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PROJECT

COFFEE CAFE AT DOI MAE SA LONG

BY

KRISSANA ANUTARAKUL

5031205124 TOURISM

PRESENT

Aj.Chaiyawat Thongintr

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Preface
Coffee is a kind of drinks that can help to get refresh and relax. So it is very popular and
famous for everyone. For example Thai tradition coffee that sale every place in
Thailand you can access to buy coffee is very easy. Present, coffee shop is becoming
popular for consumers want identity of taste, smell, colors and ingredient. Manufacturer
has adjusted the various formulas to prefer customers. And use good quality materials
and focus on clean production process.

Project Feasibility Study and Evaluation is expected that the studying on this
project feasibility study will help any people who wanted to start coffee shop business
and add skill process, Strategy protect and decrease the risk factors lose of investments,
competitor until successful coffee business.

Ruay Rin Krin Sheewa Coffee shop

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Executive Summary

I choose to do this business that of coffee shop because coffee is the drinks that serve
for everyone. That people like it, but they wants to drink in relax place If you want to
drink coffee, you choose to drink in coffee shop you can relax and several of identity of
taste, smell, colors and ingredient and our shop have other drink and bakery serve for
you too. The Ruay Rin Krin Sheewa presents a identity of taste, create quality product
in menu, because I use the best coffee seed and tea leaf from local area (doi mae salong)

Doi mae salong has a best climate and good landscape. Has a lot coffee seed and tea
leaf throughout the year. This coffee is good quality material that can be readily. And
products support from the local community. Also, Doi mae salong is attractions. The
visitors are almost in winter season. The located of Ruay Rin Krin Sheewa is set at heart
of doi mae salong near 7-11 everyone can find our cafe, those areas many guest house,
hotel and convenience stores when tourists come to Doi mae salong they need to relax
from tired of drive a car long distance to Doi mae salong. Concept of café is
contemporary style. My business prefers serviceis Wi-Fi high speed internet is available
anytime. Everyone can enjoy and unimpressive my business.

Project Objective

To study the feasibility of the coffee café market.

To study the possibility of coffee café finance.

Benefits of Project

Determine the feasibility of the market, financing, and technical structure of the
agricultural storage.

To guide line the case study of whom that interest investment.

Knowing the situation and the trends of coffee café, understanding behavior of
customer, and be able to select and identify the right customer.

To be able to calculate profits and expenses, and find the way to get maximize profit.

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Table of contents

Contents
Chapter 1 ....................................................................................................................................... 6
Chapter 2 ..................................................................................................................................... 11
Chapter 3 ..................................................................................................................................... 27
Chapter 4 ..................................................................................................................................... 48
Chapter 5 ..................................................................................................................................... 58
Chapter7 ...................................................................................................................................... 80
Referent!...................................................................................................................................... 85

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Chapter 1
Introduction

RUAY RIN KRIN SHEEWA

RICH IN TASTE CLASSIC IN STYLE

CAFÉ AT DOI MAE SALONG

Background and significance of the project

First I want to tell you about my location Doi mae salong. Doi Mae Salong Mountain is
located in Chiang Rai province, the northernmost province of Thailand. At an elevation
close to 1,800 meters, it is one of the highest peaks in the province and commands some
breathtaking and far-reaching panoramic views. When the mist comes, the views change
dramatically, especially at sunrise or sunset. The air is crisp, cool and refreshing all year
round.

Doi Mae Salong mountain is unlike any other area found within Thailand . The
mountain is unique not only for its beautiful alpine-like landscape and climate, but also

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for its short, but intriguing history that has led to a distinctive and mixed population to
settle there. The origins of the Mae Salong community go back to 1949. During that
year, after Mao Zedong's communist party victory in China the defeated KMT army
escaped to Taiwan, except for the 93rd Division.

They instead fled to Myanmar (Burma). From there they later on were expelled and
were granted asylum in Thailand. The Thai government thought it would be a good idea
to have a well trained, well armed and organized unit at the Myanmar border to stop the
smuggling of opium into Thai territory. The Chinese division settled in Mae Salong,
directly at the Myanmar border and built a village right onto a mountain ridge. As a
result, most of the villagers today are ethnic Chinese and direct descendents of the
KMT.

Similar to Doi Tung mountain, Doi Mae Salong mountain benefits from ideal conditions
to grow High Mountain Oolong teas. The teas are cultivated at elevations ranging from
1,200 to 1,400 meters (3,960 feet to 4,620 feet). The Combination of climate and soil
conditions at Doi Mae Salong mountainsides are ideal for growing great quality High
Mountain Oolongs. The sharp differences in day and night temperatures allow the tea
plants to grow more slowly, thus developing more aroma and sweetness while the
abundant clouds and mist surrounding the mountain allow the tea leaves to absorb more
moisture.

How to get there ?

Doi Mae Salong is located on Route 1089, 40 kilometres from Mae Chan. It is possible
to get to the mountain by bus from Chiang Rai to Ban Basang (fare 15 Baht) where you
can pick up a Songtaew to the mountain top (50 Baht).

Café at doi mae salong is the rest place from tried when you drive long distance
to doi mae salong drink is release weary from heart to chill out. Café also provide
beverage and dessert to give you enjoy your rest time with delicious dessert. Now a day
process of coffee shop is running on small business and planning for provide best

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service with best land scrape. So I plan to study the process of small business about
level of management, service, supplier, target segment, operation cost and function of
internal and external. Café just small businesses and use less budget to launch. Café not
clear level of command because everyone can be every level.

Doi mae salong is the best place to grow tea in Thailand and views of doi mae
salong is beautiful mountain switch. The benefit of café will open on doi mae salong is
the cost of tea and coffee is low it make you reduce the cost. Travel to doi mae salong is
easy. Make much more tourist. Doi mae salong stay far from Chiang rai around 80 Km.

Project Objectives

1. to study the project compliable and know the market of business by knows the
competitor advantage and analyze them to compete.
2. to study business launching from investment to start the business.

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Benefits of project

In order to study in Project feasibility subject, the subject is to know how to

perform the business and forecast the way to establish business whatever to want by
knowing of study 3Cs dimension to analyze risk of the business. So I’m going to study
the business. Now a day, many people pay more attention to coffee shop, customer pay
attention to find chic coffee to relax or deal business. I understand customer and what
demand while study competitor, find out the way to make profit from customer and try
to do anything that customers are satisfied. I take the feedback to improve our service or
make a new product. We choose right strategies to adapt with the situation. I can
manage risk and take advantage on competitors. So I can keep money and decrease cost
after close business because we calculate income and cost to perform business in next
day. If I can branch our company and our coffee can make satisfaction for customer, I
will increase several products for customers.

Activity for project feasibility study

1. Planning strategic competitive.

2. Planning strategic market.

3. Selection the best alternative of strategy.

4. Distribution of tasks to each department.

5. Setting specific time for conducting Business.

6. Conclusion before conducting business.

7. Solving the appeared problems.

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 8. Analyzing appeared events or problems during conducting business.

9. Find solution to solve the problem.

10. Planning to improve and develop the strategies.

11. Planning to expand the branch of the company.

Time frame of RUAY RIN KRIN SHEEWA cafe

Week Designations
1 Discussion for choose the business and planning.
2 Planning and survey the market.
3 Find segment, choose target market and set budget.
4 Survey to collect information to design and decorate café.
5 invest to buy material and equipment, set up the electronic and
equipment and advertising to promote café.

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Chapter 2
Industry Profile
Nature of Industry
History of coffee
World coffee history

The picture show about coffee producers around the word.

Coffee began from local plant of Abyssinia and Arabia discovered in century 6th
around 575 BC. Someone told that the coffee found in Kaffa city in Ethiopia then they
called that plant a Kaffa and turn into coffee till now. In fact the true history of coffee
was discover in Abyssinia around Arabia or Middle East Arab many people not interest
about coffee since it go through century 9th one goat of Arabian name Kaldi pet their
goats then one goat eat a red fruit and it act impetuously. Kaldi told this story to Islam
monk and the monk took the red fruit and peeled it off, roasted and boiled in a hot water
to drunk. The monk found that the black water make him impetuously and told this to
another one. The Arabian knew this story and drunk coffee more and more soon coffee
went to Italy, Netherlands, German and France. The Arabian called the coffee plant
Kawah or Kaweh it’s mean strength or vigor.The Turkey called Kaveh then the name of
coffee called differently around the world like Koffee and coffee in England till now. In
Thailand called Gobee Kaewfee and Gafaar till now. Coffee originated in tropical
Africa, from where it has since been introduced to most tropical countries throughout
the world. Coffee was introduced to Southeast Asia and the West Indies in the 17th and
18th centuries. The real start of the Thai coffee industry is relatively young. According

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to governmental statistics, the total coffee plantation area in 1960 was only about
19,000 rai(approximately 7,600 acres), producing a mere 750 tons of coffee. In the same
year, Thailand had to import almost 6,000 tons of coffee. To improve the trade balance,
the Thai government started a successful campaign promoting Robusta coffee growth in
Southern Thailand This campaign was further cemented when opium crop replacement
became an official Thai Government program in the 1970s. Supported by the Royal
Family, the UN and many other governmental and non-governmental organizations, the
hill tribe farmers in the Golden Triangle and along the borders of Burma and Laos
started to grow Arabica coffee. In 1976, Thailand officially became a coffee exporting
nation, selling 850 tons of Robusta coffee in the world market. Helped by strong world
market prices in the 1980s, exports thrived in the following years and culminated in
1991-2 at almost 60,000 tons. The collapse of the "International Coffee Agreement" in
July 1989 and the following slump in world coffee prices has since hurt the coffee
farmers hard. Facing the threat of an oversupply situation, the Thai government made a
turnaround
and, under a 5-year-plan (1992-1997), began to encourage the coffee farmers to switch
to other crops in an effort to reduce the total coffee planting area from a level of almost
500,000 rai (approximately 200,000 acres). Thailand is a coffee nation, ranked third
(after Indonesia and Vietnam) in Southeast Asia in annual raw coffee production. While
there are many species of coffee trees in the world, only Arabica and Robusta have
major economic significance, both of which are grown in Thailand.

At present, Thailand produces approximately:

• 50,000 - 80,000 tons of Robusta coffee, of which 40% (ca. 30,000 tons)
are processed locally and about 60% (ca. 50,000 tons) is exported.
• A few thousand tons of Arabica coffee, which are almost entirely processed locally.

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Thai Robusta

Robusta is grown on plantations in Southern Thailand, mainly in the following

provinces: Surat Thani, Chumporn, Ranong, Nakorn Si Thammarat, Phang-Nga and
Krabi. Robusta coffee grows in lower altitudes. For the growers, Robusta has many
advantages: the
trees are easier to cultivate, more disease-resistant, can tolerate larger temperature and
moisture extremes, produce more beans and their fruits mature considerably quicker
than their Arabica counterparts. At the same time, however, Robusta is generally
regarded as lesser quality beans and accordingly yield lower prices. Thai Robusta is of
good quality and internationally well established. Major export markets are the United
States, Europe, Japan and Singapore. In the local market, Robusta is mainly used for all
kinds of canned coffee drinks as well as soluble (instant) coffee. Proper processing and
new roasting technologies, however, allow gourmet and bean coffee roasters to also
create good quality blends with Thai Robusta.

Thai Arabica

Arabica is grown on plantations in Northern Thailand, mainly in the following

provinces: Chiang Mai, Chiang Rai, Lampang, Mae Hong Son and Tak. Arabica trees
thrive at higher altitudes, which in Thailand is between 800 to 1,500 meters. In These
altitude, the beans mature at a slower pace, producing generally a richer, denser, more
flavorful bean. Arabica in Thailand is still in a kind of experimental stage, which helps
explain its low yearly harvest. Most Thai Arabica coffee is grown by small holders,
such as hill tribe families and villages, as well as in research stations (Wawee, Chang
Khian, etc.) and development programs. The few hundred tons of beans that are
annually picked are brought almost entirely by local traders and roasting factories for
producing roast and ground coffee.

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Situation Analysis

Coffee shop businesses expand continually since 2002

2002-2003afterr Starbuck
coffee branddivide Coffee shop’ s market share in Thailand and Thai brand “Ban Rai
Coffee” also expand quickly in the same time that make many people pay attention and
invest to coffee business. Investors trust this business can refund more benefit
bene and
stable. But 2-3 years ago, many coffee shops go bankrupt cause from recession
economic since 2008-2009.
2009. Analyst consider coffee shop business are grow and worse
because coffee shop are effected from economy. By the way it has increasing in
consumerss and segment. The medium coffee shops are most growing segment because
they are easy to reach with consumer, can keep standard and coffee taste. Coffee shop
business can grow up continually in the future because more increasing in net order
coffee bean.

Doi Chaang Coffee

Doi chaang coffee logo

Story
tory of Doi Chaang Coffee is set in a small village located within the Northern
Thailand region of the Golden Triangle. It all began a few years ago when the hill tribe
families of the Doi Chang Village uniting together to create their own coffee

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company. After 20 years of cultivating and processing coffee, the farmers grew
frustrated selling their high quality beans for minimal prices to coffee dealers who
would blend them with other inferior coffee beans. Through their own initiative, our
families decide it was time to directly offer the unique taste of their own premium,
single-origin, organic Arabica coffee.

The villagers soon establish themselves as independent successful coffee producers

building their own processing plants, drying facilities and storage warehouses. The
coffee is cultivated in small family gardens with everyone committed to maintaining
sustainable agriculture and having minimal impact on the natural habitat. All aspects of
production are carefully monitored to ensure consistent and optimal taste in every cup
of Doi Chaang coffee.

Committed to offering Doi Chaang Coffee as an exclusive single-origin, certified

organic Arabica, the growers approached a small Canadian group of coffee enthusiasts
to bring Doi Chaang Coffee into the international market.

In recognition of the equal value of their contributions, the growers and the Canadian
group established an equal partnership for the international distribution of Doi Chaang
Coffee. The growers continue to focus on cultivation, processing and domestic sales
while the Canadian group provides financing, marketing, roasting and distribution for
the international market.

Today, the Doi Chang Village and the surrounding area is home to 8,000 people within
eight hundred families, all living and primarily working together to cultivate and
produce a premium organic, single-origin Arabica coffee.

In Doi mae salong have many coffee shops but have only one direct competitor
“Sweet mae salong” (survey April 16, 2010) it make advantage to my business because
less of competitor. They provide coffee, bakery and any beverage to customer but price
is quite expensive.

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Latte art

Example of latte art.

Latte art is a style of pouring steamed milk into a shot of espresso that creates a pattern
or design on the surface of the resulting latte. It can also be created or embellished by
simply “drawing” in the top layer of foam. Latte art is particularly difficult to create
consistently, due to the demanding conditions required of both the espresso shot and
milk. This, in turn, is limited by the experience of the barista and quality of the espresso
machine. The pour itself, then, becomes the last challenge for the latte artist.

Ancient Latte
The origins of latte art are shrouded in mystery, but historians have unearthed clues
That prove the art form is thousands of years old. Assyrian reliefs from nearly 1000 BC
show the great King Ashurnasirpal II partaking of this activity, perhaps as a leisure
interest inbetween conquering the lands of the ancient Near East, murdering his enemies
and stealingideas from the Sumerians. By all accounts, however, Ashurnasirpal's
attempts at the "godlyart" were quite dismal - a fact undoubtedly vexing to the ruler, and
perhaps the source of the furiously warlike tendencies his civilization is today

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remembered for. The Egyptians soon learned of this wondrous way of life, but not soon
enough to save their ailing culture. After wandering in a haze through the periods
historians now call the Old, Middle and New Kingdoms, the Latte Period, when the
Egyptians discovered and explored the terrific power of the Art, proved to be only a last
gasp before the Persians conquered the kingdom. But what a mighty gasp it was!
Hieroglyphics record the great introduction of latte art into Egypt and the hope it
seemed to bring. What use had the Egyptians for denial any longer, with this new savior
now in their apparently capable hands? Alas, it was the very power of the latte itself that
proved the undoing of this great civilization. The hands and minds that built the
pyramids were yet too weak to control the possibilities of latte art, and they perished at
the hands of anti-lattate barbarians. For centuries the secret of latte art was believed to
have been buried with the Egyptians.

Medieval Latte
Fortunately, the latte had only given the Greek and Roman civilizations a pass. Latte
again surfaced during the middle Ages with the institution of church monasteries. One
of the most important duties of the monks during this period was the preservation of
knowledge through the copying of texts. Many a monk ruined his carefully-inked
illumination by falling asleep in the middle of the writing process. A call came from all
corners of Europe to find a way to ward off sleep to maximize the amount of work that
could be done, and the small monastery of Cluny, after years of searching and
experimenting, formulated a curious mixture of ground coffee beans and milk that could
keep one alert. Latte had been rediscovered – but latte art, the one true manifestation of
latte, had not. It would not be until the Renaissance that the art of the latte would once
again grace the world.

Renaissance Latte
During the Renaissance latte art was reintroduced and reached its height. Great baristas
such as Leonardo da Vinci, Bob Dole, Dante Alighieri and Niccolo Machiavelli created
latte works of staggering beauty and meaning; no original works now exist due to the
ephemeral nature of the medium, but the influence of the latte can be seen in many
surviving works in other formats. Michelangelo’s The Creation of Adam, painted on the

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ceiling of the Notre Dame, shows the primeval father of mankind reaching out with his
finger to touch a latte, anthropomorphized in the picture as an old bearded man.
Unfortunately, the popularity of latte art during the Renaissance led to a glut of amateur
latte artists, who created works that were insubstantial shades next to the cups of the
masters. At the close of the Renaissance latte art had lost its sacredness and become
mainstreams. The dream was dying.

Modern Latte
Today, insidious new forces have crept into latte art. Self-proclaimed artists arrogantly
crow about their “extreme pours” and “physics-influenced mixes,” and the unassuming
public allows such heresies to be crammed down their jobs because they know nothing
of the past glories of the latte. Artists, once rare, now number in the thousands and tens
of thousands, plying their distorted craft like parlor magicians delighting children with
simple sleight-offhand. It will be difficult, if not impossible, for the art of the latte to
regain its magnificence at this point.

Product/Service (in General)

I have main product is coffee such as Mocha, Late, Cappuccino, Espresso and
Americano and also have soft drink and bakery such as Cocoa, Ice tea , Italian soda,
shot cake

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Coffee Products
Espresso

Only black Coffee.

Latte

Black coffee with fresh milk.

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Americano

black coffee with hot water.

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Cappuccino

Black coffee with milk foam and Cinnamon

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Mocha

Espresso with hot Chocolate

Soft Drink

- Hot & Cool Cocoa

- Kiwi Soda, Apple Soda, Blueberry Soda and Strawberry Soda
- Ice Tea, Milk Tea, and Ice lemon tea
- Orange juice, Tamarind juice

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Bakery

-Chocolate cake, Black-forest-cake, Green Tea cake

- Cookie
- Brownie

Service

The important of service is “Service Mind” because customers always want to take care.
It can make customer to be loyalty and give word of mouth to other people which by the
way to promote of our coffee shop. I want to make feel rest to customer like a customer
still at favorite place and close up with customer then we provide another service such
as wifi.

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Vision of our organization

Vision of our organization is bringing local coffee specifically of Doi mae salong to
produce coffee for traveler customer and sell product acceptable price. We have hi-
technology coffee processing for make best quality to customer. In about sell coffee, we
have several style and taste of coffee that customer can choose by themselves. In social
responsible, we plants coffee by employ people in local place, it make opportunity in
work and income and develop to product of community and we have save and develop
environment plan in business.

Mission

We try to develop taste of coffee and present several kind of coffee for customer. In
about marketing, we target main group people such as traveler and local people because
most people in this group are drink coffee by we sell coffee acceptable price but high
quality and good taste.
We try to make loyalty and word of mouth in customer group and try to increase market
share of café business at doi mae salong 1 year.

Strategy

Corporate Level
Our coffee shop is the middle business the use the use medium budgets to launch and
the target is the traveler then our product and good service are acceptable price but good
taste and design café.

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1. Vision
-Our vision is to become the number 1 of cafe in doi mae salong with the
Design cafe.

2. Policy
- Rest, Refreshing, Feel kind lives local, we’ll be the center all of these kinds for
traveler.

3. Objectives
- We are going to be the cafe that traveler can come with the exhaustion but the
freshness back with invaluable happiness.

4. Process project teams

-The most employees is the local and expert in coffee because they know what customer
want.

5. Individual job performance

- We’ll train them to be the best server to service the customers but we’ll not change
their mine.

Business Level

Target group is traveler

1. Competitive advantages
- Planning for provide good service with lower price
- Close to the customers
- Style of coffee shop

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2. Cost leadership
- Close to the coffee suppler because location of café has coffee bean and tea grow it
make cost is low
- use medium budgets to launch

3. Quick-responses
- Take the feedback to improve our service or make a new product.
- The most employees is person have most service mind that we can ask them to try of
our new product to make the customer satisfaction.

Functional Level

1. Marketing
- Can support every targets group

2. Financial
- Keep money and decrease cost after close business because we calculate
income and cost to perform business in next day.

3. Human resource management

- The most employees must become from the local because they are the best who
can know what the local people want and expert in coffee because they know what
customer want.
- They should have great looking
- Our employees must know ever position and process in our shop by on the job training

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Chapter 3
Market Feasibility Study

Market Analysis

General Environment Analysis

- Political Analysis
Politic is out of control by business. Many competitors have to face with this too.
Politic might positively affect to business investment or negatively affect as obstacle in
business success. So, we always follow political news and apply in our business.

• Government policy is factor that both support and obstruct some kinds of business
success.

• Laws and regulations of government affect directly to success/failure and cost of

some kinds of business such as determine business open-close time and determine
zone of business.

• Price control policy; government determines ceiling price some kinds of necessary
goods. This operation affect to profit rate of small business or new market business
normally has high cost already that can’t compete at ceiling price.

• Open free and restricted import affect to advantages/disadvantages in competition and

determining goods price of involved business.

- Economy Analysis
It is out of control from business and others competitors must face as same as politic.

• National economy condition; average income per person, unemployment condition,

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growth/slow down of GDP, inflation, deflation, all of these affect directly to
purchasing power of customers who are target group.

• Currency exchange affect to cost and risk of imported/exported business and

competition in international market.

• Tax rate that government determine for business and product will affect to
advantages/disadvantages in determining price selling and cost of competition
including import tax and specific business tax.

• Cost of labor and production compare with important competitors, especially

international competitors.

- Social and environment Analysis

Business in different industry, market, region might face with risk. It has different
business feasibility because business operation environment and market environment
that is different.

• Business life cycle; industry or market products/services mostly have cycle short or
long that may be different such as fashion product has short life cycle, fast outdated
and low demand in market faster than other products.

• Consumer behavior in each market including more or less brand loyalty, price
conscious if it’s high, high price competition and low profit rate.

- Technology Analysis
Technology has changed rapidly today that is called the digital age. Marketing is the
same. Result of technology change make marketing change too. E-Commerce has
grown continuously and force marketing must adapt following trade system. So, E-
Marketing happens. It helps to operate marketing activity by using electronic equipment

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such as computer. E-Marketing is the two way communication activity that marketers
can connect with customers around the world and all time. E-mail and website (www)
are main equipment and important in E-Marketing.

Competition Analysis (3C Analysis)

Competitor Analysis

We define the competitors who provide service as same as us. Then, we divide
competitors into two groups; the direct competitor and indirect competitor. But in this
case we show you direct competitor only. Sweet mae salong is direct competitor the
shop provide service same our business.

Sweet mae salong.

Sweet mae salong invest a high coffee machine. They build the shop to be the
choice of customer when they come apart Doi mae salong. Sweet mae salong part the
shop into outside and inside, outside perform a good atmosphere and good landscape
but inside present a comfortable for customer.

Biggest thing that push Phuvaree interesting are the good location of view and
homemade bakery but all thing it make high cost for the shop that take Sweet mae
salong a good feedback.

The good performance of sweet mae salong is they do the shop and serve a good thing
for customer to ensure that customer will like taste of coffee

Customer Analysis

We focus on needs, wants, and demands of customers first. After we know their
demands, we make sure that we understand their behavior by survey and study. We
have to understand the customer and we analysis into this; Walk in, traveler, and local
people

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Our brand will be first choice in the customers’ information search. We sure that our
brand must be in all stages of customers’ buying decision process, especially final
choice or decision.

Competitive Analysis

Our competitors are coffee shop that set up around Doi mae salong such as
Sweet mae salong and local coffee shop. Each coffee shop is present taste of coffee and
contemporary style coffee shop but not more loyalty customer. We research and
collecting information about customer needs and want, we found customer want to
drink fresh high quality coffee and low cost so our business will focus in coffee that
produce, we bring high quality coffee from local places so we will get lower price and
can this main point to strengths. About weakness, first we must try to promote product
and make loyalty customer then same with competitors and increasing to leader of
business. From research, we found Sweet mae salong is only one coffee shop in doi mae
sa long and decorate shop contemporary style mixed variety style together customer can
use several corner in shop to photographing but price of coffee and bakery quite very
high. Local coffee is low cost business and can’t pull more customers I mean traveler is
main target but they not important about decorate shop and poor location it difficult to
find. Everything information we will use to improve and developing our coffee business
then we set plan and strategy about sell coffee, pull customers, promotion. When we can
success business, we will develop next mission and try to leader coffee business in doi
mae salong.

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STP Analysis

Like I said about the Strategy that I targeted on traveler, so most of customer
would be people who free and have relax from tired of long distant to doi mae salong or
small meeting of special opportunity of local people even date. The segmentation we
divide in to 2 segments for service suitable in each:

Segmentation

15%

Traveler 85%
Local people 15%

85%

Mean target will be traveler, why? Because traveler have 85% of customer but I
want to make local people to target too. Ruay rin krin sheewa provide a free time for
them so they can spend the time in the shop and they have to spend a money too
because beverage not free.

Travel love in good decorate, good view and good location I mean easy to fnd
and have parking lot and quite low price, once of strategy that set the price lower for
this kind because I point that low price will attract people more. But we didn’t say that
low price with less quality.

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Marketing Mix Strategy

Product – We are provider, we make shop for coffee drinking so we don’t set only our
product that we set to sell with beverage such as bakery in the shop. Other then we sell
the shop atmosphere, we make a shop for relax and informally.

Price - due to strategy that we set a price lower than usual to motivate customer and
challenge competitor to earn market segment. We going to survey competitor product
price because a lot of coffee shop in coffee market and they earn a lot of segment.

Place – The shop build in middle café because we launch in a middle business but big
power to move a business. We plan to start around the doi mae salong in chiang rai that
we study and expand the branch to many mountain in the north region. First sign, we
have to let people know our name. Second sign (logo), we will expand the branch if the
first targets will archive.

Promotion – Technology is big society in our life if the customer knows us name and
tell to other and other tell to another that would be great to continue the next plan is
promote in the internet. We create a blog site in the web and let’s everyone know about
us from history to income and we will post update of us every time we up to date.

32
Sales Forecast/Profit Estimation

Sales Forecast

From the chart we estimate that first time we start and not much sales because
only traveler and other one who want to try a new one to use. Then people will know
from a word of mouth because we good in service, coffee is good taste and service
mind on employees. However we can make more sales and more customers in the
second year and next year. In every year, we have the high sales on October to
February of the next year because it is high season of doi mae salong in Chiang Rai
province. We have the new customers who travel in Chiang Rai to get in our shop. So
high season of Chiang Rai can help increase sales of our shop. But on March until
September. we have fewer sales because it’s low season of doi mae salong.

33
 Year 1
Sale Forecast
Month Sales
1 190,200
2 142,800
3 130,200
4 84,000
5 62,000
6 54,000
7 52,200
8 80,600
9 51,000
10 139,500
11 171,600
12 226,300
Total 1,384,400

Sales forecast of year 1

December 226,300
November 171,600
October 139,500
September 51,000
August 80,600
July 52,200
June 54,000
May 62,000
April 84,000
March 130,200
February 142,800
January 190,200
200

0 50,000
000 100,000 150,000 200,000
000 250,000

Sale Forecast

34
 Year 2
Sale Forecast
Month Sales
1 209,220
2 157,080
3 143,220
4 92,400
5 68,200
6 59,400
7 57,420
8 88,660
9 56,100
10 153,450
11 188,760
12 248,930
Total 1,522,840

Sales forecast of year 2

December 248,930
November 188,760
October 153,450
September 56,100
August 88,660
July 57,420
June 59,400
May 68,200
April 92,400
March 143,220
February 157,080
January 209,220

0 50,000
000 100,000 150,000 200,000 250,000
000 300,000

Sale Forecast

35
 Year 3
Sale Forecast
Month Sales
1 230,142
2 172,788
3 157,542
4 101,640
5 75,020
6 65,340
7 63,162
8 97,526
9 61,710
10 168,795
11 207,636
12 273,823
Total 1,675,124

Sales forecast of year 3

December 273,823
November 207,636
October 168,795
September 61,710
August 97,526
July 63,162
June 65,340
May 75,020
April 101,640
March 157,542
February 172,788
January 230,142
142

0 50,000
000 100,000 150,000 200,000 250,000
000 300,000

Sale Forecast

36
Profit Estimation
From the chart sale forecast we estimate March - September has less profit
because low season of doi mae salong and this time we try to promote our shop to
customer. Since October onwards we have increase profit because high season and
many people begin get in to our shop and customer help to promote by word of mouth
to other people or their friends. But we have less profit in October because spend to
marketing expense for increase advertisement. However, we have the highest profit on
November-February for every year. So we have payback period about 2-3 years.

37
 Year 1
Profit Estimation
Month Profit
1 76,080
2 57,120
3 52,080
4 33,600
5 24,800
6 21,600
7 20,880
8 32,240
9 20,400
10 45,800
11 68,640
12 90,520
Total 543,760
Profit Estimation of year1

Profit Estimation
100,000
90,000
80,000 90,520
70,000 76,080
60,000 68,640
50,000 57,120
52,080
40,000 45,800
30,000 Profit Estimation
33,600
600 32,240
20,000 24,80021,600
10,000 20,880 20,400
0

38
 Year 2
Profit Estimation
Month Profit
1 83,688
2 62,832
3 57,288
4 36,960
5 27,280
6 23,760
7 22,968
8 35,464
9 22,440
10 50,380
11 75,504
12 99,572
Total 598,136

Profit Estimation of year2

Profit Estimation
120,000

100,000
99,572
80,000
83,688
75,504
60,000
62,832
57,288
40,000 50,380 Profit Estimation
36,960
960 35,464
20,000 27,280
23,760
22,968 22,440
0

39
 Year 3
Profit Estimation
Month Profit
1 92,057
2 69,115
3 63,017
4 40,656
5 30,008
6 26,136
7 25,265
8 39,010
9 24,684
10 55,418
11 83,054
12 109,529
Total 657,949

Profit Estimation of year3

Profit Estimation
120,000

100,000 109,529

80,000 92,057
83,054
60,000 69,115
63,017
55,418
40,000 Profit Estimation
40,656
656 39,010
20,000 30,008
26,136
25,265 24,684
0

40
Marketing Expenses

Ruay rin krin sheewa cafe has marketing expense for make people
know about our company by make poster and temporary billboard near the
shop and road site on the way to café. The high season of doi mae salong in
Chaing Rai province around October to February of next year, so we plan
to make the new billboard in October of every year. It can attract and
interesting for tourist who travel in Doi maesalong. By the way, it will the
good way promote such word of mouth. Cause we spend marketing
expense about this because the high season of doi mae salong make more
sale and more profit for our company. Which important thing for attract the
customer to come in our shop.

41
 Year 1
Marketing Expenses
Month Expenses
1 -
2 -
3 -
4 -
5 -
6 -
7 -
8 -
9 -
10 10,000
11 -
12 -
Total 10,000

Marketing Expenses of year1

Marketing Expenses
10,000

5,000

Marketing Expenses

42
 Year 2
Marketing Expenses
Month Expenses
1 -
2 -
3 -
4 -
5 -
6 -
7 -
8 -
9 -
10 10,000
11 -
12 -
Total 10,000

Marketing Expenses of year2

Marketing Expenses
10,000

5,000

Marketing Expenses

43
 Year 2
Marketing Expenses
Month Expenses
1 -
2 -
3 -
4 -
5 -
6 -
7 -
8 -
9 -
10 10,000
11 -
12 -
Total 10,000

Marketing Expenses of year2

Marketing Expenses
10,000

5,000

Marketing Expenses

44
 Conclusion

Cafe is middle business that we make shop to provide a hot and cool drinking
and bakery that make up style Elf art. This is the new style for customers that love to
enjoy with everything new. Traveler is the main one to sell because it easy to attract
with similar motivation of them, art, technology and independent style. If the estimate is
right coffee will go through the high competitor market like Starbuck and Back Canyon
because this is the world competition and if we can touch that line in mean we can be a
famous coffee shop but then we have to past a border of province. We have main price
of product such as price of coffee about 60 baht, soft drink 30 baht, bakery 55 But those
have cost of product in each month. These table shows about cost of product in each of
3 years.

First Year

Cost of
product Jan Feb March April May June July Aug Sep Oct Nov Dec

Coffee

36฿/Cup 39,060 30,240 27,900 16,200 11,160 10,800 11,160 13,650 10,800 27,900 33,480 44,640

Bakery

33฿/Piece 36,000 25,200 22,320 18,000 14,880 10,800 9,000 20,460 9,000 27,900 36,000 46,500

Soft drink
18฿/Cup 39,060 30,240 27,900 16,200 11,160 10,800 11,160 13,650 10,800 27,900 33,480 44,460

Marketing - - - - - - - - - 10,000 - -

Total Cost /
Month(฿) 114,120 85,680 78,120 50,400 37,200 32,400 31,320 47,760 30,600 93,700 102,960 135,780

45
 Second Year

Cost of
product Jan Feb March April May June July Aug Sep Oct Nov Dec

Coffee

36฿/Cup 42,966 33,264 30,690 17,820 12,276 11,880 12,276 15,015 11,880 30,690 36,828 49,104

Bakery

33฿/Piece 39,600 27,720 24,552 16,368 16,368 11,880 9,900 22,506 9,900 30,690 39,600 51,150

Soft drink
18฿/Cup 42,966 33,264 30,690 17,820 12,276 11,880 12,276 15,015 11,880 30,690 36,828 49,104

Marketing - - - - - - - - - 10,000 - -

Total Cost /
Month 125,532 94,248 85,932 52,008 40,920 35,640 34,452 52,536 33,660 102,070 113,256 149,358

46
 Third Year

Cost of
product Jan Feb March April May June July Aug Sep Oct Nov Dec

Coffee

36฿/Cup 47,263 36,590 33,759 19,602 13,504 13,068 13,503 16,517 13,068 33,759 40,511 54,014

Bakery

33฿/Piece 43,650 30,492 27,007 18,005 18,005 13,068 10,890 24,757 10,890 33,759 43,560 56,265

Soft drink
18฿/Cup 47,263 36,590 33,759 19,602 13,504 13,068 13,503 16,517 13,068 33,759 40,511 54,014

Marketing - - - - - - - - - 10,000 - -

Total Cost
/ Month 138,176 103,672 94,525 57,209 45,013 39,204 37,896 57,791 37,026 111,277 124,582 164,293

From the interview during with owner of sweet mae salong. The information states that
Segment, all of number and cost.

47
Chapter 4
Technical Feasibility Study

Production and Operations Analysis

Product Characteristics (in Detail)

Coffee Products

Espresso Only black Coffee from Doi mae salong seed serve both of ice and hot.

Latte Black coffee with fresh milk most of customers like to drink with ice.

Americano Pure black coffee with hot water but you can mix with milk or sugar by

yourself serve in hot.

Cappuccino Black coffee with milk foam and Cinnamon sometime draw foam a

picture for enjoy art drinking in hot (ice can’t make up a foam).

Mocha Espresso with hot chocolate serve in warm ready to drink mostly they

drink in ice but hot is the best.

Soft Drink

Cocoa Cocoa powder of Hershey brews with sweet milk of carnation.

Soda Kiwi, Apple, Blueberry and Strawberry strong juice dilute with soda and

mix with ice.

Tea Ice, Milk and honey lemon.

48
Juice Orange, Tamarind also seasonal fruit.

Bakery

Choc Cake Chocolate cake dip with hot choc topping.

Black-forest-cake Dark shot cake from 2shipphons cake and plus with cream

between layer and dip with choc cream.

Green Tea cake Vanilla siphon cake and paint with green tea cream and wipe

cream.

Brownie Hot chocolate cake paint with coco sauce.

Cookie small, flat-baked treat.

Specification, Feathers, Dimension, Life Time, etc.

We use machine to make coffee cup by cup but control by human so mistake won’t

avoid, by the way once a day the machine will break down sometime employee will

know how to make a coffee manually.

Production/Services Process

The important of service is “Service Mind” because customers always want to

take care. It can make customer to be loyalty and give word of mouth to other people

which by the way to promote of our coffee shop. Then we provide another service such

as internet café, reading zone, music zone and meeting zone.

Location

49
 Target is main decision to choice location. We choice the place nears the 7-11 at

doi mae salong 8 Million to build the shop.

Facility Layout

We depart the shop into 2 zones indoor and outdoor, indoor have 5 tables and 4

seats per table and decoration with contemporary style, outdoor have 3 tables and have

counter 8 seats in the small garden.

Machine/Tools/ Equipments

Equipment

Table

Sofa

Chair

Counter

Chandelier

Book shelf

CD-Player

Glass

Plate

Shelf

50
Electronic Fan

TV SONY 42”

Tools

Coffee machine

Fruit blender

Coffee grinder

Logistics Management

We take an order from bakery shop such as cake and pie by deliver from the

shop, but for coffee seed we order from local area and they sent monthly.

Facility Management

In the shop, we depart toilet out of shop to take care customer. And we also set

electricity for customers who want to use laptop and internet, because we provide WIFI

network for customer.

Cost of Investment

Pre-Operating Cost

Investment Cost

Land

4,320,000 bath for 4 Rai

51
Buildings

Environment structure 85,000 Baht

Structure 200,000 Baht

Built in 130,000 Baht

Total 415,000 Baht

Equipments

Writing pad 1 dozen 350 Baht

Account book 1 dozen 540 Baht

Pen 1 pack (20) 60 Baht

Total 950 Baht

Table

Mirage90 5,000 Baht

Stena 24,000 Baht

Design Table 5,000 Baht

Total 34,000 Baht

Sofa

Venus 22,000 Baht

Anna 6,900 Baht

Persia 18,500 Baht

Total 47,400 Baht

52
Design Chair 10,000 Baht

Counter 140,000 Baht

Chandelier 70,000 Baht

Book shelf 3,000 Baht

CD-Player 2,000 Baht

Glass 3,000 Baht

Plate 1,500 Baht

Shelf 4,000 Baht

Electronic Fan 2,000 Baht

TV SONY 42” 30,000 Baht

Total 347,850 Baht

Tools

Coffee grinder 25,000 Baht

Coffee machine 250,000 Baht

Fruit blender 10,000 Baht

Total 285,000 Baht

53
Etc

Frame & picture 8,000 Baht

Miscellaneous 200,000 Baht

Total 208,000 Baht

Depreciation

Equipment

Table 10 years 283 Baht /Month

Sofa 10 years 395 Baht /Month

Design Chair 15 years 55 Baht /Month

Counter 30 years 389 Baht /Month

Chandelier 20 years 292 Baht /Month

Book shelf 10 years 25 Baht /Month

CD-Player 5 years 33 Baht /Month

Shelf 10 years 33 Baht /Month

TV LG 42” 20 years 125 Baht /Month

Total Depreciation Equipment 1630 Baht /Month

Tools

Coffee grinder 20 years 104 Baht /Month

Coffee machine 30 years 695 Baht/Month

Fruit blender 20 years 42 Baht /Month

Total Depreciation Tools 841 Baht /Month

54
Operating Cost

Inventory

Cake (Chocolate Cake ,Black-forest-cake, Green Tea cake) 300 Baht/ pound

Cookie 20 Baht/ piece

Brownie 10 Baht/piece

Raw material Cost

Coffee Bean

Strong 600 Baht/Kg.

Medium 550 Baht/Kg.

Smooth 600 Baht/Kg.

Cocoa powder (Hershey’s) 125 Baht/ 200g.

Green tea powder (Coffman) 450 Baht/500 g.

Tea Powder (Coffman) 150 Baht/500 g.

Sugar 30 Baht/Kg.

Cream 45 Baht/450 g.

Carnation Milk 60 Baht /405g.

Italian Soda

Syrup (Davinci syrup) 330 Baht/750 ml.

Soda (Chang Soda) 5 Baht/ 325 ml.

55
Direct Labor Cost

Salary

Coffee maker and cooker 8,000 Baht/Month/ Person

Waiter ( 2 person) 5,400 Baht/Month/ Person

Management Analysis

Administration Cost

Electricity 300 Baht / Month

Wi-fi 650 Bath / Month

Water 50 Bath/Month

Conclusion

Our products don’t have only favorable coffee drink, but include popular soft

drink and bakery like cake and Cookie. We produce coffee cup by machine under

control of professional to get the best quality. In production and service process, we

focus on “Service Mind” to very well take care our customers and they pay back loyalty

and positive word of mouth. We also provide supplementary services like internet zone

and reading zone, too.

56
 Location, we choose the best appropriate place to locate our shop near the 7-11

and road for easy to customers access and transport materials. The characteristic of our

shop, we set indoor that decorate in contemporary style and outdoor with small garden.

All equipments in our shop, we use as same as with other but more concern

about quality. We order coffee bean from suppliers in local area and they send every

month for refreshment.

In facility management, we provide internet zone with WIFI network to facilitate

customer who want to do business or entertainment.

Last is about the cost of invest business such building, land, inventory and

equipment. Our technical analysis is considering and analyzing machine, equipment,

raw material, and people. According to all components, they have relationship between

each other to create the common core that calls “Management” and we also analyze and

consider in other factors such as control quantity, quality, and production throughout

raw material and budget planning.

57
Chapter 5
Financial Analysis
Income Statement

58
Income statement 1st Year

Jan Feb Mar Apr May

Revenues 190,200 142,800 130,200 84,000 62,000
Cost of
Revenues 114,120 85,680 78,120 50,400 37,200
Gross profit 76,080 57,120 52,080 33,600 24,800
Expense
Selling expense 0 0 0 0 0
Administrative 19,800 19,800 19,800 19,800 19,800
Net income 56,280 37,320 32,280 13,800 5,000

Income statement 1st Year (cont.)

June July Aug Sep Oct Nov Dec

54,000 52,200 80,600 51,000 139,500 171,600 226,300
32,400 31,320 47,760 30,600 83,700 102,960 135,780
21,600 20,880 32,840 20,400 55,800 68,640 90,520

0 0 0 0 10,000 0 0
19,800 19,800 19,800 19,800 19,800 19,800 19,800
1,800 1,080 13,040 600 26,000 48,840 70,720

59
Income statement 2nd Year

Jan Feb Mar Apr May

Revenues 209,220 157,080 143,220 92,400 68,200
Cost of
Revenues 125,532 94,248 85,932 52,008 40,920
Gross profit 83,688 62,832 57,288 40,392 27,280
Expense
Selling expense 0 0 0 0 0
Administrative 19,800 19,800 19,800 19,800 19,800
Net income 63,888 43,032 37,488 20,592 7,480

Income statement 2nd Year (cont.)

June July Aug Sep Oct Nov Dec
59,400 57,420 88,660 56,100 153,450 188,760 248,930
35,640 34,452 52,536 33,660 92,070 113,256 149,358
23,760 22,968 36,124 22,440 61,380 75,504 99,572

0 0 0 0 10,000 0 0
19,800 19,800 19,800 19,800 19,800 19,800 19,800
3,960 3,168 16,324 2,640 31,580 55,704 79,772

60
Income statement 3rd Year

Jan Feb Mar Apr May

Revenues 230,142 172,788 157,542 101,640 75,020
Cost of
Revenues 138,176 103,672 94,525 57,209 45,013
Gross profit 91,966 69,116 63,017 44,431 30,007
Expense
Selling expense 0 0 0 0 0
Administrative 19,800 19,800 19,800 19,800 19,800
Net income 72,166 49,316 43,217 24,631 10,207

Income statement 3rd Year (cont.)

June July Aug Sep Oct Nov Dec
65,340 63,162 97,526 61,710 168,795 207,636 273,823
39,204 37,896 57,791 37,026 101,277 124,582 164,293
26,136 25,266 39,735 24,684 67,518 83,054 109,530

0 0 0 0 10,000 0 0
19,800 19,800 19,800 19,800 19,800 19,800 19,800
6,336 5,466 19,935 4,884 37,718 63,254 89,730

61
Cash Flow
1st
year

Jan Feb March April May June

Cash Be.
Balance 2,000,000 1,148,761 1,150,516 1,159,385 1,165,558 1,182,565

Cash flow from

operating

net income(loss)
7,560 9,030 13,740 8,640 17,070 11,790
Depreciation
2,404 4,808 7,212 9,616 12,020 14,424
pre-operating - - - - - -
cost 12,083 12,083 12,083 12,083 12,083 12,083
change in - - -
inventory 15,000 1,000 1,000 - - 1,000
change in account -
payable 13,500 1,000 1,000 - - 1,000
Total cash flow -
from operating 3,619 1,755 8,869 6,173 17,007 14,131

Cash flow from

investing
-
Building
415,000 - - - - -
-
Equipments
246,850 - - - - -
-
Tools
205,000 - - - - -
Total cash flow from -
investing 866,850 - - - - -

cash flow from

finacing - - - - - -

Change in -
cash 870,469 1,755 8,869 6,173 17,007 14,131

Net cash flow

1,129,531 1,150,516 1,159,385 1,165,558 1,182,565 1,196,696

62
 1st year (Cont.)

July Aug Sep Oct Nov Dec

Cash Be.
Balance 1,196,696 1,222,471 1,254,460 1,284,323 1,313,150 1,349,651

Cash flow from

operating

net income(loss)
21,030 24,840 20,310 16,870 22,140 29,820
Depreciation
16,828 19,232 21,636 24,040 26,444 28,848
pre-operating - - - - - -
cost 12,083 12,083 12,083 12,083 12,083 12,083
change in -
inventory - - 1,000 - - 1,500
change in account -
payable - - 1,000 - - 1,500
Total cash flow
from operating 25,775 31,989 29,863 28,827 36,501 46,585

Cash flow from

investing

Building
- - - - - -
Equipments
- - - - - -
Tools
- - - - - -
Total cash flow from
investing - - - - - -

cash flow from

finacing - - - - - -

Change in
cash 25,775 31,989 29,863 28,827 36,501 46,585

Net cash flow

1,222,471 1,254,460 1,284,323 1,313,150 1,349,651 1,396,236

63
 2nd
year

Jan Feb March April May June

Cash Be.
Balance 1,396,236 1,443,481 1,487,730 1,532,703 1,578,610 1,623,861

Cash flow from

operating

net income(loss)
30,480 25,080 23,400 21,930 18,870 19,770
Depreciation
28,848 31,252 33,656 36,060 38,464 40,868
pre-operating - - - - - -
cost 12,083 12,083 12,083 12,083 12,083 12,083
change in -
inventory 2,500 4,000 - - - -
change in account -
payable 2,500 4,000 - - - -
Total cash flow
from operating 47,245 44,249 44,973 45,907 45,251 48,555

Cash flow from

investing

Building
- - - - - -
Equipments
- - - - - -
Tools
- - - - - -
Total cash flow
from investing - - - - - -

cash flow from

finacing - - - - - -

Change in
cash 47,245 44,249 44,973 45,907 45,251 48,555

Net cash flow

1,443,481 1,487,730 1,532,703 1,578,610 1,623,861 1,672,416

64
 2nd year(Cont.)

July Aug Sep Oct Nov Dec

Cash Be.
Balance 1,672,416 1,727,025 1,781,558 1,838,195 1,893,496 1,961,211

Cash flow from

operating

net income(loss)
23,420 20,940 20,640 16,900 26,910 33,930
Depreciation
43,272 45,676 48,080 50,484 52,888 55,292
pre-operating - - - - - -
cost 12,083 12,083 12,083 12,083 12,083 12,083
change in - -
inventory - - 1,500 500 2,000 7,500
change in account - -
payable - - 1,500 500 2,000 7,500
Total cash flow
from operating 54,609 54,533 56,637 55,301 67,715 77,139

Cash flow from

investing

Building
- - - - - -
Equipments
- - - - - -
Tools
- - - - - -
Total cash flow
from investing - - - - - -

cash flow from

finacing - - - - - -

Change in
cash 54,609 54,533 56,637 55,301 67,715 77,139

Net cash flow

1,727,025 1,781,558 1,838,195 1,893,496 1,961,211 2,038,350

65
 3rd
year

Jan Feb March April May June

Cash Be.
Balance 2,038,350 2,113,089 2,182,222 2,255,559 2,328,660 2,404,015

Cash flow from

operating

net income(loss)
31,530 23,520 25,320 22,680 22,530 20,850
Depreciation
55,292 57,696 60,100 62,504 64,908 67,312
pre-operating - - - - - -
cost 12,083 12,083 12,083 12,083 12,083 12,083
change in -
inventory 6,500 1,500 - - 3,500 -
change in account - -
payable 6,500 1,500 - - 3,500 -
Total cash flow
from operating 74,739 69,133 73,337 73,101 75,355 76,079

Cash flow from

investing

Building
- - - - - -
Equipments
- - - - - -
Tools
- - - - - -
Total cash flow
from investing - - - - - -

cash flow from

finacing - - - - - -

Change in
cash 74,739 69,133 73,337 73,101 75,355 76,079

Net cash flow

2,113,089 2,182,222 2,255,559 2,328,660 2,404,015 2,480,094

66
 3rd year
(Cont.)

July Aug Sep Oct Nov Dec

Cash Be.
Balance 2,480,094 2,561,427 2,642,704 2,727,495 2,814,970 2,912,399

Cash flow from

operating
net
income(loss) 23,700 21,240 22,350 22,630 30,180 23,590
Depreciation
69,716 72,120 74,524 76,928 79,332 81,736
pre-operating - - - - - -
cost 12,083 12,083 12,083 12,083 12,083 12,083
change in - -
inventory - - - - 2,000 4,000
change in
account payable - - - - 2,000 4,000
Total cash flow
from operating 81,333 81,277 84,791 87,475 97,429 93,243

Cash flow from

investing

Building
- - - - - -
Equipments
- - - - - -
Tools
- - - - - -
Total cash flow
from investing - - - - - -

cash flow from

finacing - - - - - -

Change in
cash 81,333 81,277 84,791 87,475 97,429 93,243

Net cash flow 2,561,427 2,642,704 2,727,495 2,814,970 2,912,399 3,005,642

67
Balance Sheet
1st year Jan Feb March April May June
Asset

cash 1,129,531 1,150,516 1,159,385 1,165,558 1,182,565 1,196,696

Equipment

Table 34,000 34,000 34,000 34,000 34,000 34,000

Sofa 47,400 47,400 47,400 47,400 47,400 47,400

Chair 10,000 10,000 10,000 10,000 10,000 10,000

Counter 14,000 14,000 14,000 14,000 14,000 14,000

Chandelier 70,000 70,000 70,000 70,000 70,000 70,000

Book shelf 3,000 3,000 3,000 3,000 3,000 3,000

CD-Player 2,000 2,000 2,000 2,000 2,000 2,000

Glass 3,000 3,000 3,000 3,000 3,000 3,000

Plate 1,500 1,500 1,500 1,500 1,500 1,500

Shelf 4,000 4,000 4,000 4,000 4,000 4,000

Electronic Fan 2,000 2,000 2,000 2,000 2,000 2,000

TV SONY 42” 30,000 30,000 30,000 30,000 30,000 30,000

office equipment 950 950 950 950 950 950

Tools

Coffee machine 250,000 250,000 250,000 250,000 250,000 250,000

Fruit blender 10,000 10,000 10,000 10,000 10,000 10,000

Coffee grinder 25,000 25,000 25,000 25,000 25,000 25,000

Accumulated - - - - - -
depreciation 2,404 4,808 7,212 9,616 12,020 14,424
Pre-operating cost

Insurance(Fire) 25,000 25,000 25,000 25,000 25,000 25,000

Land Rental 120,000 120,000 120,000 120,000 120,000 120,000

68
Inventory

coffee product 2,000 3,000 2,000 2,000 2,000 3,000

soft drink product 1,500 1,500 1,500 1,500 1,500 1,500

bekery product 10,000 10,000 10,000 10,000 10,000 10,000

Building 415,000 415,000 415,000 415,000 415,000 415,000

Totol asset 2,207,477 2,227,058 2,232,523 2,236,292 2,250,895 2,263,622

Liabilities

A/P 13,500 14,500 13,500 13,500 13,500 14,500

Equity

owner capital 2,193,977 2,212,558 2,219,023 2,222,792 2,237,395 2,249,122

Total L&E 2,207,477 2,227,058 2,232,523 2,236,292 2,250,895 2,263,622

69
1st year (cont.) July Aug Sep Oct Nov Dec
Asset

cash 1,222,471 1,254,460 1,284,323 1,313,150 1,349,651 1,396,236

Equipment

Table 34,000 34,000 34,000 34,000 34,000 34,000

Sofa 47,400 47,400 47,400 47,400 47,400 47,400

Chair 10,000 10,000 10,000 10,000 10,000 10,000

Counter 14,000 14,000 14,000 14,000 14,000 14,000

Chandelier 70,000 70,000 70,000 70,000 70,000 70,000

Book shelf 3,000 3,000 3,000 3,000 3,000 3,000

CD-Player 2,000 2,000 2,000 2,000 2,000 2,000

Glass 3,000 3,000 3,000 3,000 3,000 3,000

Plate 1,500 1,500 1,500 1,500 1,500 1,500

Shelf 4,000 4,000 4,000 4,000 4,000 4,000

Electronic Fan 2,000 2,000 2,000 2,000 2,000 2,000

TV SONY 42” 30,000 30,000 30,000 30,000 30,000 30,000

office equipment 950 950 950 950 950 950

Tools

Coffee machine 250,000 250,000 250,000 250,000 250,000 25,000

Fruit blender 10,000 10,000 10,000 10,000 10,000 10,000

Coffee grinder 25,000 25,000 25,000 25,000 25,000 25,000

Accumulated - - - - - -
depreciation 16,828 19,232 21,636 24,040 26,444 28,848
Pre-operating cost

Insurance(Fire) 25,000 25,000 25,000 25,000 25,000 25,000

Land Rental 120,000 120,000 120,000 120,000 120,000 120,000

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Inventory

coffee product 3,000 3,000 2,000 2,000 2,000 3,500

soft drink product 1,500 1,500 1,500 1,500 1,500 1,500

bekery product 10,000 10,000 10,000 10,000 10,000 10,000

Building 415,000 415,000 415,000 415,000 415,000 415,000

Totol asset 2,286,993 2,316,578 2,343,037 2,369,460 2,403,557 2,224,238

Liabilities

A/P 14,500 14,500 13,500 13,500 13,500 15,000

Equity

owner capital 2,272,493 2,302,078 2,329,537 2,355,960 2,390,057 2,209,238

Total L&E 2,286,993 2,316,578 2,343,037 2,369,460 2,403,557 2,224,238

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 2nd year Jan Feb March April May June
Asset

cash 1,443,481 1,487,730 1,532,703 1,578,610 1,623,861 1,672,416

Equipment

Table 34,000 34,000 34,000 34,000 34,000 34,000

Sofa 47,400 47,400 47,400 47,400 47,400 47,400

Chair 10,000 10,000 10,000 10,000 10,000 10,000

Counter 14,000 14,000 14,000 14,000 14,000 14,000

Chandelier 70,000 70,000 70,000 70,000 70,000 70,000

Book shelf 3,000 3,000 3,000 3,000 3,000 3,000

CD-Player 2,000 2,000 2,000 2,000 2,000 2,000

Glass 3,000 3,000 3,000 3,000 3,000 3,000

Plate 1,500 1,500 1,500 1,500 1,500 1,500

Shelf 4,000 4,000 4,000 4,000 4,000 4,000

Electronic Fan 2,000 2,000 2,000 2,000 2,000 2,000

TV SONY 42” 30,000 30,000 30,000 30,000 30,000 30,000

office equipment 950 950 950 950 950 950

Tools

Coffee machine 250,000 250,000 250,000 250,000 250,000 250,000

Fruit blender 10,000 10,000 10,000 10,000 10,000 10,000

Coffee grinder 25,000 25,000 25,000 25,000 25,000 25,000

Accumulated - - - - - -
depreciation 28,848 31,252 33,656 36,060 38,464 40,868
Pre-operating cost

Insurance(Fire) 25,000 25,000 25,000 25,000 25,000 25,000

Land Rental 120,000 120,000 120,000 120,000 120,000 120,000

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Inventory

coffee product 3,000 2,000 2,000 2,000 2,000 3,500

soft drink product 1,500 1,500 1,500 1,500 1,500 1,500

bekery product 13,000 10,000 10,000 10,000 10,000 10,000

Building 415,000 415,000 415,000 415,000 415,000 415,000

Totol asset 2,498,983 2,536,828 2,579,397 2,622,900 2,665,747 2,713,398

Liabilities

A/P 17,500 13,500 13,500 13,500 13,500 15,000

Equity

owner capital 2,481,483 2,523,328 2,565,897 2,609,400 2,652,247 2,698,398

Total L&E 2,498,983 2,536,828 2,579,397 2,622,900 2,665,747 2,713,398

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 2nd year
(cont.) July Aug Sep Oct Nov Dec
Asset

cash 1,672,416 1,727,025 1,781,558 1,838,195 1,893,496 1,961,211

Equipment

Table 34,000 34,000 34,000 34,000 34,000 34,000

Sofa 47,400 47,400 47,400 47,400 47,400 47,400

Chair 10,000 10,000 10,000 10,000 10,000 10,000

Counter 14,000 14,000 14,000 14,000 14,000 14,000

Chandelier 70,000 70,000 70,000 70,000 70,000 70,000

Book shelf 3,000 3,000 3,000 3,000 3,000 3,000

CD-Player 2,000 2,000 2,000 2,000 2,000 2,000

Glass 3,000 3,000 3,000 3,000 3,000 3,000

Plate 1,500 1,500 1,500 1,500 1,500 1,500

Shelf 4,000 4,000 4,000 4,000 4,000 4,000

Electronic Fan 2,000 2,000 2,000 2,000 2,000 2,000

TV SONY 42” 30,000 30,000 30,000 30,000 30,000 30,000

office equipment 950 950 950 950 950 950

Tools

Coffee machine 250,000 250,000 250,000 250,000 250,000 250,000

Fruit blender 10,000 10,000 10,000 10,000 10,000 10,000

Coffee grinder 25,000 25,000 25,000 25,000 25,000 25,000

Accumulated - - - - - -
depreciation 43,272 45,676 48,080 50,484 52,888 55,292
Pre-operating cost

Insurance(Fire) 25,000 25,000 25,000 25,000 25,000 25,000

74
Land Rental 120,000 120,000 120,000 120,000 120,000 120,000
Inventory

coffee product 2,000 2,000 1,500 3,000 3,000 3,500

soft drink product 1,500 1,500 1,500 1,500 1,500 1,500

bekery product 10,000 10,000 12,000 10,000 8,000 15,000

Building 415,000 415,000 415,000 415,000 415,000 415,000

Totol asset 2,709,494 2,761,699 2,815,328 2,869,061 2,919,958 2,992,769

Liabilities

A/P 13,500 13,500 15,000 14,500 12,500 20,000

Equity

owner capital 2,695,994 2,748,199 2,800,328 2,854,561 2,907,458 2,972,769

Total L&E 2,709,494 2,761,699 2,815,328 2,869,061 2,919,958 2,992,769

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 3rd year Jan Feb March April May June
Asset

cash 2,113,089 2,182,222 2,255,559 2,328,660 2,404,015 2,480,094

Equipment

Table 34,000 34,000 34,000 34,000 34,000 34,000

Sofa 47,400 47,400 47,400 47,400 47,400 47,400

Chair 10,000 10,000 10,000 10,000 10,000 10,000

Counter 14,000 14,000 14,000 14,000 14,000 14,000

Chandelier 70,000 70,000 70,000 70,000 70,000 70,000

Book shelf 3,000 3,000 3,000 3,000 3,000 3,000

CD-Player 2,000 2,000 2,000 2,000 2,000 2,000

Glass 3,000 3,000 3,000 3,000 3,000 3,000

Plate 1,500 1,500 1,500 1,500 1,500 1,500

Shelf 4,000 4,000 4,000 4,000 4,000 4,000

Electronic Fan 2,000 2,000 2,000 2,000 2,000 2,000

TV SONY 42” 30,000 30,000 30,000 30,000 30,000 30,000

office equipment 950 950 950 950 950 950

Tools

Coffee machine 250,000 250,000 250,000 250,000 250,000 250,000

Fruit blender 10,000 10,000 10,000 10,000 10,000 10,000

Coffee grinder 25,000 25,000 25,000 25,000 25,000 25,000

Accumulated - - - - - -
depreciation 55,292 57,696 60,100 62,504 64,908 67,312
Pre-operating cost

Insurance(Fire) 25,000 25,000 25,000 25,000 25,000 25,000

Land Rental 120,000 120,000 120,000 120,000 120,000 120,000

Inventory

coffee product 2,000 3,500 3,500 3,500 2,000 2,000

76
soft drink product 1,500 1,500 1,500 1,500 1,500 1,500

bekery product 10,000 10,000 10,000 10,000 8,000 8,000

Building 415,000 415,000 415,000 415,000 415,000 415,000

Totol asset 3,138,147 3,206,376 3,277,309 3,348,006 3,417,457 3,491,132

Liabilities

A/P 13,500 15,000 15,000 15,000 11,500 11,500

Equity

owner capital 3,124,647 3,191,376 3,262,309 3,333,006 3,405,957 3,479,632

Total L&E 3,138,147 3,206,376 3,277,309 3,348,006 3,417,457 3,491,132

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3rd year (cont.) July Aug Sep Oct Nov Dec
Asset

cash 2,561,427 2,642,704 2,727,495 2,814,970 2,912,399 3,005,642

Equipment

Table 34,000 34,000 34,000 34,000 34,000 34,000

Sofa 47,400 47,400 47,400 47,400 47,400 47,400

Chair 10,000 10,000 10,000 10,000 10,000 10,000

Counter 14,000 14,000 14,000 14,000 14,000 14,000

Chandelier 70,000 70,000 70,000 70,000 70,000 70,000

Book shelf 3,000 3,000 3,000 3,000 3,000 3,000

CD-Player 2,000 2,000 2,000 2,000 2,000 2,000

Glass 3,000 3,000 3,000 3,000 3,000 3,000

Plate 1,500 1,500 1,500 1,500 1,500 1,500

Shelf 4,000 4,000 4,000 4,000 4,000 4,000

Electronic Fan 2,000 2,000 2,000 2,000 2,000 2,000

TV SONY 42” 30,000 30,000 30,000 30,000 30,000 30,000

office equipment 950 950 950 950 950 950

Tools

Coffee machine 250,000 250,000 250,000 250,000 250,000 250,000

Fruit blender 10,000 10,000 10,000 10,000 10,000 10,000

Coffee grinder 25,000 25,000 25,000 25,000 25,000 25,000

Accumulated - - - - - -
depreciation 64,908 62,504 60,100 57,696 55,292 52,888
Pre-operating cost

Insurance(Fire) 25,000 25,000 25,000 25,000 25,000 25,000

Land Rental 120,000 120,000 120,000 120,000 120,000 120,000

78
Inventory

coffee product 2,000 2,000 2,000 1,500 3,500 3,500

soft drink product 1,500 1,500 1,500 1,500 1,500 1,500

bekery product 8,000 8,000 8,000 8,000 8,000 12,000

Building 415,000 415,000 415,000 415,000 415,000 415,000

Totol asset 3,574,869 3,658,550 3,745,745 3,835,124 3,936,957 4,036,604

Liabilities

A/P 11,500 11,500 11,500 11,000 13,000 17,000

Equity

owner capital 3,563,369 3,647,050 3,734,245 3,824,124 3,923,957 4,019,604

Total L&E 3,574,869 3,658,550 3,745,745 3,835,124 3,936,957 4,036,604

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Chapter7
Summary

As we are determined the possibility of possible business performs, so we are going to

know the feasibility of business so far.

Coffee shop is the meeting and relaxing restaurant of every age from teenage to
older because time of relax is time of drink such sleeping time. Coffee shop also provide
dessert to eat with beverage to give you enjoy your free time with smooth taste of
dessert.

Process of coffee shop is running on middle business and planning for provide
good service with low price. Even coffee shop just middle businesses and use less
budget to launch. Coffee shops not clear level of command because everyone can be
every level. So we confirm that no one study this business seriously before and if we
know this business clearly every one can build this kind of carrier.

When we set up coffee business, we must thinking and planning about objective
that clear, reliable and make high profit to business. We must understand customer and
what demand while study competitor, find out the way to make profit from customer
and try to do anything that customers are satisfied. We take the feedback to improve our
service or make a new product. We choose right strategies to adapt with the situation.
We can manage risk and take advantage on competitors. Timeframe, tell about period of
time in processing business.

80
 In set up business, we must tell about company, product and process of product so
in about coffee shop business. In about history of coffee, Coffee began from local plant
of Abyssinia and Arabia discovered in century 6th around 575 BC. The Arabian called
the coffee plant Kawah or Kaweh it’s mean strength or vigor. In Thailand called Gobee
Kaewfee and Gafaar till now. Coffee originated in tropical Africa, from where it has
since been introduced to most tropical countries throughout the world. Coffee was
introduced to Southeast Asia and the West Indies in the 17th and 18th centuries. The
real start of the Thai coffee industry is relatively young. The Thai government started a
successful campaign promoting Robusta coffee growth in Southern Thailand. In 1976,
Thailand officially became a coffee exporting nation. Thailand is a coffee nation, ranked
third (after Indonesia and Vietnam) in Southeast Asia in annual raw coffee production.
While there are many species of coffee trees in the world, only Arabica and Robusta
have major economic significance, both of which are grown in Thailand.

Beyond from detail of coffee, in about business we must know situation analysis,
detail competitive in near around our business, type of coffee to serve to customer
[Latte, Espresso, Americano, Cappuccino, Mocha and soft drink]. When we set
objective, know about of our business. We will set vision and mission. Vision of our
business is bringing local’s coffee specifically to produce coffee for tourists customer
and sell product acceptable price. We have hi-technology coffee processing. So we have
several style and taste of coffee that customer can choose by themselves. In social
responsible, we plants coffee by employ people in local place, it make opportunity in
work and income and develop to product of community and we have save and develop
environment plan in business.

About mission, we try to develop taste of coffee and present several kind of
coffee for customer and we try to make loyalty and word of mouth in customer group
and try to increase branch of business around province in 2 years. In about strategy, we
know about business level such as corporate level [vision, policy, objective, process
project teams and individual job performance.]. We try to make loyalty and word of
mouth in customer group and try to increase branch of business in 2 years. Business

81
level [competitive advantages, cost leadership, quick response] and Functional level
[marketing, Financial, Human resource management.

In about market analysis we must know about political analysis. Politic is out of
control by business. Competitors have to face with this too. Politic might positively
affect to business investment or negatively affect as obstacle in business success. So, we
always follow political news and apply in our business. Economy analysis, it is out of
control from business and others competitors must face as same as politic. Social and
environment analysis, business in different industry, market, and region might face with
risk. It has different business feasibility because business operation environment and
market environment that is different [business life cycle, consumer behavior].
Technology analysis, changed rapidly today that is called the digital age. Marketing is
the same. Result of technology change make marketing change too. E-Commerce has
grown continuously and force marketing must adapt following trade system. So, E-
Marketing happens. It helps to operate marketing activity by using electronic
equipment. Competition analysis [3c analysis] such as competitor analysis, we define
the competitors who provide service as same as us.

For local coffee shop or weak group that we think they will become a high performance
competition will be.

Our competitors are coffee shop that set up around doi mae salong have only one
“Sweet mae salong” Each coffee shop is present taste of coffee and modern style coffee
shop but price quite high. We research and collecting information about customer needs
and want, we found customer want to drink fresh high quality coffee and low cost so
our business will focus in coffee that produce, we bring high quality coffee from local
places so we will get low price and can this main point to strengths. About weakness,
first we must try to promote product and make loyalty customer then same with
competitors and increasing to leader of business. Customer can use several corner in

82
shop to photographing but will not famous about coffee and bakery. Everything
information we will use to improve and developing our coffee business then we set plan
and strategy about sell coffee, pull customers, promotion. When we can success
business, we will develop next mission and try to leader coffee business in province.

In about STP analysis, like we said about the Strategy that I targeted on traveler,
so most of customer would be a fill time to relax or small meeting even date. The
segmentation we divide in to 2 segments for service suitable in each: traveler [large
segmentation], local people. Marketing mix strategy we focus on 4P.

Product – We are provider, we make shop for coffee drinking so we set only our
product that we set to sell with beverage such as bakery in the shop.

Price - due to strategy that we set a price few lower than usual to motivate customer and
challenge competitor to earn market segment.

Place – The shop build in small café because we launch in a medium business but big
power to move a business.

Promotion – Technology is big society in our life if the customer knows us name and
tell to other and other tell to another that would be great to continue the next plan is
promote in the internet.

Finally we must know and understanding about risk in management of business.

The analyzing of business risk factors, we will use our business as a set. Then look environment
around business and business itself that what is the important point. If this point is very
important and adverse impact occur to this point, our business may get some problem. It is
called critical point. The business risk analysis starts from

83
 (1) Determine risk such as marketing factor, we look from 4 dimensions. Political,
Politic is out of control by business. Many competitors have to face with this too. Politic
might positively affect to business investment or negatively affect as obstacle in
business success. So, we always follow political news and apply in our business. HR
factor, we look from Labor protection act 1998. Economic factor, today recession
economic affect directly to our business, so there are many coffee business have to fail and
close their business. We also use this analysis below to make decision. Customer
behavior factor, many customers have low brand loyalty but high price conscious, so they
always look for brand that offer low price first. We’re determining the customer behavior to
know them buying activity. Satisfy them in the right way can improve our benefit and
low risk consider.

(2)Evaluate risk, When we determine the critical point and risk already, must well
evaluate again that how risk is violent. We set list of risk and order following violence level that
what risk adversely affect to our business. Customers’ behavior factor [customer is god and
most important], Marketing factor [know rival help to gain competitive advantage], Economic
factor [study and evaluate economic condition], HR factor [prepare knowledge and training].

(3)Set the solution and risk protection, Customers’ behavior factor, we offer acceptable
price product but remain high quality to attract customers. We also create service mind to make
our customers feel good and satisfaction. Marketing factor, we study our competitors and must
know them everything. Economic factor affects directly to purchasing power of customers
and can make our business decline. HR factor, employees must come from the local
because they can know best what the local people want. Then, we give training and
knowledge program to our employees to have high performance to give well service.

(4)Evaluate solution and risk protection, We check and evaluate the solution that can be
effective in handle risk. Prepare for the risk that will occur in the future and prepare effective
solution too and finally financial risk, we will use the financial risk to control our financial to be
useful and reach our company goal.

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Referent!
http://www.finethaiteas.com/doi-mae-salong.html

www.czechmatediary.com/tag/food/

www.chokdeedimsum.com/th/menu.php

www.boncafe.co.th/recipes/drinks...iwi.html

www.vosgeschocolate.com/product/...re_cocoa

www.health.com/health/gallery/0,...,00.html

http://blog.jeremey.com/jeremeys_weblog...ano.html

www.zunigainteriors.blogspot.com/200...ive.html

85
www.sainampingcoffee.com/Espress...fee.html

http://uncyclopedia.wikia.com/wiki/Latte_art

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

www2.warwick.ac.uk/fac/arts/lang...g/latte/

http://www.surveymonkey.com/s/NCFR3GB

http://www.doichaangcoffee.com/

www.beyondthebean.com/news/ciao-milano

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