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Preface

This project gets to information planning and methods by Project feasibility course from hypothetical situation that Im a millionaire. I leave far away from Thailand. I have a lot of money. It's much more than you can imagine. What should be the best business investment project for the team?This project will explain analytical methods and techniques useful in this project and capital budgeting of beauty surprise box project. Also, the content has been included to illustrate methods, risk, finance, techniques and strategies. This project discusses strategic, qualitative, and organizational considerations which impinge on capital budgeting for decisions of investment. It also describes and evaluates the business practices in the area. We hope this project can guide people who interest. If there is a mistake in some point, we have to apologize for that through this preface.

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Table of Content

Preface . Table of Content .. Executive Summary

I II IV

Chapter 1: Introduction 1.1 Background and Significance of the Project ... 1.2 Project Objectives .... 1.3 Benefits of Project .... 1.4 Time Frame of Activities .. Chapter 2: Industry Profile 2.1 Nature of Industry ... 2.2 Situation of Industry ... 2.3 Products/Service (in General) .... 2.4 Vision of Organization 2.5 Mission ... 2.6 Strategy 2.6.1 Corporate Level 2.6.2 Business Level 2.6.3 Functional Level Industry Summary . Chapter 3: Market Feasibility Study 3.1 Market Analysis 3.1.1 PEST Analysis Political Economic Social and Environment Technology 3.1.2 Competition Analysis (3C Analysis) Competitor Analysis Customer Analysis Company Analysis 3.2 STP Analysis .... 3.2.1 Market Segmentation 3.2.2 Target Market 3.2.3 Market Positioning 3.3 Marketing Mix Strategy .. 3.3.1 4P 3.4 SWOT Analysis ....

1 8 8 9

11 16 20 21 21 21

24

25 25

29

32

34 35

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3.5 Sales Forecast . 3.6 Marketing Expense ... Sale forecast Explanation Chapter 4: Investment Analysis 4.1 Pre operating cost .. 4.2 Investment Cost . 4.3 Investment depreciation .. Chapter 5: Operations Analysis 5.1 Production and Operations Analysis .. 5.1.1 Product Characteristic 5.1.2 Service Process 5.1.3 Process and Packaging 5.1.4 Materials 5.1.5 Direct Labor Chapter 6: Management Analysis 6.1 Administration Cost 6.1.1 Organization Management 6.1.2 Administration Cost Chapter 7: Financial Analysis 7.1 Profit/Loss Statement 7.2 Cash Flow Statement . 7.3 Balance Sheet . Chapter 8: Risk Management 8.1 External Risk Assessment .... 8.2 Internal Risk Assessment ... 8.3 Financial risk .

36 41 41

42 43 47

52

60

64 73 79

86 87 88

Chapter 9: Summary 9.1 Strategic Management .. 9.2 Financial Management .... 9.3 Risk Management ... 9.4 Other Related Terms ... References

98 98 99 99

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Executive Summary

Beauty surprise box business provides an analysis and evaluation of the current and prospective profitability, liquidity, marketing and financial stability of the company. Methods of analysis include trend as well as ratios. It also describes and evaluates the business practices in the area. Our business is selling cosmetic product and service to distribute happiness of modern girl in this era just like cosmetic product. Its challenging to change the perception of girl to concern our product however we can like changing cosmetic product to be beauty box which bring any cosmetic product in the beauty box. To difference from other cosmetic product, we use new design for easy portable clean view. To response modern lifestyle of population in this country we have delivery service to safe customer times. Promotion of our business will be the gift of cosmetic; Marketing informs advertise will be on internet and radio. We choose Bangkok for center because, Bangkok is the capital. Transportation is very easy, and easy for sent product to customer. Bangkok has many ways for transport and accepts the product such as Bangkok Mass Transit System Public Company (BTS), and Mass Rapid Transit Authority of Thailand (MRTA).Moreover, companies that cooperate have a building in Bangkok and near. The location of center builds in Bang kepi, Ladprao. This location has a wide for stock of product. My company want to area for stock of product, because we cooperation to many company. Bangkok has many facilities and its central of industry and tread. Our target customer is women mostly university students, workingwoman whose age aren't exceeding 35 years. Currently in the market have many product about cosmetic which customers cant select the product which suit on them. We choose this group of people because we find this group has more demands on cosmetic rather than other group of people. Also, theyre interested to use new products and ready to pay if the products are appropriate for them.

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A review of our competitors shows that we will be competing against four other establishments in Thailand. Our business focus on different target markets, pricing structure and marketing approaches. In planning for our launch, we have put together a financial plan based on forecasts for the five first years. Management for 5 year from all elements we trust Beauty Box Company will catch consumer mind and survive in hard competition market. Now our business is ready to compete with other competitor with good quality and fast serving we trust we can beat competitor and get sharing in the cosmetic market. Our business open to all investor to invest with us results of data analyzed show that all information are we surely we can get 2.3% of market share in 5 year investor will receive dividend for 15% after pass years one

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Chapter 1 Introduction

1.1 Background and Significance of the Project History of cosmetic: Cosmetics have been used for as long as there have been people to use them. Face painting is mentioned in the Old Testament (Ezekiel 23:40) and eye shadow was used in Egyptian burials dating back to 10,000 BC (Llewellyn) The word "casemate" was first used to describe Roman slaves whose function was to bathe men and women in perfume. (Keville, Green) Since the Egyptians, each subsequent civilization invented unique words that referred to cosmetics and fragrance as one science, but the science eroded after Rome. Anthropologists speculate that primitive perfumery began with the burning of gums and resins for incense. Richly scented plants were fused into animal and vegetable oils for ceremonial anointing and for pleasure. From 7,000 to 4,000 BC, the fatty oils of olive and sesame were combined with fragrant plants to create the original Neolithic ointments. When the Egyptians were learning to write and make bricks in 3,000 BC, they were also importing large quantities of myrrh. The earliest recorded items of Egyptian commerce included spices, gums and other fragrant plants that were reserved mainly for religious use. (Keville, Green) Egypt As early as 10,000 BCE, men and women used scented oils and ointments to clean and soften their skin and mask body odor. Dyes and paints were used to color the skin, body and hair. They rouged their lips and cheeks, stained their nails with henna, and lined their eyes and eyebrows heavily with kohl. Kohl was a dark-colored powder made of crushed antimony, burnt almonds, and lead, oxidized copper, ochre, ash, malachite, chrysocolla (a blue-green copper ore) or any combination thereof. (Cohen) It was applied with a small stick. The upper and lower eyelids were painted in a line that extended to the sides of the face for an almond effect. In addition to reducing sun glare, it was believed

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that kohl eyeliner could restore poor eyesight and reduce eye infection. (ED 370) Kohl was kept in a small, flat-bottomed pot with a wide, tiny rim and a flat, disk-shaped lid. (Carnegie Museum) Cosmetics were an inherent part of Egyptian hygiene and health. Oils and creams were used for protection against the hot Egyptian sun and dry winds. Myrrh, thyme, marjoram, chamomile, lavender, lily, peppermint, rosemary, cedar, rose, aloe, olive oil, sesame oil and almond oil provided the basic ingredients of most perfumes that were used in religious ritual and embalming the dead (Cohen) For lips, cheeks and nails, a clay called red ochre was ground and mixed with water. Henna was used to dye fingernails yellow or orange. Makeup was stored in special jars that were kept in special makeup boxes. Women would carry their makeup boxes to parties and keep them under their chairs. Although men also wore makeup, they did not carry their makeup kits with them. Greece In Greece, precious oils, perfumes, cosmetic powders, eye shadows, skin glosses, paints, beauty unguents, and hair dyes were in universal use. Export and sale of these items formed an important part of trade around the Mediterranean. During the 8th and 7th centuries BC, Corinthian, Rhodian and East Greek traders dominated markets in perfume flasks and cosmetic containers. The containers included aryballoi, alabastra, pyxides and other small specialized shapes. Cosmetic unguents were imported into Greece in containers carved from the Red Sea Tridacna shell. In the 6th and 5th centuries, Attic products stole the market with toilet oil dispensed in lekythoi flasks. A bulk storage container for scented oils and perfumes was called a pelike. Pelikes were initially designed to withstand the constant handling and rigors of sea transportation while protecting the contents and maximizing cargo space. As commerce expanded and packaging design became more influential, manufacturers improved packaging to attract consumers. During the Classical period, pelike packaging in terracotta aryballoi and alabastra retailed at a premium. Simultaneously, cored-glass vessels began to appear in shapes adapted from terracotta containers.

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The history and evolution of cosmetics have many country and a many thousand years in past to now. History of beauty box: During recently years youve seen many kinds of new cosmetics from many companies. Of course, it rises up to satisfy the need of women who love to make up and take care of their skin. But how do you know that the products which issue in the market are fit to your skin if you do not buy and test it. If that is true, how much will you spend on something that we do not know the result? And if you do not satisfy/get allergy with them how should you do with that? From those questions made the creation of one business names Beauty Subscription Services or beauty box in general. The BSS will collect many kinds of cosmetic put in the medium box and send to subscriber every month. All the cosmetics that they put in the box will be in the sample size, sometimes theyll put the real size to test too. It becomes popular among women because the business is already spread to many countries in the world. Also, in USA the BSS is popular in men because they have BSS for men only, like His Black Box, Male Box and His kit. The process to receive this beauty box is same as subscribe monthly magazine, you can choose whether a month, 3 months, 6 months or a year. It costs from around $10 (or 3xx Bath). The process to be a member, theyll ask you about your skin type, skin color, hair type and kinds of cosmetic that you usually use. The answer will collect in beauty profile to get the product which similar to your skin. After that the company will send you a box every month, and in the box will contain with 3-5 pieces of sample cosmetics. Information of sample/trial/tester cosmetics: "Tester" or trial, its usually contained in a small enough packages which can be used for1 week. In this trial, it includes products that can be sold as well. These small product canpersuade consumers to buy the real size products, the quality are the same as the full size; the buyers will feel that they have a chance to try the product quality before you have to pay

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the full price. Also, this provides an opportunity for the buyer who likes to try new product before purchasing. The trial of the skincare products on the counter brands make constitutes a stimulus to buy products that clients have never bought to use. Most often theyll come back to buy a full size after try a short trial. This does not look crowded, but its like friends invited to give the impression that make the client come back next time. Also try to make the promotion which makes customers order products more and more to achieve the sampling. This approach can reduce the size of the sampling to be smaller sample size than youve given it. This approach has resulted in the purchase of another, when client try to use, it may be a buying opportunity compare with not about to buy it and not get anything. Tester cosmetic is the original of product. There is no difference in fragrance, strength, or quality between a tester and one that comes in its original, theyre the same. All the testers are sold full and unused. Testers have not been tested. Many people prefer to purchase a tester, because they feel it to be a waste of money to spend so much extra, simple for the exact same fragrance. With the increasing popularity of tester these pieces are now commonly sold in the open market. Occasionally, the phrase Not for Sale (or NFS) may appear on testers or miniatures. Thais because the product was originally product was originally produced for promotional purposes. Online/e- business: Business Online is a convenient, quick and cost effective way to manage your business banking. Your customer number and password will give you access to Business Online. Electronic commerce, commonly known as e-commerce or E-commerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown dramatically since the wide introduction of the Internet. A wide variety of commerce is conducted in this way, including things such as electronic funds transfer, supply chain management, e-marketing, online marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data

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collection systems. Modern electronic commerce typically uses the World Wide Web at least some point in the transaction's lifecycle, although it can encompass a wide range of technologies such as e-mail as well Here are just a few advantages of going online: Powerful, fast and efficient marketing and communication tool and medium minimal startup time & investment search engine optimized websites pay themselves off very quickly as long as they provide customers with valuable products or services The most environmentally friendly way to run a business, Telecommuting reduces the number of cars and car miles. You can test your sales strategies and offerings without wasting precious paper. Put your invoices, newsletters and catalogs online and save numerous trees very inexpensive way to reach new markets and interact with them office & transportation cost savings unlimited possibilities for automation of your business. You can automate your order and payment processes, inventory management, your customer support tasks and more freedom to live and work where you like. You can be traveling while running your online business and run multiple businesses simultaneously.

Our business is selling cosmetic product and service to distribute happiness of modern girl in this era just like cosmetic product such as lipstick, flour powder, eyebrow and the main market of our product is female in this country. Normally the nature of female wants to be good looking by the cosmetic. Its challenging to change the perception of girl to concern our product however we can like changing cosmetic product to be beauty box which bring any cosmetic product in the beauty box. To difference from other cosmetic product, we use new design for easy portable clean view. To response modern lifestyle of population in this country we have delivery service to safe customer times. Promotion of our business will be the gift of cosmetic; Advertise will be on internet and radio. From all elements we trust Beauty Box Company will catch consumer mind and survive in hard competition market. Now our business is ready to compete with other competitor with good quality and fast serving we trust we can beat competitor and get

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sharing in the cosmetic market. Our business open to all investor to invest with us we surely we can get 2.3% of market share in 5 year investor will receive dividend for 15% after pass years one. Do you know about cosmetics business in Thailand? Here is more information; the chemical industry for cosmetics is likely to grow due to improvements of scientific. As recently, Thailand becomes a production base of cosmetic and health products, and theres also exported products which make from raw vegetables and herbs for the botanical industry, health products, and supplements. It has a market value more than 115,000 million Baht Moreover, the number of growth market on cosmetics and chemical plant in Thailand in 2010 grew at 25% and it can be estimated in 2011 that itll increase 30%. For the exported market in 2010 increase to 36%, and can be predicted that the year 2011 itll grow more than 35-40%. Also, even the exported value of cosmetics industry has fell to 27.4 percent compared with the previous quarter, but its risen 18.57 percent compared to the same period on last year. The trend of cosmetics business became brighter in 2011.The expectation on exported grew to 25%. Healthcare and the elderly people would be the next trend to gain the market share; it pushed Aging market growth, and also the organic cosmetics became popular. In 2011, the exported market on cosmetics would grow more than 25%, while the domestic cosmetics market overview continued growth. Meanwhile, the overall economic in the country would be expanded, and the U.S. and European economic would recovery. The growth of cosmetic products in the past 3 years has been attractive for us, by the average 10 -15 percent per year which seems to be increased. Also, net sales of the importers and distributors are growing together as well. This shows the market potential of the products which are popular in Thailand. The total of imported cosmetics value around 3,000 million Baht per year, 70 percent of cosmetics are from Europe, America and the rest 30 percent are from Japan.

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The main factor of this situation is the demand for cosmetic in women is increasing, because they still want things to make them beauty. Also, cosmetics can help them to be fresh and happy, although the economy still decline.

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1.2 Project Objectives Understand about the beauty box business Understand how to manage the model Understand about working and time Understand about todays consumer Understand about advantage and comparing with competitor Understand about investor process and focus on profit point

1.3 Benefits of Project Deliver luxurious makeup and personal care samples from both well-known brands and drugstore brands. Products are picked by our beauty experts based on buyers beauty profile. All samples are picked based on your beauty profile and your needs. All shipping and handling fees are included in the subscription. Buyer can test new product samples before they decided to buy the full-sized products. Buyer can discover new things with excitement. If you sign up for 6 or 12 months, you will get free boxes.

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1.4 Time Frame of Activities Gantt chart and Time Frame of the study
Activities 1 1.Choice Topic 2.Searching Information Internet 3.Topic Submission Fix problem Search information November 2 3 4 1 December 2 3 4 1 January 2 3 4 1 February 2 3 4

4.Introduction Submission Background Significant Benefit

5.Study the business profile Companies image Logo and Brand 6.Study Analyze market feasibility STP Analysis 4Ps Competitor Advantages 7.Study technical Feasibility Determine the necessary

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resource

8.Study and analyze the financial of our business Financial Annual report Determine cost 9.Study and manage the risk of our business

Risk analysis and Other Control risk analysis 10.Project Advertising

Determine story broad

Prepare story broad 11.Writing and analyze the report

Evaluation Restate 12.Checking Final Draft

13.Conclusion the feasibility of business and suggestion

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Chapter 2 Industry Profile

2.1 Nature of Industry The demands of beauty product have increase in few years. Observation about the brand of beauty product has announced in the many way of communication, even if the way of e-commerce in the market no popular, because the consumer concern about the product. Also we have to present the way of girl who want to be the owner of beauty box. Moreover we have selected the internet to be the main way to contact the target of our product. Because the number of user has increase in few years, it has the big opportunity to create the huge market share. The population have use internet in 2000 is 2,300,000. But in 2012 the number of user increases to 20,100,000. It has to show the way to create the consumer in this market.

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Ecommerce in Thailand This year (2011) Thailand e-commerce is growing very fast with the behavior of Thai users changing rapidly. Statistics from NECTEC show that the percentage of Thai users shopping online has risen from 47.8% in 2010 to 57.2% in 2011 which is already a 9.4% increase from the previous year. These statistics confirm that Thai users are becoming more familiar with online-shopping and many companies are starting to use online business strategies to attract more customers.

The factors driving the increase in Thailand e-commerce 1. Online payment system development In the past, Thailand e-commerce companies just had credit cards to support online payments however credit cards in Thailand have not in the past been that popular. Now more payment systems are developing and users have many choices to make an online payment such as using credit cards, debit

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cards or online payment service companies. All of the Thai banks give priority to online payments, and have developed systems that can accept debit cards or allow internet banking to make an online payment. The money will directly be deducted from user accounts after products have been purchased. Online Payment Service Companies are another choice for users that dont have credit cards. There are currently 3 companies in Thailand providing these services including Pays buy, PayPal and TARADpay. Moreover, Thailand also has MPay and True Money services to support users that would like to make a payment via mobile. Users are obviously finding it more convenient to shop and make payments online. 2. Ease of creation of e-commerce websites A lot of companies in Thailand provide instant e-commerce websites where you can create a new online shop within 24 hours. Its easy to create by just following the instructions. This in turn has enabled the number of online shops to increase substantially each year. Additionally, last year big shopping malls in Thailand including Central, The Mall, Big C, and Lotus began to start online shopping campaigns to increase sales volumes which have provided users with more choices to select products they want. 3. E-commerce shops always have promotions E-commerce shops have a lot of competitors so most online shops try to attract customers by offering lower product prices or conducting special promotions. This is another reason that the number online shoppers in Thailand is increasing. 4. Group buying Trends In Thailand Group buying trends on social e-commerce is also increasing. The price of products will decrease when buyers join together to buy the product with the greater the number of buyers, the lower the price. Therefore most buyers will spread the news about such promotions via social networks like Facebook. Such a strategy can attract more users to buy products on the internet.

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Supplier of products and brands

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Sample cosmetics

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2.2 Situation of Industry Situation in nowadays the company have increase of order and contact of cosmetic brand. Because to expend or internet user. It have affect to big chance to make the brand loyalty. Thisd good news for the company because this business has many competitors in every moment. Also our company has reputation and brand royalty. So every competitor has included so brand have policy to change the way to distribute the product.

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Market Overview The overall growth rate of the cosmetic products market in Thailand in 2006 is expected to be at 12 percent, 3 percent more than the year before. The increasing growth is considered to be significant considering the continuing economic slowdown and the prolonged unstable political situation in Thailand. High quality, international branded cosmetic products are expected to do better and may have a growth rate between 15-20 percent due mainly to good brand image, brand loyalty and perception of good quality. Products from the United States are highly regarded and lead the imported market. Competition from France, Japan, the United Kingdom and Germany is getting stronger. Perfume from France remains the market leader in Thailand followed by perfume from the US. Hair care and make up products maintained a single digit growth, while skin care and perfume showed better growth at 17 and 15percent respectively. The product lines that are considered a problem-solving cosmetic have good growth potential. They include products such as anti-wrinkle cream, anti-aging facial cream, and whitening facial and body lotion. More cosmetic products especially designed for men are becoming popular. Thailand remains a strong manufacturer and exporter of shampoos and other hair care products, color cosmetic and skin care products. Direct sales are the preferred distribution channel and account for 60 percent of the total market.

The cosmetic products in Thailand are available at all levels, ranging from very high-end international well-known brands to very low-end, low quality locally produced brands. Thailand is a major producer of cosmetic products, local production mainly concentrates on low to medium quality color cosmetics (make up products, especially lipsticks and nail polishes), skin care products (body lotion and soap, both bar and liquid) and hair care products (mainly shampoo and conditioners). Leading international companies that have production facilities in Thailand include Uniliver, Procter & Gamble, Colgate-Palmolive, and Johnson & Johnson.

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Over 60 percent of the imported cosmetic products are high-end facial and skin cream, mostly anti-wrinkle, anti-aging, and body and skin care products. The products from the U.S. dominate this subsector with approximately 32 percent share. Leading international brands include: Estee Lauder, Clinique, Shisheido, ChristianDior and Lancome, Olay, Eucerin, La Roche-Posay.

Competition among the cosmetic suppliers and distributors is always fierce and strong. The prevailing economic slowdown makes the competition more severe, especially among medium to low quality body care, skin care and hair care products. The suppliers of these products always introduce new strategies not only to retain their existing customers but also to capture greater share and enlarge their customer base. All leading cosmetic companies invest heavily in promotional campaigns to keep their market share and to stimulate the market. High-end international brand cosmetic products use womens magazines as their major advertising means to reach their potential buyers. Premiums and point-of-sale promotional campaigns are also used regularly to stimulate sales. Counter sales at major department stores are their main sales channel. The counter sales account for approximately 30 percent of the total cosmetic sales in Thailand. For low to medium quality cosmetic products, TV is the main venue used for advertising campaigns. Sampling and giveaway are the two leading promotional strategies utilized to introduce new products and to stimulate the sales of existing products. Uniliver and Procter & Gamble are the leading advertising spenders in Thailand. Direct selling, discount stores, drug stores and convenience stores are the major channels of distribution for medium and low quality cosmetic products.

The use of herbal supplement ingredient as a product selling point is increasing especially among the locally produced cosmetic products. It is an effective means to differentiate and adds value to the products. Among the many herbal supplements, green tea is the leading herbal recognized and used in various products. The inclusion of a whitening agent in the facial and body care products is

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widely accepted by the Thai buyers too. Most Thai have light brown complexion so cosmetic products with a whitening agent are very popular in this market. A whitening agent is popularly used as a marketing tool to promote the products. The emergence of spa treatment and its increasing popularity among locals and foreigners creates new demands for OEM contract manufacturing of cosmetics specially designed for spa consumption.

The overall growth potential for the cosmetic products during the next three years (2006-2008) is optimistically expected to grow between 15-20 percent. With a total potential customers base of 18 million (women between the age of 15 to 50 years old), most of them salary workers, Thailands market for cosmetic products has a very strong group of potential buyers. Political stability after the general election due by or before the end of this year should bring back the consumers confidence. Consumer spending is expected to grow positively after a new government is formed.

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2.3 Product/Service (in General)

We provide 4 types of monthly box for customers to choose whether they like. 1. 1 box for 1 month [cost 395 Baht]: This is for people who are new in this product and want to try our product before deciding whether continuing or stopping. 2. 3 boxes for 3 months [cost 1,185 Baht]: This is for new members and people who want to try more than a month but do not want to try for longer than that. 3. 7 boxes for 7 months but cost only 6 months [cost 2,370 Baht]: This is for members who are well known the box and enjoy continuing receive the boxes. Well also provide the special magazine for members who join in this type. 4. 14 boxes for 14 months but cost only 12 months [cost 4,740 Baht]: This is for members who become loyalty with the box and enjoy continuing receive the boxes. Well also provide the special magazine and special cosmetics for members who join in this type.

*The products that we put in the boxes will be the sampling or trail from many cosmetic brands that were already selected and see the quality /how much people use. The members will not know that in each month what they will get from the boxes, so theyll be surprise and counting to get the next box for the next time.

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2.4 Vision of Organization Being the leader in beauty box business and being the main company that many cosmetic brands want to join the business with.

2.5 Mission To create new promotion to persuade customers to subscribe the box and keep the old members to be with the company, find more and more cosmetics which customers will interest, increase the customers by letting people from close countries to try the product and let them to register to get more special things.

2.6 Strategy

2.6.1 Corporate Level Our organization choose to manage business by use Intensive Strategies that concern about "aggregation" or expansion under which growth is achieved by expanding the scale of operations. That our organization decides to use Product development that we improve present product by collect more of cosmetic brand that will be the new release (Sample) and put into one box and set the price for the member. For example 1 box for 1 month [cost 395 Baht]: This is for people who are new in this product and want to try our product before deciding whether continuing or stopping.

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2.6.2 Business level strategy Business level strategy has an objective to improve the Strategic business unit (SBU) to get the competitive advantage under the law and ethic of business or its will be the strategy that the organization use for gain the advantage over the competitor. From the Michael Porter Generic Strategies that compose with low cost leadership, differentiation, and focus strategy. Our company (beauty box business) select the Differentiation strategy to use in our business because our company wants to make different from the competitor by use box that collect more of cosmetic brand (Sample) into one box that responds the need of customer because nowadays every brand of cosmetic launches more product to the market that make customer needs to buy it but it doesnt simply to know what brand is suitable for them. So our company has an idea to bring the new release (Sample)of many brand put together in one box that make customer can test it before make a decision to choose the brand that suitable for them.

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2.6.3 Functional level strategy Marketing Department Define Marketing mix (4P) Find the distribution channel Make a high market share Do the STP Do the SWOT analysis

General Management Department Make appropriate schedule (work and time) Develop team work Improve management system internal organization Manage organizations structure and responsibility

Human Resource Management Department Recruit employee has a specific skill that relate work Employees working hour Define qualification of each employee

Financial/Accounting Department Evaluate fund investment and cash flow Capital Structure Calculate every cost that relate to the business Make income statement and balance sheet every month Evaluate Budget & Tax

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Industry Summary According to the increasing of demand in cosmetic products in women, the industry try to select the strategy which can satisfy the demand of them by chosen Intensive Strategies that concern about "aggregation" or expansion under which growth is achieved by expanding the scale of operations. Our organization decides to use Product development because we want to improve the presentation of product by collect many kinds of cosmetic brand that will be the new release (Sample) and put into one box and set the medium price for customer to subscribe. For example 1 box for 1 month [cost 395 Baht]: This is for people who are new in this product and want to try our product before deciding whether continuing or stopping. By this reason, the industry can distribute products to target customer directly. Also, when the subscribers or members who have registered for the product and satisfy with the product, theyll tell to their friends and everyone that they know to apply for the product as we call it word of mouth strategy.

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Chapter 3 Market Feasibility Study

3.1 Market Analysis 3.1.1 PEST Analysis General Environment Analysis (Beauty surprise box) Political The political is the main factor of many businesses because political is the factor that shows the stability of the country that can make confidence for the foreigner to invest in our country. Thailand politics is something not many know a lot about, but in recent years there has been a lot of political news stemming from Thailand. Thailand is a lot like the United Kingdom in its current state of politics, but with a lot more stability issues that the United Kingdom doesnt see. The reasons behind this are intriguing, but to understand them you first need know more of Thailands government as a whole. The country of Thailand is currently known as a constitutional monarchy, a type of government that only a few countries still hold onto today. This type of government is unique because unlike a pure monarchy, the monarchs are typically strictly just political figures with very little power, or power that is limited by a constitution. The main decision-making comes from elected officials that are within a parliament, much like the United States Congress. In recent years, Thailand has had an interesting political climate; between the coup detat, which occurred in September 19, 2006, and the change of government-types after the fact, Thailand has been an ever-changing environment for the past twenty years. The coup was, remarkably, bloodless. It occurred about a month before the nation-wide general elections. This mini-revolution was led by the Thai Royal Military and shut down the elections, invalidated the Constitution, and suppressed and censored the media. The army also arrested several Cabinet members of the Thai parliament. Thaksin Shinawatra, the prime minister of Thailand, was ousted from power while he attended a United Nations

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meeting in New York. His time as prime minster is credited to the reason for the coup, since it allegedly created a rift in society. Thaksin was accused under several categories of corruption, including abuse of power, vote-buying, ethics violations, human rights violations, and interference in the political check system. (The Nation) However, the actual reason for the coup is still unknown. Many analysts still speculate as to why the coup actually occurred. Some say it was due to an on-going strife between the King and Thaksin. (BBC News) Giles Ungpakorn, an academic of Chulalongkorn University, credits the conflict to class conflicts between the elite and the urban poor. (Roberts & Symonds) A new government was formed immediately after the coup. General elections were promised within a year, and Thaksin was allowed to return to the country. Thaksin currently remains in a selfimposed exile however for fear that he will be arrested along with his family if he does return. In recent years many of his supporters have been seen to be wearing red shirts in support of his return to power as well as to Thailand. In contrast the yellow shirts are supporters of the monarchy. Following the election promise Marshall Law was declared, and censorship of media outlets became an important part of keeping people in-checkno defamation against the military was allowed on any airwaves, or social media. The self-declared temporary military regime banned any form of political assembly or protest by Thai citizens, and any group of people that exceeded five in number were required to hold a permit to travel throughout the country. Elections did indeed happen one year after the coup. However, not before the military regime established the Permanent Constitution for the Kingdom of Thailand in August of 2007. The Constitutional Tribunal, which drafted the new Constitution, outlawed the Thai Rak Thai party, the largest political party in Thailand, from participating in politics for five years. Attempting to bypass this ban, the TRT dissolved and regrouped under the name, Peoples Power Party. While the military regime attempted to subdue the PPP, the party won the popular vote of the people in December of 2007, gaining a majority in the House. This win was not taken lightly by the military regime: various members of the PPP were given red cards and accused of corruption. Rumors of dissolving the PPP spread, and by 2008, the PPP had merged with five smaller political parties, leaving the Democratic Party as the sole opposition in elections. Abhist Vejjajiva was elected Prime Minister of Thailand in 2008. Abhist based his political platform on rights for the people, especially the rural and working poor of Thailand. However, his actions did not align with his platform. He was accused of immense amounts of corruption and censorship of the media. As political protests increased due to his regime, so did accusations of human rights violations and torture. People around the country became more skeptical of Abhists actions and

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his motives. His crackdown of the protests by the National United Front of Democracy Against Dictatorship in 2009 resulted in several deaths and hundreds of injuries. This of course heightened the scrutiny that Abhist was already facing. In July of 2011, Thailand once again held a general election. This time, Abhist Vejjajiva would run against Yingluck Shinawatra, former Prime Minister Thaksin Shinawatras sister. Yingluck was running in affiliation with the Pheu Thai Party(PTP), while Abhist ran with the Democratic Party. The Pheu Thai Party won the election by a landslide. Naturally, accusations of corruption were present, and a reelection and recount was ordered in several Thai provinces. Still, Pheu Thai kept its win, and Yingluck Shinawatra was named Prime Minister of Thailand. Currently the political climate in Thailand has calmed in comparison to recent years, this however isnt a guarantee that things wont change in a blink of an eye. The Thai people have shown that they wont put up with the corruption of government officials, as has the Thai military. This is possibly one of the reasons the Thai government is undergone so many changes in the past few years, as well as attributing to the stability issues the government has faced in recent years. One thing is for certain however; the Thai people take politics very serious and will put their vote and voice where it counts when needed. Although the political has more effect to many business but it has not many effect to our business, because Thai regulation not be strict in the e-commerce and our business are sold only in Thailand that not take an effect too much from the foreigner. Economic The Thai National Economic and Social Development Board (NESDB) forecasts 2012 to produce economic growth of 3.5 - 4%. Thailand's export rate in 2010 grew by over 28 % and the second quarter of 2011 continued to show strong expansion, attributed mainly to exports of USD 21.1 billion. This was 16.8 % higher than last year. Thailand's average FDI figure for the last five years was US$ 668 million accounting for approximately 2% of GDP. And the FDI target is projected to rise to US$ 2.5 billion in 2015, resulting in a FDI/GDP ratio of approximately 4%. This will pave the way for an economic growth rate of 8-10%. Recently, the Thai Board of Investment announced that for the first seven months of 2011, investment value was almost 300,000 million baht. For 2011 a 10% growth rate is projected for the country's automotive production where 2010 saw production of 1.7 million units. Thailand's electronics industry is also on a roll.

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From the investment and economic outlook above, SUBCON Thailand 2012 ASEAN'S leading Industrial Subcontracting exhibition comes at the perfect time. 2012 is expected to be the largest ever Industrial subcontracting exhibition in ASEAN. It is projected to feature over 300 top quality subcontractors from many different industries and countries who will have the unique opportunity to grow their business and establish new market directions at this special event.

Social and Environment Thailand social almost depend on the economic and political situations that has more fluctuation in every years.

Technology Technology is the important role in our business because we sell our product through the website (e-commerce). So the development of technology has an effect to our business that has a many factor for example Face book, we can use Face book to advertising and review our product, and SEO system that help our business through the search engine website by take our website to the top rank.

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3.1.2 Competition Analysis (3C Analysis) Competitor analysis We have only few competitors in Thailand which is not over 10 companies and has more freedoms owner in Thailand. We offer a mix of both high-end and drugstore brand products but our product samples are more suitable for Thai women. Although our competitors offer more brands than us, we provide specific products which are suitable for each of our customer. For example, if one customer fill out in the form that she has oily skin then we will choose products which is good for oily skin to send her. By doing so she will get the right product and it is not a waste of money. Our direct competitors QoQo Box and Vanity Trove

QoQo Box

QoQo Box offer sample premium beauty products and products include everything from make up to skin care to hair care products and more. This is QoQo Boxs strength because they provide hair care products and even expensive products. For example, they provide large sized samples that really allow customer to compare the new products with their existing ones. QoQo Box monthly subscription price is 495 baht which is a little expensive than our Beauty Surprise Box. In addition, each QoQo Box includes 3-5 beauty samples but in our box we provide 5-6 beauty samples. So our Beauty Surprise Box gives more products at reasonable price.

QoQo Box Price/month 495 baht 3-5 sample products

Beauty Surprise Box Price/month 395 baht 5-6 sample products

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VANITYTROVE

VanityTrove give out the most effective time-tested favorites and top-quality trending beauty products in the industry into a specially put together box. VanityTrove provide skincare treats, fragrances, makeup samples even bath & body and hair care products. VanityTrove have many beauty brands available starting from A-Z. VanityTrove monthly subscription price is 595 baht which is quite expensive compare to our reasonable price. In addition, we provide more Asian beauty brands which are more suitable with Thai women.

VanityTrove Price/month 595 baht

Beauty Surprise Box Price/month 395 baht

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Customer analysis Who are our customers? Where customer can contact? between 19 to 30 years of age both female and male university students and office ladies

Our official website Facebook Twitter Youtube Mobile phone

Why customers want to subscribe our beauty surprise box?

To try new product samples before the actual products launch in the market To give a Gift to their moms, sisters, girl friends and colleagues

Our target customers are people who interested in beauty trend and who like to try new products. Our target groups of customers are between 19 to 30 years of age. Main customers will be university students and office ladies. Our customers can be both male and female. We provide the products suitable for this group of customers.

Company analysis We strive to create a special beauty experience that enhances all the elements for you. Our Beauty Surprise Box brings a fabulous monthly selection of between five to six cosmetic samples straight to your door. By working with the best brands and focusing on the latest beauty trends we ensure each months box is a real treat. Make sure you fill out your beauty profile and enjoy a personally crated box of cosmetics, lifestyle goods and luxury products. Make cosmetics discovery a social exercise share your experience on YouTube, Twitter, and Face book. What make our Beauty Box different from other companies is we advertise our Beauty Box not only via internet website but also via Television. For customers who dont have time to use internet, we give a service for them to call via mobile phone and order our Beauty Box.

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3.2 STP Analysis 3.2.2 Market Segmentation

Demographic Our company segmenting customer by demographic that has a main factor are age and gender. From the below picture we can see that the female and a range of age between 12-35 years are the mostly used the internet. So our company will choose the female for our target but for the range of age our company will choose the age range between 18-35 years for our segmentation because the female range of age that interest the cosmetic and has a sufficient purchase power are mostly between 18-35 years. User of internet in Thailand, The range of survey during 2012-02-01 to 2013-01-10 1. Gender From the questionnaire 82300 copy Male 49.28%

Female

50.72%

2. Age From the questionnaire 82300 copy Under 12 yrs. 4.17%

12 - 17 yrs.

27.53%

18 - 23 yrs.

23.93%

24 - 35 yrs.

24.64%

36 - 55 yrs.

16.83%

Above 55 yrs.

2.90%

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3.2.2 Target Market Our target is the female 18-35 ages. We select this segment because in behavior of female like the beauty item or tool to make her better. Moreover we have separate the age to 3 groups. First of all is 1821. This group is last teenage. In term of teenage they have interest the beauty and they want to test the cosmetic. Second group have period 22-27 ages. This groups the working women. She has the power to buy the product because she has the salary to consume our product. And finally this group section of age consumer is 28-35. In this group is the most powerful to consume but they have more condition because their experience. That is the target of our company.

3.2.3 Market Positioning We want to be the leader of fastest in this business ex. Fast distribute, fast response , because we have work hard to study about problem with the cosmetic. Moreover I think our business have identity of business. Its change the concept of gift. That is the mystery of the box. The consumer will push forward about the item in the beauty box. By in nowadays the e-commerce businesses have increase of growth rate. That is the big chance to become the first company to get the big market share. Moreover the internet or cyber network is the factor to drive the company to successful in future. And we have the way to distribute the product to the consumer faster than competition. And the target of our company will select the product because our products have the quality.

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3.3 Marketing Mix Strategy 3.3.1 4P Product Our product is a beauty surprise box which sends to members every month if they subscribe to be a member of the website. Our product is a medium box that contains small pieces of cosmetic sampling, and sometime well put the full size of product to let members to try too. The small sampling that we put in the box will be the counter brand/ drug store/ and any regular brand in Thailand. Itll be a good way for consumer who like to try new things but do not want to get full size of it. Price Price: beauty box set price is medium of revenue. The customer can buy product by credit card for convenience Place Our places are web site online, at www.beautysurprisebox.com and on our webpage on Face book. We have office for compile product and pace product to customer at Bangkok; Because Bangkok is the center easily to connect the company. The other factor for why that online, its very popular and convenient. The customer can order 24 hour and save time Promotion As our product is selling online and get product only once a month so well do online advertisement and let bloggers to review our product. If we do this kind of advertising we have to send some sample box to bloggers and let them try before they do a review to other people who follow them, this strategy is a good and easy for the industry because we just take a benefit from power of word of mouth to express the product directly to customers whom mostly are women. For attract more customers if they want to try the product, wed offer some promotion like for the new trial we have one month trying box and if they satisfy with our product and want to continue being a member, well offer 3/6/12 months with a special price and more gifts for members who subscribe for 6 and 12 months such as palette of eyes shadows and beauty magazines.

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3.4 SWOT Analysis Strengths: Weakness: Opportunities: Threats: Each people have different likely Different of country More competition Transportation for sent the product Our product similar to some competitor Same level of product Varity of each person Differently of product and brand for cosmetic Cosmetic come from Asian and Western brand Difference quality Not have the shop. We sell only online

3.5 Sales Forecast

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3.6 Marketing Expense (Sales incentive) SEO Promote website to top rank search of search engine like Google.com Cost: 32,500 baht/ 6month to top rank search engine 1-3 Total estimation: 32,500 x 4 times (promote first 2 years of operating) = 130,000 baht

Sale forecast Explanation Due to our company has opened in the first year 2012 and we did collection on sale to 5 years advance, its made the company know that the income will come during high season like New Year, Valentines day, Christmas and any celebration day in each month. So, during that period well do online advertisement through every channel like Facebook, twitter, instragram, and on our website as much as we can. For other season wed also do the advertisement through beauty website community like Jeban, Vanilla, and Pantip to attract women or men who find the new way to get a sample box of cosmetic. Moreover, we can see from the table that the lowing sell in some months may from low season, but thered be another thing which can interrupt our selling, it is competitors. Our company has about 4 direct competitors in Thailand, and they did the similar ways as us so the selling unit in each year will be low and not constant until we are in the 5 years above.

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Chapter 4 Investment Analysis

4.1 Pre operating cost Companys billboard

The company decides to use plastic inkjet logo to put on the wall inside the company (the company will have glass wall cover in the front). The logo will be the same as the picture above and make it bigger by expand it out into 1*1.5 meters. Then, well put it inside of the company and the logo will show up to people who walk on the street. The cost of this billboard will be 160 for 1*1 meter, so it will cost 240 and some fees will be 100.

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4.2 Investment Cost Building Our company is broad areas in Bangkok province Bang Ka Pi. Cause the big areas for keep the product and near the post office for fast to send the product. Lad Prao zone, 42,000 Bath / Month. SoiRamkhamhaeng 81

http://www.thaihometown.com/buildings/ 6361

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Layout Office

Warehouse

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Investment cost (only one branch)

Price Item Picture Unit per unit Telephone homepanasonickxts500 10 480

Usefu Total price l life per year

Annual depreciati on

Month deprecia tion

4800

960

80

computer

10

12000

120,000

2,400

200

box

1000

5,000

Cover papers

1000

3.12

3,120

desk

10

4000

40,000

8,000

667

chair

10

200

2,000

400

33

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calculator

10

150

1,500

300

25

printer

24,000

72,000

14,400

1,200

Fire extinguishers

3,800

11,400

2,280

190

Total

28,740

2,395

Mix for a branch is: Total price = 264,820 Annual Depreciation Per year = 28,740 Month Depreciation = 2,395

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4.3 Investment depreciation Useful life per year Annual depreciation Month depreciation Total Price after depreciation

Year 1 (12months)

Total price

Cost Type Telephone homepanasonickx-ts500 (*10) Computer (*10)

48,000

9,600

800

38,400

1,200,000

240,000

20,000

960,000

*Box(*1000)

60,000

**Cover papers(*1000)

37,440

Desk(*10)

400,000

80,000

6,667

320,000

Chair(*10)

20,000

4,000

333

16,000

Calculator(*10)

15,000

3,000

250

12,000

Printer(*3)

216,000

43,200

3,600

172,800

Fire extinguishers(*3)

34,200

6,840

570

27,360

Total

2,030,640

386,640

32,220

1,546,560

*, ** Estimate for a year products and there is no depreciation

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Year 2

Total price

Useful life per year

Annual depreciation

Month depreciation

Total Price after depreciation

Cost Type Telephone homepanasonickx-ts500 (*10) Computer (*10) 960,000 5 192,000 16,000 768,000 38,400 5 7,680 640 30,720

Box (*1000)

Cover papers(*1000)

Desk (*10)

320,000

64,000

5,333

256,000

Chair (*10)

16,000

3,200

267

12,800

Calculator (*10)

12,000

2,400

200

9,600

Printer (*3)

172,800

34,560

2,880

138,240

Fire extinguishers (*3)

27,360

5,472

456

21,888

Total

1,546,560

309,312

25,776

1,237,248

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Year 3

Total price

Useful life per year

Annual depreciation

Month depreciation

Total Price after depreciation

Cost Type Telephone homepanasonickx-ts500 (*10) Computer (*10) 768,000 5 153,600 12,800 614,400 30,720 5 6,144 512

24,576

Box (*1000)

Cover papers(*1000)

Desk (*10)

256,000

51,200

4,267

204,800

Chair (*10)

12,800

2,560

213

10,240

Calculator (*10)

9,600

1,920

160

7,680

Printer (*3)

138,240

27,648

2,304

110,592

Fire extinguishers (*3)

21,888

4,378

365

17,510

Total

1,237,248

247,450

20,621

989,798

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Year 4

Total price

Useful life per year

Annual depreciation

Month depreciation

Total Price after depreciation

Cost Type Telephone homepanasonickxts500 (*10) Computer (*10) 614,400 5 122,880 10,240 491,520 24,576 5 4,915 410 19,661

Box (*1000)

Cover papers(*1000)

Desk (*10)

204,800

40,960

3,413

163,840

Chair (*10)

10,240

2,048

171

8,192

Calculator (*10)

7,680

1,536

128

6,144

Printer (*3)

110,592

22,118

1,843

88,474

Fire extinguishers (*3)

17,510

3,502

292

14,008

Total

989,798

197,959

16,497

791,839

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Year 5

Total price

Useful life per year

Annual depreciation

Month depreciation

Total Price after depreciation

Cost Type Telephone homepanasonickx-ts500 (*10) Computer (*10) 491,520 5 98,304 8,192 393,216 19,661 5 3,932 328 15,729

Box (*1000)

Cover papers(*1000)

Desk (*10)

163,840

32,768

2,731

131,072

Chair (*10)

8,192

1,638

136

6,554

Calculator (*10)

6,144

1,229

102

4,915

Printer (*3)

88,474

17,695

1,474

70,779

Fire extinguishers (*3)

14,008

2,802

233

11,206

Total

791,839

158,368

13,196

633,471

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Chapter 5 Operations Analysis

5.1 Production and Operations Analysis

5.1.1 Product Characteristic Our beauty surprise box gives the most effective time-tested favorites and top-quality trending beauty products in the industry into a specially put together every month, sent directly to you. We bring to you only the best, solving your beauty dilemmas one trove at a time. Beauty Surprise Box made beauty discovery easy. It is more than just about a product. It is about the experience and the surprise.

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Product Characteristics in detail Type of cosmetics I. Face cosmetics

Cleanser (Sample product from the company)

Etude baking powder cleansing foam moist 30ml.

Astringent preparations and skin fresheners (Sample product from the company)

Skinfood watery berry blending cream

Lancme White expert spot cream

Make up (Sample product from the company)

Etude house Precious BB cream

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Bisous Bisous collagen pack powder Source: beauty-siam.com

II.

Body cosmetics Cleansing (Sample product from the company) Skinfood paprika body washes 50g.

Astringent preparations and skin fresheners (Sample product from the company) Oriental Princess body lotion

III.

Hair cosmetics Cleansing Astringent preparations and skin fresheners

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5.1.2 Service Process (1) Subscribe to our website. (2) Register as a member. (3) Choose the package. ( 1month, 6 months or 12 months package) (4) Deliver to customer via EMS. (5) Door-to-Door system. (6) Feedback from customers.

5.1.3 Process and Packaging Once the customer have subscribed to our package, we will carefully select and gather the product samples into a box. Then we will deliver to our customer at the end of the month. We will add a piece of greeting postcard in the box too. We carefully pack and design the box with pretty decoration.

5.1.4 Materials As we dont produce our own products, we use the products from our selected suppliers. For example, the products from Lancome, BisousBisous, Neutrogena, Skinfood, Etude etc. One Beauty Surprise Box might contain skincare samples, BB cream, mascara, mask sheet, eye shadow, lip gloss and etc. Products will be different depend on the season and trend.

5.1.5 Direct Labor Beauty Expert 2 Position Job Qualification Job Detail Experience in Fields Of Dermatology And Skin Care at least 3 years Male/Female, age above 25 years Master/Doctor Degree graduate

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Dermatology And Skin Care of Beauty Surprise Box Salary: 15,000 Baht per month

Packaging Staff 3 position Job Qualification Job Detail Packaging staff of Beauty Surprise Box Salary: 8,000 Baht per Month Experience in decoration at least 1 year Not limited degree Male/Female, age above 25 years

Delivery person 2 position Job Qualification Job Detail Sent product to EMS Salary: 8,000 Baht per Month Marketing Manager 1 position Job Qualification Bachelors degree to Master Male/Female, age not over 35 years Experience in marketing management at least five years Males aged 23-30 years Education grade 9 up Must have driving license Have responsibility

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Salary: 16,000 / Mont h Programmer 1 position Job Qualification Bachelors degree to Master Male/Female age not over 25 years Experience: a minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations Salary: 18,000/month

Accountant 1 position Job qualification Bachelors degree to Master Male/Female age not over 35 years Experience: a minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations Salary: 17,000/month

Total Salary Detail Beauty Expert Packaging staff Delivery person Marketing manager Programmer Accountant Unit 2 3 2 1 1 1 Salary 15,000 8,000 8,000 16,000 18,000 17,000 Baht/month 30,000 24,000 16,000 16,000 18,000 17,000

Total

121,000

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Utilities Expense: Utilities Baht/month Electricity -Internet expense ( include VAT) -Telephone expense -Maintenance costs Electricity ,internet ,and telephone expense/month Water Total Utilities 4,929.8 631.50 150 1,00 5811.30 5,00 6,311.3

Total Administration Cost Administration Cost Baht/month Electricity Internet and telephone expense/month -Internet expense (include VAT) -Telephone expense -Maintenance costs Electricity ,internet ,and telephone expense/month Water Total salary 631.50 150 1,00 5811.30 5,00 70,000 4,929.8

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Total Administration cost

76,311.3

Total operations cost Operations Salary Overhead cost -Water -Electricity -Internet and telephone -Fuel(variable) Maintenance 5,00 4,929.8 781.50 21,000 1,00 Total 148,311.3 Baht/month 121,000

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Chapter 6 Management Analysis

6.1 Administration Cost

6.1.1 Organization Management

Organizational structure

The main tasks are as follows. 1) The executive manager responsible for finance, accounting and preparation transport product and we have shop map when customer interest use full product. 2) The programmer is responsible for website and managing about management system on the website. Customer can contract, register and comment on website.

Logo Beauty surprise box logo to advertising and show our company images to customer. We use logo into box product when customer see and they can remember our on "Beauty surprise box" is leader of sampling cosmetic box for beauty and healthy.

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6.1.2 Administration Cost

Salary

1. Marketing Manager 2. Programmer

1person 1 person

16,000 / Mont h 18,000 /month

3. Accountant

1 person

17,000/month

Total salary per month

51,000/month

Infrastructure Electricity expenses (A)

Fixed Electricity Expenses Variable Electricity Expenses Monthly Electricity Expenses

228.17 baht 2,000 units x 2.4649 baht 4929.8 baht 4929.8 baht

Fuel Expenses Monthly Fuel Expenses = (40kmx35baht/lt. of Diesel) = 21,000 baht

(A)

(n.d.) http://www.eppo.go.th/power/pw-Rate-MEA.html#2 Telephone expenses (B)

Contact for Consumer 100 minutes x 1.50 baht 150 baht Monthly Telephone Expenses 150 baht

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Rent expenses

Rent of row house for store 7500 bath (r.rama2) Monthly Rent Expenses
(B)

7500 bath

http://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=th

Office staff

Marketing Manager 1 position

Job Qualification Bachelors degree to Master Male/Female, age not over 35 years Experience in marketing management at least five years Salary: 16,000 / Mont h

Programmer 1 position Job Qualification Bachelors degree to Master Male/Female age not over 25 years Experience: a minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations Salary: 18,000 /month

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Accountant 1 position Job qualification Bachelors degree to Master Male/Female age not over 35 years Experience: a minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations Salary: 17,000/month

Chapter 7 Financial Analysis

7.1 Profit/Loss Statement Profit and Loss Statement for the first year of business operating
Year 1 Revenue selling total revenue Cost of good sold Box Paper cover total Gross margin Expense Postal expense Fuel Pre operating Water Electricity Telephone and internet SEO (promote website) Server rental Jan 1,161,300 1,161,300 Feb 1,265,580 1,265,580 Mar 815,280 815,280 Apr 1,092,570 1,092,570 May 770,250 770,250 Jun 675,450 675,450 Jul 616,200 616,200 Aug 983,550 983,550 Sep 774,990 774,990 Oct 680,190 680,190 Nov 786,840 786,840 Dec 1,298,760 1,298,760 Total 9,622,200 9,622,200

417 260 677 1,160,623 16,667 21,000 340 500 4,930 782 5,417 5,400

417 260 677 1,264,903 16,667 21,000 500 4,930 782 5,417

417 260 677 814,603 16,667 21,000 500 4,930 782 5,417

417 260 677 1,091,893 16,667 21,000 500 4,930 782 5,417

417 260 677 769,573 16,667 21,000 500 4,930 782 5,417

417 260 677 674,773 16,667 21,000 500 4,930 782 5,417

417 260 677 615,523 16,667 21,000 500 4,930 782 5,417

417 260 677 982,873 16,667 21,000 500 4,930 782 5,417

417 260 677 774,313 16,667 21,000 500 4,930 782 5,417

417 260 677 679,513 16,667 21,000 500 4,930 782 5,417

417 260 677 786,163 16,667 21,000 500 4,930 782 5,417

417 260 677 1,298,083 16,667 21,000 500 4,930 782 5,417

5,004 3,120 8,124 9,614,076 200,004 252,000 340 6,000 59,160 9,384 65,004

64 | P a g e

Fail over system production staff salaries (packing ,delivery manand beauty expert salary) Office staff salaries (person in office) Rental fee Office Equipments and supply Other Total expense Earning before interest and Tax Tax 30% Net income

270,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

840,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

612,000 504,000

265,070 250 753,356

250 212,546

250 212,546

250 212,546

250 212,546

250 212,546

250 212,546

250 212,546

250 212,546

250 212,546

250 212,546

250 212,546

265,070 3,000 3,091,362

407,267 122,180 285,087

1,052,357 315,707 736,650

602,057 180,617 421,440

879,347 263,804 615,543

557,027 167,108 389,919

462,227 138,668 323,559

402,977 120,893 282,084

770,327 231,098 539,229

561,767 168,530 393,237

466,967 140,090 326,877

573,617 172,085 401,532

1,085,537 325,661 759,876

6,524,614 1,957,384 4,567,230

65 | P a g e

Profit and Loss Statement for the second year of business operating

Year 2 Revenue selling total revenue Cost of good sold Box Paper cover total Gross margin Expense Postal expense Fuel Pre operating Water Electricity Telephone and internet SEO (promote website) Server rental Fail over system production staff salaries

Jan 1,564,200 1,564,200

Feb 1,474,140 1,474,140

Mar 1,047,540 1,047,540

Apr 1,362,750 1,362,750

May 988,290 988,290

Jun 822,390 822,390

Jul 763,140.00 763,140.00

Aug 1,064,130.00 1,064,130.00

Sep 869,790.00 869,790.00

Oct 810,540.00 810,540.00

Nov 910,080.00 910,080.00

Dec 1,476,510.00 1,476,510.00

Total 13,153,500 13,153,500

417 260 677 1,563,523

417 260 677 1,473,463

417 260 677 1,046,863

417 260 677 1,362,073

417 260 677 987,613

417 260 677 821,713

417 260 677 762,463

417 260 677 1,063,453

417 260 677 869,113

417 260 677 809,863

417 260 677 909,403

417 260 677 1,475,833

5,000 3,120 8,120 13,145,380

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

16,600 21,000 0 500 4,930 782

199,200 252,000 0 6,000 59,158 9,378

5,417 5,400 270,000 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

5,417 0 0 70,000

65,000 5,400 270,000 840,000

66 | P a g e

(packing man and delivery man salary) Office staff salaries (person in office) Rental fee Office Equipments and supply Other Total expense Earning before interest and Tax Tax30% Net income

51,000 42000

51,000 42000

51,000 42000

51,000 42000

51,000 42000

51,000 42000

51,000 42000

51,000 42000

51,000 42000

51,000 42000

51,000 42000

51,000 42000

612,000 504000

0 250 487,878

0 250 212,478

0 250 212,478

0 250 212,478

0 250 212,478

0 250 212,478

0 250 212,478

0 250 212,478

0 250 212,478

0 250 212,478

0 250 212,478

0 250 212,478

0 3000 2,825,136

1,075,645 322693.62 752,952

1,260,985 378295.62 882,690

834,385 250315.62 584,070

1,149,595 344878.62 804,717

775,135 232540.6 2 542,595

609,235 182770.6 2 426,465

549,985 164995.62 384,990

850,975 255292.617 595,683

656,635 196990.62 459,645

597,385 179215.62 418,170

696,925 209077.61 7 487,848

1,263,355 379006.617 884,349

10,320,245 3096073.4 1 7,224,171

67 | P a g e

Profit and Loss Statement for the third year of business operating

Year 3 Revenue selling total revenue Cost of good sold Box Paper cover total Gross margin Expense Postal expense Fuel Pre operating Water Electricity Telephone and internet SEO (promote website)

Jan 5,237,700 5,237,700

Feb 5,545,800 5,545,800

Mar 4,668,900 4,668,900

Apr 4,479,300 4,479,300

May 4,787,400 4,787,400

Jun 5,024,400 5,024,400

Jul 4,977,000 4,977,000.00

Aug 4,597,800.00 4,597,800.00

Sep 4,218,600 4,218,600

Oct 4,740,000 4,740,000

Nov 4,692,600 4,692,600

Dec 5,593,200 5,593,200

Total 58,562,700 58,562,700

417 260 677 5,237,023

417 260 677 5,545,123

417 260 677 4,668,223

417 260 677 4,478,623

417 260 677 4,786,723

417 260 677 5,023,723

417 260 677 4,976,323

417 260 677 4,597,123

417 260 677 4,217,923

417 260 677 4,739,323

417 260 677 4,691,923

417 260 677 5,592,523

5,004 3,120 8,127 58,554,573

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

16,600 21,000 0 500 4,930

199,200 252,000 0 6,000 59,160

782

782

782

782

782

782

782

782

782

782

782

782

984

68 | P a g e

Server rental Fail over system production staff salaries (packing man and delivery man salary) Office staff salaries (person in office) Rental fee Office Equipment s and supply Other Total expense Earning before interest and Tax Tax 30% Net income

5,400 270,000

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

5,400 270,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

70,000

840,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

51,000 42,000

612,000 504,000

0 250 482,461

0 250 207,061

0 250 207,061

0 250 207,061

0 250 207,061

0 250 207,061 207,061

0 250 207,061

0 250

0 250 207,061

0 250 207,061

0 250 207,061

0 250 207,061

0 3,000 2,751,744

4,754,562 1,426,369 3,328,193

5,338,062 1,601,419 3,736,643

4,461,162 1,338,349 3,122,813

4,271,562 1,281,469 2,990,093

4,579,662 1,373,899 3,205,763

4,816,662 1,444,999 3,371,663

4,769,262 1,430,779 3,338,483

4,390,062 1,317,019 3,073,043

4,010,862 1,203,259 2,807,603

4,532,262 1,359,679 3,172,583

4,484,862 1,345,459 3,139,403

5,385,462 1,615,639 3,769,823

55,802,829 16,740,849 39,061,980

69 | P a g e

Profit and Loss Statement for the fourth year of business operating
Year 4 Revenue selling total revenue Cost of goods sold box paper(wrap box) total Gross margin Expense postal expense Fuel Pre operating Water Electricity Telephone and internet SEO Server rental Fail over system production staff salaries Office staff salaries Rental fee Jan 5,342,671 5,342,671 Feb 4,683,373 4,683,373 Mar 4,919,919 4,919,919 Apr 5,045,999 5,045,999 May 4,386,234 4,386,234 Jun 4,966,062 4,966,062 Jul 4,828,796 4,828,796 Aug 5,060,448 5,060,448 Sep 4,903,605 4,903,605 Oct 5,065,342 5,065,342 Nov 4,975,618 4,975,618 Dec 5,406,061 5,406,061 Total 59,584,127 59,584,127

417 260 677 5,341,994 16,600 21,000 500 4,930 782

417 260 677 4,682,696 16,600 21,000 500 4,930 782

417 260 677 4,919,242 16,600 21,000 500 4,930 782

417 260 677 5,045,322 16,600 21,000 500 4,930 782

417 260 677 4,385,557 16,600 21,000 500 4,930 782

417 260 677 4,965,385 16,600 21,000 500 4,930 782

417 260 677 4,828,119 16,600 21,000 500 4,930 782

417 260 677 5,059,771 16,600 21,000 500 4,930 782

417 260 677 4,902,928 16,600 21,000 500 4,930 782

417 260 677 5,064,665 16,600 21,000 500 4,930 782

417 260 677 4,974,941 16,600 21,000 500 4,930 782

417 260 677 5,405,384 16,600 21,000 500 4,930 782

5,004 3,120 8,124 59,576,003 199,200 252,000 6,000 59,158 9,378

5,400 270,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000 70,000 51,000 42,000

5,400 270,000 840,000 612,000 504,000

70 | P a g e

Office Equipments and supply Other Total expense Earnings before interest and Tax Tax 30% Net income

250 482,461 4,859,533 1,457,860 3,401,673

250 207,061 4,475,635 1,342,690 3,132,944

250 207,061 4,712,180 1,413,654 3,298,526

250 207,061 4,838,260 1,451,478 3,386,782

250 207,061 4,178,496 1,253,549 2,924,947

250 207,061 4,758,324 1,427,497 3,330,827

250 207,061 4,621,058 1,386,317 3,234,740

250 207,061 4,852,709 1,455,813 3,396,897

250 207,061 4,695,867 1,408,760 3,287,107

250 207,061 4,857,603 1,457,281 3,400,322

250 207,061 4,767,879 1,430,364 3,337,515

250 207,061 5,198,323 1,559,497 3,638,826

3,000 2,760,136 56,815,867 17,044,760 39,771,107

Profit and Loss Statement for the five year of business operating
Year 5 Assets Current asset Cash Total current asset None current asset Website server Total non-current asset Fixed assets Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1,715,689 1,715,689 5,400 5,400

1,916,480 1,916,480 0 0

1,282,410 1,282,410 0 0

1,460,089 1,460,089 0 0

798,148 798,148 0 0

641,372 641,372 0 0

711,050 711,050 0 0

1,303,313 1,303,313 0 0

839,955 839,955 0 0

979,311 979,311 0 0

1,372,991 1,372,991 0 0

2,135,965 2,135,965 0 0

71 | P a g e

Equipments(Product ion) Equipments(Office) Less: accumulated depreciation (Office) Total fixed assets Total Assets Liability and Equity Liability Total liability Owner equity Equity Retain earning Total owner equity Total liability and equity

677 66,237

677 66,237

677 66,237

677 66,237

677 66,237

677 66,237

677 66,237

677 66,237

677 66,237

677 66,237

677 66,237

677 66,237

13,196 80,110 1,801,199

13,196 80,110 1,996,590

13,196 80,110 1,362,520

13,196 80,110 1,540,199

13,196 80,110 878,258

13,196 80,110 721,482

13,196 80,110 791,160

13,196 80,110 1,383,423

13,196 80,110 920,065

13,196 80,110 1,059,421

13,196 80,110 1,453,101

13,196 80,110 2,216,075

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

958,451 842,749 1,801,199

1,051,546 945,044 1,996,590

734,511 628,009 1,362,520

823,350 716,848 1,540,199

492,380 385,878 878,258

413,992 307,490 721,482

448,831 342,329 791,160

744,963 638,461 1,383,423

513,283 406,781 920,065

582,961 476,459 1,059,421

779,802 673,300 1,453,101

1,161,289 1,054,787 2,216,075

1,801,199

1,996,590

1,362,520

1,540,199

878,258

721,482

791,160

1,383,423

920,065

1,059,421

1,453,101

2,216,075

72 | P a g e

7.2 Cash Flow Statement Cash Flow Statement for the first year of business operating
Year 1 Operating activities: Net Sale Depreciation Purchasing raw material Expense Cash paid for income tax Net cash flows from operating activity Investments activities: Purchase pre operating Purchase Office equipment Purchase of Server ( Computer) Net cash flow from investment activity Financing activities: Investment by owner Net cash flows from financing activity Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total

1,161,300 32,220 677 751,456 122,750

1,265,580 32,220 677 212,546 315,707

815,280 32,220 677 212,546 180,617

1,092,570 32,220 677 212,546 263,804

770,250 32,220 677 212,546 167,108

675,450 32,220 677 212,546 138,668

616,200 32,220 677 212,546 120,893

983,550 32,220 677 212,546 231,098

774,990 32,220 677 212,546 168,530

680,190 32,220 677 212,546 140,090

786,840 32,220 677 212,546 172,085

1,298,760 32,220 677 212,546 325,661

9,622,200 386,640 8,124 3,089,462 1,957,384

318,637

768,870

453,660

647,763

422,139

355,779

314,304

571,449

425,457

359,097

433,752

792,096

4,953,870

340 265,070

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

340 265,070

5,400

5,400

270,810

270,810

120,000,000

120,000,00 0

120,000,000

73 | P a g e

Net cash increase or decrease Cash at beginning period Cash at ending period

119,745,803 0 119,745,803

119,295,570 254,197 119,549,767

119,546,340 119,549,767 239,096,107

119,416,677 239,160,547 358,577,224

119,642,301 358,577,224 478,219,525

119,708,661 478,219,525 597,928,186

119,750,136 597,928,186 717,678,322

119,492,991 717,678,322 837,171,313

119,638,983 837,171,313 956,810,296

119,705,343 956,810,296 1,076,515,639

119,630,688 1,076,515,6 39 1,196,146,3 27

119,272,344 1,196,146,3 27 1,315,418,6 71

119,041,41 0 1,315,418, 671 1,434,460, 081

Cash Flow Statement for the second year of business operating

Year 2 Operating activities: Net sale Depreciation and Amortization Cost of raw material Expense Cash paid for income tax Net cash flows from operating activity Investments activities: Cash paid on investment Net cash flows from investing activity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

1,564,200

1,474,140

1,047,540

1,362,750

988,290

822,390

763,140.00

1,064,130.00

869,790.00

810,540.00

910,080.00

1,476,510.00

13,153,500

25,776 677 485,978 323263.62

25,776 677 212,478 378,296

25,776 677 212,478 250,316

25,776 677 212,478 344,878

25,776 677 212,478 232,541

25,776 677 212,478 182,771

25,776 677 212,478 164,996

25,776 677 212,478 255,297

25,776 677 212,478 196,991

25,776 677 212,478 179,216

25,776 677 212,478 209,078

25,776 677 212,478 379,007

309,312 8,124 2,823,236 3,096,646

728,505

856,913

558,293

778,941

516,818

400,688

359,213

569,902

433,868

392,393

462,071

858,572

6,916,182

74 | P a g e

Financing activities: Investment by owner Net cash flows from financing activity Net cash increase or decrease Cash at beginning period Cash at ending period

728,505

856,913

558,293

778,941

516,818

400,688

359,213

569,902

433,868

392,393

462,071

858,572

6,916,182

728,505 1,457,011

856,913 1,713,827

558,293 1,116,587

778,941 1,557,883

516,818 1,033,637

400,688 801,377

359,213 718,427

569,902 1,139,805

433,868 867,737

392,393 784,787

462,071 924,143

858,572 1,717,145

6,916,182 13,832,363

Cash Flow Statement for the third year of business operating

Year 3 Operating activities: Net sale Depreciation and Amortization Cost of raw material Expense Cash paid for income tax Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

1,717,065

1,557,801

1,104,894

1,231,808

758,993

647,010

696,780.00

1,119,825.00

788,854.50

888,394.50

1,169,595.00

1,714,576.50

13,395,596

20,621 677 207,938 370,178

20,621 677 207,938 405,019

20,621 677 207,938 269,147

20,621 677 207,938 307,221

20,621 677 207,938 165,376

20,621 677 207,938 131,782

20,621 677 207,938 146,713

20,621 677 207,938 273,626

20,621 677 207,938 174,335

20,621 677 207,938 204,197

20,621 677 207,938 288,557

20,621 677 207,938 452,051

247,452 8,124 2,486,832 3,192,953

75 | P a g e

Net cash flows from operating activity Investments activities: Cash paid on investment Net cash flows from investing activity Financing activities: Investment by owner Net cash flows from financing activity Net cash increase or decrease Cash at beginning period Cash at ending period

1,158,893

964,788

647,753

736,593

405,622

327,234

362,073

658,205

426,526

496,204

693,044

1,074,531

7,955,139

1,158,893

964,788

647,753

736,593

405,622

327,234

362,073

658,205

426,526

496,204

693,044

1,074,531

7,955,139

1,158,893 2,317,786

964,788 1,929,576

647,753 1,295,507

736,593 1,473,185

405,622 811,244

327,234 654,469

362,073 724,147

658,205 1,316,410

426,526 853,051

496,204 992,407

693,044 1,386,088

1,074,531 2,149,062

7,955,139 15,910,278

76 | P a g e

Cash Flow Statement for the fourth year of business operating

Year 4
Operating activities:

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Net sale Depreciation and Amortization Purchasing raw material Expense Cash paid for income tax Net cash flows from operating activity
Investments activities:

5,342,671

4,683,373

4,919,919

5,045,999

4,386,234

4,966,062

4,828,796

5,060,448

4,903,605

5,065,342

4,975,618

5,406,061

59,584,127

16,497 677 480,561 1,458,430

16,497 677 207,061 1,342,690

16,497 677 207,061 1,413,654

16,497 677 207,061 1,451,478

16,497 677 207,061 1,253,549

16,497 677 207,061 1,427,297

16,497 677 207,061 1,386,317

16,497 677 207,061 1,455,813

16,497 677 207,061 1,408,760

16,497 677 207,061 1,457,281

16,497 677 207,061 1,430,364

16,497 677 207,061 1,559,497

197,964 8,124 2,758,232 17,045,130

3,386,506

3,116,448

3,282,030

3,370,286

2,908,450

3,314,530

3,218,244

3,380,400

3,270,610

3,383,826

3,321,019

3,622,329

39,574,677

Cash paid on investment Net cash flows from investing activity

Financing activities:

Investment by owner Net cash flows from financing activity

77 | P a g e

Net cash increase or decrease Beginning cash Ending cash

3,386,506 3,386,506 6,773,012

3,116,448 3,116,448 6,232,896

3,282,030 3,282,030 6,564,059

3,370,286 3,370,286 6,740,571

2,908,450 2,908,450 5,816,900

3,314,530 3,314,530 6,629,061

3,218,244 3,218,244 6,436,488

3,380,400 3,380,400 6,760,799

3,270,610 3,270,610 6,541,220

3,383,826 3,383,826 6,767,652

3,321,019 3,321,019 6,642,037

3,622,329 3,622,329 7,244,658

39,574,677 39,574,677 79,149,353

Cash Flow Statement for the five year of business operating

Year 5 Operating activities: Net sale Depreciation and Amortization Cost of raw material Expense Cash paid for income tax Net cash flows from operating activity Investments activities: Cash paid on investment Net cash flows from Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

1,717,065

1,557,801

1,104,894

1,231,808

758,993

647,010

696,780.00

1,119,825.00

788,854.50

888,394.50

1,169,595.00

1,714,576.50

13,395,596

13,196 677 510,561 361,178

13,196 677 207,061 405,019

13,196 677 207,061 269,147

13,196 677 207,061 307,221

13,196 677 207,061 165,376

13,196 677 207,061 131,782

13,196 677 207,061 146,713

13,196 677 207,061 273,626

13,196 677 207,061 174,335

13,196 677 207,061 204,197

13,196 677 207,061 288,557

13,196 677 207,061 452,051

158,352 8,124 2,788,236 3,179,201

857,845

958,240

641,205

730,044

399,074

320,686

355,525

651,657

419,977

489,655

686,496

1,067,983

7,578,387

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

78 | P a g e

investing activity Financing activities: Investment by owner Net cash flows from financing activity Net cash increase or decrease Cash at beginning period Cash at ending period

857,845

958,240

641,205

730,044

399,074

320,686

355,525

651,657

419,977

489,655

686,496

1,067,983

7,578,387

857,845 1,715,689

958,240 1,916,480

641,205 1,282,410

730,044 1,460,089

399,074 798,148

320,686 641,372

355,525 711,050

651,657 1,303,313

419,977 839,955

489,655 979,311

686,496 1,372,991

1,067,983 2,135,965

7,578,387 15,156,774

7.3 Balance Sheet Balance Sheet for the first year of business operating
Year 1 Assets Current Assets: 119,745,8 03 119,745,8 03 119,549,7 67 119,549,7 67 239,160, 547 239,160, 547 358,577,2 24 358,577,2 24 478,219,5 25 478,219,5 25 597,928, 186 597,928, 186 717,678, 322 717,678, 322 837,171, 313 837,171, 313 956,810,2 96 956,810,2 96 1,076,515, 639 1,076,515, 639 1,196,146, 327 1,196,146, 327 1,315,418, 671 1,315,418, 671 Jan Feb March April May June July August Sept Oct Nov Dec

Cash

Total Current Assets Non-current Assets

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Website Server Total Non-current assets Fixed Assets Equipments (Production) Equipments ( Office ) Less: Accumulated depreciation(Office) Total Fixed Assets

5,400 5,400

677 169,470 32,220 137,927 119,889,1 30

677 169,470 32,220 137,927 119,687,6 94

677 169,470 32,220 137,927 239,298, 474

677 169,470 32,220 137,927 358,715,1 51

677 169,470 32,220 137,927 478,357,4 52

677 169,470 32,220 137,927 598,066, 113

677 169,470 32,220 137,927 717,816, 249

677 169,470 32,220 137,927 837,309, 240

677 169,470 32,220 137,927 956,948,2 23

677 169,470 32,220 137,927 1,076,653, 566

677 169,470 32,220 137,927 1,196,284, 254

677 169,470 32,220 137,927 1,315,556, 598

Total Assets Liability and Equity Liability Total liability Owner equity

Equity Retain earning

119,604,0 43 285,087 119,889,1 30 119,889,1 30

119,402,6 07 285,087 119,687,6 94 119,687,6 94

239,013, 387 285,087 239,298, 474 239,298, 474

358,430,0 64 285,087 358,715,1 51 358,715,1 51

478,072,3 65 285,087 478,357,4 52 478,357,4 52

597,781, 026 285,087 598,066, 113 598,066, 113

717,531, 162 285,087 717,816, 249 717,816, 249

837,024, 153 285,087 837,309, 240 837,309, 240

956,663,1 36 285,087 956,948,2 23 956,948,2 23

1,076,368, 479 285,087 1,076,653, 566 1,076,653, 566

1,195,999, 167 285,087 1,196,284, 254 1,196,284, 254

1,315,271, 511 285,087 1,315,556, 598 1,315,556, 598

Total owner equity

Total liability and equity

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Balance Sheet for the second year of business operating

Year 2 Assets Current asset Cash Total current asset None current asset Website server Total non-current asset Fixed assets Equipments(Production) Equipments(Office) Less: accrumulated depreciation (Office) Total fixed assets Total Assets Liability and Equity Liability Total liability Owner Equity Equity 1,457,011 1,457,011 1,713,827 1,713,827 1,116,587 1,116,587 1,557,883 1,557,883 1,033,637 1,033,637 801,377 801,377 718,427 718,427 1,139,805 1,139,805 867,737 867,737 784,787 784,787 924,143 924,143 1,717,145 1,717,145 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

5,400 5,400

677 129,130 25,776 104,031 1,566,442

677 129,130 25,776 104,031 1,817,858

677 129,130 25,776 104,031 1,220,618

677 129,130 25,776 104,031 1,661,914

677 129,130 25,776 104,031 1,137,668

677 129,130 25,776 104,031 905,408

677 129,130 25,776 104,031 822,458

677 129,130 25,776 104,031 1,243,836

677 129,130 25,776 104,031 971,768

677 129,130 25,776 104,031 888,818

677 129,130 25,776 104,031 1,028,174

677 129,130 25,776 104,031 1,821,176

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812,160 Retain earning Total owner equity Total liability and equity 754,282 1,566,442 1,566,442

935,168 882,690 1,817,858 1,817,858

636,548 584,070 1,220,618 1,220,618

857,197 804,717 1,661,914 1,661,914

595,073 542,595 1,137,668 1,137,668

479,143 426,265 905,408 905,408

437,468 384,990 822,458 822,458

648,153 595,683 1,243,836 1,243,836

512,123 459,645 971,768 971,768

470,648 418,170 888,818 888,818

540,326 487,848 1,028,174 1,028,174

936,827 884,349 1,821,176 1,821,176

Balance Sheet for the third year of business operating

Year 3 Assets Current asset Cash Total current asset None current asset Website server Total non-current asset Fixed assets Equipments(Product ion) Equipments(Office) Less: accrumulated depreciation (Office) 5,400 5,400 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,317,786 2,317,786 1,929,576 1,929,576 1,295,507 1,295,507 1,473,185 1,473,185 811,244 811,244 654,469 654,469 724,147 724,147 1,316,410 1,316,410 853,051 853,051 992,407 992,407 1,386,088 1,386,088 2,149,062 2,149,062 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

677 103,354

677 103,354

677 103,354

677 103,354

677 103,354

677 103,354

677 103,354

677 103,354

677 103,354

677 103,354

677 103,354

677 103,354

20,621

20,621

20,621

20,621

20,621

20,621

20,621

20,621

20,621

20,621

20,621

20,621

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Total fixed assets Total Assets Liability and Equity Liability Equity Retain earning Total owner equity Total liability and equity

83,410 2,406,596 0 1,542,847 863,749 2,406,596 2,406,596

83,410 2,012,986 0 1,067,942 945,044 2,012,986 2,012,986

83,410 1,378,917 0 750,908 628,009 1,378,917 1,378,917

83,410 1,556,595 0 839,746 716,849 1,556,595 1,556,595

83,410 894,654 0 508,776 385,878 894,654 894,654

83,410 737,879 0 430,389 307,490 737,879 737,879

83,410 807,557 0 465,228 342,329 807,557 807,557

83,410 1,399,820 0 761,359 638,461 1,399,820 1,399,820

83,410 936,461 0 529,680 406,781 936,461 936,461

83,410 1,075,817 0 599,358 476,459 1,075,817 1,075,817

83,410 1,469,498 0 796,198 673,300 1,469,498 1,469,498

83,410 2,232,472 0 1,177,686 1,054,786 2,232,472 2,232,472

Balance Sheet for the fourth year of business operating

Year 4 Assets Current asset Cash Total current assets Non-current asset Website server Total non-current assets Fixed assets Equipments(Product ion) Less: accrumulated depreciation Total 5,400 5,400 5,400 5,400 3,386,506 3,386,506 3,116,448 3,116,448 3,282,030 3,282,030 3,370,286 3,370,286 2,908,450 2,908,450 3,314,530 3,314,530 3,218,244 3,218,244 3,380,400 3,380,400 3,270,610 3,270,610 3,383,826 3,383,826 3,321,019 3,321,019 3,622,329 3,622,329 39,574,678 39,574,678 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

677

677

677

677

677

677

677

677

677

677

677

677

8,124

0 677 677 677 677 677 677 677 677 677 677 677 677 8,124

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Equipments(Office) Less: accrumulated depreciation Total Total fixedassets Total Assets Liability and Equity Liability Total liability Owner Equity Equity Retain earning Total owner equity Total liability and equity

82,482

82,482

82,482

82,482

82,482

82,482

82,482

82,482

82,482

82,482

82,482

82,482

989,789

16,497 98,979 99,656 3,491,562

16,497 98,979 99,656 3,216,104

16,497 98,979 99,656 3,381,686

16,497 98,979 99,656 3,469,942

16,497 98,979 99,656 3,008,106

16,497 98,979 99,656 3,414,186

16,497 98,979 99,656 3,317,900

16,497 98,979 99,656 3,480,056

16,497 98,979 99,656 3,370,266

16,497 98,979 99,656 3,483,482

16,497 98,979 99,656 3,420,675

16,497 98,979 99,656 3,721,985

197,964 1,187,753 1,195,877 40,775,955

6,893,235 3,401,673 3,491,562 3,491,562

6,349,048 3,132,944 3,216,104 3,216,104

6,680,212 3,298,526 3,381,686 3,381,686

6,856,724 3,386,782 3,469,942 3,469,942

5,933,063 2,924,957 3,008,106 3,008,106

6,795,013 3,380,827 3,414,186 3,414,186

6,552,640 3,234,740 3,317,900 3,317,900

6,876,953 3,396,897 3,480,056 3,480,056

6,657,373 3,287,107 3,370,266 3,370,266

6,883,804 3,400,322 3,483,482 3,483,482

6,758,190 3,337,515 3,420,675 3,420,675

7,360,811 3,638,826 3,721,985 3,721,985

80,597,071 39,821,116 40,775,955 40,775,955

Balance Sheet for the five year of business operating

Year 5 Assets Current asset Cash Total current asset 1,715,689 1,715,689 1,916,480 1,916,480 1,282,410 1,282,410 1,460,089 1,460,089 798,148 798,148 641,372 641,372 711,050 711,050 1,303,313 1,303,313 839,955 839,955 979,311 979,311 1,372,991 1,372,991 2,135,965 2,135,965 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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None current asset Website server Total non-current asset Fixed assets Equipments(Production) Equipments(Office) Less: accumulated depreciation (Office) Total fixed assets Total Assets Liability and Equity Liability Total liability Owner equity Equity Retain earning Total owner equity Total liability and equity

5,400 5,400 677 66,237 13,196 80,110 1,801,199 0 0

0 0 677 66,237 13,196 80,110 1,996,590 0 0

0 0 677 66,237 13,196 80,110 1,362,520 0 0

0 0 677 66,237 13,196 80,110 1,540,199 0 0

0 0 677 66,237 13,196 80,110 878,258 0 0

0 0 677 66,237 13,196 80,110 721,482 0 0

0 0 677 66,237 13,196 80,110 791,160 0 0

0 0 677 66,237 13,196 80,110 1,383,423 0 0

0 0 677 66,237 13,196 80,110 920,065 0 0

0 0 677 66,237 13,196 80,110 1,059,421 0 0

0 0 677 66,237 13,196 80,110 1,453,101 0 0

0 0 677 66,237 13,196 80,110 2,216,075 0 0

958,451 842,749 1,801,199 1,801,199

1,051,546 945,044 1,996,590 1,996,590

734,511 628,009 1,362,520 1,362,520

823,350 716,848 1,540,199 1,540,199

492,380 385,878 878,258 878,258

413,992 307,490 721,482 721,482

448,831 342,329 791,160 791,160

744,963 638,461 1,383,423 1,383,423

513,283 406,781 920,065 920,065

582,961 476,459 1,059,421 1,059,421

779,802 673,300 1,453,101 1,453,101

1,161,289 1,054,787 2,216,075 2,216,075

85 | P a g e

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Chapter 8 Risk Management

8.1 External Risk Assessment External risk is the risk that we cant control and predict but some situation we can predict and protect it when it happens. External risk has been anything that will effect to our business. For our business major of external risk has 3 things. Economic Competitors Our business is the business that trade through the online channel that has a many competitor and our company is the new comer for this business (beauty box). So our situation for this business is disadvantage because we are new comer that not well-known as other brand and has a low market share. Our Solution for this problem is doing the market communication that we will advertise our product and our website through the Facebook and use the SEO to promote our website to the top rank of search engine that make our products are well-known equal or superior than the competitor. High expenses (Customer) Our products are the luxury product that is not a necessary like as a food, clothes, medicine. So the decision of customers to buy our products is low when compare with other kinds of products. Moreover the problem of customer about the expense for their daily life has increasing but the revenues are still the same or increase but not enough to spend for luxury product. So our company has understand and aware of this problem because cosmetic are necessary to increase a self confidence. So our company will create a promotion that will help the customer to save (reduce) their payment for our product.

Technology Hacker & Cracker Hacker & Cracker are the problem that will cause our business fluctuation especially cracker (black hat). For this problem our company will hire the person that is the specialist in this area to protect our website from hacker & cracker.

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8.2 Internal risk assessment Internal risk is the risks that happen in the organization but it different from the external risk that we can control it (almost). Technical Server down The problem of sever down is happen from the user that log in to the website in the large amount at the same time that will make the server error and down in suddenly. The solution in this problem is often to use the System Backup and try to test recover the information because when the situation of server down happening, we can solve the problem in immediately. In another way is to use fail over system. Fail over system is the system that can solve the problem of server down by storage the information to the other server (backup server) when the primary server is down. [A] [A] http://www.chaiyohosting.com/load-balance/

Picture from http://www.chaiyohosting.com/load-balance/

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8.3 Financial risk We consider using following by the scenario as following -Sale decrease by 5%, 10%, 15% Decrease 5%
Income Statement Revenue selling total revenue Cost of good sold Box Paper cover total Gross margin Total expense Earning before interest and Tax Tax 30% Net income Year 1 9,141,090 9,141,090 4,754 2,964 7,718 9,133,372 3,091,362 6,042,010 1,812,603 4,229,407 Year 2 12,495,825 12,495,825 4,750 2,964 7,714 12,488,111 2,825,136 9,662,975 2,898,893 6,764,083 Year 3 12,725,816 12,725,816 4,754 2,964 7,718 12,718,098 2,751,744 9,966,354 2,989,906 6,976,448 Year 4 56,604,921 56,604,921 4,754 2,964 7,718 56,597,203 2,751,744 53,845,459 16,153,638 37,691,821 Year 5 12,725,816 12,725,816 4,754 2,964 7,718 12,718,098 2,790,136 9,927,962 2,978,389 6,949,574

Decrease 10%
Year 1 8,659,980 8,659,980 4,754 2,964 7,718 8,652,262 3,091,362 5,560,900 1,668,270 3,892,630 Year 2 13,140,350 13,140,350 4,754 2,964 7,718 13,132,632 2,825,136 10,307,496 3,092,249 7,215,247 Year 3 52,706,430 52,706,430 4,754 2,964 7,718 52,698,712 2,751,744 49,946,968 14,984,090 34,962,878 Year 4 53,625,714 53,625,714 4,754 2,964 7,718 53,617,997 2,751,744 50,866,253 15,259,876 35,606,377 Year 5 12,056,036 12,056,036 4,754 2,964 7,718 12,048,319 2,790,136 9,258,183 2,777,455 6,480,728

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Decrease 15%

Year 1 9,622,200 9,622,200 5,004 3,120 8,124 9,614,076 3,091,362 6,524,614 1,957,384 4,567,230

Year 2 13,153,500 13,153,500 5,000 3,120 8,120 13,145,380 2,825,136 10,320,245 3096073.41 7,224,171

Year 3 58,562,700 58,562,700 5,004 3,120 8,124 58,554,576 2,751,744 55,802,829 16,740,849 39,061,980

Year 4 59,584,127 59,584,127 5,004 3,120 8,124 59,576,003 2,760,136 56,815,867 17,044,760 39,771,107

Year 5 19,623,600 19,623,600 5,004 3,120 8,124 19,615,476 2,790,136 16,825,340 5,047,602 11,777,738

Sale decrease 5%
cash flow steatment operation net sale depreciation and amortization purchaesing raw meterial expense cash paid for income tax net cash flow from operating activity investment cash paid on investment net cash flow from investment ativity financing net cash flow from financing ativity net cash increase or decrease begining cash ending cash 1,315,418,671 1,434,460,081 6,916,182 13,832,863 7,955,139 15,910,278 39,574,677 79,149,353 7,578,387 15,156,774 120,000,000 386,640 8,124 3,091,362 1,957,384 4,953,870 309,312 8,120 2,825,136 3,096,073.41 6,916,182 247,452 8,127 2,751,744 16,740,849 7,955,139 197,964 8,124 2,760,136 17,044,760 39,574,677 158,352 8,124 2,790,136 5,047,602 13,806,392 Year 1 9,141,090 Year 2 12,495,825 Year 3 12,725,816 Year 4 56,604,921 Year 5 12,725,816

120,000,000 -120,000,000

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Decrease 10%
Year Operating activities: Net sale Depreciation and Amortization Cost of raw material Expense Cash paid for income tax Net cash flows from operating activity Investments activities: Cash paid on investment Net cash flows from investing activity Financing activities: Investment by owner Net cash flows from financing activity Net cash increase or decrease Cash at beginning period Cash at ending period 120,000,000 120,000,000 114,709,465 0 114,709,465 0 0 9,768,861 114,709,465 124,478,326 0 0 49,368,491 124,478,326 173,846,817 0 0 50,238,287 173,846,817 224,085,104 0 0 8,579,088 224,085,104 232,664,191 8,659,980 386,640 8,124 3,091,362 927,409 5,019,725 13,140,350 309,312 8,124 2,825,136 847,541 9,768,861 52,706,430 247,452 8,124 2,751,744 825,523 49,368,491 53,625,714 197,964 8,124 2,751,744 825,523 50,238,287 12,056,036 158,352 8,124 2,790,136 837,041 8,579,088 Year 1 Year 2 Year 3 Year 4 Year 5

270,810 270,810

0 0

0 0

0 0

0 0

Sales decrease 15% cash flow statement Year Operation net sale depreciation and amortization purchasing raw material expense cash paid for income tax net cash flow from operating activity investment cash paid on investment net cash flow from investment ativity financing net cash flow from financing ativity net cash increase or decrease begining cash ending cash

Year 1

Year 2

Year 3 49778295 247452 8127 2751744 16740849 7955139

Year 4

Year 5

8178870 11180475 9622200 8124 3091362 1957384 8175870 120000000 -120000000 120000000 1315418671 6916182 1434460081 13832863 309312 8120 2825136 3096073 6916182

50519892 1815570.3 197964 8124 2760136 17044760 39574677 158352 8124 2790136 3179201 7578387

7955139 15910278

39574677 79149353

7578387 15156774

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Decrease 5%
balance sheet Year 1 assets current assets cash fixed assets equipment product equipment office less:accumulation depreciation office total fixed assets total assets Liability and equipty Liability liability total liability equipty retain earning total owner euipty total liability and euipty 0 0 801,116,110 3,421,044 804,537,154 807,958,198 7,860,831 7,225,304 15,086,135 15,086,135 0 0 0 0 9470117.68 ####### 16,909,253 16,909,253 0 0 80,267,084 79,642,232 159,909,316 159,909,316 0 0 20,844,664 7,418,135 28,262,799 28,262,799 8,124 2,033,640 386,640 1,655,124 10,796,214 8,124 1,549,560 309,312 1,248,372 13,744,197 8,124 1,240,248 247,452 1,000,920 56,635,485 8,124 989,789 197,964 799,949 57,404,870 8,124 794,844 158,352 644,616 20,170,098 9,141,090 12,495,825 55,634,565 ######## 19,525,482 Year 2 Year 3 Year 4 Year 5

Decrease 10%
Year Assets Current asset Cash Total current asset None current asset Website server Total non-current asset Fixed assets Equipments(Production) Equipments(Office) Less: accrumulated depreciation (Office) Total fixed assets Total Assets Liability and Equity Liability Total liability Owner equity Equity Retain earning Total owner equity Total liability and equity 112,948,945 3,421,044 116,369,989 116,369,989 118,506,794 7,225,304 125,732,098 125,732,098 167,414,004 7,439,135 174,853,139 174,853,139 185,069,342 39,821,116 224,890,458 224,890,458 225,896,072 7,418,135 233,314,207 233,314,207 0 0 0 0 0 0 0 0 0 0 8,124 2,033,640 386,640 1,655,124 116,369,989 8,124 1,549,560 309,312 1,248,372 125,732,098 8,124 1,240,248 247,450 1,000,922 174,853,139 8,124 989,789 197,959 799,954 224,890,458 8,124 794,844 158,352 644,616 233,314,207 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 114,709,465 114,709,465 124,478,326 124,478,326 173,846,817 173,846,817 224,085,104 224,085,104 232,664,191 232,664,191 Year 1 Year 2 Year 3 Year 4 Year 5

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Cost/expense increase by 5%, 10%, 15%

Cost /expense increase 5% Income Statement Revenue selling total revenue Cost of good sold Box Paper(wrap) total Gross margin Expense Total expense Earning before interest and Tax Tax 30% Net income Year 1 9,622,200 9,622,200 5,254 3,276 8,530 9,613,670 3,245,930 6,367,740 1,910,322 4,457,418 Year 2 13,153,500 13,153,500 5,254 3,276 8,530 13,144,970 2,966,393 10,178,577 3,053,573 7,125,004 Year 3 58,562,700 58,562,700 5,254 3,276 8,530 58,554,170 2,889,331 55,664,839 16,699,452 38,965,387 Year 4 59,584,127 59,584,127 5,254 3,276 8,530 59,575,597 2,898,143 56,677,454 17,003,236 39,674,218 Year 5 19,623,600 19,623,600 5,254 3,276 8,530 19,615,070 2,929,643 16,685,427 5,005,628 11,679,799

Cost/expense increase 10% Income Statement Revenue selling total revenue Cost of good sold Box Paper(wrap) total Gross margin Expense Total expense Earning before interest and Tax Tax 30% Net income Year 1 9,622,200 9,622,200 5,504 3,432 8,936 9,613,264 3,400,498 6,212,765 1,863,830 4,348,936 Year 2 13,153,500 13,153,500 5,504 3,432 8,936 13,144,564 3,107,650 10,036,914 3,011,074 7,025,840 Year 3 58,562,700 58,562,700 5,504 3,432 8,936 58,553,764 3,026,918 55,526,845 16,658,054 38,868,792 Year 4 59,584,127 59,584,127 5,504 3,432 8,936 59,575,191 3,036,150 56,539,041 16,961,712 39,577,329 Year 5 19,623,600 19,623,600 5,504 3,432 8,936 19,614,664 3,069,150 16,545,514 4,963,654 11,581,860

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Cost /expense increase 15% Income Statement Revenue selling total revenue Cost of good sold Box Paper(wrap) total Gross margin Expense Total expense Earning before interest and Tax Tax 30% Net income Year 1 9,622,200 9,622,200 5,755 3,588 9,343 9,612,857 3,555,066 6,057,791 1,817,337 4,240,454 Year 2 13,153,500 13,153,500 5,755 3,588 9,343 13,144,157 3,248,906 9,895,251 2,968,575 6,926,676 Year 3 58,562,700 58,562,700 5,755 3,588 9,343 58,553,357 3,164,506 55,388,852 16,616,656 38,772,196 Year 4 59,584,127 59,584,127 5,755 3,588 9,343 59,574,784 3,174,156 56,400,628 16,920,188 39,480,440 Year 5 19,623,600 19,623,600 5,755 3,588 9,343 19,614,257 3,208,656 16,405,601 4,921,680 11,483,921

Cost/expense increase 5% Cash Flow Statement Operations Net sale Depreciation and Amortization Purchasing raw material Expense Cash paid for income tax Net cash flows from operating activity Investments Cash paid on investment Net cash flows from investing activity Year 1 9,622,200 386,640 8,530 3,243,935 1,957,384 4,025,711 Year 2 13,153,500 309,312 8,530 2,964,398 3,096,646 6,774,614 Year 3 13,395,596 247,452 8,530 2,611,174 3,192,953 7,335,487 Year 4 59,584,127 197,964 8,530 2,896,144 17,045,130 39,436,359 Year 5 19,623,600 158,352 8,530 2,927,648 3,179,201 13,349,869

270,810

Financing Investment by owner Net cash flows from financing activity Net cash increase or decrease Beginning cash Ending cash

120,000,000 120,000,000 115,703,479 0 115,703,479

0 0 6,774,614 6,774,614 13,549,228

0 0 7,335,487 7,335,487 14,670,974

0 0 39,436,359 39,436,359 78,872,718

0 0 13,349,869 13,349,869 26,699,738

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Cost/expense increase 10%
Cash Flow Statement Operations Net sale Depreciation and Amortization Purchasing raw material Expense Cash paid for income tax Net cash flows from operating activity Investments Cash paid on investment Net cash flows from investing activity 9,622,200 386,640 8,936 3,398,408 1,957,384 3,870,831 13,153,500 309,312 8,936 3,105,560 3,096,646 6,633,046 13,395,596 247,452 8,936 2,735,515 3,192,953 7,210,739 59,584,127 197,964 8,936 3,034,055 17,045,130 39,298,041 19,623,600 158,352 8,936 3,067,060 3,179,201 13,210,051 Year 1 Year 2 Year 3 Year 4 Year 5

270,810

Financing Investment by owner Net cash flows from financing activity Net cash increase or decrease Beginning cash Ending cash 120,000,000 120,000,000 115,858,359 0 115,858,359 0 0 6,633,046 6,633,046 13,266,092 0 0 7,210,739 7,210,739 14,421,479 0 0 39,298,041 39,298,041 78,596,083 0 0 13,210,051 13,210,051 26,420,102

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Cost/expense increase 15%
Cash Flow Statement Operations Net sale Depreciation and Amortization Purchasing raw material Expense Cash paid for income tax Net cash flows from operating activity Investments Cash paid on investment Net cash flows from investing activity 9,622,200 386,640 9,343 3,552,881 1,957,384 3,715,952 13,153,500 309,312 9,343 3,246,721 3,096,646 6,491,478 13,395,596 247,452 9,343 2,859,857 3,192,953 7,085,992 59,584,127 197,964 9,343 3,171,967 17,045,130 39,159,724 19,623,600 158,352 9,343 3,206,471 3,179,201 13,070,233 Year 1 Year 2 Year 3 Year 4 Year 5

270,810

Financing Investment by owner Net cash flows from financing activity Net cash increase or decrease Beginning cash Ending cash 120,000,000 120,000,000 116,013,238 0 116,013,238 0 0 6,491,478 6,491,478 12,982,956 0 0 7,085,992 7,085,992 14,171,983 0 0 39,159,724 39,159,724 78,319,447 0 0 13,070,233 13,070,233 26,140,466

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Cost/expense increase 5% Balance Sheet Assets Current asset Cash Total current asset None current asset Website server Total non-current asset Fixed assets Equipments(Production) Equipments(Office) Less: accrumulated depreciation (Office) Total fixed assets Total Assets Liability and Equity Liability Equity Retain earning Total owner equity Total liability and equity Year 1 Year 2 Year 3 Year 4 Year 5

8,413,567,701 8,413,567,701 5,670 5,670 8,530 2,135,322 405,972 1,737,880 8,415,311,251

14,523,981 14,523,981 5,670 5,670 8,530 1,627,038 324,778 1,310,791 15,840,442

16,698,080 16,698,080 5,670 5,670 8,530 1,302,260 259,825 1,050,965 17,754,715

83,106,774 83,106,774 5,670 5,670 8,530 1,039,278 207,862 839,946 83,952,390

28,993,422 28,993,422 5,670 5,670 8,530 834,586 166,270 676,846 29,675,938

8,411,719,155 3,592,096 8,415,311,251 8,415,311,251

8,253,873 7,586,569 15,840,442 15,840,442

9,943,623 7,811,092 17,754,715 17,754,715

42,140,218 41,812,172 83,952,390 83,952,390

21,886,896 7,789,042 29,675,938 29,675,938

Cost/expense increase 10%

Balance Sheet
Assets Current asset Cash Total current asset None current asset Website server Total non-current asset Fixed assets Equipments(Production) Equipments(Office) Less: accrumulated depreciation (Office) Total fixed assets Total Assets Liability and Equity Liability Equity Retain earning Total owner equity Total liability and equity

Year 1

Year 2

Year 3

Year 4

Year 5

8,814,213,782 8,814,213,782 5,940 5,940 8,936 2,237,004 425,304 1,820,636 8,816,040,358

15,215,599 14,523,981 5,940 5,940 8,936 1,704,516 340,243 1,373,209 15,903,130

17,493,226 17,493,226 5,940 5,940 8,936 1,364,273 272,197 1,101,012 18,600,178

87,064,240 87,064,240 5,940 5,940 8,936 1,088,768 217,760 879,944 87,950,124

30,374,062 30,374,062 5,940 5,940 8,936 874,328 174,187 709,077 31,089,079

8,812,277,210 3,763,148 8,816,040,358 8,816,040,358

7,956,759 7,946,371 15,903,130 15,903,130

10,417,129 8,183,049 18,600,178 18,600,178

44,146,896 43,803,228 87,950,124 87,950,124

22,929,130 8,159,949 31,089,079 31,089,079

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Cost/expense increase 15%

Balance Sheet
Assets Current asset Cash Total current asset None current asset Website server Total non-current asset Fixed assets Equipments(Production) Equipments(Office) Less: accrumulated depreciation (Office) Total fixed assets Total Assets Liability and Equity Liability Equity Retain earning Total owner equity Total liability and equity

Year 1

Year 2

Year 3

Year 4

Year 5

8,814,213,782 8,814,213,782 6,210 6,210 9,343 2,338,686 444,636 1,903,393 8,816,123,385

15,215,599 14,523,981 6,210 6,210 9,343 1,781,994 355,709 1,435,628 15,965,819

17,493,226 17,493,226 6,210 6,210 9,343 1,426,285 284,570 1,151,058 18,650,494

87,064,240 87,064,240 6,210 6,210 9,343 1,138,252 227,659 919,936 87,990,386

30,374,062 30,374,062 6,210 6,210 9,343 914,071 182,105 741,308 31,121,580

8,812,189,184 3,934,201 8,816,123,385 8,816,123,385

12,031,618 3,934,201 15,965,819 15,965,819

14,716,293 3,934,201 18,650,494 18,650,494

84,056,185 3,934,201 87,990,386 87,990,386

27,187,380 3,934,201 31,121,580 31,121,580

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Chapter 9 Summary

9.1 Strategic management Differentiation Our company uses the difference kinds of product and different brand of cosmetics which makes customers feel exited to try the new product. Also, well bring the cosmetic both from Asian and Western brand which has difference quality for our member to try. Moreover the customer will get surprise gift when they apply for long member like free 2 more boxes or a cosmetic bag.

Cost leadership According from the market price our product may similar to some competitor which has the same price with us, but our company has more difference kinds of product which they cant get the same so our price will be suitable with the quality of the products and cheaper than others brands who has the same level of products.

9.2 Financial Management Liquidity To smooth all business activities, we maintain the cash on hand at least the minimum amount of 350,000 baht on hand to ensure that we have ability to pay the expenses and retain the smoothing of all business activities. Profitability Our Beauty Box is an online website system which has high profit margin compare to other online shopping sites. We generate our high profit by offer 83 Beauty Surprise Box per month.

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9.3 Risk Management

Technological Change

As our business operates over the internet, we are coping with the advancement of technology. Since the technology is dynamic which change along the time, we need to upgrade all of the server equipment to ensure that our equipments and other related tools are up to date.

Demand Change

To make the revenue more stable, we need to capture the customer preferences by understanding consumer desire and catch up with the trends to satisfy customer needs.

Security

Since the security leakage is goes beyond with the advancement of technology, we need to secure the website and database to ensure that unnecessary information is not disclosed and no authority person cannot accessing this information also. This issue can eliminate by hire a specialist on software security.

Inventories Management

As our merchandise is one of the key for attracting customer, we need to ensure that the merchandise is enough for the demand. We will negotiate with the supplier to order the merchandise and stock up all merchandise to be ready to ship.

9.4 Other Related Terms Promotional Plan We offer different promotional plans throughout the year. Promotions may depend on seasons and trend. For example, extra free gifts and sample products for 6 months and 12 months membership during Holiday season like Christmas. For 6 months subscription members, we give an extra 1 Box free

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together with a Fashion Magazine. For 12 months subscription members, we give 2 extra Boxes, 3 Fashion Magazines and a set of cosmetics or skincare set. System Reliability To stabilize all server operates, we place the server at the specialize outsourcing company which have a high bandwidth and administrator that 24 hour a day monitoring our server traffic to ensure that our server and the website operation still 99.99% uptime and always in controllable. Website Friendliness The storefront of our website is very user friendly. Customer can understand easily what the system is and how to use it. Customers only need to subscribe and enjoy the Beauty Surprise Box. Customer Service To satisfy the various customer preferences and needs, we response their feedback as fast as we can to make sure that all customers will be satisfied and happy shopping with us.

References

Chapter I http://www.chicsociety.com/qoqo-box/ Qoqo Box >> http://www.qoqobox.com/en/ Pambox>> http://www.pambox.com/ Beauty Hunter>> http://www.beautyhunter.co.th/ VamotyTrove>> http://www.vanitytrove.com/th http://www.kiehls.com http://www.lancome-usa.com/ http://www.makeupforever.com http://www.neutrogena.com/ http://www.lorealparis.com http://www.maccosmetics.co.th/ http://www.thebodyshop.com http://www.thefaceshop.com/ http://www.etudehouse.com/eng/brand/brand.jsp#wrap http://www.theskinfoodus.com/skinfood/brand.asp http://www.bisousbisousthailand.com/eng/about.php http://www.siamturakij.com/home/news/print_news.php?news_id=413353186 http://www.ryt9.com/s/oie/1476124 http://www.bangkokbiznews.com/2011/01/01/news_32191737.php?news_id=32191737 http://www.brecosmeticlab.com/newslet/54/06_jun/prem_cos_growth.html http://www.cyonic-nemeton.com/Cosmetics.html. http://incquity.com/articles/marketing-boost/tester)

http://reviews.ebay.com/What-is-a-tester?ugid=10000000001542810 http://203.155.220.230/info/NowBMA/frame.asp

Chapter II http://internet.nectec.or.th/webstats/home.iir http://www.searchblog.asia/thailand-e-commerce-trends-in-2011 http://pambox.com/ http://www.docstoc.com/docs/72916121/Thailand-Cosmetic-Products-Market http://kirarista.com/2012/07/03/pambox-june/ Chapter III http://www.qoqobox.com/ http://www.vanitytrove.com www.beautysurprisebox.com http://maytermthailand.wordpress.com/2012/05/01/politics-in-thailand/ http://poll.truehits.net/reports/report_year2012.php Chapter VI http://www.eppo.go.th/power/pw-Rate-MEA.html#2 http://www.tot.co.th/index.php?option=com_k2&view=item&id=268:tot-netcall&Itemid=125&lang=th

Beauty Surprise Box Present Aj.ChaiyawatThongintr

Made by Mr. Arkorn Patthanasuchai 5231203192 Miss Naruporn Saechua 5231203054 Miss Easternly Van Sui Mawi 5231203142 Miss Nan Non Htwe Long 5231203157

Miss Nang Naunt Mat Kham Kyauk 5231203161 Miss Isaraporn Phatthanawongphairot 5231203512 Mr. Chanut Pattamalai 5331203017 Mr.Chatchawan Chatchukaittikul 5331203021

Project Feasibility Study and Evaluation 2012 School of Management Mae FahLuang University