a financial projection for cn-fantasy company
TRANSCRIPT
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Pro jec t Feas ib i l i ty St udy and
Evaluat ion
Semester 2/2009
Mae Fah Luang University
Projec t Feas ib i l i t y p lan
Present t o
Aj . Chaiyaw at Thongin t r
By
CN-Fant asy Elect ronic Com pany
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Preface
I am very interesting with the IT industry. In the free time, I spent most of my time to
reading the relative knowledge. Thats why we focus our project on the digital
product industry. As the BA undergraduate students, we got a lots chance to write the
business plan, but this is the first time we deal with the realistic situation, such as the
financing. In this reports, I think every group members had practiced their knowledge
to their own works. We got more understanding a about how to bring a business plan
into the real life. Thus I believe what we have done in this project, will enhance our
practical skills for future career.
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Ex ecut ive Summ ary
Chinese has an old saying, Time make it inevitable that in every profession, young
men replace the old. Evidence of Chinas digital product industryMP3 Player,
MP4 Player, and other accessoriesabounds in the countrys prosperous coastal cities.
According to practices for promoting the integrated development of urban and rural
areas through urbanization, the domestic electronic consumption demand was
significantly increased. Furthermore, the quality of citizens life, the Chinese digital
product industry will progress with the growth of the economy. To get a complete
picture of digital product industry in the worlds most populous and fastest growing
country, this project takes a closer look at four first-class digital player brands in
China, which are Ramos, Aigo, Newsmy and Meizu. Those four brands are
respectively belonging to four high-tech enterprises. They both serve their product
base on the fundamental science and technology first, quality first, the pursuit of
customer satisfaction.
This study gives, however, some of my hypothetic thinking for the whole market in
Thailand, for our product. In order to test these hypothetic thinking, a multi-stage
methodology was employed that is often taught in courses on international strategic
planning at graduate schools of business. First, we apply Political, Economic, Social,
and Technological (PEST) analysis to study a framework of macro-environmental
factors, Competitor analysis to assess the strengths and weaknesses of current and
potential competitors, Strengths, Weaknesses, Opportunities, and Threats analysis to
identify the internal and external factors that are favorable and unfavorable to
achieving our objective. Then, we make every marketing strategy individually; they
are STP Strategy, Branding Strategy, Pricing Strategy, and Retailing Strategy. We also
discuss those which are indispensable for our company such as Product Offering,
Marketing Communication, and Business Ethics, etc.
This project concerns about importing, exporting and other international trade
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regulation process. The study, therefore, is only for practicing basic approach to
analyze particular foreign market with the general knowledge about industry,
marketing, technology, a depth financial analysis and risk management.
We carry out an experiential analysis by using data of six years historical sale data to
calculate the profits for the project and draw following conclusions: the business for
selling the digital products which made in China to Thailand is profitable. The
company can show a realistic path in revenue by year three for the investment to
undertake.
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TableContentChapter 1 Introduction 1
1.1 Project Objective
1.2Benefits of Project1.3Activities/Time Frame
Chapter 2 Natural of Industry .3
2.1 Natural industry Digital product brand in China
2.2 Situation of Industry
2.3 Our product and service
2.31 services2.4 The vision
2.5 Mission of our store
2.6 Strategy analysis
2.7 Operational level
Chapter 3 Market Feasibility Study14
3.1 MarketAnalysis3.11 General Environment Analysis
3.12 Competition Analysis
3.2 STP Analysis3.3 Marketing Mix Strategy
3.4 Sales Forecast/Profit Estimation
3.5 Marketing Expenses
3.6 Conclusion
Chapter 4 Technical Feasibility Study........22
4.1 Production and Operations Analysis
4.2 cost of Investment
Conclusion
Chapter5 Financial analysis36
5.1 Profit/loss statement
5.2 Cash flow
5.3 Revenue forecast
5.4 Operating activities
5.5 Investment activities
5.6 Balance sheet
5.7 Cost of goods sold
Chapter 6 Risk Management48
Chapter 7 Summary51
Reference54
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Chapt er 1
In t roduc t ion
This business project is about importing and selling the digital product. This project
will consider all the business activities will happen in real life. We are going to
describe our business according the process which a real business runs on. Every
information relate with this project will be collected from the research.
Accord the observation of the digital product market of Chiang Rai, we found that
there are approach 20,000 students in Chiang Rai, and the main customers of the
digital product come from those students. Most digital product store only sells the
products of IPod and Sony. But the price of these products is relatively high for the
main customer. So we think a lower-price and high technology digital product such as
Mp4 player watch will satisfy their needs.
Chinese factories make all imaginable types of digital products, usually muchcheaper
than anywhere else. Otherwise in recent year, the transportation between Thailand and
China has enjoyed a rapid development. Transport channel is more and more, but the
price is getting lower and lower. Due to these reasons above, The Company will be
located in Chiang Rai; the store site is near the Rajabhat University. The inventory
will be purchased from China suppliers for selling a lower price than other
competitors.
Pro jec t Ob jec t ive
In this project, the main objective is to find out a more effective way to run our
business, and to make the business be profitable.
To achieve the goals, we will conduct the descriptive, analytical research. We will
apply the quantitative approach to collect and analyze numerical data. In this study,
primary and secondary research will be both incorporated. It supposes to be the
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inductive research as well. We will use the theoretical frame work which consists of
the relative theory of marketing, logistic, especially financing, etc. There are a lot of
Mathematical Approach will be used to analysis the findings.
Benef i ts o f Pro ject
We have already written a lot of business plan, marketing plan and every kinds of
report. Sometimes we really think we know a lot about business. But we never
conduct any of our plans. Actually, knowing how to write a business plan doesnt
mean you know how make the business, at least it may lack of feasibility. Some real
problem which we have not faced in our plan will be face in the real life.
Study on this project, however will cover this drawback, because we must think about
the reality. We should make every of our finding to be reliable. And we will put our
knowledge to work in solving real problems.
At last, through study on this project will help us to enhance knowledge and get more
understanding of the subjects in BA program; acquire skills such as communication
skills, intellectual skills and organization skills through practicing them; identify
opportunities in the future.
Act iv i t ies /T ime Frame
- Conduct an questionnaire about digital product in Mae Fah Luang University/1d
- Marketing data analysis/1d
- Collect the information about the operating expenses/3d
- Interview with the owners of some I.T product stores in Chiang Rai/1d
- Searching for the store site/3d
- Outsourcing/7~15d
- Finance analysis/1d
- Advertising making/2d
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Writing the project paper/5d
- Presentation/1d
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Chapt er 2
Natura l o f Indus t ry
2.1 Nat ura l indust ry Dig i ta l produc t brand in China
RAmos Tech
Ramos Digital Technology Co., Ltd is one of the most famous digital companies in
China. Ramos is a venture company founded by excellent semi-conductor
professionals in 2001. The company has an abundance of excellent human resources
and strong technical force, dedicated to the emerging digital consumer market. The
main of their business scope include MP3, MP4 digital player and a variety of digital
peripheral products, products line include high cost performance of RM series, high
performance of V series and fashion personalized of Q series.
Ramos Company launched into consumption digital electron industry completely in
2004. Through a comprehensive expansion and upgrade in Chinese digital market, the
company started the stable and rapid development in the domestic market. Nowadays,
Ramos brand become more and more famous, distribution of partial product occupies
leading position in market and they become a dark horse in China domestic digital
player market.
The face of intense domestic and international competition, they are integrating kinds
of resources strategically, gradually and effectively. Through effective marketing
system and rapid market response, they are developing towards the industrial up
stream and building up our core competitive capability. Now, they have close tie with
several large suppliers of digital player chip from domestic and abroad. Besides their
own R&D group, they also keep good relationship with many R&D groups in the
world.
Newsmy
Newsmy is one of digital flagship enterprise in China. Beijing Newsmy found in 1996,
is a research and development, manufacturing, sales and service as a whole of
Beijings Zhong Guan Cun high-tech enterprise. At present, Newsmy Company has
about 3,500 employees, has about one hundred Professional R & D and technical
personnel, and has 27 branch offices in China.
In 2006, Newsmy becomes one of the most well-known digital brands in China. Their
main businesses include MP3, MP4, Mobile Phone, Flash Memory disk, USB Disk
and other digital products.
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Newsmy MP3 sales volume is always ranked first in domestic. Because they
dependent on reliable product quality, excellent after-service, affordable price.
Nowadays Newsmy MP3 has become a high-cost MP3 synonymous with a more
cost-effective within the digital industry known as the popularity of those products in
China. Newsmy MP4 is preferred brand of MP4 in China. Their flash memory diskand USB disk products have small and fashionable appearance; in addition, they also
have reliable and stable quality. USB disk sales volume is always keep ranked first in
domestic.
Newsmy Company adheres to the "customer-oriented" aims to provide the best
quality service to customers. Customers can use online query, or telephone
counseling, Newsmy Companys customer service will be in the most efficient
method to give customer Comprehensive solutions, and assist with self-test and repair
until the product resume normal use as soon as possible.
AIGOBeijing Huaqi Information Technology Development Co., Ltd found in 1993, the
company is one high-tech enterprises in Zhong Guan Cun, Beijing, China. Their
annual business turnover maintains the steady growth of 60% in the past ten years,
and their products are exported to North America, Europe, Southeast Asia and other
regions. Their AIGO mobile storage products sales volume keep ahead in four
consecutive years, promote the rapid development of China's mobile storage industry,
and become the first large-scale industry entry into international market in China.
AIGO MP3 use only one year to achieve the highest occupancy rate in domestic,
monopolize this domain last for five years, and become ahead of many international
competitors in digital region.
At present, Beijing Huaqi Information Technology Development Co., Ltd has about
1,900 employees, 200 pfessional R & D and technical personnel, and a complete
marketing system. They have 17 institutional repository and other subsidiaries. Their
businesses include MP3, MP4, digital camera, mobile phone, computer peripheral and
other kinds of business.
Beijing Huaqi Information Technology Development Co., Ltd is known as Digital
Industry Outstanding Enterprises, Chinas information technology innovation withthe most potential business by CCID in 2004.
Meizu
Meizu Technology Co., Ltd. is a high-tech enterprise specializing in the R&D,
manufacturing and marketing of portable multimedia devices. Established in March
2003, the annual production value already reached 50 million US dollars 2007.
During this time, Meizu created a name that today is now closely associated with
quality and style. Apart from immense popularity in the domestic market, Meizu
products are gradually making their way into homes in major overseas markets such
as Europe, US, Korea and Japan.
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Meizu has ever since the start adopted the strategy for our products of maintaining
international level quality while at the same time to a price reasonable to the Chinese
public. One of the ways this is achieved is by developing only a select few, but very
successful product lines.
Meizu is dedicated to rising into a first-class international enterprise. Through
recruiting talented staff, importing advanced equipment, establishing strategic
relationships with top international companies and with a brand new building for
R&D and manufacturing The Meizu Tech Building, the foundation is laid for
Meizus future rise.
2.2 S itua t ion o f Indust r y
China Guangdong is the world's manufacturing center, 80% mp3 maker of China
is from here. In southern China, especially Shenzhen production of various types of
radios, tape recorders, video machines, VCD, DVD, music center, home theater,auditorium sound systems and other audio-visual products for more than 80% of the
test certification is in Shenzhen Electronic Product Quality Testing Center completed,
while the MP3 audio-visual products are also belong to the scope of national
regulations with the territoriality principle of electronic product testing, most
produced in Shenzhen, MP3 should be able to find a basis for testing.
Consumers to buy mp3 player, the price is the first consideration. Accounted for
75.2%, followed by the sound quality, accounting for 71.9% of users said that the
sound quality is good or bad will also decide whether to purchase MP3 products.
Capacity factor in the ranking is at the third position, with 66.5% of consumers as an
important reference. In addition, the MP3 market, product homogeneity, the brand is
often highlighted the role to, which is many users will be a brand as a reference factor,
the survey showed, considering the brand this factor is as high as 66.1% of users. The
appearance of the product is as a reference of factors account for 52.5% of the users
ratio. From the proportion of several factors point of view, did not differ much,
indicating that consumers consider when buying MP3 products, many factors, from
the side reflecting the overall strength of the products with outstanding performance
to get consumers.
Experienced the madness in 2006, flat in 2007, MP3 market in 2008 is boom,
when the function and design at the same level, entangled, cut prices once againbecome the market's overall trend, whether it is cross-brand, or the China local brands,
both struggle with the residents of the consumer price index rising so that continue
updating the price of the MP3 bottom line.
In recent years, MP3 players, the overall prices have been continuously falling,
and its price cuts and the reasons for this are similar to other IT products, mainly due
to decline in raw material costs, manufacturing process to improve, enhance and scale
decline in personnel costs and other factors, in addition, weakening of the dollar, the
RMB exchange rate increased by a certain extent, MP3 prices accelerated a decline in
the Chinese market.
Core price cuts cause: sharp drop in raw material costs
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NAND memory chips are MP3 players, mobile phones and digital cameras and
other products, the main raw material, but since late 2006 to early 2007, due to the
upstream supplier of NAND memory chips to the market is too optimistic about the
prospects for a substantial increase in the output of NAND memory chips, but the
actual market demand significantly lower than expected levels, resulting in a serioussurplus production of NAND memory chips, the price plummeted, the market began
to shrink.
Authoritative international market research firm Gartner believes that short-term
market has no signs of recovery, coupled with the trend of a global recession was
increasingly evident, its 2008 global semiconductor market expectations, was not very
optimistic, in fact, only the first two months of 2008, market-mainstream 4GB NAND
memory chip prices already down 26% in early March 2008, in mainland China
memory market, 1GB/2GB/4GB NAND memory chip prices have respectively
dropped to 68 Baht, 97 Baht and 185Baht, and the , the upstream market, the new
wave of the impact of price cuts have not yet fully manifested in the end-productmarkets.
As NAND prices have fallen sharply, Samsung, Toshiba, Hyundai and other
related manufacturers of memory chips sector has suffered a near devastating blow to
their earnings from profits in 2006 fell to the edge of today's losses, but the price of
memory chips because they cannot effective demand for support continues to decline.
In addition, due to Rock chip, Chinese domestic chip manufacturers such as
core-fly made great progress, its low price, superior performance, a new generation of
master chips on one hand, the high cost of foreign products out of the market will also
be developing MP3/MP4 Player substantially reduced the cost of the master program.
In the display, since the TPO, Chi Mei Optoelectronics, BOE and other display
manufacturers to upgrade manufacturing technology, it has the small size of portable
devices, display to the previous generation (or even the previous generation)
production line manufacturing, to ensure of the display yields and low prices.
Overall, due to flash memory chips, the master chip, display three major
sharp drop in raw material costs not fully reflected in the end-product prices,
MP3/MP4 players, lower prices will trend has continued.
Other price cuts reasons: technology, manufacturing, the combined effect
of exchange rate
As the size of the domestic MP3 market, the high-speed growth, the market hastaken shape in a handful account for most of the market share leader in the status quo,
these leaders with a more adequate capital accumulation, continued to strengthen and
consolidate its manufacturing processes and production scale, through the
introduction of modular, professional, highly efficient new generation of
manufacturing technology and related equipment, greatly improved the passing rate of
the product and process standards, and reduce the single-product manufacturing costs,
while accelerating the construction of raw materials through the supply chain and
product manufacturing industry chain clusters, gradually reveals the prototype scale.
As for the reasons for cross-brand products, price reductions, in addition to the
cost of raw materials to benefit from the decline in the international market, but also
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with their share of China's economic growth related to the outcome, as the
international transfer of manufacturing to domestic, cross-brand manufacturing plant
will generally be transferred to the southeast coast of areas, low-cost, high quality
human resources, coupled with intensive modes of production to a large extent to
reduce their production costs.In addition, the long-term U.S. dollar weakness, rising RMB exchange rate,
cross-brand products in the domestic market prices are significantly reduced. For
example, point of view, a fixed exchange rate in adjusting the RMB ago, a 100 dollar
MP3 player, equivalent to about RMB 823 RMB (U.S. dollar and the RMB exchange
rate of 1:8.23), is now also a 100 dollar MP3 player, equivalent to RMB only 682
RMB (U.S. dollar and the RMB exchange rate of 1:6.82), the price of virtually
dropped 17%. Of course, if even get to the bottom, import MP3 player prices also
imported electronic products in China customs tariff policy on zero, which is in
accordance with the WTO agreements in China, a major adjustment.
http://www.xe.com/ 07/01/2010
Whether manufacturing process improvements, enhanced scale, a decline in
personnel costs or exchange rates, trade, MP3 players, all of which contributed to
lower prices, in fact, benefited from the implementation of many of China's advance
in recent years, processing and manufacturing, export-oriented trade, macroeconomic
policy, as consumers, MP3 player, a clear underlying causes of lower prices after the
price cuts for the current product has a clearer understanding.
2.3 Our product and serv ic e
The main products of our company are MP3-player and MP4-player, come from fourfirst-class digital player brands in China, which areRamos, Aigo, Newsmy and Meizu.
Those four brands are respectively belonging to four high-tech enterprises. They both
serve their product base on the fundamental science and technology first, quality first,
the pursuit of customer satisfaction.
Brand logo:
Ramos + Aigo + Newsmy + Meizu
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The General Product List
RAMOST17FHD
1, handheld portable FullHD 1080P Full HD
2, HDMI digital high-definition TV output 1080P
3,16 GB large-capacity built-in flash memory
4, high-speed OTG external hard drive from the capacity constraints
5, multi-format support full HD video encoding
The new dual-core 32-bit professional audio and video processing core AMRISC
800 480 resolution 4.3-inch LCD HDTV
Silicon image of high-quality HDMI output of non-destructive high-speed and high-definition
compatible OTG digital companion function
1920 1080P resolution, H.264, MPEG1/2/4 decoding
MKV, RMVB, AVI, MOV, MPG, MPEG, DAT, MOV, MP4, TS Multi-Video Format
MP3 WMAWAVRMOGGAACM4AFLACAPE and many other audio format support
SMIASSSSASRTSUBSUB.IDX multi-format subtitles support
JPGBMPPNGGIFTIF multi-format Pictures and TXT e-book format,
FLASH files support for SWF playback NTFS, HFS + partition
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Aigo E5810(2GB)
This product provides several colors for selecting: Red and Black.
Capacity: 2GB
Storage medium: Flash memory
Interface: USB 2.0 interface
Support MP3 and WMA audio formats
Earphone: 2.5mm earphone interface
Battery: Built-in Lithium battery
Approved: CE / FCC
After sales service: 1 year warranty
The Newman Newsmy A18HD (nice name there) is a new media player out of China,
which claims to offer a spectacularly svelte 9.8mm thick form factor (which is a
couple of millimeters thinner than an iPhone at its thinnest point). In addition to its
striking looks, the A18HD has 16GB of built-in memory, and sports an oversize
5-inch, 16-million color LCD display. The device can play videos in 720p
resolution, but the screens resolution is an underwhelming 480 x 272, so youll
want to connect the included component video cable if you have any hope of playing
back your flicks at higher resolutions.
Audio formats supported include MP3, WMA and FLAC, while video can be played
in RM, RMVB, AVI, and FLV formats
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Meizu Miniplayer TS
The M6 is from Meizu's digital audio player productions. Accordingly, it is only
emerging in certain parts of the world including the United States, Australia, France,
Russia and more. Though the M6 supports many audio formats, the US release did not
support MP3 format because of licensing issues. Apparently, there are workarounds to
the issue with specific firmware upgrades.
Recently, Dane-Elec has formed a deal with Meizu to provide distribution of the M6.
Apparently, Dane-Elec has ironed out MP3 licensing issues. Many European models
distributed by DaneElec have their FM tuner disabled because of EU import duties;
this can also be remedied by a firmware update.
The M6 has been touted as an iPod killer because of its capabilities with respect to
its aesthetics. One characteristic regarding the Meizu M6 is its ability to function
without proprietary file formats and procedures.
Capacity1 GB (no longer produced), 2 GB, 4 GB, 8 GB (two 4 GB chips) flash
memory
Size 79 mm 48.2 mm 10 mm
Display2.4 inch, 260thousand colorQVGA, 320240pixelresolution
TFTLCD screen
Weight 55 grams
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Audio supports MP3, WMA, WAV, Ogg, FLAC, WMA lossless, APE
Video AVI format (Xvid) at up to 20 FPS and 384 to 512 kilobits per second
Photo BMP, JPEG, GIF
Batteryrechargeablelithium-ion battery; rated at 20 hours audio playback and 6
hours video playback
2.31 serv ic es
Our store will provided good service to our customer, meet customer needs and
wants. First ,we will introduction our product to customer, about function and other
accessory product ,if customer want to buy our product ,them can try to use the
product listing music and watch movie ,use other function ,make shall the product is
good for them really needs and wants. After customer buy our product our employee
will teach customer how to use the product, how to protect product. We will provide
the web--site to download the song and movie, or help the customer download the
new song, movie, and picture--book on store.
Our store will make the web-site ,customer can buy our product on-line, wewill deliver the product to customer ,there can try it ,check it have problem or make
shall this is good ,after than them can pay money to our .If customer use our product
have some quality problem in 3month ,we can change new one or pay the money to
customer. In 1year, have some damage is customer make, we will have customer
maintenance it, customer need to pay the maintenance cost.
2.4 The v is ion
To be the most popular Electronic product retailer of Thailand
2.5 Miss ion of our s t ore
- Provided high quality, fashion appearance, popular among young people like it,
low price Mp3 and Mp4.
- We will make different destruction channel to sell our product ,find different
segment ,know customer needs and wants ,make shall our product have right positioning achieve our vision.
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- We will give the stockholder high profit, if we can sell more quantity product,
we will get more profit.
- Our company will give the employee training, expect salary, employee sell one
product can get 5%cost of the product price.
2.6 Strat egy analys is
2.61 Corporate level
Integration strategies
Backward integration: the supplier is come from China industry ,in China Mp3
supplier competitors is large ,so the Mp3 give the stable from our company is very
important .So, our store can give the customer stable price ,current supplier can have
high profit margins.
Horizontal strategies ----Now ,many electronic product import the product from other
development country ,the product have price and tax, if product is broke need to high
maintenance cost ,also need to specialization staff teach customer how to use. Our
product have low price, high quality, can easy understanding how to play.
Intensive strategies
Market penetration ---we try to use some marketing strategy promotion our product
seeking increase market share present product through Mp3 marketing efforts.
Market development ---we will introduce Chinese Mp3 in our store ,Thailand is new
market ,now in Thailand Chinese Mp3 is not popular, no retrial sale it , our company
think Chinese Mp3 can sale very well in Thailand and price is better from student to
buy.
Product development---our store at the fixed date change our product same Chinese
product, our supple try to make new product attract more customer to buy product.
2.7 Operat ional level
Marketing strategy ---we will analysis competition, STP ,marketing mix strategy to
help our store know customer needs and wants .our store have some marketingpromotion like discount price to attract customer to buy our product.
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Finance strategy---- outlining a business operating; clear know our generation profit
and loss. Finance strategy is to ensure the financial resources are provided to support
the strategic objectives of the organization. It supports these objectives together with
the HR strategy, the value for money strategy, the business development strategy
(currently in development) .
Accounting strategy ---we will write moth date every year, balance sheet ,income
statement and cash flow, how to get the profit ,or our store have loss.
Management system
Manager/Owner
- Mainly focus on management, dealing conflicts between different department
- Set mission and vision of business, make sure business is going to the right
direction
- Merchandise control, inventory
- Build up good relationship with supplier
- Acknowledge strength and weakness among competitors
- Provide good working environment
- Employees health care, and security to staffs
Accounting- Accounting
- How well does business perform
Marketing
- Always seek new business opportunities
- Attract potential customer, keep profitable customer.
- Keep loyalty among customer
Veterinary
- Perform service to customer
- Trained and educated
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COSTS/ STAFF SALARIES
Manager: 12,000 per month
Veterinarian: 10,000 per month
Staff: 8,000 per month
Total salaries: 54,000 baht per month
Chapt er 3
Market Feas ib il i t y St udy
3.1 Market Analysis
3.11GeneralEnvironmentAnalysis
Political The politics of Thailand are currently conducted within the
framework of a constitutional democratic monarchy, whereby the Prime Minister is
the head of government and a hereditary monarch is head of state. The judiciary is
independent of the executive and the legislative branches. After the 'democratic
revolution' in 1932, the country officially became under a constitutional democratic
monarchy with a prime minister as the head of government. The first written
constitution was issued.
During 2008, Thailand saw increasing political turmoil. The conflict makes the
political environment worsened slightly in 2009 when compared with before.
Moreover, future investment decisions by Thai companies could well be affected by
the uncertain political environment. Such perceptions, however, should come as no
surprise given the volatile global economic environment over the past few years,
coupled with the highly volatile political situation following the 2006 coup.
Economic - Thailand's real GDP growth in 2008 was 2.6 per cent, falling
below previous Thai Ministry of Finance growth estimates due to the emerging global
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economic crisis. Thailands export sector, which accounts for around 60 per cent of its
GDP, suffered due to falling global demand a trend that may continue into 2009. In
the first quarter of 2009, total exports declined by 23.1 per cent year-on-year, which
contributed to a 7.1% contraction in GDP. Headline inflation in January 2009 was
-0.4%.The Thai government has adopted a two-stage fiscal stimulus response to
address the effects of the crisis. The first phase, introduced in February 2009, was
aimed at stimulating domestic purchasing power through cash handouts. The second
phase, worth around $57 billion, will be released over the 2010-12 period for a range
of large scale infrastructure projects.
SocialEnvironment The culture of Thailand incorporates a great deal of
influence from India, China, Cambodia, and the rest of Southeast Asia. Thailand's
national religion Theravada Buddhism is central to modern Thai identity and belief. In
practice, Thai Buddhism has evolved over time to include many regional beliefs
originating from Hinduism, animism as well as ancestor worship. The official
language of Thailand is the Thai language, a Kradai language closely related to Lao,
Shan in Burma, and numerous smaller languages spoken in an arc from Hainan and
Yunnan south to the Malaysian border. It is the principal language of education and
government and spoken throughout the country. Most of Thai people have a positive
attitude to foreign products and services. The new generation of Thailand is able to
speak English very well and a little Chinese. There is no difficult for the diffusion of
Western and Asian products onto markets.
Environment Thailands economic growth over the last three decades has
been fueled and accompanied by rapid industrialization, urbanization, and by
intensified agricultural production and fishing. This growth, which has relied
extensively on the countrys abundant and diverse natural resources, has degraded
land and water quality, caused the loss of natural habitats, and generated increasing
levels of air and water pollution. In response, the Government and people of Thailand
have launched new initiatives to improve air and water quality, reforest degraded land,
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adopt energy efficient technologies and invest in pollution abatement schemes. In
recent year, the World Banks relationship with Thailand has evolved from lender to
knowledge-sharer. Exemplifying this new role, the Bank and government have
recently established a Country Development Partnership for Environment (CDP-E)
(see below), which focuses on improving environmental quality and sustaining natural
resources through knowledge-sharing and demonstration.
Technology With the exception of multinational companies, businesses in
Thailand limit most of their Internet involvement to basic electronic data interchange,
processing networks and messaging systems. Some customs procedures are conducted
online, and the Stock Exchange of Thailand has permitted online trading since April
2002. Electronic banking is developing, with all the major banks now offering
transaction and account-checking services online. Websites are increasingly offering
interactive transactions, but most are static information outlets. The government is
offering more services online, mainly through its portal: www.ecitizen.go.th. Because
of the licensing structure and the limited scale of commerce in Thailand,
Internet-related transactions are defined purely in technological terms.
3.12CompetitionAnalysis
Competitor Analysis In Chiang Rai, there are lots of digital product
stores, small and big, normal and special. They mainly located in It center of Chiang
Rai city, Big C shopping mall, the neighborhood of the universities. Those stores
consist of most computer stores and little specialty stores. Those computer stores
provide a limited variety and assortment of merchandise at a convenient location.
They enable consumers to make purchases quickly, without having to search through
a large store and wait in long checkout line. They provide low price product but low
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service also. For the specialty stores in Chiang Rai, they concentrated on a limited
number of complementary merchandise categories and provide a high level of service
in relatively small stores. Most of these stores just offer quite expensive digital
products, such as product of IPod, Sony, and Philips etc.
Customer Analysis In recent time, we just conducted a study on the
customer behavior of Digital product in Chiang Rai. The results shows that the mainly
customer of Digital product are students whose age is between 15 to 20 years old.
When try to ask: do you like to wear mp3 player-watch? There are almost 70% of
those participators said yes. 42% of them purchased digital product from IT center,
50% from shopping mall and 8% from other stores. The lifestyle of those mainly
customer are sport and nature. They are more interesting with high-technology
product. Most of digital product buyer is the end user. They purchase the products for
themselves. There are a high number of products and services for whom the buyer is
the main driver being making the purchase.
Competitive Analysis Our competitor are those computer stores and
specialty stores. They located in the shopping mall or some convenient site. Their
inventory mostly comes from Thailand with relatively same price. Our store will seek
to the high-technology product with lower price. Most inventories will be purchased
from China suppliers, which will make our product different from our competitors.
Our customers are students those who like sport or nature lifestyle. Unlike the normal
computer stores, we will care both service and product parts. We will provide high
quality product with good service to satisfy those customers.
3.2 STP Analysis
Market segmentation - We divide our customer into groups based on
variables such as age, family size, family life cycle, income, occupation, country
region.
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Age: 6-15, 15-25, 25-40, 40-60; 60+
Family size: 1-2, 3-4, 4-6, 6+
Family life cycle: under 18; Single; married, no children; married, have children;
older, single; other
Month Income (Baht): lower than 5,000; about 7,000-10,000; about
10,000-20,000; more than 30,000
Occupation: Student; government officer; employee; business owner; retirement
City or countryside
Market targeting - Our store will target on one group who lived nearby
Rajabhat University. Their age is between 15 to 25 years old. Their month income
lower than 5,000 baht and most of them are students.
Marketpositioning We offer our customer a hightechnology product but
lower price. Because we purchase the inventory from China, it can increase our stores
differentiation fromcompetitors.Duetoourmainlycustomerarestudents,wewillseekthose
products which are lower price but fashionable. Moreover every products of our store will
enjoyOEMwarranty.
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Economic Presentation
Skimming Premium
Quality
Low High
Price
Low High
3.3 Marketing Mix Strategy
Due to our store brand is not well-known, the sale is relatively low. We will
focus on enhance our store awareness through using the multi-communication channel
to. The total communication expenses are12,000 which will be assigned to each
task respectively for next month. The expense for each relative objective is stated
under:
Objective1:
Increase
traffic
during
dull
periods.
Task:Run30secondradiospotssplitontwostationsandspreadoverthesedates:October1 10
6000baht
Objective2:Attractnewcustomersfromnewstudentstothecommunity
Task:2,000directmailletters invitingresidents(Mostarestudents)inthecommunitytostopin
to
visit
the
store
0
baht
Cn_fantasy
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Objective3:Buildstoresreputation.
Task: One quarterpage newspaper ad per month in the IT section of the local newspaper
5000baht
Objective4:Clearoutendofmonth,slowmovingmerchandise.
Task:RunafullpagenewspaperadonthelastFridayofeverymonth 1000baht
3.4 Sales Forecast/Profit Estimation
Monthlyincome
statement
Sales 134,000Grossmargin(realized) 53,600Rental,maintenance,etc 17,400Personnel 13,020Communications 12,000 Profit 11,180
3.5 Marketing Expenses
Communication Budget
Level
Communication
expenses
(1)
Sales
(2)
Gross
margin
(realized)
(3)
Rental
Expenses
(4)
Personnel
Expense
(5)
Contribution
before
communication
expense
(6)=(3)(4)(5)
Profit
after
communication
expense
(7)=(6)(1)
10 48,000 19,200 8,800 10,440 40 40
22,000 66,000 26,400 10,600 11,280 4,520 2,520
34,000 84,000 33,600 12,400 11,520 9,680 5,680
46,000 100,000 40,000 14,000 12,000 14,000 8,000
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58,000 114,000 45,600 15,400 12,420 17,780 9,780
610,000 125,000 50,000 16,500 12,750 20,750 10,750
7 12,000
134,000
53,600 17,400 13,020
23,180
11,180
814,000 141,000 56,400 18,100 13,230 25,070 11,070
Accordingtothecommunicationbudget,wecanseethelevel8contributesthehigherprofit,but
theexpenselevelsbetween 12,000and 14,000allresultalmostthesamelevelofprofit.Thus,
ourcompanyshouldchoosethelevel7forourcommunicationexpenses.
3.6 Conclusion
In conclusion, I view the digital product marketing in Chiang Rai in a positive way. It
has both stable general environment and low intense competition. In Chiang Rai, we
see the economy has increased faster over the last few years. And the residents are
increase every year because lots of students come here. In addition, since the
establishment of GREAT MEKONG SUBREGION COOPERATION, it has brought a
lot of potential advantages for the business of those countries such as the free tariff
trading. We believe our business will be successful in the near future through seizing
the opportunity.
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Chapt er 4
Technic a l Feas ib il i t y St udy
4.1 Product ion and Operat ions Analys is
- Product Characteristics
Our products have special design, nice appearance and many colors; they can give
customers a different choice as their own style. Our products also have high
quality and low cost. At present, we have four distinctive characteristics: Jewelry
Types; Mobile Phone Types; Ultrathin Card Types and Cartoon Types.
Almost jewelry types design for female customers, they are making into necklaces,
earrings, rings and other kinds of accessories. They can be caught in the clothesanywhere. These designs are beautiful, compact and colorful.
Mobile Phone types are design as phone, and they have video function.
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Usually ultrathin card types design for man, it convenient to carry; they can put it
in their pocket.
Cartoon types often design for children; they have very cute cartoon appearance,
and the price is cheap.
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- Specification, Feathers, Dimension, Life Time
MP3:
These machines are the figures walkman of the whole new generation equipments.
They basic support MP1, MP2, MP3, WMA, WMV, ASF, WAV etc. format
music. These machines have perfect sound quality, very credibility quality and
choiceness of external appearance benefit by association together, be rated as the
work of master class, they can bring extraordinary enjoyment of the digital era.
General Description Functions:
Choiceness features design
They all have special external appearance designs, pleasant of hand feeling.
Support variety audio frequency format
Support MP1, MP2, MP3, WMA, WMV, ASF, WAV and other formats players.
The Firmware Upgrade function
Provide on the website latest of get stripe software download, realization originthe function of the machine expand.
The FM high fidelity radio
Strong auto search broadcasting station or hand to move to search broadcasting
station function, 40(each make type 20) native broadcasting station of saving
dissimilarity frequency, let you easy listen to a broadcasting station program.
Driver-free U disk function
Do not need management procedures, can be directly through the "My Computer"
in "removable disk" to file operations, in the above WIN2000 system without
having to install drivers.
The disk mode of difference dimension"
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Make use of random supplementary tool, can divide the line this machine disk as
two disk, and encrypt an among those, conceal space, make keep to encrypt at this
part of the contents be not see by the outsider with read and write, from now on can
hide a secret!".
Recording/reply to readCan pass microphone recording and keep for the speech text of the WAV and the
ACT format file, can choice the part reply to read or contrast reply to read,
realization the real figures reply to read function.
7 kinds of machine with balanced tone color
Nature, rocks roll, popular, classic, soft, jazz, heavy bass
The variety broadcast mode
Common mode, list song circulation, the catalogue broadcast, catalogue circulation,
all circulation, random broadcast, browse to broadcast.
In fixed time shut down
Can enactment sleep mode and province electricity mode; make you usage get upto feel more convenience.
Whole animation menu
Keep the animation menu of view, the match correspond literalness a manifestation,
usage get up with proficiency!
Multilingual
Can the choice simplified Chinese , traditional Chinese, English, Japanese, Korean,
French, German, Italian, Holland, Portugal text, the Tai and Spanish 12 kinds of
languages.
Our products have many kinds of internal storage to choice, for example, 1G, 2G,
4G and son on. Usually the life time is 4-5 years, and we will provide one-year
warranty.
MP4:
MP4 are the figures walkman of the whole new generation equipments. They
basic support MP3, WMA, and other format music players, and support RM,
RMVB, AVI, FLV and other forms video players. These machines have perfect
sound quality, HD decoding, super Video resolving power, and have very
credibility quality and special external appearance, they can bring extraordinary
enjoyment of the digital era and watch clear films.
General Description Functions:High Definition Video function:
Support 720P high-definition video player, assure 1280*720 high-quality image
pixel.
Film Appreciation Function:
Support RM, RMVB, AVI, FLV and other forms video players, you can download
movies what you like.
Metal Appearance:
All make of metal, eye-catching,sparkle fashion and aristocratic temperament.
Colorful Screen:
TFT LCD, screen real delicate and widescreen display.
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Video Output Function:
Support HD restore image, easy access to a large number of new source.
Music Appreciation Function:
Support MP3, WMA, APE, FLAC pairs of lossless compression forms of music
player, and Synchronized lyrics display.Breakpoint Continued Broadcasting Function:
Can record and retain your movie player progress.
Super Outer Sound Function:
Support external audio player, and let you enjoyment of good sound quality.
Digital Repetition Function:
A-B repetition, simplicity of operator, and study foreign language easily.
Multitasking Function:
Support multitasking operation, you can listen music and read e-book at the same
time.
Electronic Album Function:Support a variety of forms of browsing pictures, such as JPG, BMP, PNG and so
on.
Text Reading Function:
TXT text reading, auto browsing, and convenient functions of set bookmark and
extraction.
Digital Recording Function:
Built-in high-definition microphone, set to achieve high-quality recording and
transient records.
Energy-Saving Settings Function:
Provide automatic shutdown, auto-off screen and other energy-saving settings
functions. It can help you save energy and convenient.
High-Speed Interface Function:
USB2.0 high-speed interface, it can quick to read and write.
Firmware Upgrade Function:
Support firmware upgrade,
We have many kinds of internal storage to choice, for example, 1G, 4G, 10G and
so on. Support MPEG-4, AVI, ASF, WMV and other forms video player. Usually
the life time is 4-5 years, and we will provide one-year warranty.
- Production/Service Process
Negotiate with Manufacturing
Purchase Products
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Transportation
Sale
- After-sale Service
We import our products from four brand manufacturers in China. These
companies are famous and have reputable brand in China, and they all products
have reliable quality and reasonable price. Through our negotiation, they agree
with that we can choice product style by ourselves, they are pledge to provide
the best quality products to us, if some of our products sale not well, we canreturn these products and change other types. About their products after-sale
service, because of we think about if the product have some problems, we return
it to manufacturer to repair, it would costly, we decide to set up our after-service
department, and these manufacturers are responsible train our staff some
necessary techniques of after-service for free. And they will try their best to
design products if our customers want a special style product. We will cooperate
with Logistics Company, they can use their profession to help us choice the best
transportations, and make sure our products safe. Our store will try our best to
provide excellent service to customer, we have own after-service department, it
can provide best after-service to customers, and can teach customer how to
maintain their products.
- Location
Our store is located in nearby Rajabhat University in Chiang Rai. Because through
our research, the result show that the mainly customers of digital products are
15-20 years old students in Chiang Rai. Rajabhat University has many students,
there are have other schools and church near Rajabhat University, the main of
people go to church are students, and it is also nearby Mae Fah Luang University.
- Facility Layout
Our store facility layout is simple and fashionable; the design will meet the tastesof young people. We will purchase some computers to give customer search
information, and download music, movies with free. Our store has 4 rooms; these
rooms are respectively used for selling, storing, washroom and after- service. Our
after- service department have sofa, free water provide to customers, and they also
can play computer with free. When they wait for repairing, they also get our
excellent service.
4.2 cost of Investment
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Pre-Operating Cost for Year 2010
Expenses
Rent B 120, 000Insurance 48,800
Salary (3) 175, 680
Advertising 8, 000
Internet portal 1, 500
Shipping fee 40,000
Decorating fee 146, 400
Assets
Equipment 14,640
Computer (5) 150, 000
MP3, MP4/Product 732, 000License 5,000
Vehicle 150,000
Total B 1,592, 020
PreOperatingCostforYear2010,Monthly
Expenses/Asset JAN FEB MAR APR MAY JUN
Expenses
Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
InternetPortal 125 125 125 125 125 125
Shippingfee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decoratingfee 6,100 6,100 6,100 6,100 6,100 6,100
Asset
Equipment 610 610 610 610 610 610
Computer(5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66
MP3,MP4/Product 61,000 61,000 61,000 61,000 61,000 61,000
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
Total 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5
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JUL AUG SEP OCT NOV DEC TOTAL
B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48,800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8,000
125 125 125 125 125 125 1,500
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
6,100 6,100 6,100 6,100 6,100 6,100 73,200
Asset
610 610 610 610 610 610 7,320
4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000
61,000 61,000 61,000 61,000 61,000 61,000 732,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 143,891.5 1,726,699
PreOperatingCostforYear2011,Monthly
Expenses/Asset
JAN
FEB
MAR
APR
MAY
JUN
Expenses
Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
InternetPortal 0 0 0 0 0 0
Shippingfee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decoratingfee
6,100
6,100
6,100
6,100
6,100
6,100
Asset
Equipment 610 610 610 610 610 610
Computer(5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66
MP3,MP4/Product 61,000 61,000 61,000 61,000 61,000 61,000
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
Total 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5
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JUL AUG SEP OCT NOV DEC TOTAL
B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48,800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8,000
0 0 0 0 0 0 0
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
6,100 6,100 6,100 6,100 6,100 6,100 73,200
Asset
610 610 610 610 610 610 7,320
4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000
61,000 61,000 61,000 61,000 61,000 61,000 732,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 143,766.5 1,725,199
PreOperatingCostforYear2012,Monthly
Expenses/Asset
JAN
FEB
MAR
APR
MAY
JUN
Expenses
Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
InternetPortal 125 125 125 125 125 125
Shippingfee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decoratingfee
7,116.66
7,116.66
7,116.66
7,116.66
7,116.66
7,116.66
Asset
Equipment 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66
Computer(5) 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66
MP3,MP4/Product 80,000 80,000 80,000 80,000 80,000 80,000
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
Total 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9
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JUL AUG SEP OCT NOV DEC TOTAL
B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48,800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8,000
125 125 125 125 125 125 1,500
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
7,116.66 7,116.66 7,116.66 7,116.66 7,116.66 7,116.66 85,400
Asset
1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 12,200
4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 4,166.66 50,000
80,000 80,000 80,000 80,000 80,000 80,000 960,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 164,314.9 1,532,580
PreOperatingCostforYear2013,Monthly
Expenses/Asset JAN FEB MAR APR MAY JUN
Expenses
Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
InternetPortal 0 0 0 0 0 0
Shippingfee
3,333.33
3,333.33
3,333.33
3,333.33
3,333.33
3,333.33
Decoratingfee 6,100 6,100 6,100 6,100 6,100 6,100
Asset
Equipment 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66
Computer(5) 5,000 5,000 5,000 5,000 5,000 5,000
MP3,MP4/Product 91,500 91,500 91,500 91,500 91,500 91,500
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle 2,500 2,500 2,500 2,500 2,500 2,500
Total
175,506.5
175,506.5 175,506.5 175,506.5
175,506.5
175,506.5
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JUL AUG SEP OCT NOV DEC TOTAL
B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000
4,0666.6
4,0666.6
4,0666.6
4,0666.6
4,0666.6
4,0666.6
48,800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8,000
0 0 0 0 0 0 0
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
6,100 6,100 6,100 6,100 6,100 6,100 73,200
Asset
1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 1,016.66 12,200
5,000
5,000
5,000
5,000
5,000
5,000
180,000
91,500 91,500 91,500 91,500 91,500 91,500 1,098,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 175,506.5 1,786,880
PreOperatingCostforYear2014,Monthly
Expenses/Asset JAN FEB MAR APR MAY JUN
Expenses
Rent B10,000 B10,000 B10,000 B10,000 B10,000 B10,000
Insurance 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6
Salary(3) 14,640 14,640 14,640 14,640 14,640 14,640
Advertising 666.666 666.666 666.666 666.666 666.666 666.666
Internet
Portal
125
125
125
125
125
125
Shippingfee 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33
Decoratingfee 6,100 6,100 6,100 6,100 6,100 6,100
Asset
Equipment 1,138 1,138 1,138 1,138 1,138 1,138
Computer(5) 5,000 5,000 5,000 5,000 5,000 5,000
MP3,MP4/Product 101,666 101,666 101,666 101,666 101,666 101,666
License 83.3333 83.3333 83.3333 83.3333 83.3333 83.3333
Vehicle
2,500
2,500
2,500
2,500
2,500
2,500
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Total 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9
JUL AUG SEP OCT NOV DEC TOTAL
B10,000 B10,000 B10,000 B10,000 B10,000 B10,000 B120,000
4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 4,0666.6 48,800
14,640 14,640 14,640 14,640 14,640 14,640 175,680
666.666 666.666 666.666 666.666 666.666 666.666 8,000
125 125 125 125 125 125 1,500
3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 3,333.33 40,000
6,100 6,100 6,100 6,100 6,100 6,100 73,200
Asset
1,138 1,138 1,138 1,138 1,138 1,138 13,656
5,000 5,000 5,000 5,000 5,000 5,000 60,000
101,666 101,666 101,666 101,666 101,666 101,666 1220,000
83.3333 83.3333 83.3333 83.3333 83.3333 83.3333 1,000
2,500 2,500 2,500 2,500 2,500 2,500 30,000
185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 185,918.9 1,791,836
InvestmentCostforYear2010
INVESTMENT AMOUNT DEPRECIATION ANNUALDEP. MONTHLYDEP.
Computer 150,000 3Years 50,000 4,166.666
Equipment 14,640 2Years 7,320 610
Vehicle 150,000 5Years 30,000 2,500
DepreciationforYear2010,Monthly
INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCOMPUTER 150,000 4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
50,000
EQUIPMENT 14,640 610 610 610 610 610 610 610 610 610 610 610 610 7,320
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VEHICLE 150,000 2,500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
30,000
TOTAL 314,640 7,276.6
7,
276.6
7,
276.6
7,
276.6
7,
276.6
7,
276.6
7,
276.6
7,
276.6
7,
276.6
7,
276.6
7,
276.6
7,
276.6
87,320
DepreciationforYear2011,Monthly
INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCOMPUTER 100,000 4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
50,000
EQUIPMENT 7320 610 610 610 610 610 610 610 610 610 610 610 610 7,320
VEHICLE 120,000 2,500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
30,000
TOTAL 227,320 3,943.3
3,
943.3
3,
943.3
3,
943.3
3,
943.3
3,
943.3
3,
943.3
3,
943.3
3,
943.3
3,
943.3
3,
943.3
3,
943.3
87,320
DepreciationforYear2012,Monthly
INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
COMPUTER 50,000 4,166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
4,
166.6
50,000
EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0
VEHICLE 90,000 2,500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
30,000
TOTAL 140,000 6,666.6
6,
666.6
6,
666.6
6,
666.6
6,
666.6
6,
666.6
6,
666.6
6,
666.6
6,
666.6
6,
666.6
6,
666.6
6,
666.6
80,000
DepreciationforYear2013,Monthly
INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCOMPUTER 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0
VEHICLE 60,000 2,500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
30,000
TOTAL 60,000 2,500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
30,000
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DepreciationforYear2014,Monthly
INVESTMENT AMOUNT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCOMPUTER 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0
VEHICLE 30,000 2,500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
30,000
TOTAL 30,000 2,500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
2,
500
30,000
Administration Cost for per month
Electricity B 2,475
Telephone 1,800
Fax Salary 1,500
Internet fee 1,000
Water fee 30
Receipts 800Total 7,605
-Management Analysis
The form above display every month our company has to pay for support the
operation of our company. It is essential for every company which want to
performance good. It calculated that we need 7,605 baht to support our company per
month. Exclude the Internet fee and water fee is fix cost, others are variable cost like
electricity, telephone, fax salary, receipts. So we just can estimate.
-Conclusion
From the data of pre-operation 2010, 2011, 2012, 2013, 2014 display that the
total investment for year decrease year by year until year 2012, at year 2013 and year
2014 happened some small inflation because of the exchange rate. From current
exchange rate we can get the conclusion about the Chinese RMB exchange Thai Baht
lower than before, so we assume that the rate will be decrease for a long time until
year 2012. At year 2013, we assume that the rate will be increase at that time, so at the
same money, we can exchange more Thai Baht. So the expense at year 2013 isespecially high. Decorating fee, equipment fee, computer, MP3, Mp4 product fee are
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changed along with the exchange rate prospect. And the internet portal we updated
once every other year for attract customers, at the same time we can save cost.
Chapter5
Financ ia l analys is
In t roduc t ion
In this chapter we will use the accounting and financial analysis our
company situation,use the profit and loss statement ,cash flow ,balance
sheet to analysis ,can help our origination know ,our company can get the
profit or get loss ,when can get profit,can plan about 5years accounting
and financial situation .
5.1 Prof i t /loss s t a tem ent
2010 year
Period
ending
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tot
al
Total
revenu
e
127
33
127
33
127
33
127
33
1273
3
127
33
12
73
3
127
33
127
33
127
33
1273
3
127
33
$15
280
0
cost of
revenu
e
349
1
349
1
349
1
34
91
3191 341
9
34
19
341
9
341
9
341
9
3419 341
9
$4
19
00
Gross
profit
924
1
924
1
924
1
924
1
9241 924
1
92
41
924
1
924
1
924
1
9141 924
1
$11
090
0
Operat
ing
expens
e
Rentalmaint
1450
1450
1450
450 1450 1450
1450
1450
1450
1450
1450 1450
$17400
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Rent
store
100
0
100
0
100
0
100
0
1000 100
0
10
00
100
0
100
0
100
0
1000 100
0
$12
000
Advert
ising
670 670 670 670 670 670 67
0
670 670 670 670 670 $80
00
Decorating
fee
0 0 0 0 0 0 0 0 0 0 0 0 0
Total
operati
ng
expense
311
6
311
6
311
6
311
6
3116 311
6
31
16
311
6
311
6
311
6
3116 311
6
$37
400
Operati
ng
income
or loss
612
5
612
5
612
5
612
52
6125 612
5
61
25
612
5
612
5
612
5
6125 612
5
$73
500
Year 2011
Period
ending
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tot
al
Total
revenu
e
128
00
128
00
128
00
128
00
1280
0
128
00
12
80
0
128
00
128
00
128
00
1280
0
128
00
$15
360
cost ofrevenu
e
3483
3483
3483
3483
3483 3483
3483
3483
3483
3483
3483 3483
$41
800
Gross
profit
931
6
931
6
931
6
931
6
9316 931
6
93
16
931
6
931
6
931
6
9316 931
6
$11
180
0
Operat
ing
expens
e
Rental
maint
140
8
140
8
140
8
140
8
1408 140
8
14
08
140
8
140
8
140
8
1408 140
8
$16
900
Rent
store
108
3
108
3
108
3
108
3
1083 10
83
108
3
108
3
108
3
1083 108
3
$13
000
Advert
ising
833 833 833 833 833 833 83
3
833 833 833 833 833 $10
000
Decor
ating
fee
33
33
33
33
333
3
333
3
333
3
33
33
33
33
333
3
333
3
33
33
333
3
33
33
$40
000
Total
Total 649
649
649
6499
649
64
649
649
649
6499 649
$77
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operati
ng
expens
e
9 9 9 9 99 9 9 9 9 900
Operat
ing
income
or loss
2817
2817
2817
2817
2817 2817
2817
2817
2817
2817
2817 2817
$33810
Year 2012
Period
ending
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tot
al
Total
revenu
e
126
53
126
53
126
53
126
53
1265
3
126
53
12
65
3
126
53
126
53
126
53
1265
3
126
53
$15
184
0
cost of
revenu
e
334
9
334
9
334
9
334
9
3349 334
9
33
49
334
9
334
9
334
9
3349 344
9
$40
190
Gross
profit
930
4
930
4
930
4
930
4
9304 930
4
93
04
930
4
930
4
930
4
9304 930
4
$11
165
0
Operating
expens
e
Rental
maint
141
6
141
6
141
6
141
6
1416 141
6
14
16
141
6
141
6
141
6
1416 141
6
$17
000
Rent
store
125
0
125
0
125
0
125
0
1250 125
0
12
50
125
0
125
0
125
0
1250 125
0
$15
000
Advert
ising
833 833 833 833 833 833 83
3
833 833 833 833 833 $10
000
Decor
ating
fee
0 0 0 0 0 0 0 0 0 0 0 0 0
Total
Total
operati
ng
expens
e
316
66
316
66
316
66
316
66
3166
6
316
66
31
66
316
66
316
66
316
66
3166
6
316
66
$38
000
Operat
ing
613
7
613
7
613
7
613
7
6137 613
7
61
37
613
7
613
7
613
7
6137 613
7
$73
650
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income
or loss
Year 2013
Period
ending
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tot
al
Total
revenu
e
128
08
128
08
128
08
128
08
1280
8
128
08
12
80
8
128
08
128
08
128
08
1280
8
128
08
$15
370
0
cost of
revenu
e
363
0
363
0
363
0
363
0
3630 363
0
36
30
363
0
363
0
363
0
3630 363
0
$43
560
Gross
profit
917
8
917
8
917
8
917
8
9178 917
8
91
78
917
8
917
8
917
8
9178 917
8
$11
011
4
Operat
ing
expens
e
Rental
maint
140
0
140
0
140
0
140
0
1400 140
0
14
00
140
0
140
0
140
0
1400 140
0
$18
600
Rentstore
1166
1166
1166
1166
1166 1166
1166
1166
1166
1166
1166 1166
$14
000
Advert
ising
250 250 250 250 250 250 25
0
250 250 250 250 250 $30
00
Decor
ating
fee
0 0 0 0 0 0 0 0 0 0 0 0 0
Total
Total
operati
ng
expens
e
281
6
281
6
281
6
281
6
2816 281
6
28
16
281
6
281
6
281
6
2816 281
6
$33
800
Operat
ing
income
or loss
636
1
636
1
636
1
636
1
6361 636
1
63
61
636
1
636
1
636
1
6361 636
1
$76
340
Year 2014
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Period
ending
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tot
al
Total
revenu
e
127
26
127
26
127
26
127
26
1272
5
127
26
12
72
6
127
26
127
26
127
26
1272
6
127
26
$15
272
0cost of
revenu
e
352
9
352
9
352
9
352
9
3529 362
9
35
29
352
9
352
9
352
9
3529 352
9
$42
350
Gross
profit
919
7
919
7
919
7
919
7
9197 919
7
91
97
919
7
919
7
919
7
9197 919
7
$11
037
0
Operat
ing
expens
e
Rental
maint
140
4
140
4
140
4
140
4
1404 140
4
14
04
140
4
140
4
140
4
1404 140
4
$16
850
Rent
store
116
6
116
6
116
6
116
6
1166 116
6
11
66
116
6
116
6
116
6
1166 116
6
$14
000
Advert
ising
166 166 166 166 166 166 16
6
166 166 166 166 166 $20
00
Decor
ating
fee
0 0 0 0 0 0 0 0 0 0 0 0 0
Total
Total
operati
ng
expens
e
140
4
140
4
149
4
140
5
1505 140
4
14
04
140
4
140
4
140
4
1404 140
4
$16
850
Operat
ing
income
or loss
779
3
778
3
779
3
779
3
7793 779
3
77
93
779
3
779
3
779
3
7703 770
3
$93
520
Period
ending
27-Sep-10 28--Sep--11 26--Sep--12 26--Sep--13 28--Sep--14
Total revenue 152,800 153,600 151,840 153,700 152,720
cost of revenue 41,900 41,800 40,190 43,560 42,350Gross profit $ 110,900 $ 111,800 $111,650 $110,140 $110,370
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Operating
expense
Rental
maintenance
17,400 16,900 17,000 16,800 16,850
Rent store 12,000 13,000 15,000 14,000 13,000
Advertising 8,000 10,000 6,000 3,000 2,000
Decorating fee --- 40,000 ---- ---- -----
Total operating
expense
37,400 77,990 38,000 33,800 16,850
Operating
income or loss
73,500 33,810 73,650 76,340 93,520
In the profit or loss statement we calculate the total revenue,gross margin,and
operating expenses at our company , combine the total operating expense and gross
profit ,get the operating income or loss.The profit will increaseing in future . this
involves the creation of a profit and loss budget setting out expected future profits/losses for the
business. This is important in assessing the return on the business
5.2 Cash f low
Year 1 Year2 Year3 Year4 Year5
Capital -300,000
Resident capital 140,000
Loan 800,000
Interest -50,000 -40,000 -30,000 -20,000
Repayment -40,000 -40,000 -40,000 -40,000
Variable cost
Supplement -432,000 -564,000 -443,000 -357,000 -321,000Others -29,400 -32,700 -45,600 -25,400 -31,400
Total variable
cost
-461,400 -696,700 -488,600 -392,400 -352,400
Fixed cost
Rent -120,000 -120,000 -120,000 -120,000 -120,000
Insurance -48,800 -48,000 -48,000 -48,000 -48,000
Advertising -8,000 -7,000 -7,000 -6,000 -5,000
Internet portal -1500 -1500 -1500 -1500 -1500
Salary -71,400 -71,400 -71,400 -71,400 -71,400
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License -5,000 -5,000 -5,000 -5,000 -5,000
Vehicle -150,000 -150,000 -150,000 -150,000 -150,000
Total fixed cost -404,700 -404,800 -404,800 -404,900 -405,000
Working captailWorking capital
cash 10% of
fixed cost
-40,470 -40,480 -40,480 -40,490 -40,500
The cash flow statement calculate fixed cost ,variable cost in our company .we need
pay the fixed cost every year ,variable depend on our store sell quanlity of Mp3and
mp4 product ,if we can sell more product we can have more variable cost and more
profit .Budgeting - creating a budget setting out planned cash flows in and out of the business.By monitoring a cash flow budget it is possible to identify any potential crisis points where
liquidity will be poor. Budgets can also be set out for income and expenditure by the business, as
well as a capital budget showing major capital spending
5.3 Revenue forec ast
Year 1 Year2 Year3 Year4 Year5
Estimate
sales volume
Amount of
customer
7200 8280 9522 10950 12593
Estimate sale
price(bath)
Service 190 190 190 190 190
Product 110 110 110 110 110
Revenue
forecast
Service 11,180 13,400 15,300 16,700 16,900
Product 435,000 534,000 643,000 652,900 674,800
Total revenue
forecast
445,180 547,400 653,300 679,600 691,700
Revenue is very important in organization , we make the business is think how to get
the profit ,we calculate the revenue forecast can know future revenue, can know our
product and service in our company .
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5.4 Operat ing act iv i t ies
02/11 02/12 02/13 02/14 02/15
Net income (loss) 134,000 156,000 178,000 187,000 197,000
Depreciation 17,320 18,450 19,320 20,450 21,230
Amotization 0 0 0 0 0
Deferred income taxes 21,300 22,430 23,470 24,560 24,780
Operating gains (loss) 73,500 33,810 73,650 76,340
93,520
Inecrease in inventories 61,000 59,000 57,800 48,790 48,990
Inecrease in current assets 269,340 326,974 37,838 406,770 443,702
Decrease in working capital -40,470 -40,480 -40,480 -40,490
-40,450
Net Cash fromOperating 535,990 576,184 349,590 723,420 788,772
Year 2011
Peri
od
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tota
l
Net
inco
me
111
66
111
66
111
66
111
66
111
66
111
66
111
66
111
66
111
66
111
66
111
66
111
66
$13
400
0
Dep
reci
atio
n
1443
1443
1443
1443
1443
1443
1443
1443
1443
1443
1443
1443
$17320
Inco
me
taxe
s
177
5
177
5
177
5
177
5
177
5
177
5
177
5
177
5
177
5
177
5
177
5
177
5
$21
300
Ope
rati
ng
gain
612
5
612
5
612
5
612
5
612
5
612
5
612
5
612
5
612
5
612
5
612
5
612
5
$73
500
Inve
ntor
y
508
33
508
33
508
33
508
33
508
33
508
33
508
33
508
33
508
33
508
33
508
33
508
33
$61
000
Asse
ts
224
45
224
45
224
45
224
45
224
45
224
45
224
45
224
45
224
45
224
45
224
45
224
45
$26
934
0
Wor
king
capi
--
3372.5
--33
72.5
--33
72.5
--33
72.5
---3
372.5
---3
372.5
--33
72.5
--33
72.5
---3
372.5
---3
372.5
---3
372.5
---3
372.5
---$
40470
-
8/14/2019 A financial projection for CN-Fantasy Company
49/60
44
tal
Net
cash
flow
446
65
446
65
446
65
446
65
446
65
446
65
446
65
446
65
446
65
446
65
446
65
4