1,808 baht

*Sign board 18 SQM x 4 baht = 72 baht

From อ.1 fee

832+231+1,808+72+20 = 2,963 baht

Investment cost

1. Land

We plan to buy 25 million for land. The land size is equal 9,456 square meters.

Although the land is quite expansive and has to spend a lot of money to invest it, this

land is near to the main road. Moreover, around the zone is beginning commercial

building and is constructing road. So, investing for the land can provide a lot of

benefits for investors in the future.

Cost of Land is 25 million baht.

2. Building

Order Core building Quantity Unit Price/Unit Total

Concrete work

- Floor

- Pillar

- Stall

2 Roof work 1,980 Square Meter 1,980 3,920,400

3 Color work 1,980 Square Meter 50 99,000

4 Miscellaneous 1,980 Square Meter 500 990,000

5 Name board

(200cm*900cm)

- - 25,000 25,000

Total 9,885,400

1 1,980 Square Meter 2,450 4,851,000

62

Order Option building Quantity Unit Price/Unit Total

Concrete work for office

and toilet

- Floor

- Pillar

- Wall

2 Roof work 48 Square Meter 1,980 194,040

3 Color work 146 Square Meter 50 7,300

4 PVC door 0.60x1.80 m. 50 Set 1,530 76,500

5 Office glass 5 Square Foot 80 400

6 Concrete work for

parking lot

260 Square Meter 2,450 646,800

7 Electricity work 9,240 Square Meter 500 4,620,000

8 Water supply 10 Spot 1,000 10,000

Wastewater treatment

work

- Wastewater

treatment tank

1800 liter

2 Set 22,920 45,840

- Grease trap

tank

- Grease trap

& waste trap well

2 Set 3,925 7,850

- Reinforced

Concrete Drain

1 Set 3,000 3,000

- Total wage 178 Meter 144 25,632

- - 13,398 13,398

Total 6,008,460

15,893,860

9

Total

1 146 Square Meter 2,450 357,700

63

Location

Location

Mee Sub Market is located on Rop Wiang District, Chiang Rai. It is on the bypass of

Chiang Rai province. It located in the community which closes to the airport, the school, the

university and the local government office.

65

Equipment

67

Meat, Pork Chicken, Fish, Sea Food

68

Processed food, Vegetable, Fruit Miscellaneous goods

69

http://www.sumc.in.th/modules/document/index.php?mode=detail1&id=18

Food court

70

3. Equipment

We plan to use these equipments to run our business. These equipments will be used in

our office, market building and other area in our market.

1. Office equipment

No. Picture Equipment Brand/Detail Price/Piece

(Baht)

Amount Total

1

Monitor with

Keyboard

and Mouse

HP Omini 120-

1228L PC Intel

Pentium G870

(3.1 GHz 3 MB

L2 Cache)

15,265 1 15,265

2

CPU HP Desktop PC

Pavillion HPE

h8-1223l Intel

Core i3 3-2120

15,990

1 15,990

3

Printer Brother printer

Color Inkjet

MFC-J430W

3,870 1 3,870

4

Telephone CK 2255 360

1 360

5

Air-Condition MITSUBISHI

MS-MU-

SGH09VC No.5

8699-BTU

Econo Air

16,190

1 16,190

6

Office Desk TWC-1202/C 1,990 2 3,980

7

Office Chair -

850 2 1,700

8

Chair - 440 4 1,760

71

9

File cabinet Centure CB-72

5,700 1 5,700

10

File Horse H-403

F/C

(6 Piece/Pack)

325 1 325

11

Stapler House HD-10 38 1 38

12

Security

camera

AVTECH

Set of 4 cameras

19,900 2 39,800

13

Paper punching Elephant DP-

480

61 1 61

14

Calculator CASIO

14digitals DJ-

240D

725 1 725

15

Socket Data Power

WL45

290 3 870

16

Broom - 30 1 30

17

Dustpan - 25 5 125

18

LAN CAT 5 200 1 200

72

19

Bin - 38 2 76

20

Chair - 650 2 1,300

21

Bicycle Bridgestone

lococo

4,500 1 4,500

22

Radio

communication

IC-UV-95

DUAL BAND

VHF/245 MHz

1,600 2 3,200

23

Refrigerator

Hitachi/ R-49 S

4.9 cubic

5,350 1 5,350

24

Voice

evacuation

panel

TOA/

FS-7000EV

17,240 1 17,240

25

Microphone TOA/

PM-660

2,010 1 2,010

26

Electrical fan COSMO/

12" COSMO

KAWA

390 1 390

27

Electrical fan HATARI/

HT-S18M2

1,098 1 1,098

28

Monitor Acer Monitor

18.5"

G195HQVBb

2,790 1 2,790

29

TV Toshiba Regza

LCD TV 24"

5,990 1 5,990

Total (Baht) 150,933

http://shoppingonline.bigc.co.th/it-electronics/home-entertainment/visual/toshiba-lcd-tv-24-24hv10t.html

http://shoppingonline.bigc.co.th/it-electronics/home-entertainment/visual/toshiba-lcd-tv-24-24hv10t.html

73

Note: Computer 31,255 Baht

Office equipment 119,678 Baht

- Office supply

Office stationary 5,000 Baht

Total cost of office equipment and supply (excluding cost of computer) is 124,678 Baht.

2. In the market building


(Baht)

Amount Total

1

Scale Chicken

Balloon

60 kgs.

1,390 2 2,780

2

Fire

extinguisher

GLORIO

15 pounds

880 2 1,760

3

Broom - 30 10 300

4

Table - 790 24 18,960

5

Chair - 1,900/Dozen 8 15,200

6

Speaker TOA/

TH-650

1,940 4 7,760

7

Driver unit TOA/

TU-651

960 4 3,840

8

Matching

Transformer TOA/

TM-60T

1,590 4 6,360

Total (Baht) 56,960

74

3. Toilet

- Equipment in toilet


(Baht)

Amount Total

1

Urinal KARAT 1,958 5 9,790

2

Lavatory KARAT 931 6 5,586

3

Toilet KARAT 1,573 13 20,449

4

Toilet KARAT 3,370 3 10,110

5

Rinsing

spray

Hang

145

3

435

6

Bin - 18 15 270

7

Mirror 100 cm*200

cm

1,900 2 3,800

8

Mirror Coolya 125 1 125

9

Bowl - 15 13 195

Total (Baht) 50,760

- Toilet supply (e.g. toilet brush, cleaning liquid etc.) 5,000 Baht

Total cost of toilet equipment and supply 55,760 Baht

75

4. Other equipments


(Baht)

Amount Total

1

Container

for garbage

- 60,000 2 120,000

2

Bin OTTO- 120

liters

1,550 6 9,300

3

Road sign - 3,000 4 12,000

4

Brahma 7” size

12,999 1 12,999

5

Pedestal -

17,000 1 17,000

Total (Baht) 171,299

Source: http://www.majestic-home.com

http://www.crhouseware.com

http://www.priceza.com

http://www.furniturehall.com

http://www.officemate.co.th

http://www.spksound.co.th

http://rungsubfurniture.tarad.com

http://enchchok.tarad.com

http://shoppingonline.bigc.co.th

http://www.majestic-home.com/

http://www.crhouseware.com/bin-small.htm

http://www.priceza.com/

http://www.furniturehall.com/

http://www.officemate.co.th/

http://www.spksound.co.th/

http://rungsubfurniture.tarad.com/

http://shoppingonline.bigc.co.th/

76

Table: Total cost of investment

From the table show that total cost of investment is 43,387,205.01 Baht.

Investment Amount

(Baht)

Depreciation Annual

depreciation

Monthly

depreciation

Pre-operating 2,078,393.01 - - -

Land 25,000,000 - - -

Building 15,893,860 20 years 794,693 66,224.42

Office

equipments/supply

119,678 5 Years 23,935.60 1,994.63

Computer 31,255 3 years 10,418.28 868.19

Equipment in

market building

56,960 5 years 11,392.00 949.33

Toilet

equipments/supply

50,760 5 Years 10,152.00 846.00

Other equipments 171,299 5 Years 34,259.80 2,854.98

Total 43,402,205.01 884,850.68 73,737.55

77

Depreciation Expense in 5 years

Depreciation year 1

Asset Value January February March April May June July August September October November December Total

Building 15,893,860.00 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 794,693.04

Office Equipment 119,678.00 1,994.63 1,994.63 1,994.63 1,994.63 1,994.63 1,994.63 1,994.63 1,994.63 1,994.63 1,994.63 1,994.63 1,994.63 23,935.56

Computer 31,225.00 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 10,418.28

Market Equipment 56,960.00 949.33 949.33 949.33 949.33 949.33 949.33 949.33 949.33 949.33 949.33 949.33 949.33 11,391.96

Toilet Equipment 50,760.00 846.00 846.00 846.00 846.00 846.00 846.00 846.00 846.00 846.00 846.00 846.00 846.00 10,152.00

Other Equipment 171,299.00 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 34,259.76

Total 16,323,782.00 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 884,850.60

Depreciation year 2


Building 15,099,166.96 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 794,693.04


Computer 20,806.72 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 10,418.28



Other Equipment 137,039.24 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 34,259.76

Total 15,438,931.40 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 884,850.60

Depreciation year 3


Building 14,304,473.92 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 794,693.04


Computer 10,388.44 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 10,418.28



Other Equipment 102,779.48 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 34,259.76

Total 14,554,080.80 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 884,850.60

78

Depreciation year 4


Building 13,509,780.88 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 794,693.04


Computer -29.84 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 10,418.28



Other Equipment 68,519.72 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 34,259.76

Total 13,669,230.20 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 884,850.60

Depreciation year 5


Building 12,715,087.84 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 66,224.42 794,693.04


Computer -10,448.12 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 868.19 10,418.28



Other Equipment 34,259.96 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 2,854.98 34,259.76

Total 12,784,379.60 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 73,737.55 884,850.60

Conclusion

We will invest in establishing a fresh market: Mee Sub Market is located on Rop Wiang District, Chiang Rai. It is on the bypass of

Chiang Rai province. It located in the community which closes to the airport, the school, the university and the local government office. We

decide to buy the land in 25 million because land is the asset that has no depreciation and it will provide the benefits to our company in the

future. We spend 43,402,205 baht for the investment by loan from a bank. Although we have to spend a lot of money for this investment, this

will provide benefits in long term. The construction of building is constructed by focusing on convenience of seller and buyer, fineness and

cleanness of the building.

Chapter 5

Technical analysis

80

Production and Operation management

Product Characteristic

Nowadays in Chiang Rai, there are a continuous increasing number of populations that

cause an increasing demand in various fields. According to the demand in food which is one of

the most important factors in human life, the fresh market becomes an alternative for consumer

in order to purchase and consume products.

Mee Sub Market Planned and created follow by the need of consumer and the market

concern on the behavior of consumer in Chiang Rai. The market located in the wide open space

and convenience to come. There has a wide parking space to avoid the traffic jam problem.

Due to the preliminary research founded that most of the market located in a crowed

community with no parking space. This point causes the traffic jam problem. Mee Sub Market

provides the parking space with the entrance and exist channel. It will benefits to consumers

who come to the market to move the car easily. Moreover, there is the special parking area for

sellers who would like to transport their goods. Characteristic of Mee Sub Market are created

to be wide open and ventilated. All stalls are organized into 4 zones categorized by the type of

the product including Fresh food, Dried food, Food center and miscellaneous. The product sell

must be fresh as the ministry of health defined and for good hygiene of consumers.

Furthermore, Mee Sub Market provides the area in front of the market for hawker seller who

wants to sell products apart from all products in the market. Mee Sub Market created the

dinning seat area with an entertainment media for consumer and seller to take rest and consume

the product. The market also provides the toilet which located in the back of the market nearby

the parking area. There will have a housekeeping to clean up all the time for a good hygiene of

users.

In conclusion, Mee Sub Market concern most on the benefit consumer will receive. The

market created follow by the information from the research of the behavior of consumer, the

life style and the characteristic of all fresh market in Mueng, Chiang Rai to create the best fresh

market which match with the need of consumer.

81

Specification, Feather, Dimension, Life time, Etc.

Zones Products

1. Fresh Food

- Fresh Meat

- Fresh Vegetable

- Fresh Fruits

- Seafood

- Pork

- Chicken

- Beef

- Local vegetable

- Seasonal vegetable

- Seasonal fruits

2. Dried Food

- Processed food

- prepared food

- Dessert

- processed vegetable

- Shrimp paste

- cayenne pepper

- fermented food

- Thai food

- Local Food

- Thai Dessert

- Local dessert

3. Food Court - 5 Make to order

- 3 Noodle

- 4 Curry on top

- 6 Fast Food

- 2 Drinking Water

4. Miscellaneous - Appliance

- House tool

- etc.

Service Process

Announcement of new fresh market

Mee Sub Market start to promote and announce to the public that new fresh market

is now open and the market is a Healthy Market that can attract to healthy concern persons.

This will encourage people to know and interest to come to visit the market. Moreover this

announcement will ask for those sellers who want to make a preservation of stall to sell

products with many promotion and benefit provided

Orientation and Agreement

For those sellers who won the booth auction will ask to make an agreement with the

market. Then they need to participate in the Mee Sub Market orientation to understand the

policies and all conditions of selling the product in order to stay together with happiness both

the market and the seller.

82

Administration Analysis

1. Employee salary

Accountant consulting and manager 2 person 30,000.00 Baht.

Securities 2 person (2 x 9,000) 18,000.00 Baht

Made 2 person 18,000.00 Baht

Total salary expense per month 66,000.00 Baht

2. Electricity expenses 71,005.20 Baht

3. Water expenses 48,625.89 Baht

4. Internet and telephone expenses 1,165.23 Baht

5. Garbage fees 1 container = 1,200 baht per time 4,800.00 Baht

1 month = 2 times

(2 containers x2times x1, 200 baht)

Total expense per month 125,596.32 Baht

6. Tax payment

Sign board Tax (200 cm. x 900 cm. x 20 baht)/500 square cm. 7,200.00 Baht

House and building Tax 9,984.00 Baht

Permit of fresh Market establishment 2,000.00 Baht

Total expense per year 19,184.00 Baht

*Social Security of employee each person 15,000 x 5% = 700 use rate 4:1 = 140 per

month

*Social Security of made each person 9,000 x 5% = 450 use rate 4:1 = 90 per month

*The sign board tax = (width x length x rate of board)/ 500 square centimeter

House and building tax = width x length x tax rate x 12.5%

Permit of fresh Market establishment that payment 2,000 in every year

Electricity expense calculated by electrical engineer

Electricity rate: 3.50 bath per unit

Assume used 144 light bulbs = 1.3 units /12 hours/day/stall

The Fresh Market used 350 light bulbs

(350/144) x1.3 = 3.16units per stall

3.16 x 200 stalls = 632 units per day

632 x 30 days = 18,960 units

18,960 x 3.50 = 66,360 baht

66,360 x 7% vat = 71,005.20 baht per month

83

Water expense

Catalogue Stall Room Liter Total liter Cube meter

Seafood 24 - 250 6,000 6

Meat 40 - 600 24,000 24

Vegetable 30 - 200 6,000 6

Fruit 30 - 20 6,000 6

Restaurant 20 - 350 7,000 7

Readymade 16 - 300 4,800 4.8

Other 20 - 10 200 0.2

Food 20 - 100 2,000 2

Temporary stall 50 - 10 500 0.5

Office - 1 100 100 0.1

Toilet (Lady) - 10 500 10,000 5

Toilet(Man) - 5 350 3,500 1.75

TOTAL 51.35

Calculation for water supply per month

Water supply rate for business: 29.50 baht per unit

51.35 x 30 days = 1,540.5 units per month

1,540.50 x 29.50 = 45,444.75 baht

45,444.75 x 7%VAT = 48,625.89 baht per month

Internet and telephone expense: registration package pay per month

Call package 499 baht per month from 6 am - 6 pm

499 x 7% vat = 533.93 baht

Internet package 10mb = 590 per month

590 x 7% vat = 631.30 baht

Total expense: 1,165.23 baht per month

Rate of soild wast expense (Act. ๒๐ (๔))

1 Cube meter 250 bath

16x250 = 4,000 Baht per two month

Cleaning Fresh Market 1,500 Baht per time

2x15,000 = 30,000 baht per month

Per set Equipment test Total

300 1,500 1,800

Formalin 5,760 - 5,760

Contaminant Assay 4,800 - 4,800

Total 12,360

84

Administrative cost in 5 years Year 1

No Describtion Base August September October November December January Febuary March April May June July

1 Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000

2 Social Security 640 640 640 640 640 640 640 640 640 640 640 640 640

3 Sign bord Tax 7,200 - - - - - 7,200 - - - - - -

4 House and building Tax 9,984 - - - - - 9,984 - - - - - -

5 Permit of fresh Market establishment 2,000 - - - - - 2,000 - - - - - -

6 Electricity expense 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005

7 Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626

8 Internet and Telephone expense 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165

9 Garbrage fees 1,200 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800

10 Solid Waste Expenses 4,000 4,000 - 4,000 - 4,000 - 4,000 - 4,000 - 4,000 -

11 Fire Insurance 7,198 - - - - - 7,198 - - - - - -

12 Cleaning Fresh Market 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

13 Miscellanous 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

14 Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360

Total 218,596 214,596 218,596 214,596 218,596 240,978 218,596 214,596 218,596 214,596 218,596 214,596 Year 2


1 Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000

2 Social Security 640 640 640 640 640 640 640 640 640 640 640 640 640

3 Sign bord Tax 7,200 - - - - - 7,200 - - - - - -




7 Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626


9 Garbrage fees 1,200 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800


11 Fire Insurance 7,198 - - - - - 7,198 - - - - - -


13 Miscellanous 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

14 Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360

Total 218,596 214,596 218,596 214,596 218,596 240,978 218,596 214,596 218,596 214,596 218,596 214,596

85

Year 3

No Describtion Base August September October NovemberDecember January Febuary March April May June July

1 Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000

2 Social Security 640 640 640 640 640 640 640 640 640 640 640 640 640

3 Sign bord Tax 7,200 - - - - - 7,200 - - - - - -




7 Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626


9 Garbrage fees 1,200 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800


11 Fire Insurance 7,198 - - - - - 7,198 - - - - - -


13 Miscellanous 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

14 Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360

Total 218,596 214,596 218,596 214,596 218,596 240,978 218,596 214,596 218,596 214,596 218,596 214,596 Year 4


1 Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000

2 Social Security 640 640 640 640 640 640 640 640 640 640 640 640 640

3 Sign bord Tax 7,200 - - - - - 7,200 - - - - - -




7 Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626


9 Garbrage fees 1,200 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800


11 Fire Insurance 7,198 - - - - - 7,198 - - - - - -


13 Miscellanous 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

14 Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360

Total 218,596 214,596 218,596 214,596 218,596 240,978 218,596 214,596 218,596 214,596 218,596 214,596

86

Year 5

No Describtion Base August September October NovemberDecember January Febuary March April May June July

1 Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000

2 Social Security 640 640 640 640 640 640 640 640 640 640 640 640 640

3 Sign bord Tax 7,200 - - - - - 7,200 - - - - - -




7 Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626


9 Garbrage fees 1,200 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800


11 Fire Insurance 7,198 - - - - - 7,198 - - - - - -


13 Miscellanous 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000

14 Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360

Total 218,596 214,596 218,596 214,596 218,596 240,978 218,596 214,596 218,596 214,596 218,596 214,596

87

Conclusion:

Facilities Management has always been a part of the repertoire of any outsourcing lawyer, but

in the last year or so, the volume, scale and complexity of deals has increased.Facilities

management discipline that supports and improves core company processes and increases

return on investment by result-oriented use of resources, services, and activities, vital to the

success of any organization. There are several advantages stacked in the favor of facilities

management, including, cost advantage, economies of scale, and efficient management of

facilities and assets. Despite the complexities aspect by regulations and employee rights,

efficient facility management strategies can still growth. The market is set to expand, in the

upcoming years, small and medium sized businesses as well public facilities are waking up to

benefits of facilities management industry.

Chapter 6

Financial Analysis

89

Financial Analysis

Our company has an initial capital as 51,402,205 baht that is divided into 2 parts. One

part is capital from entrepreneur as 8,000,000 baht. Another part is an investing budget or the

cost of this project that is 43,402,205 baht. The amount of money we loan from the bank with

the 6 percents interest rate and payoff debt within 12 years.

Year Beginning Balance PMT INT PRIN End Balance

1 43,402,205฿ 5,176,913฿ 2,604,132฿ 2,572,781฿ 40,829,424฿

2 40,829,424 5,176,913 2,449,765 2,727,148 38,102,276

3 38,102,276 5,176,913 2,286,137 2,890,777 35,211,500

4 35,211,500 5,176,913 2,112,690 3,064,223 32,147,276

5 32,147,276 5,176,913 1,928,837 3,248,077 28,899,200

6 28,899,200 5,176,913 1,733,952 3,442,961 25,456,239

7 25,456,239 5,176,913 1,527,374 3,649,539 21,806,700

8 21,806,700 5,176,913 1,308,402 3,868,511 17,938,188

9 17,938,188 5,176,913 1,076,291 4,100,622 13,837,567

10 13,837,567 5,176,913 830,254 4,346,659 9,490,907

11 9,490,907 5,176,913 569,454 4,607,459 4,883,448

12 4,883,448 5,176,913 293,007 4,883,906 458-

Total 62,122,959฿ 18,720,296฿ 43,402,663฿

The amortization schedule

90

Financial Statement in Year 1

Income Statement (Account period of our company will be started from August 2013 to July in 2014)

*Our company will pay cash dividend monthly 30%, except which month which has no profit and start to pay in November. Year 1 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul End of Period

Revenue





Total revenue 5,646,080 16,080 16,080 599,070 612,570 612,570 612,570 588,240 582,570 584,070 583,070 584,070 11,037,040

Expense

Administrative expense

Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200

House and building Tax - - - - - 9,984 - - - - - - 9,984

Permit of fresh Market establishment - - - - - 2,000 - - - - - - 2,000

Electricity expense 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 71,005 852,062

Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511

Internet and Telephone expense 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 1,165 13,983

Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600

Solid Waste Expenses 4,000 - 4,000 - 4,000 - 4,000 - 4,000 - 4,000 - 24,000

Fire Insurance - - - - - 7,198 - - - - - - 7,198

Cleaning Fresh Market 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Miscellaneous expense 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 84,000

Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320

Total Administrative expense 218,596 214,596 218,596 214,596 218,596 240,978 218,596 214,596 218,596 214,596 218,596 214,596 2,625,538

Pre-operating expense 2,078,393 - - - - - - - - - - - 2,078,393

Marketing Expense 161,900 - - - - - - - - - - - 161,900

Depreciation expense 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 884,851

Total expense 2,532,627 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 5,750,681

EBIT 3,113,453 272,254- 276,254- 310,736 320,236 297,854 320,236 299,906 290,236 295,736 290,736 295,736 5,286,359

Interest Expense - - - - - - - - - - - 2,604,132 2,604,132

Taxable income 3,113,453 272,254- 276,254- 310,736 320,236 297,854 320,236 299,906 290,236 295,736 290,736 2,308,396- 2,682,226

Taxes 20% - - - - - - - - - - - 536,445 536,445

Net Income 3,113,453 272,254- 276,254- 310,736 320,236 297,854 320,236 299,906 290,236 295,736 290,736 2,844,841- 2,145,781

Retain Earning 3,113,453 272,254- 276,254- 217,515 224,165 208,498 224,165 209,934 203,165 207,015 203,515 2,844,841- 1,502,047

Dividend 30% - - - 93,221 96,071 89,356 96,071 89,972 87,071 88,721 87,221 - 643,734

91

Balance Sheet in Year 1

2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014

Year 1 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Asset

Current Asset

Cash 13,265,584 13,067,067 12,864,551 13,155,804 13,453,707 13,735,942 14,033,845 14,317,517 14,594,420 14,875,173 15,152,425 9,808,541

Total current asset 13,265,584 13,067,067 12,864,551 13,155,804 13,453,707 13,735,942 14,033,845 14,317,517 14,594,420 14,875,173 15,152,425 9,808,541

Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860

Accumulated depreciation-Building 66,224 132,449 198,673 264,898 331,122 397,347 463,571 529,795 596,020 662,244 728,469 794,693

Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952

Accumulated depreciation-Equipment 7,513 15,026 22,539 30,053 37,566 45,079 52,592 60,105 67,618 75,131 82,644 90,158

Total fixed asset 41,250,074 41,176,337 41,102,599 41,028,862 40,955,124 40,881,387 40,807,649 40,733,912 40,660,174 40,586,437 40,512,699 40,438,961

Total asset 54,515,658 54,243,404 53,967,150 54,184,666 54,408,831 54,617,329 54,841,494 55,051,429 55,254,594 55,461,609 55,665,124 50,247,502

Liabilities and Equity

Short-term liabilities 2,572,781 2,572,781 2,572,781 2,572,781 2,572,781 2,572,781 2,572,781 2,572,781 2,572,781 2,572,781 2,572,781 -

Long-term liabilities 40,829,424 40,829,424 40,829,424 40,829,424 40,829,424 40,829,424 40,829,424 40,829,424 40,829,424 40,829,424 40,829,424 40,829,424

Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000

Retained earning 3,113,453 2,841,199 2,564,945 2,782,461 3,006,626 3,215,124 3,439,289 3,649,224 3,852,389 4,059,404 4,262,919 1,418,078

Total Liabilities and Equity 54,515,658 54,243,404 53,967,150 54,184,666 54,408,831 54,617,329 54,841,494 55,051,429 55,254,594 55,461,609 55,665,124 50,247,502

Mee Sub Market

Balance Sheet

August 1, 2013 - July 31, 2014

92

Statement of Cash Flow in Year 1

2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014


Net Income 3,113,453 272,254- 276,254- 310,736 320,236 297,854 320,236 299,906 290,236 295,736 290,736 2,844,841-

Cash Flow from Operating

Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738

Net Cash Flow from Operating 3,187,191 198,516- 202,516- 384,474 393,974 371,592 393,974 373,644 363,974 369,474 364,474 2,771,104-

Cash Flow from Investing

Purchase land 25,000,000- - - - - - - - - - - -

Investment for building 15,893,860- - - - - - - - - - - -

Purchase equipment 429,952- - - - - - - - - - - -

Net Cash Flow from investing 41,323,812- - - - - - - - - - - -

Cash Flow from Financing

Payment of debt - - - - - - - - - - - 2,572,781-

Cash dividend - - - 93,221- 96,071- 89,356- 96,071- 89,972- 87,071- 88,721- 87,221- -

Net Cash Flow from Financing - - - 93,221- 96,071- 89,356- 96,071- 89,972- 87,071- 88,721- 87,221- 2,572,781-

Net change in Cash 38,136,621- 198,516- 202,516- 291,253 297,903 282,236 297,903 283,672 276,903 280,753 277,253 5,343,885-

Cash at beginning of period 51,402,205 13,265,584 13,067,067 12,864,551 13,155,804 13,453,707 13,735,942 14,033,845 14,317,517 14,594,420 14,875,173 15,152,425

Cash at end of period 13,265,584 13,067,067 12,864,551 13,155,804 13,453,707 13,735,942 14,033,845 14,317,517 14,594,420 14,875,173 15,152,425 9,808,541

Mee Sub Market

Statement of Cash Flow

Aug 1, 2013-July 31, 2014

93

Income Statement in Year 2

2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015 2015


Revenue






Total revenue 1,946,070 674,070 719,070 719,070 719,070 719,070 719,070 719,070 719,070 719,070 689,070 689,070 9,750,840

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 1,653,736 385,736 426,736 430,736 426,736 404,354 426,736 430,736 426,736 430,736 396,736 400,736 6,240,452


Taxable income 1,653,736 385,736 426,736 430,736 426,736 404,354 426,736 430,736 426,736 430,736 396,736 2,049,029- 3,790,686

Taxes - - - - - - - - - - - 758,137 758,137

Net Income 1,653,736 385,736 426,736 430,736 426,736 404,354 426,736 430,736 426,736 430,736 396,736 2,807,167- 3,032,549

Retain Earning 1,157,615 270,015 298,715 301,515 298,715 283,048 298,715 301,515 298,715 301,515 277,715 2,807,167- 2,122,784

Dividend 30% 496,121 115,721 128,021 129,221 128,021 121,306 128,021 129,221 128,021 129,221 119,021 909,765

94


2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015


Asset

Current Asset

Cash 11,039,893 11,383,646 11,756,099 12,131,352 12,503,805 12,860,590 13,233,043 13,608,296 13,980,749 14,356,002 14,707,455 9,246,878


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860

Accumulated depreciation-Building 860,917 927,142 993,366 1,059,591 1,125,815 1,192,040 1,258,264 1,324,488 1,390,713 1,456,937 1,523,162 1,589,386

Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 51,405,117 51,675,133 51,973,848 52,275,363 52,574,078 52,857,126 53,155,842 53,457,357 53,756,072 54,057,588 54,335,303 48,800,989




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2014 - July 31, 2015

95


2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015


Net Income 1,653,736 385,736 426,736 430,736 426,736 404,354 426,736 430,736 426,736 430,736 396,736 2,807,167-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738

Net Cash Flow from Operating 1,727,474 459,474 500,474 504,474 500,474 478,092 500,474 504,474 500,474 504,474 470,474 2,733,429-


- - - - - - - - - - - - -


Decrease in loan payable - - - - - - - - - - - 2,727,148-

Cash dividend 496,121- 115,721- 128,021- 129,221- 128,021- 121,306- 128,021- 129,221- 128,021- 129,221- 119,021- -

Net Cash Flow from Financing 496,121- 115,721- 128,021- 129,221- 128,021- 121,306- 128,021- 129,221- 128,021- 129,221- 119,021- 2,727,148-

Net change in Cash 1,231,353 343,753 372,453 375,253 372,453 356,786 372,453 375,253 372,453 375,253 351,453 5,460,577-



Mee Sub Market


Aug 1, 2014-July 31, 2015

96


2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016 2016


Revenue






Total revenue 1,907,990 771,990 816,990 816,990 818,490 818,490 818,490 816,990 818,490 816,990 786,990 816,940 10,825,830

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 1,615,656 483,656 524,656 528,656 526,156 503,774 526,156 528,656 526,156 528,656 494,656 528,606 7,315,442


Taxable income 1,615,656 483,656 524,656 528,656 526,156 503,774 526,156 528,656 526,156 528,656 494,656 1,757,530- 5,029,305

Taxes 20% - - - - - - - - - - - 1,005,861 1,005,861

Net Income 1,615,656 483,656 524,656 528,656 526,156 503,774 526,156 528,656 526,156 528,656 494,656 2,763,391- 4,023,444

Retain Earning 1,130,959 338,559 367,259 370,059 368,309 352,642 368,309 370,059 368,309 370,059 346,259 2,763,391- 2,816,411

Dividend 30% 484,697 145,097 157,397 158,597 157,847 151,132 157,847 158,597 157,847 158,597 148,397 1,207,033

97


2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016


Asset

Current Asset

Cash 10,451,575฿ 10,863,871฿ 11,304,868฿ 11,748,665฿ 12,190,712฿ 12,617,091฿ 13,059,138฿ 13,502,935฿ 13,944,982฿ 14,388,779฿ 14,808,776฿ 9,228,345฿


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860

Accumulated depreciation-Building 1,655,611 1,721,835 1,788,059 1,854,284 1,920,508 1,986,733 2,052,957 2,119,181 2,185,406 2,251,630 2,317,855 2,384,079

Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 49,931,948 50,270,507 50,637,766 51,007,826 51,376,135 51,728,777 52,097,086 52,467,146 52,835,455 53,205,514 53,551,773 47,897,605




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2015 - July 31, 2016

98


2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016


Net Income 1,615,656฿ 483,656฿ 524,656฿ 528,656฿ 526,156฿ 503,774฿ 526,156฿ 528,656฿ 526,156฿ 528,656฿ 494,656฿ 2,763,391-฿


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



- - - - - - - - - - - - -



Cash dividend 484,697- 145,097- 157,397- 158,597- 157,847- 151,132- 157,847- 158,597- 157,847- 158,597- 148,397- -





Mee Sub Market


Aug 1, 2015-July 31, 2016

99


2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017 2017


Revenue





Total revenue 788,490 786,990 831,990 831,990 833,490 833,490 833,490 831,990 833,490 831,990 801,990 833,940 9,873,330

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 496,156 498,656 539,656 543,656 541,156 518,774 541,156 543,656 541,156 543,656 509,656 545,606 6,362,942


Taxable income 496,156 498,656 539,656 543,656 541,156 518,774 541,156 543,656 541,156 543,656 509,656 1,567,084- 4,250,252

Taxes - - - - - - - - - - - 850,050 850,050

Net Income 496,156 498,656 539,656 543,656 541,156 518,774 541,156 543,656 541,156 543,656 509,656 2,417,134- 3,400,201

Retain Earning 347,309 349,059 377,759 380,559 378,809 363,142 378,809 380,559 378,809 380,559 356,759 2,417,134- 2,380,141

Dividend 30% 148,847 149,597 161,897 163,097 162,347 155,632 162,347 163,097 162,347 163,097 152,897 1,020,060

100


2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017


Asset

Current Asset

Cash 9,649,392฿ 10,072,189฿ 10,523,686฿ 10,977,983฿ 11,430,529฿ 11,867,409฿ 12,319,956฿ 12,774,253฿ 13,226,799฿ 13,681,096฿ 14,111,593฿ 8,703,973฿


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 48,244,915 48,593,974 48,971,733 49,352,293 49,731,102 50,094,244 50,473,053 50,853,612 51,232,422 51,612,981 51,969,740 46,488,383




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2016 - July 31, 2017

101


2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017

Year4 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Net Income 496,156฿ 498,656฿ 539,656฿ 543,656฿ 541,156฿ 518,774฿ 541,156฿ 543,656฿ 541,156฿ 543,656฿ 509,656฿ 2,417,134-฿


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738

Net Cash Flow from Operating 569,894 572,394 613,394 617,394 614,894 592,512 614,894 617,394 614,894 617,394 583,394 2,343,397-


- - - - - - - - - - - - -



Cash dividend 148,847- 149,597- 161,897- 163,097- 162,347- 155,632- 162,347- 163,097- 162,347- 163,097- 152,897- -


Net change in Cash 421,047 422,797 451,497 454,297 452,547 436,880 452,547 454,297 452,547 454,297 430,497 5,407,620-



Mee Sub Market


Aug 1, 2016-July 31, 2017

102


2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018


Revenue





Total revenue 803,490 810,280 855,280 855,280 856,780 856,780 856,780 855,280 856,780 855,280 825,280 857,230 10,144,520

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 511,156 521,946 562,946 566,946 564,446 542,064 564,446 566,946 564,446 566,946 532,946 568,896 6,634,132


Taxable income 511,156 521,946 562,946 566,946 564,446 542,064 564,446 566,946 564,446 566,946 532,946 1,359,940- 4,705,295

Taxes 20% - - - - - - - - - - - 941,059 941,059

Net Income 511,156 521,946 562,946 566,946 564,446 542,064 564,446 566,946 564,446 566,946 532,946 2,300,999- 3,764,236

Retain Earning 357,809 365,362 394,062 396,862 395,112 379,445 395,112 396,862 395,112 396,862 373,062 2,300,999- 2,634,965

Dividend 30% 153,347 156,584 168,884 170,084 169,334 162,619 169,334 170,084 169,334 170,084 159,884 1,129,271

103


2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018


Asset

Current Asset

Cash 9,135,520฿ 9,574,620฿ 10,042,420฿ 10,513,020฿ 10,981,869฿ 11,435,052฿ 11,903,902฿ 12,374,502฿ 12,843,351฿ 13,313,951฿ 13,760,751฿ 8,285,413฿


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 46,846,192 47,211,554 47,605,617 48,002,479 48,397,591 48,777,036 49,172,149 49,569,011 49,964,123 50,360,985 50,734,048 45,184,972




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2017 - July 31, 2018

104


2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018


Net Income 511,156฿ 521,946฿ 562,946฿ 566,946฿ 564,446฿ 542,064฿ 564,446฿ 566,946฿ 564,446฿ 566,946฿ 532,946฿ 2,300,999-฿


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



- - - - - - - - - - - - -



Cash dividend 153,347- 156,584- 168,884- 170,084- 169,334- 162,619- 169,334- 170,084- 169,334- 170,084- 159,884- -





Mee Sub Market


Aug 1, 2017-July 31, 2018

105

Financial Analysis in 5 years


Asset

Current Asset

Cash 9,808,541 9,246,878 9,228,345 8,703,973 8,285,413

Total current asset 9,808,541 9,246,878 9,228,345 8,703,973 8,285,413

Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860

Accumulated depreciation-Building 794,693 1,589,386 2,384,079 3,178,772 3,973,465

Equipment 429,952 429,952 429,952 429,952 429,952

Accumulated depreciation-Equipment 90,158 180,315 270,473 360,630 450,788

Total fixed asset 40,438,961 39,554,111 38,669,260 37,784,410 36,899,559

Total asset 50,247,502 48,800,989 47,897,605 46,488,383 45,184,972


Short-term liabilities - - - - -

Long-term liabilities 40,829,424 38,102,276 35,211,500 32,147,276 28,899,200

Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000

Retained earning 1,418,078 2,698,712 4,686,106 6,341,106 8,285,772

Total Liabilities and Equity 50,247,502 48,800,989 47,897,605 46,488,383 45,184,972

Mee Sub Market

Balance sheet in five years

106


Revenue

Revenue from lease 5,628,500 1,272,000 1,134,500 - -

Revenue from renting stall 5,083,410 8,105,880 9,280,920 9,460,920 9,732,110

Revenue from providing toilet 205,130 192,960 202,410 202,410 202,410

Revenue from ATM area renting 120,000 180,000 180,000 180,000 180,000

Revenue from area renting - - 28,000 30,000 30,000

Total revenue 11,037,040 9,750,840 10,825,830 9,873,330 10,144,520

Expense


Employee salary 792,000 792,000 792,000 792,000 792,000

Social Security 7,680 7,680 7,680 7,680 7,680

Sign bord Tax 7,200 7,200 7,200 7,200 7,200

House and building Tax 9,984 9,984 9,984 9,984 9,984

Permit of fresh Market establishment 2,000 2,000 2,000 2,000 2,000

Electricity expense 852,062 852,062 852,062 852,062 852,062

Water expense 583,511 583,511 583,511 583,511 583,511

Internet and Telephone expense 13,983 13,983 13,983 13,983 13,983

Garbrage fees 57,600 57,600 57,600 57,600 57,600

Solid Waste Expenses 24,000 24,000 24,000 24,000 24,000

Fire Insurance 7,198 7,198 7,198 7,198 7,198

Cleaning Fresh Market 36,000 36,000 36,000 36,000 36,000

Miscellaneous expense 84,000 84,000 84,000 84,000 84,000

Toxin Assays 148,320 148,320 148,320 148,320 148,320

Total Administrative expense 2,625,538 2,625,538 2,625,538 2,625,538 2,625,538

Pre operating expense 2,078,393 - -

Marketing Expense 161,900 - - - -

Depreciation expense 884,851 884,851 884,851 884,851 884,851

Total expense 5,750,681 3,510,388 3,510,388 3,510,388 3,510,388

EBIT 5,286,359 6,240,452 7,315,442 6,362,942 6,634,132

Interest Expense 2,604,132 2,449,765 2,286,137 2,112,690 1,928,837

Taxable income 2,682,226 3,790,686 5,029,305 4,250,252 4,705,295

Taxes 536,445 758,137 1,005,861 850,050 941,059

Net Income 2,145,781 3,032,549 4,023,444 3,400,201 3,764,236

Retain Earning 1,502,047 2,122,784 2,816,411 2,380,141 2,634,965

Dividend 30% 643,734 909,765 1,207,033 1,020,060 1,129,271

Mee Sub Market

Income Statement in five years

Year 1 Year 2 Year 3 Year 4 Year 5Profit Magin 19.44% 31.10% 37.17% 34.44% 37.11%

ROA 4.27% 6.21% 8.40% 7.31% 8.33%

ROE 22.78% 28.34% 31.72% 23.71% 23.11%

Payout ratio 30.00% 30.00% 30.00% 30.00% 30.00%

Debt to total asset ratio 81.26% 78.08% 73.51% 69.15% 63.96%

107

1. Liquidity Ratio

Our business has a short-term debt as principal of bank loaned that we has to pay at the

end of period, so in balance sheet at the end of period does not show short-term debt. In case of

meeting unexpected need for cash, investor or creditor can make sure that we have ability to

pay that because we have reserve cash in hand.

2. Profitability Ratio

From calculating Profit margin found that our company has ability to generate profit in

Year 2 more than profit margin in Year 1 because we spent a lot of money to pay for

investment and expenses in year 1. Since year 2, we can generate profit margin around 30

percent up and will be profit constantly. We will have more profit after we pay of total debt

that we loan from bank in year 12.

For Return on assets (ROA), we have ability to generate profit from asset more and

more from year 1 to year 3, but it decrease in year 4 and then increase in year 5. Although the

ratio is not large number, these assets can provide profit in long term.

Return on equity (ROE), from the ratio of return on equity show that our company can

generate profit from out of equity since year1 to year 3 more and more. After year 3, the profit

will be stable ratio around 23%. That mean we have a lot of equity that not make profit.

For Payout Ratio, our company has the policy to pay cash dividend monthly in constant

rate as 30% by starting from November of Year 1.

3. Solvency Ratio

Debt to total assets ratio, from the table presented that our company has high debt

because it just beginning of new business and we loan money from a bank to invest in Mee Sub

market. Due to pay debt annually, percentage of debt to total assets will low continuously. Our

company believes that we can pay total debt within 12 years and after that we will have more

assets that can provide more profit in the future.

Chapter 7

Risk Analysis

109

Risk Management

Risk is the probability or chance of mistake, damage, and thread of unexpected

circumstance to be occurring in the future. It can lead to unsuccessful operation that is not

achieving the objectives of the business. Risk can be both positive and negative effects to

business, and can be classified into 2 factors which are; External and Internal Factors. Mee Sub

Market identifies the risk as following;

External Risk is risk that occurs out of the company control.

1. Economic

Economy and external risk have significant impact on business. In the other word,

when the country faces economic problem, it affects to expenditure of the population. Many

business and many company may be shut down or bankrupt. It also has an effect on Small

business and new company who start to run their business.

Mee Sub Market is a new opening market. If the economic condition of the country,

especially in Chiang Rai, is not stable or facing problems, it would be a risk affects to the fresh

market. To adapt and protect itself from the changing in economic, the market have to aware of

changing all the time by gather all information about economic issue including with political

issue to get itself prepared and get ready to adapt in the circumstance.

2. Environment

The risk from natural disasters and environment may occur such as earthquake,

flooding and collapse of electricity system. These events can happen all the time so, Mee Sub

Market has a policy to buy the insurance in order to deal with these problems.

3. Competitor

The risk that may occur is competition of strategy of the rivals or competitors that

aimed to attract customers including the stall renting which cost cheaper than our market. This

would be the risk of losing sellers attention to competitors.

Internal Risk is risk that occurs from business operation mistake.

1. Financial Risk

The Financial risk of Mee Sub market is the over cost with the limited budget. The risk

also includes the increasing number of expenditure. If Mee Sub market suffers with this

problem in financial risk, it will affects to the increasing time to get a return and pay back to

the investor.

110

This case Mee Sub market will reduce the result of financial risk by doing a financial

plan and forecasting the financial situation for the future.

2. Strategic Risk

The strategic which is not according to the visions of the market and not go along with

the current situation can cause the market unable to compete with competitors. Therefore, this

becomes the risk that affects to the market to lose its income and be adverse to the competitors.

The way to manage this risk is Mee Sub Market has to change the strategic plan to be

more attractive than the competitors. Moreover, the market has to provide the meeting to

discuss with the members of the market to provide them some information of the market policy

together with emphasis on the real visions of the market.

3. Operating Risk

Operation risk is the safety risk which may occur from the accident, conflagration, and

other harm from selling products in the market.

To deal with this risk, the market has to buy casualty insurance in order to take

responsibility on those damages. Besides, the market would set the defensive measure for

example; to avoid conflagration, do not put the flammable stuff in the same area, and arrange

electrical system follow the standard.

4. Compliance Risk

The risk occurs from the failure in the stall renting agreement. It can be the risk of the

resistance because of the dissatisfaction in the policy. Mee Sub market will reduce this risk by

creating a meeting in every month. In order to talk, give information and share the way to solve

the problem with members in the market.

5. Credit risk

The credit risk is the risk that may occur from the late renting payment of the stall. And

it may be the payment on credit of any sellers. This problem may cause the dislocation of the

market revenue.

So, the market has been set the policy to support this risk by specify the limit of lenient

time. Sellers must make a payment within two month after the payment on credit without

interest. This policy will be shown in the contract of lease under Thai law. Moreover, the

market also spares the reserved fund in order to revolving for the risk which may occur.

111

If we meet credit risk for 5 percent, it will affect to decrease our revenue and profit as show in Income statement, Balance sheet and cash flow.

Year 1 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul End of Period

Revenue





Total revenue 5,646,080 16,080 16,080 569,996 583,496 583,496 583,496 560,666 554,996 556,496 555,496 556,496 10,782,870

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320





Total expense 2,532,627 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 5,750,681

EBIT 3,113,453 272,254- 276,254- 281,662 291,162 268,780 291,162 272,332 262,662 268,162 263,162 268,162 5,032,188


Taxable income 3,113,453 272,254- 276,254- 281,662 291,162 268,780 291,162 272,332 262,662 268,162 263,162 2,335,971- 2,428,056

Taxes - - - - - - - - - - - 388,922- 485,611

Net Income 3,113,453 272,254- 276,254- 281,662 291,162 268,780 291,162 272,332 262,662 268,162 263,162 2,724,893- 1,942,445

Retain Earning 3,113,453 272,254- 276,254- 197,163 203,813 188,146 203,813 190,632 183,863 187,713 184,213 2,724,893- 1,359,711

Dividend 30% 84,498 87,348 80,634 87,348 81,699 78,798 80,448 78,948 582,733

112

Balance sheet in case of credit risk for 5 percent in year 1

2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014


Asset

Current Asset

Cash 13,265,584 13,067,067 12,864,551 13,135,452 13,413,002 13,674,886 13,952,436 14,216,806 14,474,407 14,735,858 14,993,808 9,769,872


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 54,515,658 54,243,404 53,967,150 54,164,314 54,368,127 54,556,273 54,760,086 54,950,718 55,134,581 55,322,294 55,506,507 50,208,834




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2013 - July 31, 2014

113

Statement of cash flow in case of credit risk for 5 percent in year 1

2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014


Net Income 3,113,453 272,254- 276,254- 281,662 291,162 268,780 291,162 272,332 262,662 268,162 263,162 2,724,893-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



Purchase land 25,000,000- - - - - - - - - - - -





Payment of debt - - - - - - - - - - - 2,572,781-

Cash dividend - - - 84,498- 87,348- 80,634- 87,348- 81,699- 78,798- 80,448- 78,948- -





Mee Sub Market


Aug 1, 2013-July 31, 2014

114

Income statement in case of credit risk for 5 percent in year 2


Revenue






Total revenue 1,913,921 641,921 684,671 684,671 684,671 684,671 684,671 684,671 684,671 684,671 656,171 656,171 9,345,546

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 1,621,587 353,587 392,337 396,337 392,337 369,955 392,337 396,337 392,337 396,337 363,837 367,837 5,835,158


Taxable income 1,621,587 353,587 392,337 396,337 392,337 369,955 392,337 396,337 392,337 396,337 363,837 2,081,929- 3,385,392

Taxes - - - - - - - - - - - 677,078- 677,078

Net Income 1,621,587 353,587 392,337 396,337 392,337 369,955 392,337 396,337 392,337 396,337 363,837 1,404,850- 2,708,314

Retain Earning 1,135,111 247,511 274,636 277,436 274,636 258,968 274,636 277,436 274,636 277,436 254,686 1,404,850- 1,895,820

Dividend 30% 486,476 106,076 117,701 118,901 117,701 110,986 117,701 118,901 117,701 118,901 109,151 812,494

115


2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015


Asset

Current Asset

Cash 10,978,720 11,299,969 11,648,342 11,999,515 12,347,888 12,680,594 13,028,967 13,380,140 13,728,514 14,079,687 14,408,110 10,349,849


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 51,343,944 51,591,455 51,866,091 52,143,526 52,418,162 52,677,130 52,951,766 53,229,201 53,503,837 53,781,273 54,035,958 49,903,960




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2014 - July 31, 2015

116


2,014.00 2,014.00 2,014.00 2,014.00 2,014.00 2,015.00 2,015.00 2,015.00 2,015.00 2,015.00 2,015.00 2,015.00


Net Income 1,621,587 353,587 392,337 396,337 392,337 369,955 392,337 396,337 392,337 396,337 363,837 1,404,850-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738


Cash Flow from Investing - - - - - - - - - - - -



Cash dividend 486,476- 106,076- 117,701- 118,901- 117,701- 110,986- 117,701- 118,901- 117,701- 118,901- 109,151- -





Mee Sub Market


Aug 1, 2014-July 31, 2015

117



Revenue






Total revenue 1,870,945 734,945 777,695 777,695 779,195 779,195 779,195 777,695 779,195 777,695 749,195 779,145 10,361,784

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 1,578,611 446,611 485,361 489,361 486,861 464,479 486,861 489,361 486,861 489,361 456,861 490,811 6,851,396


Taxable income 1,578,611 446,611 485,361 489,361 486,861 464,479 486,861 489,361 486,861 489,361 456,861 1,795,326- 4,565,259

Taxes - - - - - - - - - - - 746,233- 913,052

Net Income 1,578,611 446,611 485,361 489,361 486,861 464,479 486,861 489,361 486,861 489,361 456,861 2,541,559- 3,652,207

Retain Earning 1,105,027 312,627 339,752 342,552 340,802 325,135 340,802 342,552 340,802 342,552 319,802 2,541,559- 2,556,545

Dividend 30% 473,583 133,983 145,608 146,808 146,058 139,344 146,058 146,808 146,058 146,808 137,058 1,095,662

118


2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016


Asset

Current Asset

Cash 11,528,614 11,914,979 12,328,469 12,744,759 13,159,299 13,558,172 13,972,712 14,389,002 14,803,542 15,219,832 15,613,372 10,254,774


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 51,008,988 51,321,615 51,661,368 52,003,920 52,344,722 52,669,858 53,010,660 53,353,212 53,694,015 54,036,567 54,356,370 48,924,034




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2015 - July 31, 2016

119


2015 2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016


Net Income 1,578,611 446,611 485,361 489,361 486,861 464,479 486,861 489,361 486,861 489,361 456,861 2,541,559-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



Net Cash Flow from investing - - - - - - - - - - - -


Payment of debt - - - - - - - - - - - 2,890,777-

Cash dividend 473,583- 133,983- 145,608- 146,808- 146,058- 139,344- 146,058- 146,808- 146,058- 146,808- 137,058- -





Mee Sub Market


Aug 1, 2015-July 31, 2016

120



Revenue





Total revenue 750,695 749,195 791,945 791,945 793,445 793,445 793,445 791,945 793,445 791,945 763,445 795,395 9,400,284

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 458,361 460,861 499,611 503,611 501,111 478,729 501,111 503,611 501,111 503,611 471,111 507,061 5,889,896


Taxable income 458,361 460,861 499,611 503,611 501,111 478,729 501,111 503,611 501,111 503,611 471,111 1,605,629- 3,777,206

Taxes - - - - - - - - - - - 755,441 755,441

Net Income 458,361 460,861 499,611 503,611 501,111 478,729 501,111 503,611 501,111 503,611 471,111 2,361,070- 3,021,765

Retain Earning 320,852 322,602 349,727 352,527 350,777 335,110 350,777 352,527 350,777 352,527 329,777 2,361,070- 2,115,235

Dividend 30% 137,508 138,258 149,883 151,083 150,333 143,619 150,333 151,083 150,333 151,083 141,333 906,529

121


2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017


Asset

Current Asset

Cash 10,649,364 11,045,704 11,469,169 11,895,434 12,319,949 12,728,797 13,153,312 13,579,577 14,004,092 14,430,357 14,833,872 9,482,315


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 49,244,887 49,567,489 49,917,216 50,269,744 50,620,521 50,955,631 51,306,409 51,658,936 52,009,714 52,362,241 52,692,019 47,266,725




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2016 - July 31, 2017

122


2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017


Net Income 458,361 460,861 499,611 503,611 501,111 478,729 501,111 503,611 501,111 503,611 471,111 2,361,070-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738





Payment of debt - - - - - - - - - - - 3,064,223-

Cash dividend 137,508- 138,258- 149,883- 151,083- 150,333- 143,619- 150,333- 151,083- 150,333- 151,083- 141,333- -





Mee Sub Market


Aug 1, 2016-July 31, 2017

123



Revenue





Total revenue 764,945 771,320 814,070 814,070 815,570 815,570 815,570 814,070 815,570 814,070 785,570 817,520 9,657,915

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 472,611 482,986 521,736 525,736 523,236 500,854 523,236 525,736 523,236 525,736 493,236 529,186 6,147,526


Taxable income 472,611 482,986 521,736 525,736 523,236 500,854 523,236 525,736 523,236 525,736 493,236 1,399,650- 4,218,690

Taxes - - - - - - - - - - - 843,738 843,738

Net Income 472,611 482,986 521,736 525,736 523,236 500,854 523,236 525,736 523,236 525,736 493,236 2,243,388- 3,374,952

Retain Earning 330,827 338,090 365,215 368,015 366,265 350,598 366,265 368,015 366,265 368,015 345,265 2,243,388- 2,362,466

Dividend 30% 141,783 144,896 156,521 157,721 156,971 150,256 156,971 157,721 156,971 157,721 147,971 1,012,486

124


2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018


Asset

Current Asset

Cash 9,886,880 10,298,708 10,737,661 11,179,414 11,619,417 12,043,752 12,483,755 12,925,508 13,365,511 13,807,264 14,226,266 8,808,539


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 47,597,552 47,935,643 48,300,858 48,668,873 49,035,139 49,385,736 49,752,002 50,120,017 50,486,282 50,854,298 51,199,563 45,708,098




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2017 - July 31, 2018

125


2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018


Net Income 472,611 482,986 521,736 525,736 523,236 500,854 523,236 525,736 523,236 525,736 493,236 2,243,388-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738





Payment of debt - - - - - - - - - - - 3,248,077-

Cash dividend 141,783- 144,896- 156,521- 157,721- 156,971- 150,256- 156,971- 157,721- 156,971- 157,721- 147,971- -





Mee Sub Market


Aug 1, 2017-July 31, 2018

126



Revenue





Total revenue 5,646,080 16,080 16,080 540,921 554,421 554,421 554,421 533,091 527,421 528,921 527,921 528,921 10,528,699

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320





Total expense 2,532,627 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 5,750,681

EBIT 3,113,453 272,254- 276,254- 252,587 262,087 239,705 262,087 244,757 235,087 240,587 235,587 240,587 4,778,018


Taxable income 3,113,453 272,254- 276,254- 252,587 262,087 239,705 262,087 244,757 235,087 240,587 235,587 2,363,545- 2,173,885

Taxes 20% - - - - - - - - - - - 434,777 434,777

Net Income 3,113,453 272,254- 276,254- 252,587 262,087 239,705 262,087 244,757 235,087 240,587 235,587 2,798,322- 1,739,108

Retain Earning 3,113,453 272,254- 276,254- 176,811 183,461 167,794 183,461 171,330 164,561 168,411 164,911 2,798,322- 1,217,376

Dividend 30% - - - 75,776 78,626 71,912 78,626 73,427 70,526 72,176 70,676 - 521,732

127


2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014


Asset

Current Asset

Cash 13,265,584 13,067,067 12,864,551 13,115,100 13,372,298 13,613,829 13,871,028 14,116,095 14,354,394 14,596,543 14,835,191 9,537,825


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 54,515,658 54,243,404 53,967,150 54,143,961 54,327,422 54,495,216 54,678,677 54,850,007 55,014,568 55,182,979 55,347,890 49,976,787




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2013 - July 31, 2014

128

Cash Flow in case of credit risk for 10 percent in year 1

2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014


Net Income 3,113,453 272,254- 276,254- 252,587 262,087 239,705 262,087 244,757 235,087 240,587 235,587 2,798,322-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



Purchase land 25,000,000- - - - - - - - - - - -





Payment of debt - - - - - - - - - - - 2,572,781-

Cash dividend - - - 75,776- 78,626- 71,912- 78,626- 73,427- 70,526- 72,176- 70,676- -





Mee Sub Market


Aug 1, 2013-July 31, 2014

129

Income Statement in case of credit risk for 10 percent in year 2

2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015 2015


Revenue






Total revenue 1,881,771 609,771 650,271 650,271 650,271 650,271 650,271 650,271 650,271 650,271 623,271 623,271 8,940,252

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 1,589,437 321,437 357,937 361,937 357,937 335,555 357,937 361,937 357,937 361,937 330,937 334,937 5,429,864


Taxable income 1,589,437 321,437 357,937 361,937 357,937 335,555 357,937 361,937 357,937 361,937 330,937 2,114,828- 2,980,098

Taxes - - - - - - - - - - - 596,020 596,020

Net Income 1,589,437 321,437 357,937 361,937 357,937 335,555 357,937 361,937 357,937 361,937 330,937 2,710,848- 2,384,079

Retain Earning 1,112,606 225,006 250,556 253,356 250,556 234,889 250,556 253,356 250,556 253,356 231,656 2,710,848- 1,668,855

Dividend 30% 476,831 96,431 107,381 108,581 107,381 100,667 107,381 108,581 107,381 108,581 99,281 715,224

130


2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015


Asset

Current Asset

Cash 10,724,169 11,022,913 11,347,206 11,674,300 11,998,593 12,307,219 12,631,513 12,958,606 13,282,900 13,609,994 13,915,387 8,551,129


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 51,089,393 51,314,399 51,564,955 51,818,311 52,068,867 52,303,755 52,554,311 52,807,667 53,058,223 53,311,579 53,543,235 48,105,240




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2014 - July 31, 2015

131


2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015


Net Income 1,589,437 321,437 357,937 361,937 357,937 335,555 357,937 361,937 357,937 361,937 330,937 2,710,848-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



- - - - - - - - - - - - -



Cash dividend 476,831- 96,431- 107,381- 108,581- 107,381- 100,667- 107,381- 108,581- 107,381- 108,581- 99,281- -





Mee Sub Market


Aug 1, 2014-July 31, 2015

132


2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016 2016


Revenue






Total revenue 1,833,899 697,899 738,399 738,399 739,899 739,899 739,899 738,399 739,899 738,399 711,399 741,349 9,897,738

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 1,541,565 409,565 446,065 450,065 447,565 425,183 447,565 450,065 447,565 450,065 419,065 453,015 6,387,350


Taxable income 1,541,565 409,565 446,065 450,065 447,565 425,183 447,565 450,065 447,565 450,065 419,065 1,833,121- 4,101,213

Taxes 20% - - - - - - - - - - - 820,243 820,243

Net Income 1,541,565 409,565 446,065 450,065 447,565 425,183 447,565 450,065 447,565 450,065 419,065 2,653,364- 3,280,970

Retain Earning 1,079,096 286,696 312,246 315,046 313,296 297,628 313,296 315,046 313,296 315,046 293,346 2,653,364- 2,296,679

Dividend 30% 462,470 122,870 133,820 135,020 134,270 127,555 134,270 135,020 134,270 135,020 125,720 984,291

133


2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016


Asset

Current Asset

Cash 9,703,962 10,064,395 10,450,378 10,839,161 11,226,195 11,597,560 11,984,594 12,373,377 12,760,410 13,149,193 13,516,276 8,045,873


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 49,184,335 49,471,031 49,783,276 50,098,322 50,411,618 50,709,246 51,022,541 51,337,587 51,650,883 51,965,928 52,259,274 46,715,133




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2015 - July 31, 2016

134


2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016


Net Income 1,541,565฿ 409,565฿ 446,065฿ 450,065฿ 447,565฿ 425,183฿ 447,565฿ 450,065฿ 447,565฿ 450,065฿ 419,065฿ 2,653,364-฿


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



- - - - - - - - - - - - -



Cash dividend 462,470- 122,870- 133,820- 135,020- 134,270- 127,555- 134,270- 135,020- 134,270- 135,020- 125,720- -





Mee Sub Market


Aug 1, 2015-July 31, 2016

135


2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017 2017


Revenue





Total revenue 712,899 711,399 751,899 751,899 753,399 753,399 753,399 751,899 753,399 751,899 724,899 756,849 8,927,238

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 420,565 423,065 459,565 463,565 461,065 438,683 461,065 463,565 461,065 463,565 432,565 468,515 5,416,850


Taxable income 420,565 423,065 459,565 463,565 461,065 438,683 461,065 463,565 461,065 463,565 432,565 1,644,175- 3,304,160

Taxes - - - - - - - - - - - 660,832 660,832

Net Income 420,565 423,065 459,565 463,565 461,065 438,683 461,065 463,565 461,065 463,565 432,565 2,305,007- 2,643,328

Retain Earning 294,396 296,146 321,696 324,496 322,746 307,078 322,746 324,496 322,746 324,496 302,796 2,305,007- 1,850,329

Dividend 30% 126,170 126,920 137,870 139,070 138,320 131,605 138,320 139,070 138,320 139,070 129,770 792,998

136


2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017


Asset

Current Asset

Cash 8,414,006฿ 8,783,889฿ 9,179,322฿ 9,577,556฿ 9,974,039฿ 10,354,854฿ 10,751,338฿ 11,149,571฿ 11,546,054฿ 11,944,287฿ 12,320,820฿ 7,025,328฿


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 47,009,529 47,305,674 47,627,370 47,951,866 48,274,611 48,581,689 48,904,435 49,228,931 49,551,676 49,876,172 50,178,967 44,809,737




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2016 - July 31, 2017

137


2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017


Net Income 420,565฿ 423,065฿ 459,565฿ 463,565฿ 461,065฿ 438,683฿ 461,065฿ 463,565฿ 461,065฿ 463,565฿ 432,565฿ 2,305,007-฿


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



- - - - - - - - - - - - -



Cash dividend 126,170- 126,920- 137,870- 139,070- 138,320- 131,605- 138,320- 139,070- 138,320- 139,070- 129,770- -





Mee Sub Market


Aug 1, 2016-July 31, 2017

138


2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018


Revenue





Total revenue 726,399 732,360 772,860 772,860 774,360 774,360 774,360 772,860 774,360 772,860 745,860 777,810 9,171,309

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 434,065 444,026 480,526 484,526 482,026 459,644 482,026 484,526 482,026 484,526 453,526 489,476 5,660,921


Taxable income 434,065 444,026 480,526 484,526 482,026 459,644 482,026 484,526 482,026 484,526 453,526 1,439,360- 3,732,084

Taxes 20% - - - - - - - - - - - 746,417 746,417

Net Income 434,065 444,026 480,526 484,526 482,026 459,644 482,026 484,526 482,026 484,526 453,526 2,185,777- 2,985,667

Retain Earning 303,846 310,818 336,368 339,168 337,418 321,751 337,418 339,168 337,418 339,168 317,468 2,185,777- 2,089,967

Dividend 30% 130,220 133,208 144,158 145,358 144,608 137,893 144,608 145,358 144,608 145,358 136,058 895,700

139


2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018


Asset

Current Asset

Cash 7,402,911฿ 7,787,467฿ 8,197,573฿ 8,610,478฿ 9,021,634฿ 9,417,123฿ 9,828,279฿ 10,241,184฿ 10,652,340฿ 11,065,246฿ 11,456,452฿ 6,096,336฿


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 45,113,583 45,424,401 45,760,769 46,099,938 46,437,356 46,759,107 47,096,525 47,435,694 47,773,112 48,112,280 48,429,748 42,995,895




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2017 - July 31, 2018

140


2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018


Net Income 434,065฿ 444,026฿ 480,526฿ 484,526฿ 482,026฿ 459,644฿ 482,026฿ 484,526฿ 482,026฿ 484,526฿ 453,526฿ 2,185,777-฿


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



- - - - - - - - - - - - -



Cash dividend 130,220- 133,208- 144,158- 145,358- 144,608- 137,893- 144,608- 145,358- 144,608- 145,358- 136,058- -





Mee Sub Market


Aug 1, 2017-July 31, 2018

141



Revenue





Total revenue 5,646,080 16,080 16,080 511,847 525,347 525,347 525,347 505,517 499,847 501,347 500,347 501,347 10,274,529

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320





Total expense 2,532,627 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 5,750,681

EBIT 3,113,453 272,254- 276,254- 223,513 233,013 210,631 233,013 217,183 207,513 213,013 208,013 213,013 4,523,847


Taxable income 3,113,453 272,254- 276,254- 223,513 233,013 210,631 233,013 217,183 207,513 213,013 208,013 2,391,120- 1,919,715

Taxes 20% - - - - - - - - - - - 383,943 383,943

Net Income 3,113,453 272,254- 276,254- 223,513 233,013 210,631 233,013 217,183 207,513 213,013 208,013 2,775,063- 1,535,772

Retain Earning 3,113,453 272,254- 276,254- 156,459 163,109 147,442 163,109 152,028 145,259 149,109 145,609 2,775,063- 1,075,040

Dividend 30% - - - 67,054 69,904 63,189 69,904 65,155 62,254 63,904 62,404 - 460,732

142


2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014


Asset

Current Asset

Cash 13,265,584 13,067,067 12,864,551 13,094,747 13,331,594 13,552,773 13,789,619 14,015,385 14,234,381 14,457,227 14,676,574 9,402,468


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 54,515,658 54,243,404 53,967,150 54,123,609 54,286,718 54,434,160 54,597,268 54,749,296 54,894,555 55,043,664 55,189,273 49,841,429




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2013 - July 31, 2014

143


2013 2013 2013 2013 2013 2014 2014 2014 2014 2014 2014 2014


Net Income 3,113,453 272,254- 276,254- 223,513 233,013 210,631 233,013 217,183 207,513 213,013 208,013 2,775,063-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738



Purchase land 25,000,000- - - - - - - - - - - -





Payment of debt - - - - - - - - - - - 2,572,781-

Cash dividend - - - 67,054- 69,904- 63,189- 69,904- 65,155- 62,254- 63,904- 62,404- -





Mee Sub Market


Aug 1, 2013-July 31, 2014

144



Revenue






Total revenue 1,849,622 577,622 615,872 615,872 615,872 615,872 615,872 615,872 615,872 615,872 590,372 590,372 8,534,958

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 1,557,288 289,288 323,538 327,538 323,538 301,156 323,538 327,538 323,538 327,538 298,038 302,038 5,024,570


Taxable income 1,557,288 289,288 323,538 327,538 323,538 301,156 323,538 327,538 323,538 327,538 298,038 2,147,728- 2,574,804

Taxes - - - - - - - - - - - 514,961 514,961

Net Income 1,557,288 289,288 323,538 327,538 323,538 301,156 323,538 327,538 323,538 327,538 298,038 2,662,689- 2,059,843

Retain Earning 1,090,101 202,501 226,476 229,276 226,476 210,809 226,476 229,276 226,476 229,276 208,626 2,662,689- 1,441,890

Dividend 30% 467,186 86,786 97,061 98,261 97,061 90,347 97,061 98,261 97,061 98,261 89,411 617,953

145


2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015


Asset

Current Asset

Cash 10,566,307 10,842,546 11,142,760 11,445,773 11,745,987 12,030,534 12,330,748 12,633,762 12,933,976 13,236,989 13,519,353 8,203,254


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 50,931,531 51,134,032 51,360,508 51,589,785 51,816,261 52,027,070 52,253,546 52,482,823 52,709,299 52,938,575 53,147,202 47,757,365




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2014 - July 31, 2015

146


2,014.00 2,014.00 2,014.00 2,014.00 2,014.00 2,015.00 2,015.00 2,015.00 2,015.00 2,015.00 2,015.00 2,015.00


Net Income 1,557,288 289,288 323,538 327,538 323,538 301,156 323,538 327,538 323,538 327,538 298,038 2,662,689-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738






Cash dividend 467,186- 86,786- 97,061- 98,261- 97,061- 90,347- 97,061- 98,261- 97,061- 98,261- 89,411- -





Mee Sub Market


Aug 1, 2014-July 31, 2015

147



Revenue






Total revenue 1,796,854 660,854 699,104 699,104 700,604 700,604 700,604 699,104 700,604 699,104 673,604 703,554 9,433,692

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 1,504,520 372,520 406,770 410,770 408,270 385,888 408,270 410,770 408,270 410,770 381,270 415,220 5,923,304


Taxable income 1,504,520 372,520 406,770 410,770 408,270 385,888 408,270 410,770 408,270 410,770 381,270 1,870,917- 3,637,167

Taxes - - - - - - - - - - - 727,433 727,433

Net Income 1,504,520 372,520 406,770 410,770 408,270 385,888 408,270 410,770 408,270 410,770 381,270 2,598,350- 2,909,734

Retain Earning 1,053,164 260,764 284,739 287,539 285,789 270,121 285,789 287,539 285,789 287,539 266,889 2,598,350- 2,036,814

Dividend 30% 451,356 111,756 122,031 123,231 122,481 115,766 122,481 123,231 122,481 123,231 114,381 872,920

148


2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016


Asset

Current Asset

Cash 9,330,156 9,664,657 10,023,133 10,384,410 10,743,936 11,087,795 11,447,321 11,808,597 12,168,124 12,529,400 12,870,026 7,454,637


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 48,810,529 49,071,293 49,356,031 49,643,570 49,929,359 50,199,480 50,485,269 50,772,808 51,058,597 51,346,135 51,613,024 46,123,897




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2015 - July 31, 2016

149


2015 2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016


Net Income 1,504,520 372,520 406,770 410,770 408,270 385,888 408,270 410,770 408,270 410,770 381,270 2,598,350-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738





Payment of debt - - - - - - - - - - - 2,890,777-

Cash dividend 451,356- 111,756- 122,031- 123,231- 122,481- 115,766- 122,481- 123,231- 122,481- 123,231- 114,381- -





Mee Sub Market


Aug 1, 2015-July 31, 2016

150



Revenue





Total revenue 675,104 673,604 711,854 711,854 713,354 713,354 713,354 711,854 713,354 711,854 686,354 718,304 8,454,192

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 382,770 385,270 419,520 423,520 421,020 398,638 421,020 423,520 421,020 423,520 394,020 429,970 4,943,804


Taxable income 382,770 385,270 419,520 423,520 421,020 398,638 421,020 423,520 421,020 423,520 394,020 1,682,720- 2,831,114

Taxes - - - - - - - - - - - 566,223 566,223

Net Income 382,770 385,270 419,520 423,520 421,020 398,638 421,020 423,520 421,020 423,520 394,020 2,248,943- 2,264,891

Retain Earning 267,939 269,689 293,664 296,464 294,714 279,046 294,714 296,464 294,714 296,464 275,814 2,248,943- 1,585,424

Dividend 30% 114,831 115,581 125,856 127,056 126,306 119,591 126,306 127,056 126,306 127,056 118,206 679,467

151


2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017


Asset

Current Asset

Cash 7,796,313 8,139,739 8,507,141 8,877,342 9,245,793 9,598,577 9,967,029 10,337,230 10,705,681 11,075,882 11,425,434 6,186,005


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 46,391,836 46,661,525 46,955,188 47,251,652 47,546,366 47,825,412 48,120,126 48,416,590 48,711,303 49,007,767 49,283,581 43,970,415




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2016 - July 31, 2017

152


2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017


Net Income 382,770 385,270 419,520 423,520 421,020 398,638 421,020 423,520 421,020 423,520 394,020 2,248,943-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738





Payment of debt - - - - - - - - - - - 3,064,223-

Cash dividend 114,831- 115,581- 125,856- 127,056- 126,306- 119,591- 126,306- 127,056- 126,306- 127,056- 118,206- -





Mee Sub Market


Aug 1, 2016-July 31, 2017

153



Revenue





Total revenue 687,854 693,400 731,650 731,650 733,150 733,150 733,150 731,650 733,150 731,650 706,150 738,100 8,684,704

Expense


Employee salary 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 66,000 792,000

Social Security 640 640 640 640 640 640 640 640 640 640 640 640 7,680

Sign bord Tax - - - - - 7,200 - - - - - - 7,200




Water expense 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 48,626 583,511


Garbrage fees 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 4,800 57,600


Fire Insurance - - - - - 7,198 - - - - - - 7,198



Toxin Assays 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 12,360 148,320



Total expense 292,334 288,334 292,334 288,334 292,334 314,716 292,334 288,334 292,334 288,334 292,334 288,334 3,510,388

EBIT 395,520 405,066 439,316 443,316 440,816 418,434 440,816 443,316 440,816 443,316 413,816 449,766 5,174,315


Taxable income 395,520 405,066 439,316 443,316 440,816 418,434 440,816 443,316 440,816 443,316 413,816 1,479,070- 3,245,479

Taxes - - - - - - - - - - - 649,096 649,096

Net Income 395,520 405,066 439,316 443,316 440,816 418,434 440,816 443,316 440,816 443,316 413,816 2,128,166- 2,596,383

Retain Earning 276,864 283,546 307,521 310,321 308,571 292,904 308,571 310,321 308,571 310,321 289,671 2,128,166- 1,817,468

Dividend 30% 118,656 121,520 131,795 132,995 132,245 125,530 132,245 132,995 132,245 132,995 124,145 778,915

154


2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018


Asset

Current Asset

Cash 6,536,606 6,893,890 7,275,149 7,659,208 8,041,517 8,408,158 8,790,467 9,174,526 9,556,835 9,940,893 10,304,302 5,001,797


Fixed Asset

Land 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

Building 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860 15,893,860


Equipment 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952 429,952



Total asset 44,247,278 44,530,825 44,838,346 45,148,667 45,457,238 45,750,142 46,058,714 46,369,035 46,677,606 46,987,928 47,277,599 41,901,356




Owner's capital 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000



Mee Sub Market

Balance Sheet

August 1, 2017 - July 31, 2018

155


2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018


Net Income 395,520 405,066 439,316 443,316 440,816 418,434 440,816 443,316 440,816 443,316 413,816 2,128,166-


Depreciation 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738 73,738





Payment of debt - - - - - - - - - - - 3,248,077-

Cash dividend 118,656- 121,520- 131,795- 132,995- 132,245- 125,530- 132,245- 132,995- 132,245- 132,995- 124,145- -





Mee Sub Market


Aug 1, 2017-July 31, 2018

156

The policy for reducing risk

According to the risk table shows the percentage of the risk between 5%-15%, which

the number is from hold on credit. As the calculation on financial statement shows the

maximum of 15% risk which the firm can be accepted and still can run the business. From this

situation, the firm can reduce the risk to be less than 15% or equal by setting the policy up; if

the retailer who rents the stall and has not made a payment for 2months (on credit), he/she must

leave the stall at the end of that month but if the retailer has 2 months on credit, and he/she can

make the payment only 1 month (in this case the firm can be accepted).

Risk assessment

Risk assessment is an important process in the risk management. This method is to

considerate the risk factors, In order to assess the opportunity and the effect from that risk. All

risk factors come from both inside and outside the business.

Risk Probability Effect Total

1 2 3 4 5 1 2 3 4 5

Financial Risk x x 8

Operational Risk x x 6

Strategic Risk x x 4

Compliance Risk x x 3

Credit Risk x x 8

Economic Risk x x 6

Social Risk x x 2

Environment Risk x x 6

Competitor Risk x x 4

From the table, the risks that are the most influence to our business are financial risk

and credit risk. In order to avoid these risks, our company needs to have a good management

team to plan and solve these problems.

Chapter 8

Summary

158

Summary

According to change in economy and society that encourage the expansion of trade,

lead many type of market. For the fresh market, it is the place where people trade the raw

material used in cooking both fresh food and dry food.

In Thailand especially in Chiang Rai province, the fresh market can be found in the

crowed area of the community. This can cause many effect such as environment effect, traffic

jam effect, etc. From the research in Mueng, Chiang Rai, there are many fresh markets which

suffer with the above problems. Due to the increasing number of the population, it leads to an

increasing in the need of food of people.

Moreover, we found that people in Chiang Rai living as a single family and still prepare

the meal in the household. So, the fresh market still is an alternative for people to purchase

goods. It is show that, fresh market business is a good opportunities to make an investment.

Because it is required to meet the customer's need.

Environment Feasibility Analysis summary

Mee Sub Market located in the community area on the bypass. It is close to the

government office, school, university and the airport. The market receives the good support

from the government sector for a facilities and service. From the preliminary survey found that,

there is an increasing of housing estate. It means that in this area will become popular and

crowd community in the future. Mee Sub market will be the first choice of customer to

purchase products.

As mention above, there was a feasible opportunities to make and investment in this

kind of business.

Marketing Feasibility Analysis Summary

At this time, Technology and communication are growing. That's make the marketing

easily to reach the target group. There are the varieties of alternative channels to receive the

information. Mee Sub market will conduct many type of marketing strategy to persuade sellers

and buyers to know and come to shopping in the market.

However, there might have competitors which try to compete with our fresh market.

This case, Mee Sub market will use the marketing strategy by conducting the marketing mix to

159

fight with them. In conclusion, we expected that Mee Sub market will continuous growing and

gain more revenue in several year.

Financial Feasibility Analysis Summary

We plan have an initial capital as 51,402,205 baht that is divided into 2 parts. One part

is capital from owner as 8,000,000 baht. Another part is an investing budget or the cost of this

project that is 43,402,205 baht. The amount of money we loan from the bank with the 6 percent

interest rate. The Payback period is within 12 years.

For revenue from operating, most revenue is from renting stall and it will increase

gradually. Around Year 4 and after that, the revenue is started to stable amount. Our company

has ability to generate profit since Year 1 and increase in next year. Since year 2 we can

generate profit margin around 30-40 percent per year. Moreover, we pay dividend 30% per

month. This is showed that Mee Sub market has a feasible opportunity to invest.

Production and Operation Feasibility Analysis Summary

According to the continuous increasing number of population that causes an increasing

demand in various fields especially in food. Mee Sub market concern on the benefit consumer

will receive and the need of consumer. We create the fresh market follow by the information

from the research. Mee Sub market has 4 zones which are: fresh food, dried food, food court

and miscellaneous. About the location and logistics management, Mee Sub market located in

the wide open area on the bypass. We provide the widely parking space, the entrance and exist

way in order to be convenience for both sellers and buyers.

Business Risk Feasibility Analysis Summary

We considered on any risk which might occur and identify into 2 categories: internal

risk and external risk. For internal risk, it is the risk that might occur in the process of doing the

business. This kind of risk includes financial risk, strategic risk, operating risk, compliance risk

and credit risk. For external risk, it is include economic risk, environment risk and competitor

risk. This type of risk is out of our control. But in both external and internal risk, Mee Sub

market already created a plan and set the way to solve and reduce those risks. The plans to deal

with those risks such as policy to buy the insurance, a financial plan and forecasting the

financial situation for the future, change the strategic plan etc

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http://service.nso.go.th/nso/nsopublish/citizen/news/news_work.jsp

section 1, seat no.3 : mee sub market

Documents

rop wiang

term liabilities

term liabilities

building tax

modedetail1amp

national statistical

contamination

unit square