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Project Feasibility and Evaluation, MAE FAH LUANG University, 2010




Preface

PUB & PUB & PUB that does business in Chiang Rai province, Chiang Rai province

is a center of community development and has many attractive places where traveler wants to

visit. PUB & PUB & PUB is a pub and restaurant with fish spa that serves a high quality of

product and service to customer because they would like to make an impression and

satisfaction to the customer for becoming a loyalty of brand.

This project has applied to be feasibility, it might be benefit for investment of

entrepreneur on running the business in Chiang Rai. The team apologizes for any mistakes in

this report.

Group members

Mr.Wichapon Sakam

Mr.Withan Jaiban

Miss Supawadee Chaiwang

Mr.Eitsarapong Sanachai

Mr Peerapong Thongwang




ContentChapter 1 Introduction ............................................................................................................................ 5

1.1 Background and Significance of the Project ................................................................................. 6

1.2 Project Objective........................................................................................................................... 7

1.3 Benefits of Project......................................................................................................................... 7

1.4 Activities/Time Frame .................................................................................................................. 8

Chapter 2 Industry profile ....................................................................................................................... 9

2.1 Nature of Pub and Restaurant ..................................................................................................... 10

2.2 Situation of Pub and Restaurant .................................................................................................. 14

2.3 Product and service ..................................................................................................................... 15

2.3.1 Product ................................................................................................................................. 15

2.3.2 Service .................................................................................................................................. 17

2.4 Vision.......................................................................................................................................... 19




3.3 Marketing Mix Strategy .............................................................................................................. 37

3.3.1 Product and Service Strategy ............................................................................................... 37

3.3.2 Price Strategy ....................................................................................................................... 40

3.3.3 Place Strategy....................................................................................................................... 40

3.3.4 Promotion Strategy .............................................................................................................. 41

3.4 Sale forecast/Profit estimate........................................................................................................ 42

3.5 Marketing Expense (sale incentive) ............................................................................................ 55

3.6 Conclusion in market feasibility ................................................................................................. 64

Chapter 4 Technical Analysis ............................................................................................................... 65

4.1.1 Product and service characteristics ...................................................................................... 66

4.1.2 Service Process .................................................................................................................... 72

4.1.3 Location ............................................................................................................................... 72

4.1.4 Factory Layout ..................................................................................................................... 74

4.1.6 Facility management ............................................................................................................ 81




5.3 Cash Flow ................................................................................................................................. 147

Chapter 6 Risk Analysis...................................................................................................................... 152

6.1 Risk Analysis ............................................................................................................................ 153

6.1.1 External force ..................................................................................................................... 153

6.1.2 Internal force ...................................................................................................................... 155

6.2 Conclusion of risk management................................................................................................ 162

Chapter 7 Summary ............................................................................................................................ 163

7.1 Summary of project feasibility study ........................................................................................ 164

Appendix A......................................................................................................................................... 167




Ch t 1 I t d ti




1.1 Background and Significance of the Project

Today, Chiang Rai is a traveler‟s paradise, endowed with abundant natural attractions andantiquities. Recently tourism has boomed in Chiang Rai, where visitors have come to explore

the pristine natural beauty of the countryside and immerse themselves in the indigenous

culture, including those of a variety of different hill tribe communities. Fortunately for

tourists, Chiang Rai is also a center for community development projects, helping rural

villagers develop their attractions without adversely affecting their natural and cultural assets.Team decided to build up Pub and restaurant in Chiang Rai, with a Fish spa, because of

Chiang Rai province has many attractive places where traveler wants to visit it.

Fish spa is more interested in Chiang Mai. Nevertheless, we think that Chiang Rai has

many attractive places as Chiang Mai, so the service will be interesting and attract many

customers in Chiang Rai who want to relax for their work. Fish spa is footing therapy. Fish

will nibble at customers‟ foot and it is not dangerous to customers absolutely.

Trend of Pub and Restaurant business is highly growing although the government

established the policy for reducing and abstaining alcohol but Thai people still drink alcohol

until being 5th

ranking alcoholism of the world and Chiang Rai is the 3rd

ranking alcoholism




1.2 Project Objective

1. To study and understand customer behavior to analyzing project feasibility.2. Find out factors which are impacted both positive and negative to the business.

3. To summary the feasibility of Pub and restaurant.

4. To study risk taking of Pub & Restaurant business.

1.3 Benefits of Project 1. To know the possible way to gain maximize profit with business risk.

2. To know the way how to advertise the pub and restaurant to be in customer

awareness.

3. To know how to make pub and restaurant to be the best choice of customer.

4. To know the way how to gain maximize market share in pub and restaurant business.

5. To know the important instruments which are used in Pub and restaurant.

6. To know how to be successful in business.

7. To know customer behavior concern about pub and restaurant.

8. To gain the way how to analyze business feasibility.

9. To gain knowledge about Pub and restaurant‟s financial management.

10 C l k l d t l tit f tti titi d t




1.4 Activities/Time Frame

DescriptionsNovember December January February

w

1

w

2

w

3

w

4

w

1

w

2

w

3

w

4

w

1

w

2

w

3

w

4

w

1

w

2

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w

4

1.To study

environment of

Pub & restaurant

business

2.To analysis

marketing

feasibility and

competitors

3.To study

organization&

operation of pub &

Restaurant

business

4.To calculate




Chapter 2 Industry profile




2.1 Nature of Pub and Restaurant

Pub was originally first established in The British around 400 years ago and that was very

widely popular in 19th

century. Most people who came to the pub were labor. In Thailand,

Pub was firstly come to Thailand around 10 years ago by Mr.Supoj Siripornlearskul, the pub

was named “Sometime” and there were some food sold as well for satisfy customer want.

Pub and Restaurant become a favorite choice for many people who want to take a rest and

relaxing from their work. There are many Pub and Restaurant styles which are each different;

for example, some pub and restaurant focus on northern food, some restaurant focus on

beverage and etc.

Source: Supported information from 108 Songkumtam, Sarakadee publishing company

Five force model with nature Pub and Restaurant business analysis

(1) Threat of new entrants to the market

Pub and Restaurant business still has legal loophole which the entrepreneurs can avoid

l d l ti f t bli h P b d R t t i th tit




(4) The treat of substitute products

There are many Pub and Restaurant that has product and service which are

substituted because the main product is alcohol, food and beverage; so, Pub and Restaurant

need to build up differentiate and adapt the service for satisfaction of customer. (Srikum,

2007) (page47)

(5) The intensity of rivalry among competing firm

Pub and Restaurant business has intensive competition. In generally, there are

competitive in price of product and service, differentiate in product and service. Even

though, Pub and Restaurant business is a high cost business establishment but it makes high

profit as well. (Srikum, 2007) (page47)

Type of Restaurant

Today there are many different types of restaurants, from fast food to family casual.

F ll i b i f i f l t t t




Café

A café is a restaurant that does not offer table service. Customers order their food

from a counter and serve themselves. A café menu traditionally offers things such as

coffee, espresso, pastries and sandwiches. Cafes originated in Europe and are strongly

associated with France. They are known for their casual, unhurried atmosphere. Outdoor

seating is another trademark of a café. Panera Bread is an example of a popular bakery-café

chain. The term bistro is sometimes interchanged with café. A bistro is actually a café that

offers full meals (albeit, cheaper than a full-fledged sit down restaurant).

Pub

Short for Public House, pubs date back hundreds of years to Europe, especially

Great Britain. Pubs have a timeless appeal, for their laid back atmosphere. Brewpubs offer

beer made in house, as well as a wide selection of other beers and ales. Pubs can offer full

menus, as well as appetizers. Many casual style restaurants have a separate pub side to their

establishment.




to have confirmed mark for cleaned and harmless; moreover, the restaurants need to

concentrate on price of food and fish spa by appropriate price.

Source: http://www.fda.moph.go.th/prac/research/2547_1.shtml

Services

Services bring customer to the restaurant and by letting the customer know the

differences between diner at home and diner at restaurant, these are considered by taking care

to the customer, responding of customers‟ want, relationship, order time, parking and cashier.

The kinds of service have to be friendly with the customer, make a logo which is easy

to be in customer awareness, make a standard service, quickly service and create a new

service to satisfy the customer.

Source: http://www.nanosoft.co.th/maktip35.htm

Environment

Restaurant that create good environment for customers, the customer will feel

f t bl l i d t d f li b th f t hi h t d i t

http://dict.longdo.com/search/harmless

http://dict.longdo.com/search/harmless




2.2 Situation of Pub and Restaurant

2.2.1 Situation of Pub and restaurant

According to Nielsen Research Thailand has made online reservation about eating out

of Thai people, the research showed that, Thai people still eat outside even though the Thai

economic is recession, because of Thai people like to live as easy, comfortable and

convenient. Thai people always think about prices of food, quality of food by price have to beappropriated with quality.

Most of Thai people always eat outside in Saturday. Monday – Thursdays are 30% to

31% on average.

Frequency of eating out for most of Thai people

24% of Thai people eating out twice a week.

19% of Thai people eating out 2-3 times a month.

15% of Thai people eating out 3-6 times a week.




2.3 Product and service

PUB & PUB & PUB provide many kind of food which most of them are northernfood. For beverages, Team serves both non-alcohol and alcohol beverage for cover all of

customers.

2.3.1 Product

There are food which brings customers come to the restaurant considered by test,

temperature, ingredients, nutritive, variety and beverage.

Food:

Shrimp with fish

sauce

Dancing Shrim Shrimp stuffy with

salt

Shrimp stuffy with

butter




Fried fish with

herbs

Stream fish with

lime

Stream fish with

herbs

Fried

swampcabbage

Yum Kai Kem Yum preserved egg Yum Ta lae Yum noodle




Beverage

2.3.2 Service

Fish Spa service




This small fish is happy to eat dead skin cells. However, because this species

has no teeth, it will not be dangerous and hurt your feet. Instead, you will feel a sense

of amusement as smoked fish. They will continue to stick to your feet while

continuing to eat the dead skin cells.

Benefits of Fish Spa

By eating dead skin cells that exist, then your feet will be cleaner, much more

subtle and are believed to mengobat certain skin diseases such as dry eczema and

psoriasis (red, scaly skin). When sucking dead skin, Garra rufa fish will also salivate

an enzyme-containing dithranol (anthralin) which will stimulate the growth of new

skin cells. Benefits, will reduce the itching of the skin and scars blemishes.

In addition to beauty and skin health, this fish can also provide other positive

effects for the body. When these fish suck up our legs, feet will feel the shock-shock

resulting from a crowd of small fish that can

stimulate acupuncture points on the soles of the feet

and make a smooth blood circulation. In order to

b i i l h h ld b d




Live music service

Preparation the time for customer request music.

Figure2.4: Live music service

Live football Service




2.6 Strategy

2.6.1 Corporate level

PUB & PUB & PUB is new pub and restaurant in down town of Chiang Rai .

Team has to use intensive strategy to achieve the market share quickly which effect to

brand awareness and brand loyalty of customers. Our Pub and restaurant has special

menu only in our pub and restaurant to serve both foreigner and local customers

which become to point of view. Moreover, the service is professionally and keeping

in the standard way. There will make our business grow continuously and more

famous in Chiang Rai. There will be effected in growth rate and revenues models of

business. The other strategy is diversification strategy. Team has other business

which is fish spa that is at the same place with the restaurant to attract travelers

especially foreigners travelers. Two in one business is more convenient and saving

time for customers who want two activities in the same time. By the way, Team

thinks that two businesses will help to reduce the risk over estimated.

2 6 2 i




2.6.3 Functional strategy

2.6.3.1 Marketing strategy

For this strategies, 4Ps that are including product, price, place, promotion for

getting competitive advantage from competitor. Team analyzes strengths and

weaknesses of the business for developing to be the best Pub and restaurant with fish

spa in Northern part of Thailand.

Product

Build up branding which is easy to remember.

Products and services need to be satisfied by customer.

Product and service need to be from a good quality.

Pub and restaurant with Fish spa is a new product for Thai people, it will be

interested and attracted the customer.

Price

Set the price appropriate with the products.

h i d b h hi h h i




2.6.3.2 Financial strategy

Estimate income every year and think about how to improve profit.

Prepare financial statement as systematically.

The financial statement need to be clarify and accurately.

2.6.3.3 Human resource strategy

Train the employee and waiter to serve the customer and run the work as

systematically.

Always evaluate employees‟ performance and improve their performance.

Amount of employees and waiters has to be appropriate with each task.




3.1 Marketing Analysis

3.1.1 General Environment AnalysisPolitical Factor

Thai political situation in Thailand is presently as demonstration and lack of political

stability; for example, demonstration of Red shirts and Yellow shirts to Thai government,

Red shirts want to subvert the presented government and have an election again moreover,

there are still Yellow shirts that are preventing The government from overthrow. Sometimes,

there are some violence between Red shirts and Yellow shirts, those affect to tourism who

want to visit Thailand by the amount of tourism become lower. By the way, Thai government

has regulation to Pub and Restaurant that People who are under 18 years old are unable to

enter Pub and Restaurant. Even though there are many political problems but it not much

affect to Pub and Restaurant business because Pub and Restaurant is the business that take

place to let people take a rest and relaxing. The political problem will be our advantage;

people who get stressful will come to Pub and Restaurant for taking a rest and relaxing and

Team‟s target is the people who are over 18 years old so, it is not affected by Thai regulation.




Figure3.1: GDP growth rate

Source: http://www.tradingeconomics.com/economics/gdp-growth.aspx?symbol=thb

According to Frederico Gil Sander from World Bank, Thailand‟s economy in 2011 is

projected to expand by only 3.2 per cent, the lowest level in Asia in the past five years,

dropping from last year‟s economy, which grew by 7.5 per cent. If the political situation is

more stable or otherwise sends a positive signal, the World Bank may raise Thailand‟s




Singha-beer is everywhere to be found. Chang-beer enjoys a larger popularity and also

European beers such as Carslberg and Heineken are available in almost all restaurants and

supermarkets. In many bars and restaurants it is possible to drink wine, western liquor, long-

drinks and cocktails, which are very expensive however compared with the local spirits.

Source: http://www.kochangvr.com/thailandssociety/familystructures.htm

Technology factor

Globalization is going very fast, technology is the one thing that is also going fast.

Nowadays, technology come to have a role in people life, the people live with technology and

always think to create a new technology for better living of people.

Telephone is important, PUB & PUB & PUB will provide own number to let

customer call for making reservation, asking some questions about food, service and etc.

Internet is an important communication, PUB & PUB & PUB will provide the own website to

let customer come to visit and see the Manu; moreover, PUB & PUB & PUB can use internet

to find many suppliers to save cost and make agood relationship with suppliers. By the way,

customer can communicate with PUB & PUB & PUB to be the member of PUB & PUB &

http://www.kochangvr.com/thailandssociety/familystructures.htm

http://www.kochangvr.com/thailandssociety/familystructures.htm




service, PUB & PUB & PUB will have one month training for employees and worker. The

training will concern about appearance, oral skill, emotion control, relationship and

personality of employees and worker. In addition, PUB & PUB & PUB will provide discount

and premium for customers who are the members of PUB & PUB & PUB.

Source: http://www.chiangraifocus.com/forums/index.php?action=printpage;topic=10085.0

Competitors’ information

Lah Lah Bar

http://www.chiangraifocus.com/forums/index.php?action=printpage;topic=10085.0







Price:

For the food,

Tom Yum Kung 99 Baht

Tom Yum Kai 79 Baht

Tom Yum Kai Ban 99 Baht

Poo Ad Foi Fried 59 Baht

Chicken wing Rom Kwaon 59 Baht

Kai Hom 159 Baht

Papaya Salad Fried 59 Baht

Yum Moo Yor 59 Baht

Tuna Salad 69 Baht

Egg Salad 59 Baht

Poo Ad 89 Baht

Kana Num Mun Hoi 49 Baht

Pik Keng Moo/Kai 69 Baht

Pud Ped Pah Duk 69 Baht




Marboro Cigarette 80 Bath

Soda, Ice, Coke 20 Bath

For the music, Lah Lah Bar provides live music to customers for free.

Place:

Figure3.3: Location Lah Lah Bar

To promote through the internet.




Leelavadee

Figure3.4: Leelavadee

Leelavadee provide three zones for customers (loops for two zones). They have two

brands different kind of music such as Jazz and Indy. Customers can see view of Kok River.

Address: 58 Moo 12 Kok River, Robwieng subdistrict, Meung District, Chiang Rai 57000

Product:

Leelavadee divide the products into two groups;

Leelavadee‟s foods are both northern foods, and normal foods. Some food is popular




Pad Ped Moo 89 Baht

Kai Ban Tod Nam Pla 109 Baht

Kai Pad Khing 89 Baht

Kang Ped Neai 99 Baht

Tom Kong Pla Krob 139 Baht

Ta La Pad Cha 169 Baht

Ka Na Nam Mun Hoi 79 Baht

Fruit 75 Baht

For the beverages,

Orange Juice 59 Baht

Green Label 1,850 Baht

Gold Label 1,499 Baht

Swing 1,600 Baht

Black Label (1 Lb.) 1,400 Baht

Black Label (0.75 Lbs.) 1,200 Baht

Red Label (1 Lb.) 760 Baht




Leelavadee has more competitive advantage than others because of views and

atmosphere.

Leelavadee has 200 tables to serve customers and 300 available parking areas.

Promotion:

Leelavadee has advertised via internet, newspaper, poster, leaflet and medium label.

Source:http://www.gnetwork.co.th/gsite/index.php?option=com_content&view=article&id

=70:leelavadee&catid=55:pub-and-restaurant&Itemid=75

Tem Rom

http://www.gnetwork.co.th/gsite/index.php?option=com_content&view=article&id=70:leelavadee&catid=55:pub-and-restaurant&Itemid=75









Price:

Tem Rom set price same their competitors.

The main foods are set the price higher from other menu because it consists of special

raw materials.

Place:

Tem Rom takes a competitive advantage in the place because of nearly famous Club

(Par Club) and entertainment area. There are about 50 tables available to serves

customers, about 40 parking area available to provide convenient for customers.

Promotion:

Tem Rom communicates with their customers by large billboard, label, and leaflet.

Tem Rom also advertises event show via internet.

Word of mouth is very powerful for Tem Rom

The Terraze




Product:

The Terraze offer new special menu which have never seen in other pub and

restaurant as well as there are also normal foods especially, northern food.

The Terraze has both non-alcohol and alcohol beverages to respond customers need.

Price:

The Terraze set price by focusing on profits and expense.

Place:

The Terraze has table available to serve customers about 60 tables and 20 parking

available.

Promotion

The Terraze has connected their customers through label, poster and leaflet for

announcement such as monthly promotion, discount and event.

Source: http://www.edtguide.com/terraze_471786

http://www.edtguide.com/terraze_471786






3.1.2.2 Customer analysis

PUB & PUB & PUB is a pub and restaurant with fish spa which is the new innovation

in service. Team provides services both day and night. Team thinks that approximates

1,200,000 people in Chiang Rai who are segment of our business. Team emphasizes on

people who are age 20-50 because they have more purchasing power and legally to buy

alcohol. In addition, people who are age 20-50. It is about 46% or 556,391 people. Moreover,

foreigner is also customers of our business but there are instability depend on many factors.

Age Populations

20-2481,443

25-2989,593

30-34

84,27635-39

85,618

40-4495,072

45-49101,126




3.2 STP Analysis

3.2.1Market SegmentationThe team divides market segmentation into three groups which are classified

by age. Because of the age of population can identify purchasing power of them, it

makes us to decide on which one we focus on. There are three periods of age. The

first group is the age between 20 and 29. The second is the age between 30 and 39.

The last is the age between 40 and 50.




3.2.3Position Analysis

The position of our business is set at atmosphere of PUB & PUB & PUB, we

design and place a decoration in Lanna style for appropriating with Chiang Rai

province, attracting a foreigner to visit PUB & PUB & PUB as well

By the way, a delicious food in PUB & PUB & PUB is a main point that the

customer is impressed due to the food is made of high-quality of fresh ingredients.

Furthermore, PUB & PUB & PUB has a fish spa service available for the

customer who wants to relax their daily works, it is a professional spa dues to the fish

is imported from eastern Asia and staffs are also professionally trained.

3.3 Marketing Mix Strategy

3.3.1 Product and Service Strategy

Brand Strategy, the team sets easy name. It‟s PUB & PUB & PUB; it can be easily

remembered from customer. The logo can identify an identity of PUB & Restaurant

well as follow:




Product:

- Food

Shrimp dance Tom Yum Kung Yum preserved egg

Fried fish with herbs Seafood Salad Kang Hung Lay




Beverage

Service:




Reliability and confidence

PUB & PUB & PUB can make customer feel good after servicing;

furthermore, it makes relax and satisfaction for them as well. It opens every day

except official holiday for customer needs. We‟ll do everything that makes more

satisfaction for making confidence with the customers when they come again.

3.3.2 Price Strategy

We set prices of product and service by focusing on a price of high-quality

raw material. According to high-quality raw material, we‟d like to give the best

choice to customer for making customer satisfaction.

We also set a price which is compared with our competitors. We attempt to set

a price of some foods less than the competitors for saving of customer spending,

instead of paying more but it‟s not worth with product and service.

3.3.3 Place Strategy

PUB & PUB & PUB is located near the night bazaar where is between the bus

station and Phaholyothin Road in the center of town. It is the place where there are




3.3.4 Promotion Strategy

The team has distribution channels for promotion strategy including of

advertisement, website, and special events. In advertisement, there are many type of

the advertisement, on billboard, on radio, and on brochure. It can be introduced and

attracted to the customer in wider area of Chiang Rai. For Website, because of people

use an internet more and more nowadays so we created PUB & PUB & PUB‟s

website to promote it; moreover, social network (Hi5, Twitter, and Facebook) is

played in main role of life, so we can promote the PUB & PUB & PUB‟s website

through these social network.

In addition, the last distribution channel is arrangement of special events; for

example, arranging mini concert inside Pub & Restaurant and party. It is also a main

point that the customer will know or remember more about out Pub & Restaurant, and

it can make them more relax and funny while sitting inside.




3.4 Sale forecast/Profit estimate

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

100-200

Baht

201-300

Baht

301-500

Baht

More than

501 Baht

Rate customers’ budget to spend for Pub and

Restaurant service (per time)

100-200 Baht

201-300 Baht

301-500 Baht

More than 501 Baht

Figure3.14: Rate customer‟ budget to spend for Pub and Restaurant ser vice(per time) Source: (Srikum, 2007) page 43




According to Feasibility study of investment in pub in Mung district, Chiang Rai,

from Ms. Pimjai Srikum, the people go to eating out 30.33 percent once time a week, more

than one times a week 55.67%, less than one times a month 1%, one times per month12% and

more than one times per month 1%.

Figure3.16: statistic of using spa in Thailand

By the research of Aphichai Jearaadisak, the owner of Spa Ovation, in the position of

vice president of Thai spa Association, the research was shown that Thai people use spa




Number of customers for our business is 193,194 people

Number of customers for our business per month 193,194/12 = 16,099 people

Team expects to get 80 percent of customer targets in the first year. In following year,

team will get full of customer target. Team assumes that amount of sale will increase 5

percent in event period, and growth continuously at 10 percent in every year.

Growth 10 percent

Year1 = 135,940 units








BA HU BA HEY GROUP 45

Sale Forecast

Table3.2: Sale Forecast 2011





Figure3.17: Total sale 2011





Table3.3: Sale forcast 2012





Table3.4: Sale forecast 2013






j ibili d l i G i i 2010






P j F ibili d E l i MAE FAH LUANG U i i 2010






P j t F ibilit d E l ti MAE FAH LUANG U i it 2010




3.5 Marketing Expense (sale incentive)

Brochure

High season 2,500 baht per month

Middle season 1,500 baht per month

Low season 1,000 baht per month

Radio

FM 95.75 MHz / 107.25 Z Radio, Chiang Rai

Radio advertising will be advertise in evening period

The radio advertising will take time 20 seconds

It cost 105 baths per time

Billboard

50,000 baht including set up cost.

(Picture)




Countdown Party

PUB & PUB & PUB will provide Countdown party in 31 December – 1 January, the

concert will be arranged in side PUB & PUB & PUB.

The main objective is to attract the customer to come to PUB & PUB & PUB and

have a party with their family, their friend, their subordinate and etc. moreover, PUB & PUB

& PUB will show Thai countdown party to satisfy the tourism who are foreigner.

PUB & PUB & PUB will give some present to customers as a thing for blessing the

customers to have happiness, wealth and many good things happen with them. Customer can

bring their present to exchange with their friend, family, subordinate and etc.

The event will cost about 75,000 baht/time. The price is included the following

Hire celebrity singer 20,000 baht/day

Pretty and coyote 10,000 baht/day




Time theme forecast

In year 2011, the theme will be “Korea fashion”

In year 2012, the theme will be “Color full fashion”

In year 2013, the theme will be “Cosplay fashion”

In year 2014, the theme will be “Nightdress fashion”

In year 2015, the theme will be “Reggae fashion”

Figure3.22: Festival Party




The event will cost about 60,000 baht for hold three day. The cost will be included the

following

Ranting soap-bubble machine 3,000 baht/day

Mini concert 7,000 baht/day

Staff 5,000 baht/day

Present 8,000 baht/day

Other needed 2,000 baht/day

Organization contracts

Chiang Rai Administration Organization and located at 183 Moo.8, Wieng

District, Muang, Chiang Rai 57100. Telephone no. 665-371-1499

Police Station Muang, Chiang Rai, Tel: 053-711-444 , 053-711-588

Project Feasibility and Evaluation MAE FAH LUANG University 2010





Table3.7: Marketing expense 2011

Figure3.23 Chart of marketing expense 2011







Figure3.24: Chart of marketing expense 2012




j y , y,







j y y







3.6 Conclusion in market feasibility

After PUB & PUB & PUB classified the three group of market segmentation, we can

forecast market feasibility of our business by concentrating on purchasing power of each

segment, including of PUB & PUB & PUB‟s position that is set by a high-quality of products

and services.

According to the sale forecast each year of PUB & PUB & PUB, it shows an amount

of total sale from 2010 until 2014. So it is feasibility of our business to be successful. Thesuccessful of our business almost come from selling mainly alcohols, foods, non-alcohol and

fish spa respectively. However, our business can be promoted to the customer for raising the

total sale by the promotion including of advertisements through website, radio, and brochure;

in addition, there are many special events available for customer such as mini concert and

party which depending on seasonal and appropriateness. As the total sale rising slightly, PUB& PUB & PUB can control well the marketing expense, it tends to our business saving the

budget.




Chapter 4 Technical Analysis




4.1 Production and Operation Analysis

4.1.1 Product and service characteristics

4.1.1.1 Foods:

Menu Price/Baht

Sai Oua 39 Baht

French Fried 39 Baht




Dancing Shrimp 89 Baht

Goong Chae Nam Pla89 Baht

Tom Sab 89 Baht




Num Prik Ong 89 Baht

Num Prik Noom 89 Baht

Tom Kha Kai 89 Baht




Pla Rad Prik 109 Baht

Fried fish with herbs 109 Baht

Pla Lui Sua 109 Baht




Singha Beer 70 Baht/bottle

Leo Beer 55 Baht/bottle

Smirnoff 55 Baht/bottle




Singha Water20 Baht/bottle

(Cost 7 Baht)

Singha Soda20 Baht/bottle

(Cost 7 Baht)




4.1.2 Service Process

PUB & PUB & PUB‟s customers have to get great experience from our shop,

and then we‟ll entertain the customer well. When the customers come for service, an

employee will greet them and ask the customer what you want to order. After that, the

employee serves foods for the customers. In fish spa service, the customers will be

served at 1st

floor of the shop; by the way, staff advices the customer for an advantage

of using fish spa service. Finally, the customer has to pay bill to cashier; however, if

the customer are serviced on restaurant, the customer can pay the bill at their seat

suddenly. Because of we‟ll make the customers get satisfaction completely on the

service, so the customers might be loyalty and come back for using the service again.

j ibili d l i A A A G i i 2010




Map of PUB & PUB & PUB

P j F ibili d E l i MAE FAH LUANG U i i 2010




4.1.4 Factory Layout

Gate

Gate length is 5 m and its height is 2 m. the gate is made from stainless and

used black color.

Figure4.4: Gate





Store building structure

There are two floors inside PUB & PUB & PUB. Size of PUB & PUB & PUBis height 9m and width 9m, each floor is height 4.5m as the same. There is total area

about 720 square meters. In the first floor, PUB & PUB & PUB provide fish spa for

serving the customer and the second floor is pub and restaurant.

Figure4.6: Store building structure





Pattern inside of store

First floor

In first floor, there are four parts divided including Fish spa space, Toilet

Counter, and Kitchen. In Counterpart, it is used for receiving customer, the customer

first have to come to Counter and then reserve the chairs for the spa, the space for this

part will be about 1m * 2m. At food & Beverage stored room, there will be beverage,

food, snake and etc. stored, it is easy to organizing and used 2m * 5m space. In Fish

spa part, it is provided wide spread to customers because it is the main service in this

floor, the customer can order the food and beverage (without alcohol) to eat when

they are using spa service and the space used will be 6m * 6m. The toilet will use 3m

* 2m space. Moreover, there is air conditioner to make a good atmosphere to

customers.

Project Feasibilit and E al ation MAE FAH LUANG Uni ersit 2010




Toilet

Water closet

Lavatory

Ventilator

Bin

Urinal

Mirror

Water closet block Figure4.9: Toilet first floor

Second floor

In the second floor, there is pub and restaurant part. The floor will be tile.





Kitchen

Bin

Gas stove

Refrigerator

Washing machine

Sink

Table for cooking

Table for finished food and beverage Figure4.11: Kitchen

Stage





4.1.5 Logistic Management

Figure4.13: Logistic Management

Logistics management is the governance of supply chain functions. Logistics

management activities typically include inbound and outbound transportation management,

fleet management, warehousing, materials handling, order fulfillment, logistics network

design, inventory management, supply demand planning, and management of third party

logistics services providers. To varying degrees, the logistics function also includes customer

service, sourcing and procurement, production planning and scheduling, packaging and





Products transportation

In logistic management of PUB & PUB & PUB, inbond logistic is very important

because PUB & PUB & PUB need to find the way to get maximize profit with minimize

investment cost. Following are product transportation from other plant to company included,

For Alcohols, PUB & PUB & PUB orders from Beer Chiang Rai Limited Company.

Beer Chiang Rai Limited Company is located at 444/1 Moo.2 Phaholyothin Rd, Nanglae

district, Muang Chiang Rai, Chiang Rai 57100.

For Ice, PUB & PUB & PUB order from Sirikron Ice Limited Company. Sirikron Ice

Limited Company is located at 942 Phaholyothin Rd, Wiang district, Muang Chiang Rai,

Chiang Rai 57000.

Soda, PUB & PUB & PUB orders from Chiang Rai Sahachai Limited Company.Chiang Rai Sahachai Limited Company is located at 100 Audtarakij Rd, Wiang district,

Muang Chiang Rai, Chiang Rai 57000.

For drinking water and some soft drink, PUB & PUB & PUB always buy them at

Macro super store, Macro is located at 460 Moo 5 Phahon Yothin Road Rim Kok, Muang,





4.1.6 Facility management

Figure4.15: Facility management





4.1.7 Equipment and supplies

Office Room and cashier

Equipment and

supplies

Description Price

Stapler HD-10D

- Size 3.9x2.2x9 cm

- weight 60 germ

138.00 Baht

Max Staple 3-

1M

- Size 11.5*6 mm.

- Content 1,000

needle/24 box/package

13.50 Baht

Lancer pen

click 878

- Size 0.7 mm

- Red, black, blue color 3.50 Baht





Punch machine- Size10.5x9.7x8.6 cm

- weight 385 germ 160 Baht

Bill split 15 Baht

Scissor 55 Baht

NX-5400 series

Cash register

- Scanning system with

14 digits random PLU

code having 18 digits

PLU descriptor

- Standard 1570 PLUs,

Max. 21666 PLUs

- PC Batch

26,750 Baht





HP 200-5260D

- Intel Dual Core

E6700,3.2GHz- RAM 2048 MB Type

DDRIII FSB1333 MHz

- MS Windows7 Home

Basic 64 BIT

- Sound System Stereo

Sound

23,430 Baht

IVY SET DeskMelanin size: 180(W) x

140(D) x75(H) cm5,900 Baht

PANASONIC

KX-

- Telephone number

remember 100 number

3,990 Baht





Kitchen utensil

Equipment andsupplies

Description Price

Zebra Pot

18 cm. 428 Baht 26 cm. 777 Baht

32 cm 1,160 Baht

Stainless pan

28 cm. 245 Baht

24 cm. 499 Baht




j y , y,

Set spoon andfork

moonriver style 6 pair141 Baht

Jaguar set of

knife and

storage

8 pieces 333 Baht

White basin 40 cm 73 Baht




j y , y,

Bai Phoddipper

4.5 cm 60 Baht

Twinray ice

tongs

per dozen 105 Baht

Ice bucket 16 cm 73 Baht

11 oz. per dozen 332 Baht


http://dict.longdo.com/search/ice%20tongs






j y , y,

Fish Medium

disk

- 10 inch - brown color

68 Baht

Banana leaf

disk

- 10 inch

- light green color 68 Baht

Triple Bai Bouy

inch

Green-black color90 Baht




j y y

“NutRamequin"

Royal

Porceleain

31 baht

Ashtry Union

glass

per dozen 241 Baht

Wood tray YN 14*20 inch 174 Baht

JCJ Tissue Box white color 31 Baht


http://www.kitchenwaremarket.com/oscommerce/catalog/product_info.php?cPath=122_232_233_485&products_id=2415










Siamwood

chopping block 9*13 inch 95 Baht

Sanyo

refrigerator SF-

C1497ST

- size 13.0 q

- Content 369 lbs.

- Temperature -18 to 32

co.

18,390 Baht

Stone Mortar8 inch 504 Baht

- Made of austenitic

stainless

- Width about 70 cm

long 240 cm height 85




Dish washer

- Capacity: container

12 sets (144 piece).

- Control system.

Electronic industries.

- Programs 5 wash

programs.

- Super Wash special

program with the

program saving Eco.

- 25 minutes quick

wash program.

- Power 1.05 kW / h.

- 45/50/65/70 degree

temperature washing.

- Size: 85 x 60 x 60 cm

51,000 Baht




Pub and Restaurant

Equipmentand supplies

Description Price

HATARI Fan- HC-W16M3

- 16 inch

- Thermo Fuse- Energy saving

number 5

998 Baht

Speaker ModifyS-15

- Size 15 inch

- Electricity 500 watt 5,200 Baht




SAMSUNG (SP-

L220)

- 3 Panel LCD CP-SI

TFT Active- light 2200 LUMENS

- Contrast Ratio 500:1

- Definition 1024 x

768 Pixels

- Auto Key Stone

- UHP Lamp

- size of picture 40

- 300 inch- Input Component,S-

VDO

- Output RS*232

28,900 Baht

SHURE SM58S

Vocal Microphone

- Switch Turn-off and

turn-on

- It is dynamic9100 baht




Set of surveillance

camera29,900Bah

Table set (1) 70*70 1,550 Baht

Table Set (2) 60*100*75 1,850 Baht


http://dict.longdo.com/search/surveillance%20camera






Table Set (5) 3,499 Baht

Candle Lamp Size 5"x5"x5.5 280 Baht




Spa Zone

Equipment and

supplies

Description Price

Counter bar29,500 Baht


http://www.furniturehall.com/product-th-48863-167726-6*90%E0%B9%82%E0%B8%95%E0%B9%8A%E0%B8%B0%E0%B8%97%E0%B8%B3%E0%B8%87%E0%B8%B2%E0%B8%99+%E0%B9%82%E0%B8%84%E0%B9%89%E0%B8%87+%E0%B8%9B%E0%B8%B8%E0%B9%88%E0%B8%A1%E0%B8%A1%E0%B8%B0%E0%B8%84%E0%B9%88%E0%B8%B2+%E0%B8%82%E0%B8%B2%E0%B8%9A%E0%B8%B1%E0%B8%A7(%E0%B8%AA%E0%B8%B5%E0%B9%80%E0%B8%94%E0%B8%B4%E0%B8%99%E0%B8%9C%E0%B9%89%E0%B8%B2).html

http://www.furniturehall.com/product-th-48863-167726-6*90%E0%B9%82%E0%B8%95%E0%B9%8A%E0%B8%B0%E0%B8%97%E0%B8%B3%E0%B8%87%E0%B8%B2%E0%B8%99+%E0%B9%82%E0%B8%84%E0%B9%89%E0%B8%87+%E0%B8%9B%E0%B8%B8%E0%B9%88%E0%B8%A1%E0%B8%A1%E0%B8%B0%E0%B8%84%E0%B9%88%E0%B8%B2+%E0%B8%82%E0%B8%B2%E0%B8%9A%E0%B8%B1%E0%B8%A7(%E0%B8%AA%E0%B8%B5%E0%B9%80%E0%B8%94%E0%B8%B4%E0%B8%99%E0%B8%9C%E0%B9%89%E0%B8%B2).html



Toilet

Equipment and

supplies

Description Price

Faucet 1,320 Baht

Mirror- Size: 117 *245

cm.

- Thick: 0.5 cm.

600 Baht




Jumbo Tissue

Box

482 Baht

Injection line

007 CR

175 Baht



Internet and telephone setting cost

TOT provide promotion hi-speed internet in “Jet Pack” package by free first service,but there is cost to install telephone 3.350 baht.

http://guru.google.co.th/guru/thread?tid=0546e07908c43015

Air condition setting cost

From sell promotion of Powerbuy, when buy Air condition, free installation cost.

Cost of car parking

We provide the space parking for customers‟ car, and customers‟ motorcycle. In the

car parking, there will be about 19 available spaces for cars; each space will be standard size

(3m per car). For motorcycle, there will be 1m spaced for each customer‟s motorcycle. We

use metal sheet for car parking roof, and using steel towers. For cost of material and building

is 100,000 baht.






Cost of registration

Cost for Set up partnership

- Charging Office Service is 2000 baht

- Fee for Establishment, Partner less than 3 persons is cost 1120 Baht

- Copy document (actual pay).

-

Registered Card for tax and VAT is 1000 baht- The total amount is 4,420 Baht

Cost of decoration

Paint of building




Light

Figure4.18: Light

Light is important to make customer feel good. The light will be yellow light and red

light. The lights will be ordered by Service Karn Fifah , 175 m9 phaholyothin road,

Waingpangkam, Mae Sai, Chiang Rai 57130 Tel. 053-646-979, Fax: 053-646-978. There will

be 17 lights inside PUB & PUB & PUB The price for each light is 990 baht so; totally cost




Tile

Figure4.20: Stony Brown SN Tile

Tile of PUB & PUB & PUB will be Stony Brown color. The price for tile is 155 baht

per box by each box is sized 16*16 centimeter so, the totally cost will be 43719 baht for 720

square mater.The tiles will be ordered from Home Pro Chiang Mai is located at 94 Moo.4 Chiang

Mai-Lampang Road, Nongpakhrang District, Muang, Chiang Mai 50000. Telephone no. 665-385-

1229, Fax 665-386-1232

Decorative tree




Mirror wall

Figure4.22: Mirror wall

Mirror wall use for decorative in front of PUB & PUB & PUB. The mirror will cost

1860 per a square meter, PUB & PUB & PUB require 6 mirrors height 3m so, the cost will be

33480 baht. The mirror wall will be ordered from Runya incidentals 299/3 Moo 1, Bandu,

Muang Chiang Rai, Chiang Rai 57000.




4.3 Investment cost

4.3.1 Equipment and Tools

Total officer and cashier equipment

No. Description Amount Price/unit Total

1 Cash register 2 26,750 53,500

2 Flie Cabinet 2 6,150 12,300

3 Chair 1 1,700 1,700

4 HP computer 1 23,430 23,430

5 IVY Set Desk 1 5,900 5,900

6 Panasinic Telephone 1 3,990 3,990

7 HP Design Jet 1 39,900 39,900

Total 9 107,820 140,720

Total Kitchen utensil equipment




13 Sink 1 40,000 40,000

14 Ventilator 2 690 1,380

15 Table 2 2,500 5,000

Total 35 128,121 151,948

Total Pub and Restaurant equipment


1 Hatari Fan 6 998 5,988

2 Samsung SP-L220 1 28,900 28,900

3 LCD TV 32 inch Samsung 1 13,990 13,990

4 Suveillance camera set 1 29,900 29,900

5 Table set (1) 4 1,550 6,200

6 Table set (2) 4 1,850 7,400

7 Table set (3) 4 1 850 7 400




Total Toilet equipment


1 Faucet 12 1,320 15,840

2 Mirror 12 600 7,200

3 Olicsion sink 12 800 9,600

4 Cotto Flush 16 2,490 39,840

5 Jumbo Tissue Box 16 482 7,712

6 Injection line 16 175 2,800

7 Unrinal 6 422 2,532

Total 90 6,289 85,524

Total Spa Equipment


1 Counter Bar 1 29,500 29,500




Table4.2: Total Pub and Restaurant equipment 2011





Table4.3: Total Depreciation 2012




4.4 Management Analysis

4.4.1 Organization Management

PUB & PUB & PUB has registered to be company limited. There are 5 people

who are a partner in PUB & PUB & PUB, including of:

1. Mr. Eitsarapong Sanachai

2. Mr. Withan Jaiban

3. Mr. Wichapon Sakam

4. Miss Supawadee Chaiwang

5. Mr. Peerapong Thongwang

These five partners voted for election one of them to have more power signing

for approving a job in business. However, another 4 members have a responsibility tomonitoring a whole business as well.




4.4.2 Organization Chart

People in the organization

PUB & PUB & PUB have total of employee amount 15 people, and below is

to descript the job duties and requirements of employee in each position.

1. General Manager (1 position)

Salary: 20,000

Job Duties

Manage HR division.

Supervise for the admin role and competency for the administrative functions.

Manage recruitment and payroll.

Create and implement companywide training and development plans.

Manage disciplinary issues and documentation.

Plan career succession.



3. Financial Department (1 position)

Salary: 13,000

Job Duties

Providing and interpreting financial information.

Monitoring and interpreting cash flows and predicting future trends.

Analyzing change and advising accordingly.

Formulating strategic and long-term business plans.

Researching and reporting on factors influencing business performance.

Analyzing competitors and market trends.

Developing financial management mechanisms that minimize financial risk.

Conducting reviews and evaluations for cost-reduction opportunities.

Managing a company's financial accounting, monitoring and reporting systems.

Liaising with auditors to ensure annual monitoring is carried out.

Developing external relationships with appropriate contacts e.g. auditors, solicitors,

bankers and statutory organizations such as the Inland Revenue.



5. Security (2 position)

Salary: 8,000

Job Duties

Trained personnel in effective security measures and guard techniques.

Deployed security personnel to individuals in need and also clubs and organizations.

Trained recruited staff in handling of advanced security tools like bullet hide camera,

alarm call systems etc.

Handled law enforcement strategies and maintained amongst the staff.

Developed and updated force of new security maintenance techniques.

Maintained records of force personnel and evaluated their health and fitness.

Took anti-crime and anti-thief measures in the region to prevent corruption or steals.

Responsible for protection of clients‟ lives and property.

Dealt with theft, vandalism and maintained order among people.

Responsible for handling threatening and riot causing elements effectively.

Hired and trained security guards effectively.




6. Waiter / Waitress (5 position)

Salary: 5,500

Job Duties

Check with customers to ensure that they are enjoying their meals and take action to

correct any problems.

Serve food and/or beverages to patrons; prepare and serve specialty dishes at tables as

required.

Remove dishes and glasses from tables or counters, and take them to kitchen for

cleaning.

Clean tables and/or counters after patrons have finished dining.

Prepare tables for meals, including setting up items such as linens, silverware, and

glassware.

Stock service areas with supplies such as food, tableware, and linens.

Wash pots, pans, dishes, utensils, and other cooking equipment.




7. Chef (1 position)

Salary: 15,000

Job Duties

Collaborate with personnel and plan and develop recipes and menus.

Supervise and coordinate activities of cooks and workers engaged in food preparation.

Wash pots, pans, dishes, utensils, and other cooking equipment.

Portion, arrange, and garnish food, and serve food to waiter or patron.

Inspect supplies, equipment, and work areas to ensure conformance to health

standards.

Determine production schedules and worker-time requirements.

Estimate amounts and costs and requisition supplies and equipment.

Train and instruct cooks and workers in proper food preparation procedures.

Wash, peel, cut, and seed fruits and vegetables.

Weigh, measure, and mix ingredients, season and cook food according to recipes or

personal judgment.




8. Assistant Chef (1 position)

Salary: 9,000

Job Duties

Assist the Head Chef and Deputy Head Chef.

To prepare all garnishes to accompany the main meal and courses.

Maintain standards of food and kitchen hygiene.

Maintain standards in food preparation.

Requirements

Male Thai Nationality, age more than 25 years old.

Leadership, Independence Personality.

Good communication, customer service.

At least 5 years kitchen experience and are looking to develop your skills.

Have a more knowledge about cooking.

Y ill b f f d d ki h d d d f h hi h d d




9. Staff (2 positions)

Salary: 7,000

Job Duties

Investigate user problems and needs, identify their source, and determine possible

solutions.

Analyze user project proposals to include identifying potential problem areas and

recommend optimum approaches for project path.

Other duties as assigned.

Requirements

Male / Female Thai Nationality, age more than 25 years old.

Leadership, Independence Personality.

Good communication, customer service.

Source: http://www.hrvillage.com/hrjobdesc/ApplicationsAnalyst.htm


http://www.hrvillage.com/hrjobdesc/ApplicationsAnalyst.htm

http://www.hrvillage.com/hrjobdesc/ApplicationsAnalyst.htm



4.4.3 Administrative cost

4.4.3.1 Employee Salaries

General Manager 1 person 20,000 Baht

Marketing Department 1 person 13,000 Baht

Finance Department 1 person 13,000 Baht

Maintain 1 person 9,000 Baht

Security 2 people(8,000*2) 16,000 Baht

Waiter/waitress 5 people(5,500*5) 27,500 Baht

Chef 1 person 15,000 Baht

Assistance Chef 1 person 9,000 Baht

Staff 2 people(7,000*2) 14,000 Baht

Singer 2 people(7,500*2) 15,000 Baht

Total employee salaries /month 136,500 Baht

4.4.3.2 Supplies expenses

No. Description Price/unit Unit Total Price




14 SL colander 155 5 775

15 Bai Phod Dipper 60 5 300

16 Ice Tong 105 5 525

17 Ice bucket 73 54 3,942

18 Ocean glass 11 oz. 322 10 3,220

19 Ocean glass 10 oz. 329 10 3,290

20 Bai Bour Disk 68 60 4,080

21 Fish Disk 68 40 2,720

22 Banan Leaf Disk 68 40 2,720

23 Triple Bai Bour 90 40 3,600

24 Bowl 5 inch 60 100 6,000

25 Bowl 6 inch 75 100 7,500

26 Bowl 7 inch 105 100 10,500




Table4.11: Administration cost year2011 and 2012





Table4.12: Administration cost year2013 and 2014





Table4.13: Administration cost year2015




5.1 Income statement




Table5.1: Income statement year 2011





5.2 Balance sheet




Table5.6: Balance sheet year 2011




Table5.12: Cash Flow year 2012




Table5.15: Cash Flow year 2015

Net present value of the project for five years is -8,871,602

Internal rate return of the project for five years is 7 percent




Chapter 6 Risk Analysis


6 1 Risk Analysis



6.1 Risk Analysis

A risk analysis involves identifying the most probable threats to an organization and

analyzing the related weakness of the organization to these threats. PUB & PUB & PUB

divide the risk factors into two parts following external part and internal part. Both might be

positive affect to PUB & PUB & PUB considered by each situation it might happen.

Source: http://www.drj.com/new2dr/w3_030.htm

6.1.1 External force

Many risks which cause from external factor which PUB & PUB & PUB cannot

expect and control. The company needs to create plan to manage the company from external

risk. The plans that PUB & PUB & PUB prepare to deal with external risk are following;

1. Changing in Technology

Globalization is going very fast, technology is the one thing that is also going fast.

Nowadays, technology come to have a role in people life, the people live with technology and

always think to create a new technology for better living of people. Moreover, the technologyis improving communication and competitor advantages.

For changing in technology case, PUB & PUB & PUB always following the news

related about development of technology and new innovation that can be the company‟s

advantages. If technology can improve company‟s abilities, PUB & PUB & PUB will bring

k l d d i f i l d h l d l h Th h l i


3 Changing in customer need



3. Changing in customer need

In the case of changing in customer need, it means that the customer will change the

attitude about product and service; due to, trend, lifestyle of people, competitors and manyfactors. If the customers change the need of product and service it will affect with customer

demand and the company sale revenue will be decreased.

For change in customer need, PUB & PUB & PUB think that the demand of customer

is very important for the company so, PUB & PUB & PUB has plan to protect the company

from decrease in sale and keep customer‟s demand. PUB & PUB & PUB will use strategies

which focus on attract customer to keep the demand of product and service, If PUB & PUB &PUB‟s fish spa and restaurant are not interesting PUB & PUB & PUB will use promotion to

attract new customers (the promotion will be followed by trend in each period) as well as

keeping regular customer by providing the special service to them for example, delivery the

NEWS related to PUB & PUB & PUB to the regular customer, and give a special discount to

the regular customer. By the way, PUB & PUB & PUB will adapt PUB & PUB & PUB

inside and outside to satisfy customer need but PUB & PUB & PUB still keep the standard

price of product and service and manage the restaurant as a unique in the world.

4. Competitive condition

Nowadays, Pub and Restaurant business become more interested by many

entrepreneurs because it is a business which can make much profit to the company and

investment cost will be returned quickly but there are many Pub and restaurant that bankrupt


6 1 2 Internal force



6.1.2 Internal force

Internal risk is cause from inside PUB & PUB & PUB‟s operating which can be

controlled. The risks are from many factors as following;

1. Human resource

The human resource risks are from employees of PUB & PUB & PUB. Recruitment is

very important for company because Pub and Restaurant with fish spa is business which

concern about service so, the employee need to service the customer, if the employee do a

bad service it will affect with image of company and customer loyalty of the company. Chef

need to be well recruited because it really affect to the company because food is the mainproduct of Pub and Restaurant but sometimes, the chef might cook a food which is not well

due to bad emotion and etc. The risks can be happen every times and it will impact with

company sale revenue.

In the case, PUB & PUB & PUB needs to have employee training to do the efficiency

service for satisfaction of customer. PUB & PUB & PUB motivates the employee to work

with effectiveness by providing insurance for employee, bonus for employee who work hardand provide appropriate salary to employee. Those can build good motivation for employee,

if the employee works with effectiveness the customer will be satisfy and there will be more

customer come to PUB & PUB & PUB.

2. Time management risk


3. Brawl of Customer



3. Brawl of Customer

Sometimes the customers get drunk, they might have a dispute with other customer in

Pub and Restaurant, the customer might brawl each other and it might damage company‟sequipments; moreover, other customer might get some damage as well. The risk might cause

loss of company equipment and loss customer in the same time.

For this case, the company will fine the customer who do a brawl inside PUB & PUB

& PUB as well as the customer who do damage to company equipment, the customer have to

pay for the broken equipment ;furthermore, the customer who do brawl in side PUB & PUB

& PUB need to pay damages for other customer who are damaged as well.

4. Financial risk

Financial management is cover profit and loss of the company, PUB & PUB & PUB

need to be careful when doing the finance of the company. The financial management is

affect to all part of company. Each company needs to plan to meet with many financial risks

as following;

Decrease in sale

If the company‟s total sale decreases by 5% it will affect with company sale revenue

as following;

Year 2011 Sale revenue is 12 363 805




If the company‟s total sale decreases by 10% it will affect with company sale revenue

as following;

Year 2011 Sale revenue is 11,713,078





If the company‟s sale decreases by 10% it will affect with company net income as

following;

Year 2011 Net income is -470392

Year 2012 Net income is 167099







a 0 N 9 590

Year2012 Net income is -402287




- If the company‟s total sale decreases by 15% net income will be minus in 3 years and

the company‟s payback period will be longer.




Interest rate increase 3%:



If interest rate increases by 3% that is 14% then, the company has to pay 1,680,000 in year

2011


2012


2013


2014


2015

Therefore, if interest rate increases the company has responsibility to pay more

interest, the company‟s payback will be longer.


If the company‟s cost/expenses increase by 10% it will affect with company net



p y p y p y

income as following;

Year 2011 Net income is -175,376

Year 2012 Net income is 535,870


Year 2014 Net income is 1,291,553

Year 2015 Net income is 1,715,245

If the company‟s cost/expenses increase by 15% it will affect with company net

income as following;

Year 2011 Net income is -483,376






Figure6.2: Increase in cost/expense

Therefore, if the company‟s cost/expenses increased more than 10% net income will

be minus in first year and the company‟s payback period will be longer.





7.1 Summary of project feasibility study



7.1 Summary of project feasibility study

Thai people still eat outside even though the Thai economic is recession, because of Thai

people like to live as easy, comfortable and convenient. Thai people always think aboutprices of food, quality of food by price have to be appropriated with quality. Furthermore,

Thai people do the job hardly because there is high competition in business, so we provide a

fish spa which is a service of PUB & PUB & PUB for relaxing them as well.

Today, Chiang Rai is a traveler‟s paradise, endowed with abundant natural attractions and

antiquities. Fortunately for tourists, Chiang Rai is also a center for community development

projects, helping rural villagers develop their attractions without adversely affecting their

natural and cultural assets. Team decided to build up Pub and restaurant in Chiang Rai, with a

Fish spa, because of Chiang Rai province has many attractive places where traveler wants to

visit it, and fish spa is more interested nowadays, it will nibble at customers‟ foot and it is not

dangerous to customers absolutely. Then, PUB & PUB & PUB arranges live music service

and live football service to the customer for free.

In PUB & PUB & PUB‟s vision and mission, the vision is “To be the best Pub and

Restaurant in Northern part of Thailand” and the mission is Team need to build up a good


between 40 and 50 (36% or 196,198 people). Then, we choose a population age between 20



and 29 to be our market target; they have the most purchasing power in Pub & Restaurant or

entertainment place in Chiang Rai. We design and place a decoration in Lanna style anddelicious foods which are Lanna food and Thai food for appropriating with Chiang Rai

province; in addition, there‟s the fish spa available for the customer, so this is our market

position. Furthermore, PUB & PUB & PUB runs the business by applying with marketing

mix strategy, 4Ps strategy; it consists of analyzing product, price, place, and promotion. It

helps PUB & PUB & PUB to analyze internal factor of the business to get competitive

advantage.

According to the sale forecast each year of PUB & PUB & PUB, it shows an amount of

total sale from 2010 until 2014, it shows that the season has affect to total sale because of

there is an event in each season of year, it makes a growth sale in that season. Our business

can be promoted to the customer for rising the total sale by the promotion including of

advertisements through website, radio, and brochure as well Calculation of the sale forecast is

based on number of the customer. After that, team expects to get 80 percents from customer

targets (100%) in the first year. In following year, team will get full of customer target

(100%) In addition team assumes that amount of sale will increase 5 percent from event


of land, cost of building, and cost of car parking. In organization management, team classifies



a position into 5 groups of department including of general manager, marketing, financial,

maintaining, and security. And the employees will be recruited and selected by company‟squalification; moreover, they will be also trained by professional staffs.

A risk analysis involves identifying the most probable threats to an organization and

analyzing the related weakness of the organization to these threats. PUB & PUB & PUB

divides the risk factors into two parts following external part and internal part. The external

factors are including changing in technology, economic condition, change in customer need

and competitive condition. The internal factors are including human resource, time

management risk, brawl of customer and financial risk. In the financial analysis, if the

company‟s sale decrease, it affect with sale revenue and net income will be decreased. When

interest rate is increased the company has responsibility to pay more interest, the company‟s

payback will be longer. If cost/expense are increased it will affect with company net income

and the company„s payback period will be longer. Those risks are hard to control and manage

the company need to develop the strategies to deal with many risks which will happen in the

future.




Appendix A


Sale decrease 5%




Sale decrease 10%






Sale decrease 15%




Cost increase 5%






Cost increase 10%




Cost increase 15%






Interest increase by 1% to be 12%




Interest increase by 2% to be 13%






Interest increase by 3% to be 14 %

pub&pub&pub ltd

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