the fame theme park

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Preface

This Project is a part of 1203302 Project Feasibility Study and Evaluation Course in

the second semester of 2012. In this project is studying the feasibility of Theme park business

in Chiang Mai, which is include generally of Theme park business, management in Theme

park business, competition analysis and marketing feasibility, the technical process in Theme

park business, the financial feasibility of Theme park business, and risk of Theme park

business.

This project makes everyone who interested to get knowledge and information about

Theme park business before make decision to investment, including pre-operational process

and operation process of Theme park business, for the benefit to investment and profit of

doing this Theme park business. We expect that our project will provide benefit and

interested person, moreover, if they are any error in this project or whatever, our ground

made an apology at this opportunity.

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Executive Summary

The Fame Theme Park is the first theme park in Chiang Mai, it locates in Maerim,

Chiang Mai. The Fame Theme Park none competitor of business in theme park business and

it doesn’t appear before in Northern, so the proportion of our company in the Chiang Mai

market shares nearly to be 100%. This Theme park emphasis thrilling that never appears in

Thailand and can be a happy place for tourist and family and can be fun center of tourists in

holiday. The theme park offer many playthings and entertainment in theme park which

divided in three main parts. The first past is adventure playing for those who like excitement,

the second part is cinema and the third part is shopping. Market segmentation of Fame Theme

Park will focus on tourist the ages between of 25 and 34. We choose tourist the ages between

of 25 and 34 that visit in Chiang Mai because it is the largest group of tourist in Chiang Mai.

The Fame Theme Park offer new experience to customer in exciting plaything, extremely for

they to shows bravery and get fun and happy time with The Fame Theme Park.

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Content

Preface 2

Executive summary 3

Chapter 1: Introduction 6

Background and Significance of the Project 7-8 Project Objectives 8 Benefits of Project 8 Activities/Time Frame 9 - 10

Chapter 2: Industry profile 11- 23

Chapter 3: Marketing Analysis 24

General Environment Analysis 25 Political, Economy 25 Social and Environment 26 Technology 26 -30

Competition Analysis (3C Analysis) 30 Competitor Analysis 30 Customer Analysis 30 -38 Competitive Analysis 38 - 39

STP Analysis 39 Marketing Mix Strategy 39 -40 Sales Forecast/Profit Estimation 41 -43 Marketing Expenses (Sales Incentive) 44 - 45 Conclusion 45

Chapter 4: Investment Cost 46

Cost of Investment 47 - 48 Pre-Operating Cost 48 Investment Cost 49 -51 Facility Layout 52 Depreciation 53 - 56 Conclusion 56

Chapter 5: Production and Operations Analysis 57

Product Characteristics (in Detail), Specification, Services Process 58 - 66 Operating Cost 67

Raw material Cost 67

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Direct Labor Cost 67 Overhead 68 - 76

Logistics Management 77 - 81 Facility Management 81

Chapter 6: Administration analysis 82

Management Analysis 83 Salary 83 Facility Cost 84

Chapter 7: Financial Analysis 85

Financial Assumption for Business 86 Income statement 86 Cash Flow 87 Balance Sheet 88 - 92

Chapter 8: Risk management 93

Identifying a list of potential risks 94 - 100 A risk management plan included statement of how you plan to reduce risk. 100 -104 The steps that you will take to mitigate the risks 105 - 108

Summary 109

Appendix 110

Historical 110 – 114 Risk Management 115 - 204

References 205 - 208

Member group 209

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Chapter 1

Introduction

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Introduction Background and Significance of the Project

This project is theme park business that chooses Chiang Mai to build it. Chiang Mai is a main

northern area that is center of commerce, industry, transport and tourism. There is the

convenient way by using car, train, and airplane and that can link travel to nearby provinces

such as Lamphune, Lamphang, and Chaing Rai that can use the car to transport and long

distance such as Bangkok and international country that can use the airplane to transport.

Why we choose Chiang Mai to invest theme park? Chiang Mai is popular tourist attraction

Because Chiang Mai is the largest and most culturally significant city in northern Thailand. It

is the capital of Chiang Mai Province, a former capital of the Kingdom of Lanna (1296–1768)

(wiki, 2013) and it is uniquely and cultural their own country. Chiang Mai is the place to

invest the business owing to despite the considerable difference in size and population

between Bangkok and Chiang Mai, tourism continues to be a thriving industry in Thailand's

second largest city. The Tourism Authority of Thailand's website promotes the city as "a

place where both backpackers and luxury tourists can enjoy the ultimate Thailand holiday",

as the city is "one of the few places in Thailand where it is possible to experience both

historical and modern Thai culture coexisting side by side: the city features centuries-old

chedis and temples next to modern convenience stores and boutique hotels."The Tourism

Authority of Thailand's Chiang Mai office expects the number of tourists from China to

increase by at least 20 per cent this year from 2012, driven by the success of the Chinese film

"Lost in Thailand". More than 80 per cent of the film was shot in the Northern Province

(Wiki, 2013).

Chiang Mai province has 20,107.057 square kilometers or about 12,556,911 acres. There is

the big area number 1 in northern area and that is second area of Thailand. And Chaing Mai

is best climate. The cool weather all year round with temperatures ranging between 12.5 to

38.0 degrees Celsius, perfect for travel and leisure during November – February. It is the time

of perfect come to travel at Chiang Mai. The new theme park cans attraction to Thai tourism

and foreigner to visit Chiang Mai. Theme park is an important selling point in Chiang Mai

and Thailand. There for Chiang Mai has not built theme park business before and that

recognize to build theme park business in Chiang Mai because that has great impact on the

economy and investment also the location is suitable to build it. To be open the opportunity

to people in this area and other people in nearby places that has recreation area to relax in the

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new theme park style. Another factor, Chiang Mai is the most popular provinces that the

tourist selects and that the way chooses to relax.

Project Objectives

1. To study the situation of theme park business.

2. To set up the planning of the business and to do the business successful.

3. To analyze market in the business, the feasibility of financial about risk investment, and

return on investment

4. To learn the technical and management process in theme park business.

5. To apply this knowledge with the business in the future.

6. To understand the customer what they want and need how to do the customer satisfy in our

business.

7. To Summary of the feasibility of Theme park business.

Benefit of Theme park project

1. Relax from studying and working

2. Enjoy with friends

3. Romantic for sweetheart

4. Source good leaning

5. Amusing

6. The best meeting point

7. This place make to happy

8. Good relation in family

9. Broaden one’s view

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Activities for a project

1. Study the generally of the theme park

2. Study management in theme park as follows:

- Background of theme park

- Product and service in theme park

- Vision and mission statement of theme park

- Strategy of the company

3. Study competition analysis and marketing feasibility as follows:

- General internal and external environment

Marketing mix strategy of theme park

- Demand of consumer in theme park

- Sale forecast and profit estimation of theme park

4. Study the technical process in theme park business as follows:

- Location

- Operations and management analysis

- Investment and Operation cost of theme park

5. Study the financial feasibility of theme park business as follows:

-Company’s investment cost, operation expense, and other expenses

-Profit and loss statement, cash flow, and balance sheet in 5 years

of theme park

6. Study and analysis risk of theme park

7. Summary the feasibility of theme park

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Time frame of study

Activities

December January February

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1. Study the generally of the theme

park

2. Study management in theme park

3 Study competition analysis and

marketing feasibility

4 Study the technical process in

theme park business

5 Study the financial feasibility of

theme park business

6. Study and analysis risk of theme

park

7. Summary the feasibility of theme

park

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Chapter 2

Industry Profile

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2.1 Nature of Industry

According to Adam and Judith (1991), amusement parks evolved from

European fairs and pleasure gardens, which were created for people's recreation. The oldest

amusement park in the world is Bakken, north of Copenhagen, Denmark, which opened in 1583. In

the United States, world's fairs and expositions were another influence on development of the

amusement park industry. Amusement parks have a fixed location, as opposed to

traveling funfairs and carnivals.

A definition of theme park (2010) described that the terms "theme park" and "amusement

park" are often synonymous. However, a "theme park" can be regarded as a distinct style of

amusement park. A theme park has landscaping, buildings, and attractions that are based on one or

more specific themes or stories. Despite many older parks adding themed rides and areas, qualifying

the park as a theme park, the first park built with the original intension of promoting a specific

theme, Santa Claus Land located in Santa Claus, Indiana, did not open until 1946 (History of the town

of Santa Claus,2010). Disneyland, located in Anaheim, California, built around the concept of

encapsulating multiple theme parks into a single amusement park is often mistakenly cited as the first

themed amusement park, but is instead the park that made the idea popular.

Historical Background in Worldwide

1. Fairs and pleasure gardens

Adam and Judith (1991) presented that periodic fairs, such as the Bartholomew Fair which

began in England in 1133, are a parent for the modern amusement park. Beginning in the Elizabethan

period the fair had evolved into a center of amusement with entertainment, food, games, and carnival-

like freak-show attractions. According to Alter and Judy (1997), the seasonal celebration was a

natural place for development of amusement attractions. Oktoberfest is not only a beer festival but

also provided amusement park features beginning in 1810, when the first event was held

in Munich, Germany. In the United States, the county and state fairs also played a part in the history

of amusement parks. These were annual events that were usually held for a short time, a week or two,

to celebrate a good harvest. These fairs featured livestock exhibits, baking and cooking competitions.

According to Adams and Judith (1991), amusement parks also grew out of the pleasure gardens that

became especially popular at the beginning of the Industrial revolution as an area where one could

escape from the grim urban environment. The oldest intact still-surviving amusement park in the

world (opened 1583) is Bakken ("The Hill") at Klampenborg, north of Copenhagen, Denmark. The

best known of the parks in London, was Vauxhall Gardens founded in 1661 and closed in

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1859. Another long-standing park is Prater in Vienna, Austria, which opened in 1766. This park was

conceived as a place where the common person could enjoy a respite in a pastoral setting and

participate in the musical culture of the city. Tivoli Gardens, Copenhagen is another example of a

European park, dating from 1843, which still exists. These parks consisted of booths, entertainment,

fireworks displays and some “rides” such as introduction to the modern railroad. The parks grew to

accommodate the expectations of their customers—who were increasingly familiar with the

mechanical wonders of industrialization. Rides became a required part of the pleasure garden and by

1896 there were 65 such pleasure parks in London.

Another type of fair is the exposition or world’s fair. World's fairs began in 1851 with the

construction of the landmark Crystal Palace in London, England. The purpose of the exposition was to

celebrate the industrial achievement of the nations of the world (of which Britain just so happened to

be the leader). America cities and business saw the world’s fair as a way of demonstrating economic

and industrial success (World’s Fairs, 1853-18997). People particularly point to the World's

Columbian Exposition of 1893 in Chicago, Illinois as an early precursor to the modern amusement

park. This fair was an enclosed site that merged entertainment, engineering and education to entertain

the masses. It set out to bedazzle the visitors, and successfully did so with a blaze of lights from the

“White City.” To make sure that the fair was a financial success, the planners included a dedicated

amusement concessions area called the Midway Plaisance. Rides from this fair captured imagination

of the visitors and of amusement parks around the world, such as the first steel Ferris wheel, which

was found in many other amusement areas, such as the Prater by 1896. Also, the experience of the

enclosed ideal city with wonder, rides, culture and progress (electricity), was based on the creation of

an illusory place, certainly the precursor of the amusement park experience to come. Alter and Judy

(1997) indicated that the “midway” introduced at the Columbian Exposition would become a standard

part of most amusement parks, fairs, carnivals and circuses. The midway contained not only the rides,

but other concessions and entertainments such as shooting galleries, penny arcades, games of

chance and shows.

2. Trolley parks, Atlantic City, and Coney Island

According to Adams and Judith (1991), the electric trolley lines were developed in most of

the larger American cities. Companies that established the trolley lines were directly responsible for

establishing amusement parks - trolley parks - as destinations of these lines. Trolley parks

like Atlanta's Ponce de Leon Park, or Reading's Carsonia Park were initially popular natural leisure

spots before local streetcar companies purchased the sites, expanding them from picnic groves to

include regular entertainments, mechanical amusements, dance halls, sports fields, boat rides,

restaurants and other resort facilities. Various sources report the existence of between 1500 and 2000

amusement parks in the United States by 1919. According to Benjamin and Steinhauser (2011), some

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of these parks were developed in resort locations, such as bathing resorts at the seaside in New

Jersey and New York. A premiere example in New Jersey was Atlantic City, a famous vacation resort.

Enterprisers erected amusement parks on piers that extended from the boardwalk out over the ocean.

The first of several was Ocean Pier in 1891, followed later by Steel Pier in 1898, both of which

boasted rides and attractions typical of that time, such as Midway-style games and electric trolley

rides. The boardwalk also had the first Roundabout installed in 1892 by William Somers, a wooden

predecessor to the Ferris wheel. Somers installed two others in Asbury Park and Coney Island.

Samuelson, Dale, and Yegoiants (2001) found that other such parks were found along rivers and lakes

that provided bathing and water sports such as Riverside Park in Massachusetts, which was founded

along the Connecticut River in the 1840s, and Lake Compounce in Connecticut, first established as a

public beach in 1846. According to Adams and Judith (1991), another similar location was Coney

Island in Brooklyn, New York, where a horse-drawn streetcar line brought pleasure seekers to the

beach beginning in 1829. In 1875, a million passengers rode the Coney Island Railroad, and in 1876

two million visited Coney Island. Hotels and amusements were built to accommodate both the upper-

classes and the working-class. The first carousel was installed in the 1870s, the first roller coaster, the

"Switchback Railway", in 1884. It was not until 1895 that the first permanent amusement park in

North America opened: Sea Lion Park at Coney Island in Brooklyn. This park was one of the first to

charge admission to get into the park in addition to sell tickets for rides within the park. According to

Adams and Judith (1991), in 1897, Sea Lion Park was joined by Steeplechase Park, the first of three

major amusement parks that would open in the Coney Island area. George Tilyou designed the park to

provide thrills and entertainment. The combination of the nearby population center of New York

City and the ease of access to the area made Coney Island the embodiment of the American

amusement park. Coney Island also featured Luna Park and Dreamland. Coney Island was a huge

success and by year 1910 attendance on days could reach a million people. Fueled by the efforts

of Frederick Ingersoll, other "Luna Parks" were quickly erected worldwide and opened to rave

reviews. Fire was a constant threat in those days, as much of the construction within the amusement

parks of the era was wooden. In 1911, Dreamland was the first Coney Island amusement park to

completely burn down; in 1944, Luna Park also burned to the ground. Most of Ingersoll's Luna Parks

were similarly destroyed, usually by arson, before his death in 1927.

3. The Golden Age

During the Gilded Age, many Americans began working fewer hours and had more

disposable income (Eight hours for what we will, n.d.,). According to Adams and Judith (1991), with

new-found money and time to spend on leisure activities, Americans sought new venues for

entertainment. Amusement parks, set up outside major cities and in rural areas, emerged to meet this

new economic opportunity. These parks served as source of fantasy and escape from real life. By the

early 1900s, hundreds of amusement parks were operating in the United States and Canada. Trolley

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parks stood outside many cities. Parks like Atlanta's Ponce de Leon Modernity Technology, and

Atlanta’s Ponce de Leon Park, 2011) and Idora Park (Idora Park, 2011) , (near Youngstown, OH, took

passengers to traditionally popular picnic grounds, which by the late 1890s also often included rides

like the Giant Swing, Carousel, and Shoot-the-Chutes. These amusement parks were often based on

nationally-known parks or world's fairs: they had names like Coney Island, White City, Luna Park, or

Dreamland. The American Gilded Age was, in fact, amusement parks' Golden Age that reigned until

the late 1920s. The Golden Age of amusement parks also included the advent of the Kiddle Park.

Founded in 1925, the original Kiddie Park is located in San Antonio, Texas and is still in operation

today. The Kiddie parks became popular all over America after World War II (Amusement Park,

n.d.,). According to Rutherford (2000), this era saw the development of the new innovations in roller

coasters that included extreme drops and speeds to thrill the riders. By the end of the First World War,

people seemed to want an even more exciting entertainment, a need met by roller coasters. Although

the development of the automobile provided people with more options for satisfying their

entertainment needs, the amusement parks after the war continued to be successful, while urban

amusement parks saw declining attendance. According to Adams and Judith (1991), the 1920s is more

properly known as the Golden Age of roller coasters, being the decade of frenetic building for these

rides.

4. Depression and post-World War II decline

According to Adams and Judith (1991), the Great Depression of the 1930s and World War

II during the 1940s saw the decline of the amusement park industry. War caused the affluent urban

population to move to the suburbs, television became a source of entertainment, and families went to

amusement parks less often. By the 1950s, factors such as urban decay, crime, and

even desegregation in the ghettos led to changing patterns in how people chose to spend their free

time. Many of the older, traditional amusement parks closed or burned to the ground. Many would be

taken out by the wrecking ball to make way for suburban housing and development. In

1964, Steeplechase Park, once the king of all amusement parks, closed down for good. The traditional

amusement parks which survived, for example, Kennywood, in West Mifflin, Pennsylvania,

and Cedar Point, in Sandusky, Ohio, did so in spite of the odds.

5. The rise of theme parks

In 1955, Disneyland opened to rave reviews, and completely changed the landscape of the

amusement park industry. No longer did guests want a group of rides in a field by a lake, they wanted

an entire perfect world to take them out of the real world for a day. The thrills of theme parks are

often obscured from the outside by landscaping, re-enforcing the feeling of escape. They are kept

clean and new rides are frequently added to keep people coming back. In addition to this experience,

the theme park is either based on a central theme or divided into several distinctly themed areas, or

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"lands". Following Disneyland, many other parks trying to copy its ideas, such as the hub-and-

spoke layout and themed "lands", popped up across the country. Examples include Great

Adventure in New Jersey and Universal Studios Hollywood in Los Angeles, California. None could

match the success of Disneyland, though. 15 years after Disneyland, The Walt Disney

Company opened its second theme park, Magic Kingdom near Orlando, Florida. This park pushed the

definition of theme park even further, as it was surrounded by over 47 square miles of pristine,

undeveloped land, creating a massive natural barrier between the real world and the park. Today, it is

now the Walt Disney World Resort, consisting of four theme parks in the most visited vacation resort

in the world. (Wikipedia, 2012)

Historical Background of Thailand

The oldest amusement park in Thailand was Happy Land, Bangkapi, Bangkok, which closed

in September 1979. Nowadays, Thailand has a few theme parks that offering the amazing experience

to people. Dreamworld was operated in the central of Thailand. It was opened for the first time on

February 5th, 1994. Santoroni Park was situated at Cha-Am, Phetchaburi that was theme park in

Mediterranean style.

According to Thailand.com (2012), fortunately, Bangkok has plenty of amusement parks for

the kids are getting restless. At one time, all the city’s amusement parks were outdoor, but with the

boom in the retailing industry many more are now built indoors, as an adjunct to department stores

and shopping centers. Anyone who prefers their fun in the outdoors should make for either Siam Park

in Minburi or Dream World, located off the Rangsit-Onkarak highway in Pathum Thani province.

Apart from being the largest open zoo in Thailand, Safari World on Ram Indra Road, also provides

numerous amusement activities and special shows for family vacationers. But if you don’t want to

suffer the heat of the day, try one of the many amusement parks located in department stores. Central

Bangna’s Leo Land, Seacon Square’s Yoyo Land several branches of The Mall Department Store are

good choices. Modst have indoor swimming pools with slides, kids’ games and other entertainments.

Outside of Bangkok, the places are few and far between. In Pattaya, Ripley’s World of Entertainment

located on the third floor of the Royal Garden Plaza has a number of educational and entertainment

activities for the family. Pattaya Park is another place where packages are on offer, an overnight stay

in the hotel included.

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2.2 Situation of Industry

In worldwide,

The amusement park industry's offerings range from large, worldwide type theme

parks such as Disneyworld and Universal Studios Hollywood to smaller and medium-sized

theme parks such as the Six Flags parks and Cedar Fair parks and countless smaller ventures

in many of the states of the U.S. and in countries around the world. Even simpler theme parks

directly aimed at smaller children have emerged, including Legoland opened in 1999

in Carlsbad, California (the first Legoland opened in 1968 in Billund, Denmark) (Wikipedia,

2012). Examples of amusement parks in shopping malls exist in West Edmonton

Mall, Alberta, Canada; Pier 39, San Francisco; Mall of America, Bloomington, Minnesota.

Family fun parks starting as miniature golf courses have begun to grow to include batting

cages, go-karts, bumper cars, bumper boats and water slides. Some of these parks have grown

to include even roller coasters, and traditional amusement parks now also have these

competition areas in addition to their thrill rides. As of 2008, the Walt Disney Company

accounted for around half of the total industry's revenue in the US as a result of more than 50

million visitors of its U.S.-based attractions each year (IBIS World, 2012).

In Thailand Bangkok Theme Park, Amusement Park, and Park in Bangkok

The theme park industry's offerings range from large such as Dreamworld, to smaller

and medium-sized theme parks such as Santorini Park, Phetchaburi and Wonderland,

Bangkok and smaller ventures such as Yoyoland, Bangkok . Worldwide type theme parks

such as Disneyworld and Universal Studios have not appeared in Thailand. Even simpler

theme parks directly aimed at smaller children have appeared, including Wonderland opened

in 2006 in Bangkok . Examples of amusement parks in shopping malls exist

in Seaconsqure, Bangkok; Yoyoland . Theme park business was interested to run in

Thailand because it has a few theme park in Thailand that operate with large scale of its.

A report by Bangkok.com (2012), if you and your children are looking for some

action, head for one of Bangkok’s fun park! Whether the kids like wild roller coasters,

drenching water rides, climbing on playgrounds or going on fairground rides, you can find all

types of family entertainment and fun activities at Bangkok’s in- and outdoor amusement

parks. Entire parks are dedicated to water fun, animals and indoor fun.

Dream World in Bangkok (Bangkok’s Most Popular Theme Park)

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Bangkok.com (2012) presented that “the entrance to the park sets the scene for the fantastical

experience to come: friendly, green aliens laughing beneath medical castle walls. It makes no sense

but children love it”.

Fantasia Lagoon (Bangkok Water Parks)

Sitting on the rooftop of the Mall Department Store, Fantasia Lagoon’s always been a favorite

destination for kids and families to have fun and frolic about. Huge water slides and whirlpools are

some of the highlights to look out for. Also worth a visit is Fantasia Island, the adjoined theme park

that offers endless hours of fun and a dose of adrenalin rush – all in an air-con comfort (“Bangkok

Water Park”, n.d.,).

Siam Park

Siam Park is a huge recreational park featuring various swimming pools, towering

waterslides, whirlpools, fountain and a lake. The park is the 400-metre Super Spiral waterslide, while

the giant man-made sea pool with artificial surf is just as spectacular (“Bangkok Water Park”, n.d.,)..

2.3 Product and Service

The intention is to create a thrilling theme park that never appears in Thailand. The

Fame will be a vibrant, exciting attraction that celebrate classic, seaside theme park rides,

thrill rides, train rides, water rides, roller coaster and their heritage. It will be focus on

preserving interpreting and enable people to ride classic theme park rides.

It will be a high quality outdoor public space it will provide a family-friendly day out

with a wide variety of entertainment for visitor of all ages. The Fame's uniqueness will be

obtained by following a old culture of kingdom of Lanna theme. It will have a sense cultural

of Lanna programmed, including a major Cold Festival and festival activity that focuses on

Chiang-Mai culture. Educational "point of interest" placards will be placed throughout the

park explaining the history of the people, place, and events of golden age of kingdom of

Lanna.

The section of cinema facing the mountain side will be a stunning gateway attraction

to the park. It will be occupied by a selection of restaurants in Lanna style, of a quality not

currently on offer. It will offer the extensive seating. The auditorium of the cinema will

provide an extensive to the offer in the form of a film telling the story of kingdom of Lanna

and exhibit. It will have a program of live show that are synergistic with the rest of the park

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offer, with a chic style Lanna culture. The cinema will be a fully flexible performance venue

that will also be a major destination in its own right.

The scheme has been developed to Cedar Fair, L.P. by Dick Kinzel. , working in

partnership with world class theme park specialist. Their team has include quantity surveyor,

structural engineering, electrical engineer and acoustician acoustic design.

Access to the Fame will continue to be via traditional route by the road. The scenic

railway will be the centre-piece of the park. It will be restored to full working condition and

offer rides of approximately duration, except in very wet weather (the heavy rainy and safe

reason, the railway is unable to operate). The scenic railway will have the most visual impact

and, in the cold weather, the lighting of it will create a magical effect that will be centerpiece

of the park' cold season.

The Fame Inspiration Masterplan 1

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The Fame Inspiration Masterplan 2

Example of Rides that will be at The Fame 1 : Rollor Coaster

Retrieved from: www.wisegeek.org/what-is-a-roller-coaster.htm

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Example of Rides that will be at The Fame 2 : Ferris Wheel

Retrieved from: tiffanyrachelle.wordpress.com/2011//02/

Example of Rides that will be at The Fame 3 : Galloper

Retrieved from: hnlino.en.alibaba.com/product/508206675

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Example of Rides that will be at The Fame 4 : MaxAir

Retrieved from: www.flickriver.com/photos/tags/cedarpoint/interesting/

Example of Rides that will be at The Fame 5 : Thrill Dragster

Retrieved from: www.themeparkcritic.com/1203/top-thrill--dragter.aspx

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Example of Rides that will be at The Fame 6 : Lanna Huanted House

Retrieved from: matthew-atanasiu.blogspot.com/2012/10/the-haunted-house_20.html?m=1

The Fame Cinema

Retrieved from: www.electriccinema.co.uk

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Chapter 3

Marketing Analysis

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3.1 General Environment Analysis

Human have to live together in community that it has to set rule and regulation for run to business to

be peace in term of sharing resources. So it is the activities of economic or identifies the way of life in

daily. It is behavior of social or defines regulation for authority allocation in defines social roles and

relationship between them that to the business of people in society has gone well under the rules.

3.1.1 Political factor

Nowadays, travel industry suffer the impact from political that it has conflict of social as yellow shirt,

red shirt or airport closures and that revolution, government leaders to change frequently, so that it

makes to domestic tourist and international tourist lack of believe from violence image has

communicated to other media that it is the biggest impact of business. From the problem customer

can avoid the political problem by we offer the new way to solve tension in the daily life that

customer can come to visit “FAME PARK”. Although Thailand has a political problem, the business

man still comes to invest business. But the political problem has less impact on the tourism industry.

3.1.2 Economy factor

Currently, Chiang Mai is the capital and growth of the second from Bangkok because Chiang

Mai has a prosperous economy. There is an educational institution since kindergarten to university.

The tourist industry makes the income to population of Chiang Mai. It is from Chiang Mai has been

called. "Rose beauty of Thailand" out of Chiang Mai has the beauty of natural and climate, ancient

antiquities, tradition, and ancient cultures. It is all attractions of tourists. From statistic in the year

2555(office of the national economic and social advisory council, 2013), in the forth one in the sector

of tourist and services has been expanded from the previous. The international tourist arrivals to

Thailand about 5.7 million (office of the national economic and social advisory council, 2013). It is

increase from the same period last year 7.1 percents of tourist (office of the national economic and

social advisory council, 2013). And tourist sector and service make income 258,102 by the tourist

(office of the national economic and social advisory council, 2013). So investment in here is

interesting to invest to make the profit and revenue to the business man.

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(Office of the national economic and social advisory council, 2013)

3.1.3 Social and Environment

Environment and Resources:

From theme park business use more areas which must be used in the area of the forest and the trees

are numerous. The forest will be decrease more than past. So the business will use worth recourses

and reforestation in the part to build the theme park and that have an activities about preserve ecology

and conservation of natural forests and abundant natural resources back to the original as possible.

Social: Specific is employee (Mid-South Community College, 2013)

Payment for time not worked

Paid vacations

Sick leave

Health care

Life Insurance

Retirement plans

Disability protection

Employee Stock Option Plans

Supplemental Unemployment Benefits

Employee services

Premium pay

3.1.4 Technology factor

The term “Technology” is derived from the Greek word “Technologia” and “techne” means

“craft” and “logia” means the “study of something”. Technology is a very broad concept and is used

to refer to several braches of science and study. Some examples are information technology, medical

27

technology, biotechnology, etc. As the term technology branches into various fields of science and

study, so do its benefits. Let us look at the benefits of technology in some major areas of day-to-day

life (Benefit of, 2013):

Benefits of Technology in Business:

The days when the Chief Information Officer (CIO) took implementation decisions and passed the

responsibility down the line are passed. Today, the CIO is an individual who possesses business as

well as technical skills, understands the new IT issues facing a business, and drives the IT changes

from the top down. This is a clear indicator of the benefits businesses are enjoying through the

implementation of technology. Today technology is an integral part of any business right from the

purchase of computers and software to the implementation of network and security tools. This helps

businesses to: (Benefit of, 2013)

Remain up-to-date

Drive business forward

Sustain and survive competition

In short, technology has become one of the significant factors that maximize an organization’s ROI.

Benefits of Technology in Communication:

From hand-held computers to touch phones, technological advancements in the field of

communication are endless. The means and the modes of communication are unlimited. Some of the

benefits of technological advancements in the field of communication are (Benefit of, 2013):

Speed : time is no longer a constraint in communication

Clarity : With megapixel images and video, and high fidelity audio systems clarity in

communication has become a never-before experience

Proximity : technological advancements have made the world a smaller place to live in

Dissemination : whether spreading information, broadcasting news, or sharing knowledge,

technology has made it faster, easier, and smarter

Benefits of Technology in Education:

Technological advancements in the field of education are fast evolving. Today, e-learning is a familiar

and popular term. Some of the benefits of technology in this field are (Benefit of, 2013):

28

Personalized learning experience: Learners are able to take control and manage their own learning.

They set their own goals, manage the process and content of learning, and communicate with peers

(Benefit of, 2013).

Immediate response: Most e-learning programs provide immediate feedbacks on learner

assessments. Similarly there are features such as chat, discussion boards, e-libraries, etc that allow

clarifications at a faster pace than in traditional classrooms (Benefit of, 2013).

Self-paced: Learners can chart courses at their own pace. This ensures higher levels of motivation

both in terms of completing the course as well as in performance (Benefit of, 2013).

Greater access: Technological advancements have opened education to learners with learning

disabilities and in remote locations (Benefit of, 2013).

External Environment: Business & Technology

Technological change refers to the changes in production techniques and production equipment. It

could be a change in the machinery used to make a product or the computers to design a product.

More recently it is the use of the computers and information technology (IT) to improve the efficiency

and competitiveness of businesses that has led to technological change. Since technological is so

rapid, there are important implications for businesses (Jim Riley , 2012).

A business can be affected by the following technological change:

In production

In provision of services

In the office

Technological change in production

Technological change leads to improved production of goods and services due to (Jim Riley , 2012).

Computer-aided manufacturing (CAM) this reduces labor costs, is more accurate and faster and

can work at any hour of the day. The computer controls the machinery (Jim Riley , 2012).

Computer-aided design (CAD) Computers are used to help design products using computer

generated models and 3D drawings. Reduces the need to build physical models to test certain

conditions, known as prototypes. This can be expensive to produce just for testing purposes (e.g.

aircraft or new cars) (Jim Riley , 2012).

Electronic point of sale (EPOS) and Electronic Funds Transfer at Point of Sale (EFTPOS) speed up

transactions in shops and give vital information for businesses so can sort out their stock levels.

29

EFTPOS means that shoppers can pay for goods and services using credit and debit cards.

Technological change in the office helps speed up the movement of information and improves the

analysis of information (Jim Riley , 2012):

Communication is improved through the use of the intranet and Internet. The intranet is an

internal system of computer communication while the internet can be used to communicate

with customers, suppliers amongst others in the outside world (through websites and email).

Workers can work away from the office using mobile technology such as phones, laptops and

modems.

Computers can be used to process, analyze and store vast amounts of data to give the business

more quality information.

E-commerce is the ability of businesses to trade with the world via websites. This means that there is

a larger market and the business is now open 24 hours a day. This has provided opportunities for

businesses that could only trade locally to now expand the size of the market (e.g. Amazon as

worldwide book and CD sellers). Customers can also shop around for the best deals for new products.

The Internet can also be useful for recruitment purposes. Job vacancies can be advertised and targeted

to the right audience, often costing less than print alternatives. E.g. e-teach sends free emails every

week detailing teachers posts to subscribers (Jim Riley , 2012).

Technological change can be very expensive: technology involves the following additional costs

(Jim Riley , 2012):

Purchasing the equipment

Installation

Training staff

Maintenance

Replacement/upgrading

There is legislation associated with the use of technology – e.g. computer screens noise levels.In

summary technological change can bring the following benefits to a business (Jim Riley , 2012):

Reduced running costs

Improved productivity

Improved competitiveness

Lower costs per unit of product

Improved quality of service (e.g. speed of service)

30

Reduced wastage

If the benefits of the above outweigh the costs, then a business should be investing in new technology.

(Jim Riley , 2012)

3.2 Competition Analysis (3Cs Analysis)

3.2.1 Competitor Analysis

We have to know who our direct and indirect competitors are. Then do the

Competitor’s Industry analysis or compare with our company’s competitive advantages.

3.2.1.1 Direct Competitor

According to 1stopchiangmai.com (2012), our company is the first theme park in Chiang Mai,

so it doesn’t appear before.

3.2.1.2 Indirect Competitor

In Chiang Mai, The substitute product and service is about someplace that

provides fun and can go for relaxed in the holiday. Central department store, playground at

some park, and zoo are our indirect competitor.

3.2.2 Customer Analysis

Customer is the person who uses our product and service and goes further

than their expectation then they will pay money to us and can evaluate our performance. We need

to know who is our customer and how many of them. Our customer is everyone who goes to use our

product and service of company which offer many kinds of playthings. However, our segment is

divided in two main group of customer.

31

Ministry of Tourism and Sports, Thailand

International Tourist Arrivals to Thailand

By Nationality

January - December 2012

Nationality 2012 2011 %∆

Number %Share Number %Share 2012/2011

East Asia 12,502,194 56.06 10,345,866 53.80 20.84

ASEAN 6,253,480 28.04 5,594,577 29.09 11.78

Brunei 10,240 0.05 7,471 0.04 37.06

Cambodia 424,766 1.90 265,903 1.38 59.74

Indonesia 448,748 2.01 370,795 1.93 21.02

Laos 951,090 4.26 891,950 4.64 6.63

Malaysia 2,560,963 11.48 2,500,280 13.00 2.43

Myanmar 129,924 0.58 110,671 0.58 17.40

Philippines 288,889 1.30 268,375 1.40 7.64

Singapore 821,056 3.68 682,364 3.55 20.33

Vietnam 617,804 2.77 496,768 2.58 24.36

China 2,789,345 12.51 1,721,247 8.95 62.05

Hong Kong 472,699 2.12 411,834 2.14 14.78

Japan 1,371,253 6.15 1,127,893 5.87 21.58

Korea 1,169,131 5.24 1,006,283 5.23 16.18

Taiwan 394,475 1.77 447,610 2.33 -11.87

32

Others 51,811 0.23 36,422 0.19 42.25

Europe 5,617,817 25.19 5,101,406 26.53 10.12

Austria 94,197 0.42 89,242 0.46 5.55

Belgium 94,549 0.42 82,610 0.43 14.45

Denmark 167,118 0.75 164,096 0.85 1.84

Finland 148,649 0.67 157,046 0.82 -5.35

France 572,996 2.57 515,572 2.68 11.14

Germany 681,566 3.06 619,133 3.22 10.08

Ireland 59,894 0.27 58,945 0.31 1.61

Italy 199,089 0.89 185,869 0.97 7.11

Netherlands 207,499 0.93 198,891 1.03 4.33

Norway 147,819 0.66 136,931 0.71 7.95

Russia 1,317,387 5.91 1,054,187 5.48 24.97

Spain 113,270 0.51 95,383 0.50 18.75

Sweden 350,565 1.57 373,856 1.94 -6.23

Switzerland 190,784 0.86 170,044 0.88 12.20

United Kingdom 870,164 3.90 844,972 4.39 2.98

East Europe 279,690 1.25 240,886 1.25 16.11

Others 122,581 0.55 113,743 0.59 7.77

The Americas 1,080,148 4.84 952,519 4.95 13.40

Argentina 17,789 0.08 12,970 0.07 37.15

Brazil 30,008 0.13 24,560 0.13 22.18

33

Canada 218,019 0.98 194,356 1.01 12.18

USA 767,420 3.44 681,748 3.55 12.57

Others 46,912 0.21 38,885 0.20 20.64

South Asia 1,289,641 5.78 1,158,092 6.02 11.36

Bangladesh 72,897 0.33 65,150 0.34 11.89

India 1,015,865 4.55 914,971 4.76 11.03

Nepal 26,258 0.12 25,382 0.13 3.45

Pakistan 71,997 0.32 73,727 0.38 -2.35

Sri Lanka 73,338 0.33 53,636 0.28 36.73

Others 29,286 0.13 25,226 0.13 16.09

Oceania 1,046,753 4.69 933,534 4.85 12.13

Australia 930,599 4.17 829,855 4.32 12.14

New Zealand 113,509 0.51 101,092 0.53 12.28

Others 2,645 0.01 2,587 0.01 2.24

Middle East 604,659 2.71 601,146 3.13 0.58

Egypt 19,911 0.09 16,703 0.09 19.21

Israel 129,184 0.58 125,093 0.65 3.27

Kuwait 64,536 0.29 55,788 0.29 15.68

Saudi Arabia 17,098 0.08 12,521 0.07 36.55

U.A.E. 113,174 0.51 108,608 0.56 4.20

Others 260,756 1.17 282,433 1.47 -7.68

Africa 161,853 0.73 137,907 0.72 17.36

34

S.Africa 75,496 0.34 68,496 0.36 10.22

Others 86,357 0.39 69,411 0.36 24.41

Grand Total 22,303,065 100.00 19,230,470 100.00 15.98

Source of Data: Immigration Bureau, Police Department.

Tourist Arrivals excluded Overseas Thai

Retrieved from: http://61.19.236.137/tourism/th/home/tourism.php

Internal Tourism in Chiang Mai

Tourism Authority of Thailand

Age

Under 25 1,514,451 753,574 + 100.97

25 - 34 1,833,406 1,860,010 - 1.43

35 - 44 974,990 1,530,870 - 36.31

45 - 54 676,730 884,986 - 23.53

55 and over 357,290 560,886 - 36.30

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

5,500,000

6,000,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Number

2006 2007 % Δ

35

Travel Arrangement

Group Tour 1,340,385 1,195,484 + 12.12

Non Group Tour 4,016,482 4,394,842 - 8.61

Sex

Male 2,641,239 2,723,970 - 3.04

Female 2,715,628 2,866,356 - 5.26

Region of Residence

1. Thai

- Bangkok 835,704 716,825 + 16.58

- Central Region 232,249 464,110 - 49.96

- Western Region 130,280 193,042 - 32.51

- Eastern Region 146,963 182,683 - 19.55

- Northern Region 1,948,754 1,406,703 + 38.53

- Southern Region 107,683 362,233 - 70.27

- Northeastern Region 200,094 214,176 - 6.57

2. Foreigners

- The Americas 265,933 336,877 - 21.06

- Europe 647,858 826,361 - 21.60

36

- Oceania 97,987 102,915 - 4.79

- ASIA 569,520 702,138 - 18.89

- Middle East 79,050 75,321 + 4.95

- Africa 94,792 6,942 + 1265.49

Purpose of Visit

Holiday 3,536,803 4,754,126 - 25.61

Business 527,631 342,488 + 54.06

Official Visit 154,757 101,929 + 51.83

Convention 960,071 297,247 + 222.99

Others 177,605 94,536 + 87.87

Tourism Authority of Thailand

Retrieved from: http://www2.tat.or.th/stat/web/static_tst.php

According to Kerin and et al. (2009), “marketing doesn’t stop with the discovery of consumer

needs. Because the organization obviously can’t satisfy all consumer needs, it must concentrate its

efforts on certain needs of a specific group of potential consumers. This is target market – one or more

specific group of potential consumers toward which an organization directs its marketing program”

(p.12).

One of the many questions Thais may ask a foreigner visiting Thailand is ‘Have you

been to Chiang Mai yet?’ underscoring the feeling that Chiang Mai is a keystone of any

journey to Thailand. Located more than 700km northwest of Bangkok, Chiang Mai has in

excess of 300 temples (121 within the Thêtsàbaan or municipal limits) – almost as many as

are in Bangkok – a circumstance that makes the old city center visually striking. Thais

idealism their beloved northern capital as a quaint, moated and walled city surrounded by

mountains with legendary, mystical attributes. In reality, Chiang Mai is a dynamic and

modern city, which has successfully managed to combine its rich history and traditions with

its increasingly modern side. However, a result of this rapid development has been the rise in

traffic and pollution. Environmentalists are also voicing concerns about development of the

37

verdant and auspicious Doi Suthep Mountain (1676m), located to the west of the city, and

sometimes referred to as Chiang Mai’s lungs. Chiang Mai has always had many feathers to its

bow with its cultural riches, relative peacefulness, fantastic handicraft shopping, delicious

food and proximity to many natural treasures. Changes are afoot however, with the city

becoming somewhere to watch in the style stakes. Chic, Thai-style boutique hotels are

popping up everywhere, and one look at the trendsetters setting up shop (and bars and

restaurants), particularly in the Thanon Nimmanhaemin area, shows that the city’s identity is

changing. Yet, the northern capital still manages to retain the relaxed, temple-sprinkled,

cultural capital atmosphere of yore, alongside these new hip happenings. With its many and

varied attractions, the days of Chiang Mai just being a quick stop off point before heading to

the hills are long gone. ("Introducing Chiang Mai," 2013)

Market Segmentation

The Fame business firm segments its market by demographic. There are five distinct groups

of tourists’ age in Chiang Mai, according to a survey by Tourism Authority of Thailand, a leading

market intelligence statistic. The survey covered over 5,356,867 individuals in Chiang Mai. The

individuals are categorized according to their different ages.

The largest group is between the ages of 25 and 34, making up 34 percent. The second largest

group is under 25 year-old, making up 28 percent. The third group is between the ages of 35 and 44,

making up 18 percent. The fourth group is between the ages 45 and 54, making up 13 percent. The

fifth group is 55 and over, making up 7 percent. Base on this study, we can see that affluent group in

The Fame is the ages of 24 and 34.

28%

34%

18%

13% 7%

The Fame Market Segmentation by Demographic (Age)

Under 25 25 - 34 35 - 44 45 - 54 55 and over

38

Market Position of the Fame

Market Position: Using positioning and perceptual maps to increase the sale to children and adults.

According to Marketing in Asia (2012), “the unique theme park is an increasing concern of

consumers”.

Target Market

The primary target market for The Fame products and service is individuals in between the

ages of 25 and 34.

3.2.3 Competitive Analysis for our Company

Because we have to know ourselves for use it to compete with the competitor, like the idiom

said “One who knows the enemy and knows himself will not be in danger in a hundred battles”. We

are monopoly in Chiang Mai because we are the first amusement park, according to destination

marketing in Chiang Mai, none of business sector in theme park business, so the proportion of our

company in the Chiang Mai market shares nearly to be 100%. For our Service and Product we did not

sell in high price and we have the differentiation in our concept. We did not only focus on having fun

High Service

High Service

Children Adult

39

but also support the learning in both physical and psychological. We help people to have wide society.

Our company relies on technology to create the amusement park. We need the up to date information

about the related technology to improve our company to be on the majority line of Life Cycle.

3.3 STP analysis

3.3.1 Market segmentation

Target visitors of Rollor Coaster, Ferris Wheel, Galloper, MaxAir, Thrill Dragster, and

Lanna Huanted House focus on age under 25 years old because the rides can make the teenage to get

enjoyable and adventure from the rides.

3.3.2 Target analysis

The largest target market of the theme park focus on between the ages of 25 and 35. making

up 34 percent and there are statements made young foreign tourists, 10 percentage , 30 percent and 60

percent promotion to return to the client. The price promotion and discount. The expected total

revenue increased 20 percent to 500 million and 1.5 million subscribers this year.

3.3.3 Position analysis

A position is the way a company's brand fits into targeted market segments relative to

competitors. Companies try to established differentiated brand benefits to stand out from

competitors. Ultimately, customers decide how to react to a company's brand and position

relative to others. When conducting positional analysis, the key is to determine what position

the company intends to have and how its brand is actually perceived by customer markets.

(smallbusiness, 2012)

3.4 Marketing Mix Strategy

3.4.1 Product

From studying, the majority of customers concern about standard of theme park and about

accident. Therefore we emphasize the high quality of equipment consider with the position and source

of equipment where standard and high quality including the variety of product in our theme park for

response and make our customers satisfy with our theme park.

40

3.4.2 Price

From studying, the majority of customers concern in reasonable price which suitable with the

theme park and then they concern about special price or discount for customers loyalty. Therefore we

emphasize the reasonable price for customers and establish standard price for customers satisfaction

including the discount for customers who loyalty with theme park. In this reason we can make

customers loyalty and honesty with us. The prices have 2 types; a ticket through the door only, adult

150 Baht per person, child 120 Baht per person, if you want to player, you can buy the ticket in front

of that rides. Ticket prices include 450 baht per person, but this ticket can play all kinds of amusement

machines.

3.4.3 Place

The Theme park at Chiang Mai; the location is 100 Rai through the main Ring Road, Mae

Rim away from the city around 15 minutes

(http://translate.google.com/translate?hl=th&ie=UTF8&prev=_t&rurl=translate.google.co.th&sl=th

&tl=en&twu=1&u=http://www.paulestherland.com/), which we emphasize about big place and

convenience for itinerary. Involve more parking lots and car security from steal to make customers

comfortable and security. Overall strategy can attract more customers from Northern of Thailand and

we will get benefit because we don’t have compete

3.4.4 Promotion

From studying, the majority of customers concern about accident from playing. Therefore we

emphasize the insurance to make customers sure in our theme park and we also need to promote with

WOM, TV, Radio, signboard at the building location, post the poster at the university and the

department store and so on. In addition, our theme park has special discount in the end semester for

children to make customers happy.

41

3.5 Table of sale on forecast

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

1st year

Rides ticket fee

Adult 4,200,000 4,000,000 4,100,000 4,300,000 4,000,000 3,900,000 3,800,000 3,650,000 3,600,000 4,100,000 4,000,000 4,100,000 47,750,000

Children 3,600,000 3,300,000 3,400,000 3,500,000 3,800,000 3,500,000 3,400,000 3,200,000 3,100,000 3,900,000 3,700,000 3,800,000 42,200,000

Group 1,900,000 1,800,000 1,900,000 2,100,000 2,000,000 1,880,000 1,800,000 1,700,000 1,750,000 1,900,000 1,700,000 1,870,000 22,300,000

Outlet

Rental fee 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 72,000,000

Cinema

4D ticket 2,200,000 2,050,000 2,100,000 2,200,000 2,000,000 1,950,000 1,850,000 1,700,000 1,650,000 1,800,000 1,700,000 1,900,000 23,100,000

Other

Food&beverage 2,000,000 1,800,000 1,860,000 2,050,000 1,850,000 1,800,000 1,780,000 1,620,000 1,600,000 1,850,000 1,700,000 1,780,000 21,690,000 The special product 2,300,000 2,200,000 2,250,000 2,300,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 2,100,000 1,900,000 2,080,000 24,630,000

Total sale 22,200,000 21,150,000 21,610,000 22,450,000 21,750,000 21,030,000 20,530,000 19,670,000 19,400,000 21,650,000 20,700,000 21,530,000 253,670,000

2nd year

Rides ticket fee

Adult 4,400,000 4,200,000 4,300,000 4,500,000 4,400,000 4,300,000 4,250,000 4,200,000 4,150,000 4,300,000 4,300,000 4,380,000 51,680,000

Children 4,250,000 4,000,000 4,100,000 4,300,000 4,100,000 4,000,000 4,100,000 4,000,000 3,900,000 4,200,000 4,080,000 4,000,000 49,030,000

Group 2,100,000 1,980,000 2,080,000 2,200,000 2,100,000 1,900,000 1,850,000 1,800,000 1,850,000 2,000,000 1,800,000 1,900,000 23,560,000

Outlet

Rental fee 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 72,000,000

Cinema

4D ticket 2,500,000 2,350,000 2,400,000 2,550,000 2,400,000 2,200,000 2,100,000 2,080,000 2,000,000 2,300,000 2,250,000 2,300,000 27,430,000

Other


Total sale 24,250,000 23,230,000 23,780,000 24,600,000 23,930,000 23,200,000 22,900,000 22,530,000 22,260,000 23,650,000 23,110,000 23,360,000 280,800,000

42


3rd year

Rides ticket fee

Adult 4,900,000 4,800,000 4,950,000 5,100,000 4,900,000 4,850,000 4,800,000 4,700,000 4,650,000 4,900,000 4,800,000 4,900,000 58,250,000

Children 4,700,000 4,600,000 4,700,000 4,900,000 4,800,000 4,700,000 4,700,000 4,550,000 4,500,000 4,700,000 4,700,000 4,800,000 56,350,000

Group 3,000,000 2,900,000 2,950,000 3,150,000 3,000,000 2,950,000 2,800,000 2,800,000 2,720,000 3,100,000 3,000,000 3,120,000 35,490,000

Outlet

Rental fee 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 72,000,000

Cinema

4D ticket 2,900,000 2,800,000 2,980,000 3,100,000 3,000,000 2,900,000 2,700,000 2,550,000 2,500,000 3,100,000 3,000,000 3,100,000 34,630,000

Other


Total sale 27,400,000 26,800,000 27,620,000 28,450,000 27,700,000 27,200,000 26,650,000 26,100,000 25,670,000 27,980,000 27,500,000 28,320,000 327,390,000

4th year

Rides ticket fee

Adult 5,400,000 5,280,000 5,350,000 5,500,000 5,400,000 5,300,000 5,200,000 5,100,000 5,000,000 5,300,000 5,200,000 5,300,000 63,330,000

Children 5,200,000 5,000,000 5,280,000 5,400,000 5,250,000 5,150,000 5,000,000 5,000,000 4,900,000 5,100,000 5,000,000 520,000 56,800,000

Group 4,000,000 3,980,000 4,020,000 4,300,000 4,200,000 4,170,000 4,080,000 4,000,000 3,800,000 4,180,000 4,060,000 4,200,000 48,990,000

Outlet

Rental fee 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 82,800,000

Cinema

4D ticket 3,500,000 3,400,000 3,400,000 3,800,000 3,700,000 3,650,000 3,550,000 3,500,000 3,380,000 3,600,000 3,500,000 3,600,000 42,580,000

Other


Total sale 32,130,000 31,550,000 32,050,000 33,700,000 33,050,000 32,570,000 32,030,000 31,700,000 30,960,000 32,480,000 31,860,000 28,000,000 382,080,000

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5th year

Rides ticket fee

Adult 6,100,000 5,900,000 6,100,000 6,200,000 6,100,000 6,000,000 5,900,000 5,800,000 5,700,000 6,000,000 5,880,000 5,900,000 71,580,000

Children 5,800,000 5,700,000 5,900,000 6,000,000 5,900,000 5,800,000 5,700,000 5,600,000 5,500,000 5,800,000 5,750,000 3,800,000 67,250,000

Group 5,050,000 5,000,000 5,000,000 5,300,000 5,200,000 5,100,000 5,000,000 4,900,000 4,800,000 5,150,000 5,092,000 5,000,000 60,592,000

Outlet

Rental fee 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 6,900,000 82,800,000

Cinema

4D ticket 4,500,000 4,400,000 4,550,000 4,680,000 4,600,000 4,500,000 4,400,000 4,300,000 4,200,000 4,400,000 4,300,000 4,350,000 53,180,000

Other


Total sale 37,350,000 36,500,000 37,500,000 38,680,000 38,100,000 37,600,000 36,900,000 36,300,000 35,750,000 36,950,000 36,422,000 34,630,000 442,682,000

44

3.5 Marketing Expenses (Sales, Incentives)

3.5.1 Total Marketing Expense in Year 2013

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

Radio Ads. 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

Leaflets 3,000 - - 3,000 - - 3,000 - - 3,000 - - 12,000

Signboard 25,000 - - 25,000 - - - 25,000 - - - - 75,000

Booth 50,000 - - 20,000 - - - - - 10,000 - - 80,000

Public Relation 15,000 - 5,000 - - 5,000 - - 5,000 - - 5,000 35,000

Ticket voucher 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

Other 10,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 21,000

Total marketing

expense 101,5000 8,500 13,500 56,500 8,500 13,500 11,500 38,500 8,500 21,500 13,500 8,500 333,000



Radio Ads. 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

Leaflets 3,000 - - 3,000 - - 3,000 - - 3,000 - - 12,000

Signboard 25,000 - - 25,000 - - - 25,000 - - - - 75,000

Booth 20,000 - - 20,000 - - - - - 10,000 - - 50,000

Public Relation 5,000 - 5,000 - - 5,000 - - 5,000 - - 5,000 25,000

Ticket voucher 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

Other 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total marketing

expense 61,500 8,500 13,500 56,500 8,500 13,500 11,500 33,500 13,500 21,500 8,500 13,500 264,000



Radio Ads. - - - - - - - - - - - 30,000 30,000

Leaflets 3,000 - - 3,000 - - 3,000 - - 3,000 - - 12,000

Signboard 25,000 - - 25,000 - - - 25,000 - - - - 75,000

Booth 20,000 - - 20,000 - - - - - 10,000 - - 50,000

Public Relation - - 5,000 - - 5,000 - - 5,000 - - 5,000 20,000

Ticket voucher - - 20,000 - - - - - 10,000 - - 10,000 40,000

Other 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total marketing

expense 49,000 1,000 26,000 49,000 1,000 6,000 4,000 26,000 16,000 14,000 1,000 46,000 239,000

45



Radio Ads. - - - - - - - - - - - 30,000 30,000

Leaflets 3,000 - - 3,000 - - 3,000 - - 3,000 - - 12,000

Signboard 25,000 - - 25,000 - - - 25,000 - - - - 75,000

Booth 20,000 - - 20,000 - - - - - 10,000 - - 50,000

Public Relation - - 5,000 - - 5,000 - - 5,000 - - 5,000 20,000

Ticket voucher - - 20,000 - - - - - 10,000 - - 10,000 40,000

Other 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total marketing

expense 49,000 1,000 26,000 49,000 1,000 6,000 4,000 26,000 16,000 14,000 1,000 46,000 239,000



Radio Ads. - - - - - - - - - - - 30,000 30,000

Leaflets 3,000 - - 3,000 - - 3,000 - - 3,000 - - 12,000

Signboard 25,000 - - 25,000 - - - 25,000 - - - - 75,000

Booth 20,000 - - 20,000 - - - - - 10,000 - - 50,000

Public Relation - - 5,000 - - 5,000 - - 5,000 - - 5,000 20,000

Ticket voucher - - 20,000 - - - - - 10,000 - - 10,000 40,000

Other 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Total marketing

expense 49,000 1,000 26,000 49,000 1,000 6,000 4,000 26,000 16,000 14,000 1,000 46,000 239,000

3.7 Conclusion

From this project, it talks about built the theme park. The theme park uses area about 100 acres that it is a huge

theme park. It uses more money to invest the theme park that is included property, building, equipment, facilities,

recreation, and player. And high more employee that is purchasing department, sales and marketing department,

accounting and financing department, staff, security, executive department, manager department, housekeeping and

gardener.

There is more activity to serve the customer. The target group is children and adult. The player separate in two

types that are children zone and adult zone. In addition, there is a garden park area for customer who would like to relax

and take a photo. In the garden park will gather more flower species in the theme park. Also, there are Thai food that is

local food and international foods such as Japanese food, American food, Korean food and Italian food. And that it has a

souvenir shop liked a handmade to create by local people. Moreover, the theme park has cartoon fancy parade, four

regions or Thai culture parade.

46

Chapter 4 Investment Cost

47

4.1 Cost of Investment

Building

We will make a new building of theme park in suburb of Chiang Mai. Because the location is near a mountain or hilly and that have a

wide area to build it and also that is center of commerce, industry, transport and tourism. Chiang Mai has never built theme park business

before that has great impact on the economy and investment also the location is suitable to build it.

Investment Year1 Year2 Year3 Year4 Year5 Building 8,500,000 8,500,000 8,500,000 8,500,000 8,500,000 Vehicle 725,000 725,000 725,000 725,000 725,000 Roller Coaster 36,000,000 36,000,000 36,000,000 36,000,000 36,000,000 Galloper 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Max air 260,000,000 260,000,000 260,000,000 260,000,000 260,000,000 Thrill Dragster 750,000,000 750,000,000 750,000,000 750,000,000 750,000,000 Ferries wheel 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Lanna Hunted house 135,392,000 135,392,000 135,392,000 135,392,000 135,392,000 Frame cinema 63,465,000 63,465,000 63,465,000 63,465,000 63,465,000 Computer 636,000 636,000 636,000 636,000 636,000 Films screen 178,000 178,000 178,000 178,000 178,000 Air-condition 300,000 300,000 300,000 300,000 300,000 Cash entry equipment 56,000 56,000 56,000 56,000 56,000 Projector 80,000 80,000 80,000 80,000 80,000 Vacuum bottles 4,120 4,120 4,120 4,120 4,120 Refrigerators 30,000 30,000 30,000 30,000 30,000 Water cooler and hot 10,500 10,500 10,500 10,500 10,500 Microwaves 8,400 8,400 8,400 8,400 8,400 Telephones 8,330 8,330 8,330 8,330 8,330

48

Investment Year1 Year2 Year3 Year4 Year5 Faxes &Printers 57,000 57,000 57,000 57,000 57,000 Televisions 27,600 27,600 27,600 27,600 27,600 Cutting paper machine 3,750 3,750 3,750 3,750 3,750 Total 1259,981,700 1259,981,700 1259,981,700 1259,981,700 1259,981,700

4.2 Pre Operating Cost

Equipment 438,960

Decoration 150,000,000

Total 150,438,960

Pre Operation cost

Total price

Landscape 400,000,000

Fee Transfer 2% 8,000,000

Taxation 0.5 % 2,000,000

Business tax 3.3% 13,200,000

Mortgage of land 1% 4,000,000

Total 427,200,000

49

4.3 Investment Cost

No. Detail Amount Price Total 1 Land

100

4,000,000

400,000,000

2 Land preparation

1,200,000

1,200,000

3 Buliding

13,000,000

13,000,000

Total

18,200,000

414,200,000 Tool

4 Vacuum cleaners

10

8,000

80,000 5 Floor Machine

4

18,000

72,000 6 Receivers

12

11,000

132,000 7 Lawnmowers

8

8,500

68,000

8 Winn cooling

12

17,500

210,000 9 Water coolers

4

13,000

52,000

Total

76,000

614,000 Machine

10 Computers

40

15,900

636,000

11 Central air

3

50,000

50,000

12 Air-conditions

15

20,000

300,000

13 Cash entry equipment

2

28,000

56,000

14 Projector

1

150,000

150,000

15 Vacuum bottles

4

1,030

4,120

16 Refrigerators

4

7,500

30,000

17 Water cooler and hot

3

3,500

10,500

18 Microwaves

4

2,100

8,400

19 Telephones

17

490

8,330

20 Faxes & Printers

6

9,500

57,000

50

No. Detail Amount Price Total 21 Televisions

4

6,900

27,600

22 Cutting paper machine

3

1,250

3,750

23 Roller coaster

1

36,000,000

36,000,000

24 Ferries wheel

1

3,000,000

3,000,000

25 Galloper

1

1,500,000

1,500,000

26 Max Air

1

260,000,000

260,000,000

27 Thrill Dragster

1

750,000,000

750,000,000

28 Lanna Huanted house

1

135,392,000

135,392,000

29 Frame cinema

1

63,465,000

63,465,000

Total

1,249,576,458

1,250,389,870 Equipment

30 Bins

15

3,500

52,500

31 Litter Bin

8

250

2,000

32 Office equipment

8,500

8,500

33 Toilet equipment

4,500

4,500

34 Cleaning equipment

5,900

5,900

Total

22,650

73,400 Infrastructure

35 Parking

160,000

160,000

36 Road

16,520,000

16,520,000

37 Electricity

60,426,000

60,426,000

38 Water supply

14,880,000

14,880,000

39 Restroom

30

11,000

330,000

40 Food park

68,000

68,000

Total

92,065,000

92,384,000

51

No. Detail Amount Price Total Furniture

41 Counter for buy ticket

4

3,700

14,800

42 Counter

2

5,800

11,600

43 Clothes lines

2

1,000

2,000

44 File cabinets

9

6,820

61,380

45 Meeting Table Set [Big]

1

32,000

32,000

46

Meeting Tables Set [Small]

4

6,890

27,560

47 Workstations

6

39,000

234,000

48 Bookshelf

2

850

1,700

49 Lockers

10

9,500

95,000

50 President desk

1

19,900

19,900

51 Office desks

12

1,950

23,400

52 Arm chairs

12

1,200

14,400

53 Chairs

70

259

18,130

54 Sofas

4

4,890

19,560

Total

133,759

575,430

52

4.4 Facility Layout

53

4.5 Depreciation

Investment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total build 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 54,167 650,000

vacuum cleanner 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 16,000

Floor Machine 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 14,400

Winn cooling 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000

Water coolers 867 867 867 867 867 867 867 867 867 867 867 867 10400

Computers 17,667 17,667 17,667 17,667 17,667 17,667 17,667 17,667 17,667 17,667 17,667 17,667 212,000

Central air 833 833 833 833 833 833 833 833 833 833 833 833 10000

Air-conditions 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000

Cash entry equipment 933 933 933 933 933 933 933 933 933 933 933 933 11200

Projector 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 16,000

Vacuum bottles 69 69 69 69 69 69 69 69 69 69 69 69 824

Refrigerators 500 500 500 500 500 500 500 500 500 500 500 500 6000

Water cooler and hot 175 175 175 175 175 175 175 175 175 175 175 175 2100

Microwaves 140 140 140 140 140 140 140 140 140 140 140 140 1680

Telephones 139 139 139 139 139 139 139 139 139 139 139 139 1666

Faxes & Printers 950 950 950 950 950 950 950 950 950 950 950 950 11400

Televisions 460 460 460 460 460 460 460 460 460 460 460 460 5520

Cutting paper machine 63 63 63 63 63 63 63 63 63 63 63 63 750

Roller coaster 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 2,400,000

Ferries wheel 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 16,667 200,000

Galloper 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 100,000

Max Air 1,444,444 1,444,444 1,444,444 1,444,444 1,444,444 1,444,444 1,444,444 1,444,444 1,444,444 1,444,444 1,444,444 1,444,444 17,333,333

Thrill Dragster 4,166,667 4,166,667 4,166,667 4,166,667 4,166,667 4,166,667 4,166,667 4,166,667 4,166,667 4,166,667 4,166,667 4,166,667 50,000,000

Lanna Huanted house 752,178 752,178 752,178 752,178 752,178 752,178 752,178 752,178 752,178 752,178 752,178 752,178 9,026,133

Frame cinema 352,583 352,583 352,583 352,583 352,583 352,583 352,583 352,583 352,583 352,583 352,583 352,583 4,231,000

Counter for buy ticket 411 411 411 411 411 411 411 411 411 411 411 411 4933.333333

Counter 322 322 322 322 322 322 322 322 322 322 322 322 3866.666667

54

Investment Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Clothes lines 56 56 56 56 56 56 56 56 56 56 56 56 666.6666667

File cabinets 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 1,023 12,276

Meeting Table Set [Big] 889 889 889 889 889 889 889 889 889 889 889 889 10666.66667

Meeting Tables Set [Small] 766 766 766 766 766 766 766 766 766 766 766 766 9186.666667

Workstations 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 78,000

Bookshelf 47 47 47 47 47 47 47 47 47 47 47 47 566.6666667

Lockers 2,639 2,639 2,639 2,639 2,639 2,639 2,639 2,639 2,639 2,639 2,639 2,639 31,667 President desk 553 553 553 553 553 553 553 553 553 553 553 553 6633.333333

Office desks 650 650 650 650 650 650 650 650 650 650 650 650 7800

Arm chairs 400 400 400 400 400 400 400 400 400 400 400 400 4800

Chairs 504 504 504 504 504 504 504 504 504 504 504 504 6043.333333

Sofas 543 543 543 543 543 543 543 543 543 543 543 543 6520

Total 7,045,503 7,045,503 7,045,503 7,045,503 7,045,503 7,045,503 7,045,503 7,045,503 7,045,503 7,045,503 7,045,503 7,045,503 236,754,456

55

Investment Amount Life use For month For year build 13,000,000 20 240 20 vacuum cleanner 80,000 5 60 5 Floor Machine 72,000 5 60 5 Winn cooling 210,000 5 60 5 Water coolers 52,000 5 60 5 Computers 636,000 3 60 5

Central air

50,000

5 60 5 Air-conditions 300,000 5 60 5

Cash entry equipment

56,000

5 60 5

Projector

80,000

5 60 5

Vacuum bottles

4,120

5 60 5

Refrigerators

30,000

5 60 5

Water cooler and hot

10,500

5 60 5

Microwaves

8,400

5 60 5

Telephones

8,330

5 60 5

Faxes & Printers

57,000

5 60 5

Televisions

27,600

5 60 5

Cutting paper machine

3,750

5 60 5

Roller coaster

36,000,000

15 180 15

Ferries wheel

3,000,000

15 180 15

Galloper

1,500,000

15 180 15

Max Air

260,000,000

15 180 15

Thrill Dragster

750,000,000

15 180 15

Lanna Huanted house

135,392,000

15 180 15

Frame cinema

63,465,000

15 180 15

56

Investment Amount Life use For month For year Counter for buy ticket 14,800 3 36 3 Counter 11,600 3 36 3 Clothes lines 2,000 3 36 3 File cabinets 61,380 5 36 3 Meeting Table Set [Big] 32,000 3 36 3 Meeting Tables Set [Small] 27,560 3 36 3 Workstations 234,000 3 36 3 Bookshelf 1,700 3 36 3 Lockers 95,000 3 36 3 President desk 19,900 3 36 3 Office desks 23,400 3 36 3 Arm chairs 14,400 3 36 3 Chairs 18,130 3 36 3 Sofas 19,560 3 36 3 Total 2,515,129,740

4.6 Conclusion

From the cost information, We will make a new building of theme park in suburb of

Chiang Mai. We need to buy Building, Vehicle, Roller Coaster, Galloper, Max air, Thrill

Dragster, Ferries wheel, Lanna Hunted house, Frame cinema, Computer, Films screen, Air-

condition, Cash entry equipment, Projector, Vacuum bottles, Refrigerators, Water cooler and

hot, Microwaves, Telephones, Faxes &Printers, Televisions, Cutting paper machine and

others. We need money to investment about 1,259,981,700 baht to build the theme

park. Pre operating cost about 150,438,960 baht. For facility layout we have one

office, two shops, three toilets, two parkings, one cinema and five playthings. For

theme we have only one floor.

57

Chapter 5 Production and Operations Analysis

58

5.1 Product Characteristics

Rides of the theme park

5.1.1. Flight Deck Roller coaster

Duration: 1 minute, 46 seconds

Height Requirement: 52"

Manufacturer: Vekoma

Speed: 80 km/h

Simulates the feeling of flying an F-14 fighter jet.

Trains travel at almost 80km/hour through 5 inversions highlighted by an Immelmann

loop which is named after an aircraft maneuver made famous by Max Immelmann, a

World War 1 pilot

http://www.canadaswonderland.com/

59

5.1.2. Thrill Dragster

Duration: 0 min., 17 sec.


Manufacturer: Intamin, AG

Speed: 120 mph

Zero to 120 MPH in less than 4 seconds. A few seconds later, you’re 420 feet in the

air. In the race for pure adrenaline thrills, there is one winner: Top Thrill Dragster. Nothing

else compares to this high-horsepower shot into the sky. From a standing start you’re

launched forward, then straight up, then straight down and back to the finish line. The ride

may be over in 17 seconds, but it’ll stay with you forever.


60

5.1.3. Psyclone – Max Air

Duration: 1 minute, 58 seconds


Manufacturer: Mondial

Speed: 13 P.M.

It is coming with 40 riders facing outward rotate on a central pendulum and swing to

a height of 120 feet (36.5M), reaching a maximum arc angle of 120 degrees.


61

5.1.4. Carousel

Duration: 4 minutes, 35 seconds

Height Requirement: 46" (Riders under 46" must be accompanied by a responsible person)

Manufacturer: Philadelphia Tabbogan Co.

The ride features 64 original hand-carved horses; the lead horse’s name is Caesar.

There are 24 stationary horses, 42 jumpers, and two chariots.

CAROUSEL is a classic kiddie ride, typically considered as the reference points for

children in all parks

http://www.fabbrigroup.com

62

5.1.5. Ferries wheel

FERRIS WHEEL represents the most classical and beautiful attraction for a park. All

families may ride this attraction and see a nice landscape from its height.

We provide different wheel dimensions and gondolas, according to customer’s

request.

All vehicles can be decorated with special themes and the wheel can be equipped with

special LED light effects.

http://www.fabbrigroup.com

63

5.1.6. Lana hunted house

Experience the Blood Bayou with all new scares for 2013. This indoor haunted

attraction from your darkest imaginings will challenge reality and keep you scared with every

twist and turn of this diabolical scream machine!

Rules & warning

No eating,drinking or smoking

No running

Don't touch the actors

No flash photography

No exits - once in you must continue to the end

Not recommended for children 12 & under

No shoes with high-heels or bare feet

This haunt uses strobe lights and fog effects

http://www.scarywoodhaunt.com/bayou-rules.php

64

5.1.7. Cinema

Unlimited full screen borderless ceiling to floor, wall to wall screen.

Projected through the screen with realistic 3D as if we were really into the movie.

Loud booming sound system, digital display systems, usually over several times. No

data compression. This makes it sound like the music from the original studio

recordings sound amazing throughout the movie.

Realistic color, natural color screen displays up to 35 million colors.

The display 24 frames per second, every moving image and smooth continuity of the

film, it still recites every episode.

Than crystal clear picture over any of the seats in the theater.

Superior contrast resolution and high optical films used in home theater.

65

5.1.8. Shopping

Fun Shop

This shop has wide selection of novelty gift items, toys, candy, jewelry, and tee shirts.

Sweet shop

This sweet spot is sure to satisfy with tasty treats, chocolates, beverages, bulk and

novelty candy, gourmet candied nuts and other delicious favorites.

Brand name shop

We provide variety of brand name shop with a special price to you.

66

5.1.9 Dinning

Dairy Queen

Try a cool treat on a hot summer day. Stay classic with an ice cream cone or sundae.

Break tradition with a Blizzard, a creamy smooth soft serve blended with your favorite candy,

cookie or fruit.

Starbucks

Start your day in the Park with a jolt. Starbucks offers a variety of freshly brewed

coffees, lattes and espresso. Pair it with a yummy pastry and you have the start of a great day!

Food Park

Variety of food are available include variety of famous restaurant.

67

5.2 Product analysis

5.2.1 Production Cost

Unit price

Direct Material

No Machine Quantity Price per unit 1 Rollor Coaster 1 36,000,000 THB 2 Ferris Wheel 1 3,000,000 THB 3 Galloper 1 1,500,000 THB 4 Max Air 1 260,000,000 THB 5 Thrill Dragster 1 750,000,000 THB 6 Lanna Huanted House 1 135,392,000 THB 7 Frame cinema 1 63,465,000 THB Total 7 1,249,357,000 THB

Direct Labor Cost

No. Position Amount

of persons

Salary/Mouth Total salary/Mouth

1 General Manager 1 20,000 THB 20,000 THB 2 Sale&Marketing Manager 1 15,000 THB 15,000 THB 3 Advertising Manager 1 15,000 THB 15,000 THB 4 Special Technical Manager 1 15,000 THB 15,000 THB 5 Accounting Manager 1 15,000 THB 15,000 THB 6 Human Resource Manager 1 15,000 THB 15,000 THB 7 Guest Attendant 2 9,000 THB 18,000 THB 8 Security Guard 2 7,500 THB 15,000 THB 9 Play-Thing Guard 7 8,000 THB 56,000 THB 10 Food Service 3 7,500 THB 22,500 THB 11 Park Service 3 8,000 THB 24,000 THB

12 Ride Operator 7 8,000 THB 56,000 THB 13 Game&Arcades Team 7 8,000 THB 56,000 THB 14 Housekeeper 3 7,500 THB 22,500 THB 15 Gardener 5 7,500 THB 37,500 THB 16 Sale-Tickets 2 7,500 THB 15,000 THB 17 Cashier (Gift shop, Retail Store) 3 8,000 THB 24,000 THB 18 Costume Character (Include,

parade show, actor, actress) 25 8,000 THB 200,000 THB

Total 72 189,500 THB 641,500THB Reference: http://www.sixflagsjobs.com/opportunities.html and http://www.oeg.co.th/worktravel/ProgramInfo/WAT_Employer.php

* The employees in our theme park has 72 persons and each the position different for salary. Our theme park have to pay 617.500 THB/Mouth.

68

Manufacturing Overhead

Electricity Cost

TOD and TOU rates are the power given to the price varies over time as well, but details of

times and prices vary according to the needs of electric power (kW) and energy (kWh). Differ

as follows.

No Detail The demand of Energy

(Baht/kW)

Energy charge (Baht/Unit)

Peak Peak Off Peak 1 Voltage of 69 kV up 224.30 3.6917 2.7441

2 Voltage of22-33 kV up 285.05 3.7731 2.7815

3 Voltage of less than 22 kV

332.71 3.9189 2.8095

(Provincial Electricity Authority, 2013)

Water supply cost

Level of water use

Unit

Large business

price pay total Low level rate 300 baht/month(15 LBM)

0-10 10 18.00 180.00 180.00

11-20 10 21.00 210.00 390.00

21-30 10 24.00 240.00 630.00

31-50 20 27.00 540.00 1,170.00

51-80 30 29.00 870.00 2,040.00

81-100 20 29.25 585.00 2,625.00

101-300 200 29.50 5,900.00 8,525.00

301-1000 700 29.75 20,825.00 29,350.00

1001-2000 1,000 29.50 29,500.00 58,850.00

2001-3000 1,000 29.25 29,250.00 88,100.00

>3000 29.00 (Provincial Waterworks Authority, 2013)

69

This is our operation cost which calculates from the provided data above and it’s in the

averaged form

Operation cost Electricity (average)

Water supply (average)

Total in The each month

Jan 4,476,000 1,320,000 5,796,000 Feb 3,170,500 900,000 4,070,500 March 7,460,000 1,500,000 8,960,000 Apr 7,460,000 1,500,000 8,960,000 May 7,460,000 1,500,000 8,960,000 Jun 4,476,000 1,320,000 5,796,000 July 3,170,500 900,000 4,070,500 Aug 3,170,500 900,000 4,070,500 Sep 4,476,000 1,320,000 5,796,000 Oct 7,460,000 1,500,000 8,960,000 Nov 3,170,500 900,000 4,070,500 Dec 4,476,000 1,320,000 5,796,000

70

Cost of operating Year1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Direct Material Beginning Material inventory

- - - - - - - - - - - - -

Total cost of direct material

- - - - - - - - - - - - -

Direct Labor Labor 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 7,698,000

Total direct labor cost 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 7,698,000

Manufacturing Overhead Training expense 36,000 - - - - - - - - - - - 36,000

Electricity expense 4,476,000 3,170,500 7,460,000 7,460,000 7,460,000 4,476,000 3,170,500 3,170,500 4,476,000 7,460,000 3,170,500 4,476,000 60,426,000

Water expense 1,320,000 900,000 1,500,000 1,500,000 1,500,000 1,320,000 900,000 900,000 1,320,000 1,500,000 900,000 1,320,000 14,880,000

Internet& telephone expense

2,200 2,000 2,800 3,500 3,500 2,800 2,000 2,000 2,000 3,500 2,000 2,200 30,500

Fire Insurance 100,000 - - - - - - - - - - - 100,000

Social security insurance expense

70,000 - - - - - - - - - - - 70,000

Tourist insurance 200,000 - - - - - - - - - - - 200,000

Commission 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960

Total manufacturing overhead

6,214,280

4,082,580 8,972,880 8,973,580 8,973,580 5,808,880 4,082,580 4,082,580 5,808,080 8,973,580 4,082,580 5,808,280 75,863,460

Total product cost 4,724,080 9,614,380 9,615,080 9,615,080 6,450,380 4,724,080 4,724,080 6,450,380 9,615,080 4,724,080 6,449,780 83,561,460

71


- - - - - - - - - - - - -


- - - - - - - - - - - - -





Water expense 1,330,000 910,000 1,510,000 1,510,000 1,510,000 1,330,000 910,000 910,000 1,330,000 1,510,000 910,000 1,330,000 15,000,000


2,300 2,100 2,900 3,600 3,600 2,900 2,100 2,100 2,100 3,600 2,100 2,300 31,700

Fire Insurance 100,000 - - - - - - - - - - - 100,000


70,000 - - - - - - - - - - - 70,000


Commission 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960


6,134,480

4,102,680

8,992,980

8,993,680

8,993,680

5,828,980

4,102,680

4,102,680

5,828,180

8,993,680

4,102,680

5,828,380

76,104,660

Total product cost 6,775,980 4,774,180 9,634,480 9,635,180 9,635,180 6,470,480 4,744,180 4,744,180 6,469,680 9,635,180 4,744,180 6,469,880 83,802,660

72


- - - - - - - - - - - - -


- - - - - - - - - - - - -





Water expense 1,340,000 920,000 1,520,000 1,520,000 1,520,000 1,340,000 920,000 920,000 1,340,000 1,520,000 920,000 1,340,000 15,120,000


2,400 2,200 2,900 3,700 3,700 2,900 2,200 2,200 2,200 3,700 2,200 2,400 32,700

Fire Insurance 100,000 - - - - - - - - - - - 100,000


70,000 - - - - - - - - - - - 70,000


Commission 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960


6,254,480

4,122,780

9,012,980

9,013,780

9,013,780

5,848,980

4,122,780

4,122,780

5,848,280

9,013,780

4,122,780

5,848,480

76,345,660


73


- - - - - - - - - - - - -


- - - - - - - - - - - - -





Water expense 1,350,000 930,000 1,530,000 1,530,000 1,530,000 1,350,000 930,000 930,000 1,350,000 1,530,000 930,000 1,350,000 15,240,000


2,500 2,300 3,000 3,800 3,800 3,000 2,300 2,300 2,300 3,800 2,300 2,500 33,900

Fire Insurance 100,000 - - - - - - - - - - - 100,000


70,000 - - - - - - - - - - - 70,000


Commission 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960


6,274,580

4,142,880

9,033,080

9,033,880

9,033,880

5,863,080

4,142,880

4,142,880

5,862,380

9,033,880

4,142,880

5,862,580

76,568,860


74


- - - - - - - - - - - - -

Total cost of direct material - - - - - - - - - - - - -





Water expense 1,360,000 940,000 1,540,000 1,540,000 1,540,000 1,360,000 940,000 940,000 1,360,000 1,540,000 940,000 1,360,000 15,360,000

Internet& telephone expense 2,600 2,400 3,100 3,900 3,900 3,100 2,400 2,400 2,400 3,900 2,400 2,600 35,100

Fire Insurance 100,000 - - - - - - - - - - - 100,000


70,000 - - - - - - - - - - - 70,000


Commission 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 10,080 120,960


6,294,680

4,162,980

9,053,180

9,053,980

9,043,900

5,883,180

4,162,980

4,162,980

5,882,480

9,053,980

4,162,980

5,882,680

76,810,060


500/person (have 72 employees) 20,000THB/Year 70,000 THB/Year Electricity expense 3.69 baht per unit Water expense 15 baht per unit (1 unit equal to 1,000 litter) We pay for insurance company per year, but insurance company will pay for tourist insurance depend on condition 10% commission/agent/no. of tourist/month from revenue (Tickets are 420 baht for tourist buy a ticket from agent.) [(420*60*4)*10%] Reference: http://www.pea.co.th/rates/Rate2006.pdf

75

Service Process

When the customer entry to our theme park, the staff will take care for the customer feeling

following a old culture of kingdom of Lanna theme, the customer can play and enjoy with

many ride and our theme park has staff any point. We sure when the customer entry theme

park will impression because we have to train our staff for take care the safety for make sure

and entertain the customer in Lana culture form that never appear in Thailand. We are focus

on the service mind that we want the customer impress with everything of our theme park

because for attraction the customer for come back to our theme park again.

Step of process services

When a customer comes in the theme park. Staffs welcome with smile and allocate

big parking and bring customer to point of sale ticket.

Give instructive or knowledge of each playthings, cinema and shopping.

When the customer give ticket the staff will bring the customer to ride and enjoy with

it. The staff will take care for safety during the customer playing.

Make impression by sent customer to the car.

Law about Theme park

Section1

General Provisions

Article 8 bis, in the benefit of public safety. Minister will care appearance of the building to

use as a theme park, or in any other place in the same building for the purpose of this Act.

Regulations shall prescribe procedures and conditions required for construction. Allowing the

monitoring of the weight of the safety and property of materials or equipment required in

connection with such things as the appropriateness each feature and each style may be

different from the provisions of the this Act.

Section 37 of the Regulation. Local ordinances., or order issued under the Building Act 2522

and Building Act 2522 as amended by the Building Act (No. 2) Act, 2535 in force prior to

this Act. shall remain in force to the extent not inconsistent with the provisions that have been

amended by this Act. Until the regulations. Local ordinances. Or order issued under the

Building Act 2522 as amended by this Act in regard to the use of force.

76

Note: - The reason for the promulgation of this Act is to present the development of the

country's rapid growth. In particular, the expansion of the building increases. The Building

Control Act is not applicable to fit the current situation. The amendment of the law on

building control reconfiguration. The measures in the field of control on stability, security,

fire protection, public health, the environment, urban planning and architecture. And to

facilitate the traffic laws to prevent dangers caused the theater to play the enforcement of a

long time ago. Not appropriate for the current situation with the building of the theater was.

Should be adopted to allow the theater to the same law as the law governing the use of the

building for easy access. And should be set to something that is to be used to transport

persons or the cable car was built with the aim to be used as a theme park. Or any other

purpose in the same building under the control of the building. It is therefore necessary to

enact this Act.

Law of own land in open business

Thai Companies as a vehicle to own land for a foreigner is not allowed under Thai law

Thai law allows land ownership by a partly foreign owned Thai company as long as the

foreign shareholding does not exceed 49% of the shares and the majority of the shareholders

are of Thai nationality (section 97 land code act). It is not allowed for foreigners to use

nominee Thai shareholders to create a majority Thai owned company for the purpose of land

ownership. The use of nominee shareholders to circumvent the Thailand Land Code Act or

Foreign Business Act is illegal and any foreigner setting up a company with nominee

shareholders is violating foreign ownership restrictions and creates an unlawful foreign

ownership, irrespective the number of shares he owns in the company.

Up to the May 2006 Land Office guidelines aimed at preventing the use of Thai nominee

shareholders by foreigners, it was common practice for foreigners to purchase land or

condominium beyond the foreign ownership quota in a nominee structured majority Thai

owned foreign controlled Thai limited company. As long as the company had a majority Thai

shareholdings there were no practical restrictions when purchasing a property and the partly

foreign owned company was treated as any other Thai company. Currently the government

has issued new regulation preventing circumvention of the law by foreigners through Thai

companies and currently this structure is only possible by circumventing the law and

regulations

77

5.3 Logistic Management

Nothing guarantees success but experience suggests that the chances of developing a

successful theme park are greatly enhanced if it is effectively managed. In fact, park without

professional management normally achieve poor results. A theme park’s corporate strategy

and, therefore, its management are directly conditioned by the need to ensure the necessary

financial resources to devote to achieving the financial results established by the shareholders

or, in the case of public or volunteer-run parks, to balancing out the accounted entries. On the

other hand, efficient management technological developments, the evolution of the economy

or changing consumer taste or behavior. As stated by Swarbroke (2002), the aim of a

privately owned theme park is generally to generate profit. According to Swardrooke (2002),

some of the most common are:

- Payroll cost per revenue generated.

- Income per profit centre per staff involved.

- Net operating expenditure per number of visitors.

- Admission income per total operating costs.

- Visitors spend per head.

- Income per operating expenditure (recovery rate).

The organization The customer

Maximizing throughput and opportunities

for visitor spending

Minimizing delays, crowding and queuing

Safety of visitor and staff Safety of visitors

Minimizing operating costs (labor, energy,

and so on)

Maximizing quality of service and

optimizing visitors enjoyment

Looking after the needs of those groups

who are described as visitors with special

needs such disabled.

Treating every visitors as if they are unique

and special

78

Ensuring quality standards are as high as

possible within resource constraint

Optimizing quality regardless of costs

Problems solved quickly and as cheaply

possible

No problem occurring in the first place but,

if they do, being solved quickly without

regard to the cost to the organization

Compliance with the law

Operation management from the viewpoint of the organization and customers (Swarbrooke,

2002).

Logistic are of fundamental important in the development of process in theme park.

As in other service enterprises, in theme parks the moments of production, distribution and

consumption overlap each other. The result is that in fact, in theme park, momentary excess

demand cannot be dealt with by increasing the capacity of an attraction or a show. The

following section deals first with the differential aspects of parks as regards the operations of

a park’s productive components. Secondly, the design of the operation that satisfies the

specific needs of the procurement and distribution of the goods and services of a park are

dealt with. Thirdly, it looks at logistical aspects associated with the maintenance of the

facilities. Finally, this section looks at questions that are specifically linked to safety and

security as a guideline for a theme park’s operations logistics. This following is the example

of production, and procurement and distribution.

(A) Production

The production of unique experiences by means of attractions at a theme park is based

on an operations program whose recurrent principles are the following: safety, integrity,

control and quality. Given their ludic nature and the confidence they arouse among their

visitors, safety is the highest priority in the process of the operation of attractions at a theme

park. As the IAAPA would insist, aside from the differences between parks and management

styles, in the theme park industry the guideline is “the safe way is the right way”. Integrity is

linked to the challenge facing theme parks to make available to their visitor the best products

and services every day and to provide, consequently, the best possible experiences also every

day. Control is the intern al procedure that links the different departments of the park and

allows them to work together. Quality is a process that is conditioned not just by the

79

characteristics of the facility but fundamentally by the standard operational procedures that

are really effective in park.

The shows are an activity of an exceptional nature in the theme parks as a result of

their singularity as a service but also in respect of other conventional spectacles, due to their

iteration and continuity in time and in their capacity as fundamental elements from the

viewpoint of a park’s capacity to attract and its efficiency productivity. It is an activity in

which the production stage should be distinguished from the operation stage. From the

logistic point of view, aspects must be taken into account such as the stenography and

furnishing, the special effects and pyrotechnics, image and sound, the wardrobe and the

characters.

In theme parks, catering is a large-scale, heterogeneous, complex production process.

As we have seen, parks, within their supply, tend to include as many catering option as

possible. The result obtained from an economic standpoint are linked to the established

purchasing policy, personnel costs, the size and type of services, the availability of suppliers

and the flexibility of the overall system. Similarly, though the rendering of the service

presents significant different, in a theme park’s shop operation logistics, the purchasing

policy is greatly influential. It should be borne in mind that many parks go straight to the

producers, eliminating intermediaries, due to reasons linked to the type of product and price.

Likewise, there are huge differences between products according to the timing of their

purchasing cycle. Thus, products with an annual purchasing cycle due to the distance from

the supplier and supply periods may present problems in determining stock levels.

(B) Procurement and distribution

The production process in a theme park first requires performing all activities

necessary in order to provide each work until with the productive factors required for the

fulfillment of its functions. For this reason it is important to minimize all operations in the

productive process that do not add value to the product. The first step in the process is to

obtain the necessary productive factors, which is why the production process is highly

dependent on the park procurement policy, especially as regards suppliers’ flexibility, agility,

accessibility and capacity to respond. Secondly, to keep a suitable production rhythm, it is

important to establish a system of storage, transport and handling that will allow each work

80

until to have the necessary productive factors available to them. A park’s production capacity

is directly linked, therefore, with a theme park’s layout.

A theme park must negotiate with suppliers and take decision as to the purchase of

goods and services concerning such diverse items as bin bags, ice-cream, T-shirts, attractions

and shows. Purchasing processes are crucial from the point of view of operation of theme

park. Bad procurement logistic could lead to tension between departments, excessive prices,

the absence of supplier guarantees and dissatisfaction among visitors. Procurement consists

of establishing the needs of productive factors, determining the amount to buy, analysis

alternatives for acquisition, choosing the most appropriate and negotiating delivery dates,

guarantees, end prices, purchasing the factors, properly storing them if necessary and

supplying them at the right time to the right place. Moreover, it is understood that

procurement plays an important role in managing the quality of the parks. It is therefore basic

to establish systems that facilitate the purchase of any goods or service necessary in the park,

specifying the stages involved in the process and the people responsible for them. The

following stages are common: the identification of the suppliers of the goods or service, the

establishment of selection criteria with regard to the supplier and the product or service, a

request for provisioning, the formalization of the contract and the delivery of the goods or

service. If it is a material product, its storage and/or distribution will have to be considered.

Park’s purchasing policies are increasingly tending towards establishing cooperation systems

or even partnership with their most critical suppliers of services that are rendered to the end

consumer. Cooperation means collaborating with supplier in specific in specific fields and

over limited periods of time, with a price negotiation process that may be defined as being

objective. A partnership means the joint construction with the supplier of some aspect of the

product which the visitor to the park will eventually consume with transparency of costs. In

fact, numerous parks have partner companies that supply them with a whole variety of

products and services.

The distribution of goods and service inside the park often demands decentralized

logistic organization so as to be attend to the needs of their end customers, their visitors. The

seasonality of the activity, the big different between peak and trough times and the different

magnitudes of frequentation inside a park itself pose great difficulties in opportunities in

optimally scaling distribution systems. However, this does not mean that flexible logistic

organization and specific agreements with suppliers must be available. A good layout of the

storage system and service facilities of park a s well as adequate planning of the route to keep

81

them to a minimum and the optimization of transport system are, from this standpoint, a

fundamental instrument of competitiveness.

5.4 Facility Management

“The point is that there are new standards, new standards of beauty and style and taste. The

new sensibility is defiantly pluralistic; it is dedicated both to an excruciating seriousness and

to fun and wit and nostalgia”

(Susan Sontag, 1961)

Impressions in the style of those of this first paragraph directly derive from the

materialization of a specific design proposal elaborated by narrators and copywriters and

materialized by technicians from a whole range of disciplines. The example highlights the

fact that, beyond the development of the necessary infrastructures for its running, the design

of the park involves technical considerations as regards its form, size and capacity. After all,

according to Hsu (1997), a theme park is a processor of people containing attractions and

shows designed on the basic of narrations whose aim is none other than to keep the interest of

families and visitors throughout a whole day so that they will consume drinks, food and

commercial articles. According to this definition, the relevance of the design, from the

strategic point of view, is fundamental for the success of the park. The establishment of

theme park necessities therefore, in addition to the definition of its own argument elements,

that is to say, the determination of some specific criteria of positioning and teeming, the

design of a facility that takes into account matters concerning its physical construction,

questions regarding its capacity and issues to do with circulation and flow management, both

at the access to the park and along its internal routes. These three aspects are dealt with

below. The design of a park must respond, in short, to the uses offered by the space both to its

visitors and managers and to the needs that arise from this encounter between visitors and

managers in term of route, representation, and organization.

(A) The form

(B) Size and Capacity

(C) Components

82

Chapter 6

Administration analysis

83

6. Administration Analysis

6.1 Employees Salary

No. Position Amount

of persons

Salary/Mouth Total

salary/Mouth

1 General Manager 1 20,000 THB 20,000 THB

2 Sale&Marketing Manager 1 15,000 THB 15,000 THB

3 Advertising Manager 1 15,000 THB 15,000 THB

4 Special Technical Manager 1 15,000 THB 15,000 THB

5 Accounting Manager 1 15,000 THB 15,000 THB

6 Human Resource Manager 1 15,000 THB 15,000 THB

7 Guest Attendant 2 9,000 THB 18,000 THB

8 Security Guard 2 7,500 THB 15,000 THB

9 Play-Thing Guard 7 8,000 THB 56,000 THB

10 Food Service 3 7,500 THB 22,500 THB

11 Park Service 3 8,000 THB 24,000 THB

12 Ride Operator 7 8,000 THB 56,000 THB

13 Game&Arcades Team 7 8,000 THB 56,000 THB

14 Housekeeper 3 7,500 THB 22,500 THB

15 Gardener 5 7,500 THB 37,500 THB

16 Sale-Tickets 2 7,500 THB 15,000 THB

17 Cashier (Gift shop, Retail Store) 3 8,000 THB 24,000 THB

18 Costume Character (Include, parade show, actor, actress)

25 8,000 THB 200,000 THB

Total 72 189,500 THB 641,500THB

Reference: http://www.sixflagsjobs.com/opportunities.html and

http://www.oeg.co.th/worktravel/ProgramInfo/WAT_Employer.php

84

6.2 All administration Cost

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

Employees salary 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 641,500 7,698,000

Training expense 36,000* 36,000 - - - - - - - - - - - 36,000

Electricity expense 4,476,000

3,170,500 7,460,000 7,460,000 7,460,000 4,476,000 3,170,500 3,170,500 4,476,000 7,460,000 3,170,500 4,476,000

60,426,000

Water expense 1,320,000

900,000 1,500,000 1,500,000 1,500,000 1,320,000 900,000 900,000 1,320,000 1,500,000 900,000 1,320,000

14,880,000

Internet&telephone expense

2,200 2,000 2,800 3,500 3,500 2,800 2,000 2,000 2,000 3,500 2,000 2,200 30,500

Fire Insurance 20,000* 20,000 - - - - - - - - - - - 20,000


70,000* 70,000 - - - - - - - - - - - 70,000

Total 767,500 6,565,700 4,714,000 9,604,300 9,605,000 9,605,000 6,440,300 4,714,000 4,714,000 6,439,500 9,605,000 4,714,000 6,439,700 83,160,500

500/person (have 72 employees)

20,000THB/Year

70,000 THB/Year

Electricity expense 3.73 baht per unit

Water expense 15 baht per unit (1 unit equal to 1,000 litter)Reference: http://www.pea.co.th/rates/Rate2006.pdf

85

Chapter 7 Financial Analysis

86

7.1 Income statement Statement of Income

The Fame Co.,Ltd

For The Year End December

2013 2014 2015 2016 2017

Sale

189,592,000 200,440,000 212,130,000 253,310,000 284,772,000

other exp

83,561,460 83,561,460 83,561,460 83,561,460 83,561,460

EBITDA

106,030,540 116,878,540 128,568,540 169,748,540 201,210,540

Depre&Amort 236,754,456 236,754,456 236,754,456 236,754,456 236,754,456

EBIT

-130,723,916 -119,875,916 -108,185,916 -67,005,916 -35,543,916

Interest exp

1,200,000 1,080,000 960,000 840,000 720,000

EBT

-131,923,916 -120,955,916 -109,145,916 -67,845,916 -36,263,916

Taxes (30%)

-39577174.8 -36286774.8 -32743774.8 -20353774.8 -10879174.8

Net income

-92,346,741 -84,669,141 -76,402,141 -47,492,141 -25,384,741

87

7.2 Cash flow

Statement of Income The Fame Co.,Ltd

For The Year End December 2013 2014 2015 2016 2017

Sale 189,592,000 200,440,000 212,130,000 253,310,000 284,772,000 other exp 83,561,460 83,561,460 83,561,460 83,561,460 83,561,460 EBITDA 106,030,540 116,878,540 128,568,540 169,748,540 201,210,540 Depre&Amort 236,754,456 236,754,456 236,754,456 236,754,456 236,754,456 EBIT -130,723,916 -119,875,916 -108,185,916 -67,005,916 -35,543,916 Interest exp 1,200,000 1,080,000 960,000 840,000 720,000 EBT -131,923,916 -120,955,916 -109,145,916 -67,845,916 -36,263,916 Taxes (30%) -39577174.8 -36286774.8 -32743774.8 -20353774.8 -10879174.8 Net income -92,346,741 -84,669,141 -76,402,141 -47,492,141 -25,384,741

88

7.3 Balance sheet

Year 2013 January February March April May June July August September October November December

Current asset

cash 1,823,631,506 154,406,707 143,378,518 46,672,905 40,159,505 34,296,782 29,211,099 51,412,623 46,140,627 39,653,918 32,992,759 -211,656,609

total sales 1823631506 154406707 143378518 46672905 40159505 34296782 29211099 51412623 46140627 39653918 32992759 -211656609

Fixed asset

land 400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

tools 614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

machine 1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

equipment 73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

building 13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

furniture 575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

less:depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

net fixed asset 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985

total asset 3,481,547,491 1,812,322,692 1,801,294,503 1,704,588,890 1,698,075,490 1,692,212,767 1,687,127,084 1,709,328,608 1,704,056,612 1,697,569,903 1,690,908,744 1,446,259,376

Liability equity Increase in notes payable 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000

Increase long-term debt 25,000,000 23,000,000 22,000,000 21,000,000 19,000,000 18,000,000 16,700,000 15,400,000 14,100,000 12,800,000 11,500,000 10,200,000

retained earning 3,491,547,491 1,819,322,692 1,804,294,503 1,703,588,890 1,694,075,490 1,684,212,767 1,675,427,084 1,723,928,608 1,714,956,612 1,704,769,903 1,694,408,744 1,446,059,376

total L/E 3,551,547,491 1,872,322,692 1,851,294,503 1,744,588,890 1,728,075,490 1,712,212,767 1,697,127,084 1,769,328,608 1,754,056,612 1,737,569,903 1,720,908,744 1,466,259,376

89


Current asset

cash 1825681506 101109707 145548518 48822905 42339505 36466782 31581099 54272623 49000627 41653918 35402759 -203673609

total sales 1825681506 101109707 145548518 48822905 42339505 36466782 31581099 54272623 49000627 41653918 35402759 -203673609

Fixed asset

land 400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

tools 614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

machine 1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

equipment 73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

building 13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00


575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00


net fixed asset 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985

total asset 3,483,597,491 1,759,025,692 1,803,464,503 1,706,738,890 1,700,255,490 1,694,382,767 1,689,497,084 1,712,188,608 1,706,916,612 1,699,569,903 1,693,318,744 1,454,242,376




total L/E 3,483,597,491 1,759,025,692 1,803,464,503 1,706,738,890 1,700,255,490 1,694,382,767 1,689,497,084 1,712,188,608 1,706,916,612 1,699,569,903 1,693,318,744 1,454,242,376

90


Current asset

cash 1828831506 160056707 149388518 52672905 46109505 40466782 35331099 57842623 52410627 45983918 39792759 -192560609

total sales 1828831506 160056707 149388518 52672905 46109505 40466782 35331099 57842623 52410627 45983918 39792759 -192560609

Fixed asset

land 400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

tools 614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

machine 1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

equipment 73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

building 13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00


575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00


net fixed asset 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985

total asset 3,486,747,491 1,817,972,692 1,807,304,503 1,710,588,890 1,704,025,490 1,698,382,767 1,693,247,084 1,715,758,608 1,710,326,612 1,703,899,903 1,697,708,744 1,465,355,376




total L/E 3,486,747,491 1,817,972,692 1,807,304,503 1,710,588,890 1,704,025,490 1,698,382,767 1,693,247,084 1,715,758,608 1,710,326,612 1,703,899,903 1,697,708,744 1,465,355,376

91


Current asset

cash 1,833,561,506 164,806,707 153,818,518 57,922,905 51,459,505 45,836,782 40,711,099 63,442,623 57,700,627 50,483,918 44,152,759 -186,727,609

total sales 1,833,561,506 164,806,707 153,818,518 57,922,905 51,459,505 45,836,782 40,711,099 63,442,623 57,700,627 50,483,918 44,152,759 -186,727,609

Fixed asset

land 400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

tools 614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

machine 1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

equipment 73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

building 13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00


575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00


net fixed asset 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985

total asset 3,491,477,491 1,822,722,692 1,811,734,503 1,715,838,890 1,709,375,490 1,703,752,767 1,698,627,084 1,721,358,608 1,715,616,612 1,708,399,903 1,702,068,744 1,471,188,376

Liability equity Increase in notes payable 35000000 30000000 25000000 20000000 15000000 10000000 5000000 30000000 25000000 20000000 15000000 10000000

Increase long-term debt 25000000 23000000 22000000 21000000 19000000 18000000 16700000 15400000 14100000 12800000 11500000 10200000


total L/E 3491477491 1822722692 1811734503 1715838890 1709375490 1703752767 1698627084 1721358608 1715616612 1708399903 1702068744 1471188376

92


Current asset

cash 1,838,781,506 169,756,707 159,268,518 62,902,905 56,509,505 50,866,782 45,581,099 68,042,623 62,490,627 54,953,918 48,714,759 -173,944,609

total sales 1,838,781,506 169,756,707 159,268,518 62,902,905 56,509,505 50,866,782 45,581,099 68,042,623 62,490,627 54,953,918 48,714,759 -173,944,609

Fixed asset

land 400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

400,000,000.00

tools 614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

614,000.00

machine 1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

1,250,698,700.00

equipment 73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

73,400.00

building 13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00

13,000,000.00


575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00

575,430.00


net fixed asset 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985 1,657,915,985

total asset 3,496,697,491 1,827,672,692 1,817,184,503 1,720,818,890 1,714,425,490 1,708,782,767 1,703,497,084 1,725,958,608 1,720,406,612 1,712,869,903 1,706,630,744 1,483,971,376




total L/E 3,496,697,491 1,827,672,692 1,817,184,503 1,720,818,890 1,714,425,490 1,708,782,767 1,703,497,084 1,725,958,608 1,720,406,612 1,712,869,903 1,706,630,744 1,483,971,376

93

Chapter 8

Risk Management

94

Risk management is a structured approach to managing uncertainty related to a

threat, through a sequence of human activities including: risk assessment, strategies

development to manage it, and mitigation of risk using managerial resources.

The strategies include transferring the risk to another party, avoiding the risk,

reducing the negative effect of the risk, and accepting some or all of the consequences of a

particular risk.

Some traditional risk managements are focused on risks stemming from physical or

legal causes (e.g. natural disasters or fires, accidents, death and lawsuits). Financial risk

management, on the other hand, focuses on risks that can be managed using traded financial

instruments.

The objective of risk management is to reduce different risks related to a preselected

domain to the level accepted by society. It may refer to numerous types of threats caused by

environment, technology, humans, organizations and politics. On the other hand it involves

all means available for humans, or in particular, for a risk management entity (person, staff,

organization).

8.1 Identifying a list of potential risks

Even if your event has been held before, it is important to review and update your risk

management plan. The first step is to outline the type of event. Different event elements will lead to

different risks. Some events have many purposes and require more detailed risk management plans.

Identify the event stakeholders impacted by your event. (New Zealand Handbook – Guidelines for

Risk Management in Sport and Recreation, 2010) Potential stakeholders include participants,

spectators, general public, local community, sponsors, local authorities, venue/facility owner, and

Government.

Running a business can be a dangerous occupation with many different types of risk. Some of

these potential hazards can destroy a business, while others can cause serious damage that can be

costly and time consuming to repair. Despite the risks implicit in doing business, CEOs and/or risk

management officers – no matter the size of the business, from small to corporate giant - can prepare

for them if they know what they are.

If and when risk becomes reality, a well-prepared business can moderate the risk's impact.

Dollar losses, lost time and productivity and the negative impact on customers can all be

minimized. (Davis, 2009)

95

Physical Risks:

Building and rides risks are the most common type of physical risk

Safety risk is always the top priority of theme park. Without a safe environment,

visitors can never enjoy the experience and staff can never be satisfied with their

workplace. Therefore, preventive measures such as regular inspections are a major

part of the operations to reduce accidents and injuries.

Location Risks:

Among the hazards facing the location of a business are nearby fires, storm

damage, earthquake and other natural disasters. In case of our business

earthquake is the new risk that we should concern.

Human Risks:

Alcoholism and drug abuse are major risks to personnel in the work force.

Against embezzlement, theft and fraud.

Inappropriate Leadership

Sickness among the work force is inevitable and is always a problem.

Technology Risks

Power outage is perhaps the most common of technology risks..

Telephone and telecommunications failure

Power source equipment – e.g. pumps, motors

Electrical equipment – e.g. switches, control rooms

Warning and signaling devices

96

External and internal factors that affecting a business environment

There are internal factors that affect a business, these are:

a. Stability: The risk of stability factor is ignore to employee. Employee Development is a

joint, on-going effort on the part of an employee and the organisation to upgrade the

employee's knowledge, skills, and abilities also crucial for the growth and prosperity of any

business as employees are one of the most important factors related to the success of the

company. Over a period of time we have discovered that employees like to learn new skills

and take up challenges and they are more motivated when they feel there is great potential for

personal growth. (Mahajan.V, 2013)

b. Aggressiveness: Aggressive behavior can be damaging and painful if left untreated.

Although anger is a normal and healthy emotion, uncontrolled anger and aggression can

destroy relationships, cause problems at work and at home, and can lead to lethal or risky

behavior in adults and children. If your tendency toward aggression or violence affects your

daily life, it may be time to seek treatment. (Hughes.C, 2013)

c. Team – People Orientation: The risk of Team – people orientation is lack of teamwork.

Businesses that stress a spirit of teamwork and collaboration can capitalize on the individual

strengths of their employees. When effective teams are in place, the collective product is

greater than the sum of the individual effort. There are a number of tactics that can foster a

team orientation, from team building and diversity workshops to retreats, merit systems that

identify and recognize team-oriented behavior and processes that facilitate project teams.

(Eigen.D, 2013)

Team player

Individual

Diversity Training

Team - building workshop

Team projects

97

d) Innovation and Risk Taking: The problem with innovation is you don’t know the

outcome until you try something. Your results will fall somewhere between total failure and

complete success. (Mair.D, 2013).

There are external factors that affect a business, these are:

1. Physical-natural factors

A business' day-to-day operations can pose an ongoing threat to the natural

environment.( Jeanty.J, 2013)

2. Social-cultural factors

Social factors can affect a business as tastes and likes can change. For example, if a

business that sells a lot of junk and unhealthy food and the nation is becoming more health

conscious then the business will generate less revenue. (Wiki Answer, 2013)

3. Technological factors

There are many factors to consider when pricing an item. Ultimately, however, the price

will depend on the product, market and the competition. Setting the wrong price for a product

can adversely affect your business and result in unsold inventory. Technology plays a critical

role in everything from manufacturing to the sale of the final product, and you should,

therefore, weigh technological factors when pricing a product. (Bass.B, 2013)

Product Information Online

Once you have a product ready for market, you must make decisions about the type of

product-related information to make available to the public. For example, the Internet can

provide information about a product 24 hours a day seven days a week. Both customers

and competitors can use this information to evaluate your product and pricing strategy.

You can also use information available on the Internet about competitors’ products to

properly price the new product. (Bass.B, 2013)

Online Retailers

If you want to sell merchandise online, you will have to consider global competition.

Unless you have an established company, introducing a new product online poses several

challenges. As an online retailer, aim to develop a technologically advanced system for

warehousing, order processing and shipping. Additionally, high online price competition

might require you to offer a product at cost or slightly above cost to remain competitive.

98

These considerations will greatly affect how you price products for your business.

(Bass.B, 2013)

Manufacturing

Technology also plays an important role in manufacturing, and this role also impacts the

pricing of the product. Technology can improve the manufacturing process, inventory

control and automation. By considering the savings and costs of these technological

advances, you can determine an appropriate price for the product based on the actual

manufactured cost. (Bass.B, 2013)

Pricing

The price you establish for a product can also affect the demand for the product.

Therefore, set prices only after careful analysis. How you price the product will also

determine how your business markets the product and to whom you should market the

product to. You can use advanced technologies such as computerized pricing models to

help your business gauge the demand of a product and set the optimum sale price.

(Bass.B, 2013)

4. Economic factors

A nation's economy can be highly volatile and is often a function of a variety of factors.

In a strong economy, unemployment is low and consumers enjoy increased spending power.

In a struggling economy, more people are out of work and consumer confidence dwindles. As

confidence decreases, less money goes back into the economy, causing businesses to become

less profitable and jobs to disappear. (Joseph.C, 2013)

Supply and Demand

Supply and demand impacts a nation's Gross Domestic Product (GDP), which is the

combined dollar value of all goods ans services produced by a country in a given year.

The higher the demand for goods and services, the greater the need for workers to

produce them, leading to economic growth. (Joseph.C, 2013)

Interest Rates

Fluctuation in interest rates can have an impact on consumer purchasing. According to the

Federal Reserve Bank of San Francisco, when interest rates are high, consumers may be

less inclined to borrow money to buy a new home or car. People who have adjustable-rate

home mortgages can face financial hardship or even lose their homes when interest rates

99

spike. Retirees who live largely off investment income may need to lower their standard

of living when interest rates decline. (Joseph.C, 2013)

Inflation

Higher inflation is typically accompanied by higher prices, so consumers may be less

willing to buy non-essential or luxury items. If wages don't rise at the same rate of

inflation, people actually lose money. When inflation rises, the value of the dollar

decreases, so consumer buying power drops accordingly. The changing of national

monetary policy, such as adjusting the prime interest rate or putting more money into

circulation can influence inflation, but the Federal Reserve Bank of San Francisco reports

that such changes can take one to three years to have a major impact. (Joseph.C, 2013)

Unemployment

The rate of unemployment can have a major effect on the economy. The more people who

are out of work the less money that is circulated into the economy through the purchase of

goods and services. Even the threat of unemployment has an impact, as workers who fear

losing their jobs are less inclined to spend or invest their money. According to Wealth-

Enhancer.com, unemployment increases near the end of an economic downturn, since

companies typically try to avoid lying off workers off until it becomes necessary.

(Joseph.C, 2013)

Foreign Exchange Rate

A nation's foreign exchange rate is the value of its currency in the international market. In

the United States, when the value of the dollar is high in relation to other countries'

currencies, the more goods and services we are able to import. In contrast, a higher value

of the dollar means that other nations may be less inclined to import products from the

United States. According to the Economics Web Institute, factors such as a rising trade

surplus can increase the demands for a country's currency by foreigners, thus

strengthening the currency. (Joseph.C, 2013)

100

5. Political-legal factors

The first distinction that must be made is between firm-specific political risks and

country-specific political risks. Firm-specific political risks are risks directed at a

particular company and are, by nature, discriminatory. For instance, the risk that a

government will nullify its contract with a given firm or that a terrorist group will target

the firm's physical operations are firm-specific. By contrast, country-specific political

risks are not directed at a firm, but are countrywide, and may affect firm performance.

Examples include a government's decision to forbid currency transfers or the outbreak of

a civil war within the host country. (Wagner, 2013)

There is a second distinction to be made between types of political risk: government

risks and instability risks. Government risks are those that arise from the actions of a

governmental authority, whether that authority is used legally or not. A legitimately enacted

tax hike or an extortion ring that is allowed to operate and is led by a local police chief may

both be considered government risks. Indeed, many government risks, particularly those that

are firm-specific, contain an ambiguous mixture of legal and illegal elements. Instability

risks, on the other hand, arise from political power struggles. These conflicts could be

between members of a government fighting over succession, or mass riots in response to

deteriorating social conditions. (Wagner, 2013)

6. Competitive factor

Competitive factors in the service could limit our growth opportunities and reduce our

profitability. (Family Dollar Stores, 2013)

8.2 Managing risk

Insurance is a principle safeguard in managing risk, and many risks are insurable. Fire

insurance is a necessity for any business that occupies a physical space, whether owned outright or

rented, and should be a top priority.

Some risks are inarguably high priority, such as the risk of fraud or embezzlement if

employees handle money or perform accounting duties in accounts payable and receivable.

Specialized insurance companies will underwrite a cash bond to provide financial coverage in the

event of embezzlement, theft or fraud.

101

When insuring against potential risks, never assume a best-case scenario. Even if employees

have worked for years with no problems and their service has been exemplary, insurance against

employee error may be a necessity. The extent of insurance coverage against injury will depend on the

nature of your business. A heavy manufacturing plant will, of course, require more extensive coverage

for employees.

If a business relies heavily on computerized data – customer lists and accounting data, for

example – exterior back up and insurance coverage are mandatory. Finally, hiring a risk management

consultant may be a prudent step in the prevention and management of risks.

8.2 Physical Risks

Building risks and rides are the most common type of physical risk. Fire or explosions are the

most common risk to a building. The risk to employees and customer to managing this risk it's

important to do the following:

Fire hazard: Danger to visitors and employees in the vicinity of the fire.

Make sure all employees know the exact street address of the building to give the 191

operator in case of emergency.

Ensure that all employee and customer know the location of all exits.

Install fire alarms and smoke detectors.

A sprinkler system will provide additional protection to the physical plant,

equipment, documents and, of course, personnel.(this tool install in office, cinema,

and food park)

Inform all employees that in the event of emergency their personal safety takes

priority over everything else. Tell them to leave the building and abandon all work-

associated documents, equipment and or products.

Electrical hazards: Burns and possible fatalities to visitors and employees.

Preventive Maintenance before open theme park daily

Predictive Maintenance for more safety

All electrical sockets placed out of visitors reaches or covered for safety.

Remark: According to Siam park city (2011), Preventive maintenance is the mechanism

inspection and performance of rides by our maintenances team it consists of engineers and

technicians with expertise every morning before opening. Follow the standard that our theme

was set if anything unusual the maintenance will already fixed it before opening. And

102

Predictive Maintenance is the maintenance systems that use various measurement tools to

help predicting the probability of the unusual situation occurrence. This is because different

parts of the system are used differently depending on environment and frequency of use.

Measurement tools can provide accurate information to the management and responsive

maintenance.

Operation of rides: Risks of visitors or employees injuring themselves on the various rides

and attractions.

All ride staff to be over 18 years of age.

Trained until deemed fully competent.

Ride staff to control and assist riders.

Rides and play areas inspected daily and by the ADIPS governing body annually.

Slips trips & falls: Potential hazard of injuries to the bodies of visitors or employees.

Continuous maintenance program in place

Daily inspections

Independent inspections annually

Accidents and injuries: Pain and distress caused to visitors or employees.

Management aware of various situations

Employee’s first aid trained first aid

First aid facilities on site

Investigation procedures in place.

Lost children: Upset and distress to children and parents.

All employees are trained and instructed on how to deal with the situation, and who

to contact

Staff always monitoring the entrance/exit gate during park opening hours.

CCTV in operation as an extra precaution.

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Car and coach parking: Potential hazard to visitors from impact with moving vehicles

Signage to alert drivers to drive carefully,

5 mph speed limit imposed

Speed humps in place

Segregated coach parking

No cars in designated coach park so far as reasonably practicable

Trained parking attendants on duty during busy periods.

Cleaning: Possible injuries to visitors due to slips and trips, or contact with cleaning agents.

COSHH training for all employees

all cleaning duties undertaken in accordance with good housekeeping practices

signage and warning cones used.

Remark: COSHH is the Control of Substances Hazardous to Health

Location Risks

Worldwide, over the last few decades, a marked increase in more powerful earthquake activity is

painfully obvious. Earthquake is not affect to Thailand much. Latest on 2nd December 2012 Chiang

Mai has earthquakes only 2.8 liter. According to Office of Public Relations Zone 3 Chiang Mai

(2010), report that if intensity from 1.0 to 2.9 will cause a slight flicker. People began to feel the

symptoms of vibration and sometimes feel dizzy. So, this problem not affect our much but we still

concern. In future this problem may be more affect. We are required to be prepared for the inevitable

unexpected upheaval, resultant damage and potential casualties by concern in the structure of our

building and ride. We use the material that is able to handle an earthquake.

Technology Risks

Power failure (day time): Possible panic of visitors.

Rides, all employees trained in the safe evacuation of visitors.

In cinema, we have the Uninterruptible Power Supply to solve this situation but it can

stay in short time so, we use this in order not to stampede customer then notify them

about the error and staff will take care all of them to the safe place.

Power failure (night time): Possible panic of visitors, risk of slips trips and falls.

All employees trained in the safe evacuation of visitors

Emergency lighting present

Lighting tested and examined at regular intervals.

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Human Risks

Alcoholism and drug abuse are major risks to personnel in the work force. Employees

suffering from these conditions should be urged to seek treatment, counseling and rehabilitation if

necessary. We are also uncontrollable the customer.

Protecting against embezzlement, theft and fraud may be difficult, but these are crimes which

occur frequently in the workplace. A system of double signature requirements for checks and invoice

and payables verification can help prevent embezzlement and fraud. Stringent accounting procedures

may discover embezzlement or fraud. A thorough background check before hiring personnel can

uncover previous offenses in the applicant's past. While this may not necessarily be grounds for

declining to hire an applicant, placement for the new hire in a critical position in which money and

cash equivalents are used may not be judicious (Davis, 2009).

Customer difficulties (drunk, distressed or illness): Risk of injuries to visitors or

employees from disruptive visitors.

No alcohol to be consumed on the premises

Drunk or disruptive customers asked to leave the park, if necessary by contacting the

local police.

First aider’s available to assist with illness or injury.

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8.3 The steps that you will take to mitigate the risks.

Dealing with Risk Issues (Mitigation)

Risk during delivery project

Detail Probability Impact Mitigation

Rate Rate

The cost of installing rides turns out to be more than expectation. High

We have many rides, which is very high price.

Medium

It could have the impact on the project budget.

Choose the rides, which is high quality but low price and confirming the price with manufacturer strictly. High

Other development cost higher than anticipated.

Medium

15% contingency has been allowed in the estimated costs.

Medium

The project has high level of flexibility. It would be possible to vary the nature and extent of the project while still maintaining the integrity of the whole. It will always be a “work in progress” i.e. one of its features and attractions will be that there is always work taking place on future development.

We have the professional project management team to do this development.

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The economic situation makes it impossible to realize the developer contribution. Medium

Economic conditions are currently abnormally uncertain.

High

This would create a major gap in the overall funding package.

Build into the agreement of mechanism for capturing the additional contribution in the future when the economic situation improves.

There is a significant funding gap. Medium

It is possible that the major funders will be able to commit most of the funding requirement leaving perhaps ฿30 million – ฿60 million to be found from a range of other sources. It is possible that those funds will not be forthcoming.

Medium

As described above, there is also a backup option of being able to secure a loan against the fixed income that will be generated through lease or management agreement with park operator.

There will be significant flexibility to modify the approach to delivery of the project, especially to complete it in stages.

High

It is not possible to assemble enough rides. Low

Most of key rides have already been acquired or the Trust knows of example that can be acquired.

Low

There is already enough to create sufficient critical mass.

It is impossible to find an operator of the park

Low

There are a number of possible operators and several have already expressed interest informally.

Medium

Atech Group International (Thailand) Co., Ltd. could simply run the park itself, employing managers with requisite skill. However, there would be a higher risk level attached to this.

Atech Group International (Thailand) Co., Ltd.Identified a number of companies that are candidates to operate the park under lease or a management contract.

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Risk after project completed

Detail Probability Impact Mitigation

Rate Rate

The number of visitors is so much less than expected, and/or the proportion of visitors paying to go on rides is lower than expected, impacting on the ability of the project to sustain itself financially.

Medium

Accurately predicting visitor numbers for new attractions is notoriously difficult. The concept is, however, populist in nature than is commonly the case and the projection are conservative in relation to other theme park. Ultimately, it is a mountain location which always popular for visitors during winter, and this theme park is the first theme park in the northern of Thailand.

Medium

The breakeven level given the core operating model outline in the business plan is estimated to be about 25% lower than forecast outturn, but if performance is much worse than predicted, we will have the option to adopt a much lower cost operational model that will treat the attraction more as a public park with heritage objects in it or introduce modern rides alongside a small heritage park.

The financial plan includes a substantial marketing budget in relation to the number of paying visitors. Add more advertising and provide more budgets in marketing expense.

It is not possible to let the restaurant, cinema spaces ,and/or the rentals that are achieved from them are less than expected

Medium

If space is not let, the Atech will have the options of running food and beverage operations itself or of using the space for alternative purpose such as historic gaming machines

Medium

Commercial activities are estimated to make a net contribution of about ฿ 900,000 to the revenue to the Atech which is a relatively small proportion of the overall estimated revenue from the park

The paces envisaged for catering offer is high quality and it is likely attractive to prospective tenants. There is a gap in the market for food and beverage offer quality which these space will be well equipped o fill.

Medium Medium

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Key cost, such as insurance and utilities, rise substantially as a result of market conditions or some factor at the park.

The operation budget contain substantial contingency and also forecasts a substantial surplus. This should be able to absorb an increase in this cost.

A serious accident take place on one of the rides

Medium

Accidents do occasionally happen at theme parks and they can have signification short-medium term impact on visitor number

Medium

Impact on theme park reputation and visitors expectation.

The business plan includes substantial allowance for staffing and for material and testing. The park will be operated to the highest health & safety practices by operators who have a strong track record.

It is not possible to recruit enough staff to run park efficiently, especially in the peak season.

Low

There is good pool of labor and the seasonal employment opportunities will provide good opportunities for students during their holiday

Medium

Efforts are already being made to locate the key skilled former employees of The Frame Park.

(Source: Dreamland Margate, 2009)

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Summary

This project are chooses Chiang Mai to build it because Chiang Mai has to area that is center

of commerce, industry, transport and tourism. The new theme park cans attraction to Thai tourism

and foreigner to visit Chiang Mai. Theme park is an important selling point in Chiang Mai and

Thailand. To be open the opportunity to people in this area and other people in nearby places that has

recreation area to relax in the new theme park style. Another factor, Chiang Mai is the most popular

provinces that the tourist selects and that the way chooses to relax from studying and working, enjoy

with friends, romantic for sweet heart, source good leaning, Amusing, the best meeting point, this

place make to happy, good relation in family, broaden one’s view.

Product and service in The Theme Park will emphasis is fun that never appears in Thailand. It

will be a high quality outdoor public space it will provide a family-friendly day out with a wide

variety of entertainment for visitor of all ages. The Fame's uniqueness will be obtained by following

an old culture of kingdom of Lanna theme. It will have a sense cultural of Lanna. Including festival

activity focuses on Chiang-Mai culture. Our segment is divided in two main group of customer. The

first group is the teenager who wants to play an adventure plaything. The second is the kid’s who

play our theme park will more revenues during vacation. We are monopoly in Chiang Rai because

we are the first amusement park so the proportion of our company in the Chiang Rai market shares

nearly to be 100%. In our theme park for product will emphasis about standard of theme park and

high quality of equipment. Price our theme park emphasis about special price and discount loyalty.

We are emphasis about place in our theme park will big place and convenience itinerary. Promotion

has to insurance and special discount in end semester. For marketing expense, it uses more money to

invest the theme park that is included property, building, equipment, facilities, recreation, and player.

And high more employee that is purchasing department, sales and marketing department, accounting

and financing department, staff, security, executive department, manager department, housekeeping

and gardener.

From my study of project feasibility study and evaluation that show me many things for the

feasibility because initial investment cost is 5,486,345,530.00 baht that it may be high, but in the

long run it will certainly increase high profits, the last month in the fifth years our business will gain

profits and successful. This project is very interesting because the theme park is very low

competitions in the market so it is not so difficult to entry in the market for our business.

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Appendix

History of plaything

Roller Coaster

John Miller was a prolific inventor who was granted over 100 patents, and invented many of

the safety devices used in today's roller coasters, including the 'Safety Chain Dog' and 'Under

Friction Wheels'. Miller designed toboggans before starting work at the Dayton Fun House and

Riding Device Manufacturing Company, which later became the National Amusement Device

Corporation. Together with partner Norman Bartlett, John Miller invented his first amusement ride

(patented on October 14, 1926) called the Flying Turns ride. The Flying Turns was the prototype for

the first roller coaster ride, however, it did not have tracks. Miller went on to invent several roller

coasters with his new partner Harry Baker. Harry Baker built the famous Cyclone ride at Astroland

Park, Coney Island.

Ferris Wheel

The first ferris wheel was designed by George W. Ferris, a bridge-builder from Pittsburgh,

Pennsylvania. Ferris began his career in the railroad industry and then pursued an interest in bridge

building. He understood the growing need for structural steel, Ferris founded G.W.G. Ferris & Co. in

Pittsburgh, a firm that tested and inspected metals for railroads and bridge builders. He built the

Ferris Wheel for the 1893 World's Fair, which was held in Chicago to commemorate the 400th

anniversary of Columbus's landing in America. The Chicago Fair's organizers wanted something that

would rival the Eiffel Tower. Gustave Eiffel had built the tower for the Paris World's Fair of 1889,

which honored the 100th anniversary of the French Revolution. Finding a suitable design proved

difficult: Architect Daniel H. Burnham, who was in charge of selecting the project for the Chicago

World's Fair, complained at an engineer's banquet in 1891 about having found nothing that "met the

expectations of the people". Among the audience was George Washington Gale Ferris Jr., owner of a

firm that tested iron and steel. He had an inspiration and scribbled the design for the Ferris Wheel on

a napkin during the dinner. It was considered an engineering wonder: two 140-foot steel towers

supported the wheel; they were connected by a 45-foot axle, the largest single piece of forged steel

ever made up until that time. The wheel section had a diameter of 250 feet and a circumference of

825 feet. Two 1000-horsepower reversible engines powered the ride. Thirty-six wooden cars held up

to sixty riders each. The ride cost fifty cents and made $726,805.50 during the World's Fair. The

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original Ferris wheel was destroyed in 1906, but there are other ferris wheels at theme parks and

carnivals everywhere.

Thrill Dragster

Thrill Dragster started around 2000 when Millennium Force opened. Footers started being

poured during the winter of 2001-2002 then were covered up during the 2002 operating season. To

construct the roller coaster, the park had to use a 480 feet (150 m) crane, only one of four in the

United States. Vertical construction started in fall 2002, months before the announcement. By

October 2002, the roller coaster had reached 200 feet (61 m). The ride was announced on January 9,

2003 and the structure was finished shortly after. It is tied with Millennium Force for being the two

largest investments in Cedar Point history. The announcement revealed the park's goal to build "the

tallest and fastest roller coaster on earth", reaching 420 feet (130 m) and accelerating up to 120 miles

per hour (193 km/h) in 4 seconds. Cedar Fair Entertainment Company filed a trademark for the name

Thrill Dragster.Thrill Dragster's media day was held on May 1, 2003 then it officially opened to the

public on May. It became the "tallest" and "fastest" roller coaster in the world overtaking both world

records from Steel Dragon 2000 at Nagashima Spa Land that was just built three years earlier. It lost

the title of being the world's tallest and fastest roller coaster when Kingda Ka at Six Flags Great

Adventure opened in May 2005. Intamin designed both Kingda Ka and Thrill Dragster, and the two

share a similar design and layout that differs primarily by the theme and the additional hill featured

on Kingda Ka. The ride had constant downtime in its first couple seasons. Several problems such as

the ride's hydraulic system and launch cable caused the ride to experience downtime.Thrill Dragster

was also closed in 2003 for the annual event, CoasterMania.

Fame cinema

It was established in 1999 as Shringar Cinemas Private Ltd.In 2004, upon conversion of

Private Limited to a Public Limited Company, the name changed from Shringar Cinemas Private

Limited to Shringar Cinemas Limited. In 2008, the name changed from Shringar Cinemas Limited to

Fame India Limited.The Company went public in 2005 to raise money from equity market through

an initial public offering. This helped opening up multiplexes across India. Today, Fame India Ltd.

has 27 properties, 102 screens in 13 cities with presence in states of Maharashtra, Gujarat, Haryana,

West Bengal, Jharkhand and Karnataka, with plan to open another 4 screens at Chandigarh and with

seating capacity of 986 people.

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In 1933 Robert Edwards & Sons, showmen of Swindon, acquired the latest thing in fairground

roundabouts, an all electric Noah's Ark ride, to travel with their Victorian steam powered galloping

horse roundabout. After Pewsey Carnival that year, their old set of gallopers was packed away in

their yard where it remained for over half a century. In 1986 the newly formed Fairground Heritage

Trust, a non-profit making registered charity, acquired it complete with its 89 key Verbeeck organ,

Tidman centre engine and 1917 FWD lorry and packing truck, thanks to the generous help of the

National Heritage Memorial Fund, the Science Museum, the Manifold Trust, the Material World

Charitable Foundation, and a private benefactor.This famous roundabout was first acquired by the

well known Swindon showman, Robert Edwards, in 1916 from Halsteads, roundabout manufacturers

and brokers of Sowerby Bridge, Yorkshire for the sum of eighty sovereigns. The previous owner or

owners are unknown but it is established that the ride was built by Savages of Kings Lynn, world

famous for their Galloping horse roundabouts. In all like likelihood the roundabout was built well

before the turn of the century and may have originally been made as a 4-abreast machine with 48

mounts. Building together in 12 sections with a diameter of 42 ft it has 36 carved wooden mounts,

fixed three-abreast and made up of 24 horses and 12 double-seater cockerels.The steam centre

engine, named "Little Beauty", was built by Robert Tidman & Sons of Bishop Bridge Iron Works,

Norwich, who towards the end of the last century rivaled Savages in the production of steam

roundabouts. Unlike most other British gallopers it was never converted to electricity. Robert

Edwards did however fit the ride with electric lighting during the twenties, which accounts for the

original legend on the rounding boards: 'R Edwards Electric Galloping Horses ". The iron wheels on

the centre truck were later additions, fitted to the truck when one of the wooden wheels broke on the

road between fairs. On the road the carved wooden horses and cockerels were packed into the body

of the FWD lorry and the twisted brass horse rods wore hung on the outside. The heavy wooden

platforms, structural woodwork and carved wooden panels were all carried in the 'Jumbo' packing

truck. Both vehicles were extensively rebuilt by Robert Edwards' brother-in-law showman Bill

Taylor, together with Robert Edwards' eldest son, Robert. The 'Jumbo' truck was built on what

appears to be the substructure of old agricultural vehicles with the axles and wheels comprising a

London General Omnibus Company Wolsey back axle of 1911 and a Durham Churchill front axle.

The FWD, which has an unusually long wheel base, was purchased from a timber haulage firm in

Princes Risborough soon after the First World War and was ideally suited for conversion to

showman's use. On the road the Edwards' steam traction engine, 'Kitchener' pulled the 'Jumbo' truck

and the roundabout centre truck, while the FWD lorry pulled the much lighter four wheeled organ

truck. The original 89 key Marenghi organ was replaced in 1931 with an 89 key organ purchased

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from the London firm of J Verbeeck & Sons for the sum of £1,000. It was mounted on the same

organ truck and stood in the centre of the roundabout when in use.

Max Air

Cedar Point made its debut in 1870, but it was a much different place than what we consider

it today. The park was not the roller coaster capital of the world; instead it was one of the best beach

resorts ever created. As the technology increased, the invention of the roller coaster took the world

by storm. Not wanting to be left out, the park constructed and gravity railroad known as the

Switchback Railroad. The ride was a hit and literally kicked open the door for the thrill rides that we

see today at the park. Many new revolutionary coasters made their entrances and thrilled guests for a

number of years. As the rides aged, the park removed them one by one and the park was at one point

down to one single coaster track and a number of thrill rides. No one expected what we see today at

the park. In 1964, the park introduced the Blue Streak. A small coaster compared to today, but this

ride was just what the park needed to bring guests back. As always, with increasing revenue brings

new rides. New roller coaster debuted ever few years with rides from Arrow Dynamics, Charles

Dinn, Bolliger and Mabillard, and Intamin. New coasters took the place of flat rides that had lost

popularity, or were just simply in the way of development. It had seemed as if the park had

completely forgotten about flats. The year of 1989 brought the world Magnum XL200, the tallest

coaster in the world. Then in 2000 Cedar Point debuted Millennium Force, which once again

regained the title of world’s tallest coaster for Cedar Point. Its title was short lived, but Cedar Point

was not going to be out done. In 2004, Top Thrill Dragster debuted as the world’s tallest and fasted

coaster. When all was said and done, many wondered what Cedar Point was going to add to top their

newest attraction. The answer came at the end of the 2004 season in a form that no one really

expected. Cedar Point went conservative and announced MaXair. The ride came from HUSS of

Bremen, Germany and claimed no records. Cedar Point had finally realized that to please all guests

they needed some thrill rides. MaxAir stands at 80-feet tall and has a top speed of 70-mph. The blue,

orange, yellow, and red ride calls the area in front of Wicked Twister home.

Galloper

The Year 2000 has been designated ‘The International Year of the Carousel’, and the UK is

one of the best places in the world to see these vintage rides. The International Association of

Amusement Parks and Attractions (IAAPA) has kick-started the campaign, which aims to raise the

profile of these machines around the world, whilst raising valuable money for charity.

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In the first half of this century, Gallopers (as traditional carousels are known in the UK) were

without a doubt the centre-piece of the travelling fair; huge, beautiful steam-driven machines

accompanied by the distinctive sound of the fairground organ. In the second half of the Twentieth

Century, however, gallopers slowly began to disappear from travelling fairs. Children’s tastes had

apparently moved on; they wanted to ride fast, spinning rides, machines that would turn them upside

down, and take them high into the air. Rides like the Waltzer, Ark/Speedway, Twist and Meteorite

would draw people in their thousands. It seemed that the simple pleasure of the carousel was on the

wane.

That is where the permanent amusement parks came in. Some of the most beautifully

preserved historical machines can now be seen at parks across the UK, and in the International Year

of the Carousel, it is well worth seeking them out. Vintage Carousels can be found at Drayton Manor

Park in Staffordshire, Blackpool Pleasure Beach in Lancashire, Flamingo Land in Yorkshire, Ocean

Beach at Rhyl in North Wales, and Dreamland at Margate in Kent, which has no less than two full

size vintage gallopers. There are many more, too many to mention in this short article, but this

exhibition is an attempt to capture just a small part of the fantasy and wonder that the carousel

represents. In this special year, we take you on a tour of a selection of the best gallopers at British

amusement parks and theme parks, many of which are so often overlooked. We even feature some of

the country's best juvenile gallopers and their modern derivatives.

Haunted House

In 1999, a retrospective of the art of The Haunted Mansion was featured at The Disney

Gallery above the entrance to Pirates of the Caribbean. When the 2003 film The Haunted Mansion

was released, a retrospective of its art was featured in the gallery as well. In October 2001, Haunted

Mansion Holiday premiered, a seasonal overlay featuring characters from the 1993 film The

Nightmare before Christmas. The seasonal overlay was inspired by the question of what would

happen to the Mansion if "Sandy Claws" landed there.In October 2005, Slave Labor Graphics began

publishing a bimonthly Haunted Mansion comic book anthology, with the main recurring story

(Mystery of the Manse) centered around "Master Gracey" and inspired by the sea captain concepts

proposed for the attraction by Ken Anderson in the 1950s. The comics are non-canon. In July 2010,

Guillermo del Toro announced that he is set to write and produce a new movie based on the

attraction, promising that it will be both scary and fun.

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Risk Management

Sales decrease by 5%: Year 2013

Statement of Income The Fame Co, Ltd.

For the Year End December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Sale 35,482,500 34,675,000 35,625,000 36,746,000 36,195,000 35,720,000 35,055,000 34,485,000 33,962,500 35,102,500 34,600,900 32,898,500 420,547,900

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280 86,054,460

EBITDA 27,611,720 29,942,420 26,447,120 27,074,420 26,571,420 29,256,120 30,319,420 27,996,920 27,504,420 25,465,920 29,863,320 26,440,220 334,493,440

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 84,546,545

EBIT 20,566,175 22,896,875 19,401,575 20,028,875 19,525,875 22,210,575 23,273,875 20,951,375 20,458,875 18,420,375 22,817,775 19,394,675 249,946,895

Interest exp 36,918,000.00 36,918,000

EBT 20,566,175 22,896,875 19,401,575 20,028,875 19,525,875 22,210,575 23,273,875 20,951,375 20,458,875 18,420,375 22,817,775 -17,523,325 213,028,895

Taxes (30%) 74,560,113

Net inc. 20,566,175 22,896,875 19,401,575 20,028,875 19,525,875 22,210,575 23,273,875 20,951,375 20,458,875 18,420,375 22,817,775 -17,523,325 138,468,782

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Statement of Cash Flow The Fame Co, Ltd.

For The Year End December 31, 2013

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

OPERATION ACTIVITIES Net income 20,566,175 22,896,875 19,401,575 20,028,875 19,525,875 22,210,575 23,273,875 20,951,375 20,458,875 18,420,375 22,817,775 -17,523,325 Add (Sources of cash)

Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

Increase in A/P -175,800,000

Subtract (Uses of cash)

Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987

Net cash provide by ops. 18,368,476 21,284,877 17,360,688 19,320,075 20,029,075 20,001,120 21,353,745 20,139,969 21,245,469 19,613,764 19,706,338 -196,130,767

INVESTING ACTIVITIES

Investment in fixed assets 1,758,545,530 93,646,830 93,032,830 648,830 575,430.00 985,662 682,354 687,654 357,658 692,654 687,321 254,658

FINANCIING ACTIVITIES

Increase in notes payable 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000


Net cash from financing 60,000,000 53,000,000 47,000,000 41,000,000 34,000,000 28,000,000 21,700,000 45,400,000 39,100,000 32,800,000 26,500,000 20,200,000

NET CHANGE IN CASH 1,836,914,006 167,931,707 157,393,518 60,968,905 54,604,505 48,986,782 43,736,099 66,227,623 60,703,127 53,106,418 46,893,659 -175,676,109

Plus: Cash at beginning of year 1,836,914,006 3,673,828,012 3,831,221,530 3,892,190,435 3,946,794,940 3,995,781,722 4,039,517,821 4,105,745,444 4,166,448,571 4,219,554,989 4,266,448,648

Cash at the end of year 1,836,914,006 3,673,828,012 3,831,221,530 3,892,190,435 3,946,794,940 3,995,781,722 4,039,517,821 4,105,745,444 4,166,448,571 4,219,554,989 4,266,448,648 4,090,772,539

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Statement of Income

The Fame Co, Ltd.

For the Year End December

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

Sale 23,037,500 22,068,500 22,591,000 23,370,000 22,733,500 22,040,000 21,755,000 21,403,500 21,147,000 22,467,500 21,954,500 22,192,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 15,166,720 17,335,920 13,413,120 13,698,420 13,109,920 15,576,120 17,019,420 14,915,420 14,688,920 12,830,920 17,216,920 15,733,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 8,121,175 10,290,375 6,367,575 6,652,875 6,064,375 8,530,575 9,973,875 7,869,875 7,643,375 5,785,375 10,171,375 8,688,175

Interest exp 55,377,000

EBT 8,121,175 -45,086,625 6,367,575 6,652,875 6,064,375 8,530,575 9,973,875 7,869,875 7,643,375 5,785,375 10,171,375 -46,688,825

Taxes (35%)

Net inc. 8,121,175 -45,086,625 6,367,575 6,652,875 6,064,375 8,530,575 9,973,875 7,869,875 7,643,375 5,785,375 10,171,375 -46,688,825

118


For The Year Ened December 31, 2014


OPERATION ACTIVITIES Net income 8,121,175 -45,086,625 6,367,575 6,652,875 6,064,375 8,530,575 9,973,875 7,869,875 7,643,375 5,785,375 10,171,375 -46,688,825 Add (Sources of cash)

Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987

Net cash provide by ops. 5,923,476 -46,698,623 4,326,688 5,944,075 6,567,575 6,321,120 8,053,745 7,058,469 8,429,969 6,978,764 7,059,938 -225,296,267


Investment in fixed assets 1,758,545,530 93,646,830 93,032,830 648,830 575430 985,662 682,354 687,654 357,658 692,654 687,321 254,658








119



For the Year End December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sale 26,030,000 25,460,000 26,239,000 27,027,500 26,315,000 25,840,000 25,317,500 24,795,000 24,386,500 26,581,000 26,125,000 26,904,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 18,159,220 20,727,420 17,061,120 17,355,920 16,691,420 19,376,120 20,581,920 18,306,920 17,928,420 16,944,420 21,387,420 20,445,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 11,113,675 13,681,875 10,015,575 10,310,375 9,645,875 12,330,575 13,536,375 11,261,375 10,882,875 9,898,875 14,341,875 13,400,175


EBT 11,113,675 13,681,875 10,015,575 10,310,375 9,645,875 12,330,575 13,536,375 11,261,375 10,882,875 9,898,875 14,341,875 -35,823,825

Taxes (30%)

Net inc. 11,113,675 13,681,875 10,015,575 10,310,375 9,645,875 12,330,575 13,536,375 11,261,375 10,882,875 9,898,875 14,341,875 -35,823,825

120


For The Year Ended December 31, 2015



Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987








NET CHANGE IN CASH 1,827,461,506 158,716,707 148,007,518 51,250,405 44,724,505 39,106,782 33,998,599 56,537,623 51,127,127 44,584,918 38,417,759 -193,976,609 Plus: Cash at beginning of year 1,827,461,506 1,986,178,213 2,134,185,731 2,185,436,136 2,230,160,641 2,269,267,423 2,303,266,022 2,359,803,645 2,410,930,772 2,455,515,690 2,493,933,449


121




Sale 30,523,500 29,972,500 30,447,500 32,015,000 31,397,500 30,941,500 30,428,500 30,115,000 29,412,000 30,856,000 30,267,000 26,600,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 22,652,720 25,239,920 21,269,620 22,343,420 21,773,920 24,477,620 25,692,920 23,626,920 22,953,920 21,219,420 25,529,420 20,141,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 15,607,175 18,194,375 14,224,075 15,297,875 14,728,375 17,432,075 18,647,375 16,581,375 15,908,375 14,173,875 18,483,875 13,096,175


EBT 15,607,175 18,194,375 14,224,075 15,297,875 14,728,375 17,432,075 18,647,375 16,581,375 15,908,375 14,173,875 18,483,875 -29,974,825

Taxes (30%)

Net inc. 15,607,175 18,194,375 14,224,075 15,297,875 14,728,375 17,432,075 18,647,375 16,581,375 15,908,375 14,173,875 18,483,875 -29,974,825

122





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











123


Statement of Income

The Fame Co, Ltd.


Jan Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sale 35,482,500 35,625,000 36,746,000 36,195,000 35,720,000 35,055,000 34,485,000 33,962,500 35,102,500 34,600,900 32,898,500

Other exp 7,870,780 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 27,611,720 26,447,120 27,074,420 26,571,420 29,256,120 30,319,420 27,996,920 27,504,420 25,465,920 29,863,320 26,440,220

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 20,566,175 19,401,575 20,028,875 19,525,875 22,210,575 23,273,875 20,951,375 20,458,875 18,420,375 22,817,775 19,394,675

Interest exp 36,918,000.00

EBT 20,566,175 19,401,575 20,028,875 19,525,875 22,210,575 23,273,875 20,951,375 20,458,875 18,420,375 22,817,775 -17,523,325

Taxes (30%)

Net inc. 20,566,175 19,401,575 20,028,875 19,525,875 22,210,575 23,273,875 20,951,375 20,458,875 18,420,375 22,817,775 -17,523,325

124





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











125




Sale 199,800,000 19,035,000 19,449,000 20,205,000 19,575,000 18,927,000 18,477,000 17,703,000 17,460,000 19,485,000 18,630,000 19,377,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 191,929,220 14,302,420 10,271,120 10,533,420 9,951,420 12,463,120 13,741,420 11,214,920 11,001,920 9,848,420 13,892,420 12,918,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 184,883,675 7,256,875 3,225,575 3,487,875 2,905,875 5,417,575 6,695,875 4,169,375 3,956,375 2,802,875 6,846,875 5,873,175

Interest exp 61530000

EBT 184,883,675 7,256,875 3,225,575 3,487,875 2,905,875 5,417,575 6,695,875 4,169,375 3,956,375 2,802,875 6,846,875 -55,656,825

Taxes (35%)

Net inc. 184,883,675 7,256,875 3,225,575 3,487,875 2,905,875 5,417,575 6,695,875 4,169,375 3,956,375 2,802,875 6,846,875 -55,656,825

126





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

Increase in A/P 0 0 0 0 0 0 0 0 0 0 0 -175,800,000


Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987










127


Statement of Income

The Fame Co, Ltd.



Sale 21,825,000 20,907,000 21,402,000 22,140,000 21,537,000 20,880,000 20,610,000 20,277,000 20,034,000 21,285,000 20,799,000 21,024,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 13,954,220 16,174,420 12,224,120 12,468,420 11,913,420 14,416,120 15,874,420 13,788,920 13,575,920 11,648,420 16,061,420 14,565,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 6,908,675 9,128,875 5,178,575 5,422,875 4,867,875 7,370,575 8,828,875 6,743,375 6,530,375 4,602,875 9,015,875 7,520,175


EBT 6,908,675 -46,248,125 5,178,575 5,422,875 4,867,875 7,370,575 8,828,875 6,743,375 6,530,375 4,602,875 9,015,875 -47,856,825

Taxes (35%)

Net inc. 6,908,675 -46,248,125 5,178,575 5,422,875 4,867,875 7,370,575 8,828,875 6,743,375 6,530,375 4,602,875 9,015,875 -47,856,825

128




OPERATION ACTIVITIES Net income 6,908,675 -46,248,125 5,178,575 5,422,875 4,867,875 7,370,575 8,828,875 6,743,375 6,530,375 4,602,875 9,015,875 -47,856,825 Add (Sources of cash)

Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











129


Statement of Income

The Fame Co, Ltd.



Sale 24,660,000 24,120,000 24,858,000 25,605,000 24,930,000 24,480,000 23,985,000 23,490,000 23,103,000 25,182,000 24,750,000 25,488,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 16,789,220 19,387,420 15,680,120 15,933,420 15,306,420 18,016,120 19,249,420 17,001,920 16,644,920 15,545,420 20,012,420 19,029,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 9,743,675 12,341,875 8,634,575 8,887,875 8,260,875 10,970,575 12,203,875 9,956,375 9,599,375 8,499,875 12,966,875 11,984,175


EBT 9,743,675 12,341,875 8,634,575 8,887,875 8,260,875 10,970,575 12,203,875 9,956,375 9,599,375 8,499,875 12,966,875 -37,239,825

Taxes (30%)

Net inc. 9,743,675 12,341,875 8,634,575 8,887,875 8,260,875 10,970,575 12,203,875 9,956,375 9,599,375 8,499,875 12,966,875 -37,239,825

130





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987










131


Statement of Income

The Fame Co, Ltd.



Sale 28,917,000 28,395,000 288,450,000 30,330,000 29,745,000 29,313,000 28,827,000 28,530,000 27,864,000 29,232,000 28,674,000 25,200,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 21,046,220 23,662,420 279,272,120 20,658,420 20,121,420 22,849,120 24,091,420 22,041,920 21,405,920 19,595,420 23,936,420 18,741,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 14,000,675 16,616,875 272,226,575 13,612,875 13,075,875 15,803,575 17,045,875 14,996,375 14,360,375 12,549,875 16,890,875 11,696,175


EBT 14,000,675 16,616,875 272,226,575 13,612,875 13,075,875 15,803,575 17,045,875 14,996,375 14,360,375 12,549,875 16,890,875 -31,374,825

Taxes (30%)

Net inc. 14,000,675 16,616,875 272,226,575 13,612,875 13,075,875 15,803,575 17,045,875 14,996,375 14,360,375 12,549,875 16,890,875 -31,374,825

132





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











133


Statement of Income

The Fame Co, Ltd.



Sale 33,615,000 32,850,000 33,750,000 34,812,000 34,290,000 33,840,000 33,210,000 32,670,000 35,749,990 33,255,000 32,779,800 31,167,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 25,744,220 28,117,420 24,572,120 25,140,420 24,666,420 27,376,120 28,474,420 26,181,920 29,291,910 23,618,420 28,042,220 24,708,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 18,698,675 21,071,875 17,526,575 18,094,875 17,620,875 20,330,575 21,428,875 19,136,375 22,246,365 16,572,875 20,996,675 17,663,175


EBT 18,698,675 21,071,875 17,526,575 18,094,875 17,620,875 20,330,575 21,428,875 19,136,375 22,246,365 16,572,875 20,996,675 -19,254,825

Taxes (30%)

Net inc. 18,698,675 21,071,875 17,526,575 18,094,875 17,620,875 20,330,575 21,428,875 19,136,375 22,246,365 16,572,875 20,996,675 -19,254,825

134





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











135





Sale 18,870,000 17,977,500 18,368,500 19,082,500 18,487,500 17,875,500 17,450,500 16,719,500 16,490,000 18,402,500 17,595,000 18,300,500

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 10,999,220 13,244,920 9,190,620 9,410,920 8,863,920 11,411,620 12,714,920 10,231,420 10,031,920 8,765,920 12,857,420 11,842,220

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 3,953,675 6,199,375 2,145,075 2,365,375 1,818,375 4,366,075 5,669,375 3,185,875 2,986,375 1,720,375 5,811,875 4,796,675


EBT 3,953,675 6,199,375 2,145,075 2,365,375 1,818,375 4,366,075 5,669,375 3,185,875 2,986,375 1,720,375 5,811,875 -56,733,325

Taxes (35%)

Net inc. 3,953,675 6,199,375 2,145,075 2,365,375 1,818,375 4,366,075 5,669,375 3,185,875 2,986,375 1,720,375 5,811,875 -56,733,325

136



Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPERATION ACTIVITIES Net income 3,953,675 6,199,375 2,145,075 2,365,375 1,818,375 4,366,075 5,669,375 3,185,875 2,986,375 1,720,375 5,811,875 -56,733,325 Add (Sources of cash)

Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

Increase in A/P 0 0 0 0 0 0 0 0 0 0 0 -175,800,000


Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987

Net cash provide by ops. 1,755,976 4,587,377 104,188 1,656,575 2,321,575 2,156,620 3,749,245 2,374,469 3,772,969 2,913,764 2,700,438 -235,340,767










137


Statement of Income

The Fame Co, Ltd.



Sale 20,612,500 19,745,500 20,213,000 20,910,000 20,340,500 19,720,000 19,465,000 19,150,500 18,921,000 20,102,500 19,643,500 19,856,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 12,741,720 15,012,920 11,035,120 11,238,420 10,716,920 13,256,120 14,729,420 12,662,420 12,462,920 10,465,920 14,905,920 13,397,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 5,696,175 7,967,375 3,989,575 4,192,875 3,671,375 6,210,575 7,683,875 5,616,875 5,417,375 3,420,375 7,860,375 6,352,175


EBT 5,696,175 -47,409,625 3,989,575 4,192,875 3,671,375 6,210,575 7,683,875 5,616,875 5,417,375 3,420,375 7,860,375 -49,024,825

Taxes (35%)

Net inc. 5,696,175 -47,409,625 3,989,575 4,192,875 3,671,375 6,210,575 7,683,875 5,616,875 5,417,375 3,420,375 7,860,375 -49,024,825

138



Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPERATION ACTIVITIES Net income 5,696,175 -47,409,625 3,989,575 4,192,875 3,671,375 6,210,575 7,683,875 5,616,875 5,417,375 3,420,375 7,860,375 -49,024,825 Add (Sources of cash)

Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











139


Statement of Income

The Fame Co, Ltd.



Sale 23,290,000 22,780,000 23,477,000 24,182,500 23,545,000 22,950,000 22,652,500 22,185,000 21,819,500 23,783,000 23,375,000 24,072,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 15,419,220 18,047,420 14,299,120 14,510,920 13,921,420 16,486,120 17,916,920 15,696,920 15,361,420 14,146,420 18,637,420 17,613,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 8,373,675 11,001,875 7,253,575 7,465,375 6,875,875 9,440,575 10,871,375 8,651,375 8,315,875 7,100,875 11,591,875 10,568,175


EBT 8,373,675 11,001,875 7,253,575 7,465,375 6,875,875 9,440,575 10,871,375 8,651,375 8,315,875 7,100,875 11,591,875 -38,655,825

Taxes (30%)

Net inc. 8,373,675 11,001,875 7,253,575 7,465,375 6,875,875 9,440,575 10,871,375 8,651,375 8,315,875 7,100,875 11,591,875 -38,655,825

140




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











141


Statement of Income

The Fame Co, Ltd.



Sale 27,310,500 268,175,000 27,242,500 28,645,000 28,092,500 27,684,500 27,225,500 26,945,000 26,316,000 27,608,000 27,081,000 23,800,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 19,439,720 263,442,420 18,064,620 18,973,420 18,468,920 21,220,620 22,489,920 20,456,920 19,857,920 17,971,420 22,343,420 17,341,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 12,394,175 256,396,875 11,019,075 11,927,875 11,423,375 14,175,075 15,444,375 13,411,375 12,812,375 10,925,875 15,297,875 10,296,175


EBT 12,394,175 256,396,875 11,019,075 11,927,875 11,423,375 14,175,075 15,444,375 13,411,375 12,812,375 10,925,875 15,297,875 -32,774,825

Taxes (30%)

Net inc. 12,394,175 256,396,875 11,019,075 11,927,875 11,423,375 14,175,075 15,444,375 13,411,375 12,812,375 10,925,875 15,297,875 -32,774,825

142





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











143


Statement of Income

The Fame Co, Ltd.



Sale 31,747,500 31,025,000 31,875,000 32,878,000 32,385,000 31,960,000 31,365,000 30,855,000 30,387,500 31,407,500 30,958,700 29,435,500

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 23,876,720 26,292,420 22,697,120 23,206,420 22,761,420 25,496,120 26,629,420 24,366,920 23,929,420 21,770,920 26,221,120 22,977,220

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 16,831,175 19,246,875 15,651,575 16,160,875 15,715,875 18,450,575 19,583,875 17,321,375 16,883,875 14,725,375 19,175,575 15,931,675


EBT 16,831,175 19,246,875 15,651,575 16,160,875 15,715,875 18,450,575 19,583,875 17,321,375 16,883,875 14,725,375 19,175,575 -20,986,325

Taxes (30%)

Net inc. 16,831,175 19,246,875 15,651,575 16,160,875 15,715,875 18,450,575 19,583,875 17,321,375 16,883,875 14,725,375 19,175,575 -20,986,325

144




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987









Plus: Cash at beginning of year 1,833,179,006 1,997,460,713 2,151,104,231 2,208,205,136 2,258,999,641 2,304,226,423 2,344,272,522 2,406,870,145 2,463,998,272 2,513,409,690 9


145

Interest increase by 5%: Year 2013

Statement of Income

The Fame Co, Ltd.



Sale 22,200,000 21,150,000 21,610,000 22,450,000 21,750,000 21,030,000 20,530,000 19,670,000 19,400,000 21,650,000 20,700,000 21,530,000

Other exp 8,264,319 4,969,209 9,636,774 10,155,159 10,104,759 6,787,074 4,972,359 6,812,484 6,780,984 10,118,409 4,974,459 6,781,194

EBITDA 13,935,681 16,180,791 11,973,226 12,294,841 11,645,241 14,242,926 15,557,641 12,857,516 12,619,016 11,531,591 15,725,541 14,748,806

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 6,890,136 9,135,246 4,927,681 5,249,296 4,599,696 7,197,381 8,512,096 5,811,971 5,573,471 4,486,046 8,679,996 7,703,261


EBT 6,890,136 9,135,246 4,927,681 5,249,296 4,599,696 7,197,381 8,512,096 5,811,971 5,573,471 4,486,046 8,679,996 -56,903,239

Taxes (35%)

Net inc. 6,890,136 9,135,246 4,927,681 5,249,296 4,599,696 7,197,381 8,512,096 5,811,971 5,573,471 4,486,046 8,679,996 -56,903,239

146

Statement of Cash Flow

The Fame Co, Ltd.



OPERATION ACTIVITIES

Net income 6,890,136 9,135,246 4,927,681 5,249,296 4,599,696 7,197,381 8,512,096 5,811,971 5,573,471 4,486,046 8,679,996 -56,903,239

Add (Sources of cash)

Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

Increase in A/P 0 0 0 0 0 0 0 0 0 0 0 -175,800,000


Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











147


Statement of Income

The Fame Co, Ltd.



Sale 24,250,000 23,230,000 23,780,000 24,600,000 23,930,000 23,200,000 22,900,000 22,530,000 22,260,000 23,650,000 23,110,000 23,360,000

Other exp 8,264,319 4,969,209 9,636,774 10,155,159 10,104,759 6,787,074 4,972,359 6,812,484 6,780,984 10,118,409 4,974,459 6,781,194

EBITDA 15,985,681 18,260,791 14,143,226 14,444,841 13,825,241 16,412,926 17,927,641 15,717,516 15,479,016 13,531,591 18,135,541 16,578,806

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 8,940,136 11,215,246 7,097,681 7,399,296 6,779,696 9,367,381 10,882,096 8,671,971 8,433,471 6,486,046 11,089,996 9,533,261


EBT 8,940,136 -46,930,604 7,097,681 7,399,296 6,779,696 9,367,381 10,882,096 8,671,971 8,433,471 6,486,046 11,089,996 -48,612,589

Taxes (35%)

Net inc. 8,940,136 -46,930,604 7,097,681 7,399,296 6,779,696 9,367,381 10,882,096 8,671,971 8,433,471 6,486,046 11,089,996 -48,612,589

148


The Fame Co, Ltd.




Net income 8,940,136 -46,930,604 7,097,681 7,399,296 6,779,696 9,367,381 10,882,096 8,671,971 8,433,471 6,486,046 11,089,996 -48,612,589


Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











149


Statement of Income

The Fame Co, Ltd.



Sale 27,400,000 26,800,000 27,620,000 28,450,000 27,700,000 27,200,000 26,650,000 26,100,000 25,670,000 27,980,000 27,500,000 28,320,000

Other exp 8,264,319 4,969,209 9,636,774 10,155,159 10,104,759 6,787,074 4,972,359 6,812,484 6,780,984 10,118,409 4,974,459 6,781,194

EBITDA 19,135,681 21,830,791 17,983,226 18,294,841 17,595,241 20,412,926 21,677,641 19,287,516 18,889,016 17,861,591 22,525,541 21,538,806

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 12,090,136 14,785,246 10,937,681 11,249,296 10,549,696 13,367,381 14,632,096 12,241,971 11,843,471 10,816,046 15,479,996 14,493,261


EBT 12,090,136 14,785,246 10,937,681 11,249,296 10,549,696 13,367,381 14,632,096 12,241,971 11,843,471 10,816,046 15,479,996 -37,191,939

Taxes (30%)

Net inc. 12,090,136 14,785,246 10,937,681 11,249,296 10,549,696 13,367,381 14,632,096 12,241,971 11,843,471 10,816,046 15,479,996 -37,191,939

150


The Fame Co, Ltd.




Net income 12,090,136 14,785,246 10,937,681 11,249,296 10,549,696 13,367,381 14,632,096 12,241,971 11,843,471 10,816,046 15,479,996 -37,191,939


Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











151


Statement of Income

The Fame Co, Ltd.



Sale 32,130,000 31,550,000 32,050,000 33,700,000 33,050,000 32,570,000 32,030,000 31,700,000 30,960,000 32,480,000 31,860,000 28,000,000

Other exp 8,264,319 4,969,209 9,636,774 10,155,159 10,104,759 6,787,074 4,972,359 6,812,484 6,780,984 10,118,409 4,974,459 6,781,194

EBITDA 23,865,681 26,580,791 22,413,226 23,544,841 22,945,241 25,782,926 27,057,641 24,887,516 24,179,016 22,361,591 26,885,541 21,218,806

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 16,820,136 19,535,246 15,367,681 16,499,296 15,899,696 18,737,381 20,012,096 17,841,971 17,133,471 15,316,046 19,839,996 14,173,261


EBT 16,820,136 19,535,246 15,367,681 16,499,296 15,899,696 18,737,381 20,012,096 17,841,971 17,133,471 15,316,046 19,839,996 -31,051,289

Taxes (30%)

Net inc. 16,820,136 19,535,246 15,367,681 16,499,296 15,899,696 18,737,381 20,012,096 17,841,971 17,133,471 15,316,046 19,839,996 -31,051,289

152





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











153


Statement of Income

The Fame Co, Ltd.



Sale 37,350,000 36,500,000 37,500,000 38,680,000 38,100,000 37,600,000 36,900,000 36,300,000 35,750,000 36,950,000 36,422,000 34,630,000

Other exp 8,264,319 4,969,209 9,636,774 10,155,159 10,104,759 6,787,074 4,972,359 6,812,484 6,780,984 10,118,409 4,974,459 6,781,194

EBITDA 29,085,681 31,530,791 27,863,226 28,524,841 27,995,241 30,812,926 31,927,641 29,487,516 28,969,016 26,831,591 31,447,541 27,848,806

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 22,040,136 24,485,246 20,817,681 21,479,296 20,949,696 23,767,381 24,882,096 22,441,971 21,923,471 19,786,046 24,401,996 20,803,261


EBT 22,040,136 24,485,246 20,817,681 21,479,296 20,949,696 23,767,381 24,882,096 22,441,971 21,923,471 19,786,046 24,401,996 -17,960,639

Taxes (30%)

Net inc. 22,040,136 24,485,246 20,817,681 21,479,296 20,949,696 23,767,381 24,882,096 22,441,971 21,923,471 19,786,046 24,401,996 -17,960,639

154




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











155


Statement of Income

The Fame Co, Ltd.



Sale 22,200,000 21,150,000 21,610,000 22,450,000 21,750,000 21,030,000 20,530,000 19,670,000 19,400,000 21,650,000 20,700,000 21,530,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 14,329,220 16,417,420 12,432,120 12,778,420 12,126,420 14,566,120 15,794,420 13,181,920 12,941,920 12,013,420 15,962,420 15,071,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 8,026,175


EBT 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 -53,503,825

Taxes (35%)

Net inc. 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 -53,503,825

156




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

Increase in A/P 0 0 0 0 0 0 0 0 0 0 0 -175,800,000


Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987



Investment in fixed assets 1,758,545,53

0 93,646,830 93,032,830 648,830 575430 985,662 682,354 687,654 357,658 692,654 687,321 254,658





NET CHANGE IN CASH 1,823,631,50

6 154,406,707 143,378,518 46,672,905 40,159,505 34,296,782 29,211,099 51,412,623 46,140,627 39,653,918 32,992,759 -211,656,609

Plus: Cash at beginning of year 1,823,631,50

6 1,978,038,21

3 2,121,416,73

1 2,168,089,63

6 2,208,249,14

1 2,242,545,92

3 2,271,757,02

2 2,323,169,64

5 2,369,310,27

2 2,408,964,19

0

Cash at the end of year 1,823,631,50

6 1,978,038,21

3 2,121,416,73

1 2,168,089,63

6 2,208,249,14

1 2,242,545,92

3 2,271,757,02

2 2,323,169,64

5 2,369,310,27

2 2,408,964,19

0 2,441,956,94

9 2,230,300,34

0

157


Statement of Income

The Fame Co, Ltd.



Sale 24,250,000 23,230,000 23,780,000 24,600,000 23,930,000 23,200,000 22,900,000 22,530,000 22,260,000 23,650,000 23,110,000 23,360,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 16,379,220 18,497,420 14,602,120 14,928,420 14,306,420 16,736,120 18,164,420 16,041,920 15,801,920 14,013,420 18,372,420 16,901,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 9,333,675 11,451,875 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 9,856,175


EBT 9,333,675 -43,925,125 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 -45,520,825

Taxes (35%)

Net inc. 9,333,675 -43,925,125 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 -45,520,825

158




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987









Plus: Cash at beginning of year 1,825,681,506 1,926,791,213 2,072,339,731 2,121,162,636 2,163,502,141 2,199,968,923 2,231,550,022 2,285,822,645 2,334,823,272 2,376,477,190


159


Statement of Income

The Fame Co, Ltd.



Sale 27,400,000 26,800,000 27,620,000 28,450,000 27,700,000 27,200,000 26,650,000 26,100,000 25,670,000 27,980,000 27,500,000 28,320,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 19,529,220 22,067,420 18,442,120 18,778,420 18,076,420 20,736,120 21,914,420 19,611,920 19,211,920 18,343,420 22,762,420 21,861,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 14,816,175


EBT 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 -34,407,825

Taxes (30%)

Net inc. 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 -34,407,825

160




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











161


Statement of Income

The Fame Co, Ltd.



Sale 32,130,000 31,550,000 32,050,000 33,700,000 33,050,000 32,570,000 32,030,000 31,700,000 30,960,000 32,480,000 31,860,000 28,000,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 24,259,220 26,817,420 22,872,120 24,028,420 23,426,420 26,106,120 27,294,420 25,211,920 24,501,920 22,843,420 27,122,420 21,541,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 14,496,175


EBT 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 -28,574,825

Taxes (30%)

Net inc. 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 -28,574,825

162




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











163


Statement of Income

The Fame Co, Ltd.



Sale 37,350,000 36,500,000 37,500,000 38,680,000 38,100,000 37,600,000 36,900,000 36,300,000 35,750,000 36,950,000 36,422,000 34,630,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 29,479,220 31,767,420 28,322,120 29,008,420 28,476,420 31,136,120 32,164,420 29,811,920 29,291,920 27,313,420 31,684,420 28,171,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 21,126,175


EBT 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 -15,791,825

Taxes (30%)

Net inc. 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 -15,791,825

164




OPERATION ACTIVITIES Net income 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 -15,791,825 Add (Sources of cash) Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 Increase in A/P -175,800,000 Subtract (Uses of cash) Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987 Net cash provide by ops. 20,235,976 23,109,877 19,235,688 21,254,075 21,934,075 21,881,120 23,198,745 21,954,969 23,032,969 21,461,264 21,527,438 -194,399,267

INVESTING ACTIVITIES Investment in fixed assets 1,758,545,530 93,646,830 93,032,830 648,830 575,430.00 985,662 682,354 687,654 357,658 692,654 687,321 254,658


Increase in notes payable 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 Increase long-term debt 25,000,000 23,000,000 22,000,000 21,000,000 19,000,000 18,000,000 16,700,000 15,400,000 14,100,000 12,800,000 11,500,000 10,200,000 Net cash from financing 60,000,000 53,000,000 47,000,000 41,000,000 34,000,000 28,000,000 21,700,000 45,400,000 39,100,000 32,800,000 26,500,000 20,200,000 NET CHANGE IN CASH 1,838,781,506 169,756,707 159,268,518 62,902,905 56,509,505 50,866,782 45,581,099 68,042,623 62,490,627 54,953,918 48,714,759 -173,944,609 Plus: Cash at beginning of year 1,838,781,506 2,008,538,213 2,167,806,731 2,230,709,636 2,287,219,141 2,338,085,923 2,383,667,022 2,451,709,645 2,514,200,272 2,569,154,190


165


Statement of Income

The Fame Co, Ltd.



Sale 22,200,000 21,150,000 21,610,000 22,450,000 21,750,000 21,030,000 20,530,000 19,670,000 19,400,000 21,650,000 20,700,000 21,530,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 14,329,220 16,417,420 12,432,120 12,778,420 12,126,420 14,566,120 15,794,420 13,181,920 12,941,920 12,013,420 15,962,420 15,071,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 8,026,175


EBT 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 -62,733,325

Taxes (35%)

Net inc. 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 -62,733,325

166




OPERATION ACTIVITIES Net income 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 -62,733,325 Add (Sources of cash) Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 Increase in A/P 0 0 0 0 0 0 0 0 0 0 0 -175,800,000 Subtract (Uses of cash) Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987 Net cash provide by ops. 5,085,976 7,759,877 3,345,688 5,024,075 5,584,075 5,311,120 6,828,745 5,324,969 6,682,969 6,161,264 5,805,438 -241,340,767

INVESTING ACTIVITIES Investment in fixed assets 1,758,545,530 93,646,830 93,032,830 648,830 575430 985,662 682,354 687,654 357,658 692,654 687,321 254,658


Increase in notes payable 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 Increase long-term debt 25,000,000 23,000,000 22,000,000 21,000,000 19,000,000 18,000,000 16,700,000 15,400,000 14,100,000 12,800,000 11,500,000 10,200,000 Net cash from financing 60,000,000 53,000,000 47,000,000 41,000,000 34,000,000 28,000,000 21,700,000 45,400,000 39,100,000 32,800,000 26,500,000 20,200,000 NET CHANGE IN CASH 1,823,631,506 154,406,707 143,378,518 46,672,905 40,159,505 34,296,782 29,211,099 51,412,623 46,140,627 39,653,918 32,992,759 -220,886,109 Plus: Cash at beginning of year 1,823,631,506 1,978,038,213 2,121,416,731 2,168,089,636 2,208,249,141 2,242,545,923 2,271,757,022 2,323,169,645 2,369,310,272 2,408,964,190


167


Statement of Income

The Fame Co, Ltd.



Sale 24,250,000 23,230,000 23,780,000 24,600,000 23,930,000 23,200,000 22,900,000 22,530,000 22,260,000 23,650,000 23,110,000 23,360,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 16,379,220 18,497,420 14,602,120 14,928,420 14,306,420 16,736,120 18,164,420 16,041,920 15,801,920 14,013,420 18,372,420 16,901,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 9,333,675 11,451,875 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 9,856,175


EBT 9,333,675 -52,231,675 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 -53,827,375

Taxes (35%)

Net inc. 9,333,675 -52,231,675 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 -53,827,375

168




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











169


The Fame Co, Ltd.



Sale 27,400,000 26,800,000 27,620,000 28,450,000 27,700,000 27,200,000 26,650,000 26,100,000 25,670,000 27,980,000 27,500,000 28,320,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 19,529,220 22,067,420 18,442,120 18,778,420 18,076,420 20,736,120 21,914,420 19,611,920 19,211,920 18,343,420 22,762,420 21,861,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 14,816,175


EBT 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 -41,791,425

Taxes (30%)

Net inc. 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 -41,791,425

170




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987









Plus: Cash at beginning of year 1,828,831,506 1,988,888,213 2,138,276,731 2,190,949,636 2,237,059,141 2,277,525,923 2,312,857,022 2,370,699,645 2,423,110,272 2,469,094,190 9


171


Statement of Income

The Fame Co, Ltd.



Sale 32,130,000 31,550,000 32,050,000 33,700,000 33,050,000 32,570,000 32,030,000 31,700,000 30,960,000 32,480,000 31,860,000 28,000,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 24,259,220 26,817,420 22,872,120 24,028,420 23,426,420 26,106,120 27,294,420 25,211,920 24,501,920 22,843,420 27,122,420 21,541,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 14,496,175


EBT 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 -35,035,475

Taxes (30%)

Net inc. 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 -35,035,475

172




Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











173


Statement of Income

The Fame Co, Ltd.



Sale 37,350,000 36,500,000 37,500,000 38,680,000 38,100,000 37,600,000 36,900,000 36,300,000 35,750,000 36,950,000 36,422,000 34,630,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 29,479,220 31,767,420 28,322,120 29,008,420 28,476,420 31,136,120 32,164,420 29,811,920 29,291,920 27,313,420 31,684,420 28,171,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 21,126,175


EBT 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 -21,329,525

Taxes (30%)

Net inc. 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 -21,329,525

174





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











175

Expense Increased by 5% Year 2013

Statement of Income

The Fame Co, Ltd.



Sale 22,200,000 21,150,000 21,610,000 22,450,000 21,750,000 21,030,000 20,530,000 19,670,000 19,400,000 21,650,000 20,700,000 21,530,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 14,329,220 16,417,420 12,432,120 12,778,420 12,126,420 14,566,120 15,794,420 13,181,920 12,941,920 12,013,420 15,962,420 15,071,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 8,026,175


EBT 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 -53,503,825

Taxes (35%)

Net inc. 7,283,675 9,371,875 5,386,575 5,732,875 5,080,875 7,520,575 8,748,875 6,136,375 5,896,375 4,967,875 8,916,875 -53,503,825

176





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

Increase in A/P 0 0 0 0 0 0 0 0 0 0 0 -175,800,000


Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











177

Expense Increased by 10% Year 20



Sale 24,250,000 23,230,000 23,780,000 24,600,000 23,930,000 23,200,000 22,900,000 22,530,000 22,260,000 23,650,000 23,110,000 23,360,000 Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280 EBITDA 16,379,220 18,497,420 14,602,120 14,928,420 14,306,420 16,736,120 18,164,420 16,041,920 15,801,920 14,013,420 18,372,420 16,901,720 Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 EBIT 9,333,675 11,451,875 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 9,856,175 Interest exp 55,377,000 EBT 9,333,675 -43,925,125 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 -45,520,825 Taxes (35%) Net inc. 9,333,675 -43,925,125 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 -45,520,825

178



Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPERATION ACTIVITIES Net income 9,333,675 -43,925,125 7,556,575 7,882,875 7,260,875 9,690,575 11,118,875 8,996,375 8,756,375 6,967,875 11,326,875 -45,520,825 Add (Sources of cash) Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 Increase in A/P -175,800,000 Subtract (Uses of cash) Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987 Net cash provide by ops. 7,135,976 -45,537,123 5,515,688 7,174,075 7,764,075 7,481,120 9,198,745 8,184,969 9,542,969 8,161,264 8,215,438 -224,128,267


FINANCIING ACTIVITIES Increase in notes payable 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 Increase long-term debt 25,000,000 23,000,000 22,000,000 21,000,000 19,000,000 18,000,000 16,700,000 15,400,000 14,100,000 12,800,000 11,500,000 10,200,000 Net cash from financing 60,000,000 53,000,000 47,000,000 41,000,000 34,000,000 28,000,000 21,700,000 45,400,000 39,100,000 32,800,000 26,500,000 20,200,000 NET CHANGE IN CASH 1,825,681,506 101,109,707 145,548,518 48,822,905 42,339,505 36,466,782 31,581,099 54,272,623 49,000,627 41,653,918 35,402,759 -203,673,609

Plus: Cash at beginning of year 1,825,681,506 1,926,791,213 2,072,339,731 2,121,162,636 2,163,502,141 2,199,968,923 -

2,168,387,824 -

2,114,115,201 -

2,065,114,574 -

2,023,460,656 -

1,988,057,897

Cash at the end of year 1,825,681,506 1,926,791,213 2,072,339,731 2,121,162,636 2,163,502,141 2,199,968,923 -

2,168,387,824 -

2,114,115,201 -

2,065,114,574 -

2,023,460,656 -

1,988,057,897 -203,673,609

179

Expense Increased 5% by Year 201

Statement of Income

The Fame Co, Ltd.



Sale 27,400,000 26,800,000 27,620,000 28,450,000 27,700,000 27,200,000 26,650,000 26,100,000 25,670,000 27,980,000 27,500,000 28,320,000

Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280

EBITDA 19,529,220 22,067,420 18,442,120 18,778,420 18,076,420 20,736,120 21,914,420 19,611,920 19,211,920 18,343,420 22,762,420 21,861,720

Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545

EBIT 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 14,816,175


EBT 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 -34,407,825

Taxes (30%)

Net inc. 12,483,675 15,021,875 11,396,575 11,732,875 11,030,875 13,690,575 14,868,875 12,566,375 12,166,375 11,297,875 15,716,875 -34,407,825

180





Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545



Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987











181




Sale 32,130,000 31,550,000 32,050,000 33,700,000 33,050,000 32,570,000 32,030,000 31,700,000 30,960,000 32,480,000 31,860,000 28,000,000 Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280 EBITDA 24,259,220 26,817,420 22,872,120 24,028,420 23,426,420 26,106,120 27,294,420 25,211,920 24,501,920 22,843,420 27,122,420 21,541,720 Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 EBIT 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 14,496,175 Interest exp 43,071,000 EBT 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 -28,574,825 Taxes (30%) Net inc. 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 -28,574,825

182



Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPERATION ACTIVITIES Net income 17,213,675 19,771,875 15,826,575 16,982,875 16,380,875 19,060,575 20,248,875 18,166,375 17,456,375 15,797,875 20,076,875 -28,574,825 Add (Sources of cash) Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 Increase in A/P -175,800,000 Subtract (Uses of cash) Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987 Net cash provide by ops. 15,015,976 18,159,877 13,785,688 16,274,075 16,884,075 16,851,120 18,328,745 17,354,969 18,242,969 16,991,264 16,965,438 -207,182,267


FINANCIING ACTIVITIES Increase in notes payable 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 Increase long-term debt 25,000,000 23,000,000 22,000,000 21,000,000 19,000,000 18,000,000 16,700,000 15,400,000 14,100,000 12,800,000 11,500,000 10,200,000 Net cash from financing 60,000,000 53,000,000 47,000,000 41,000,000 34,000,000 28,000,000 21,700,000 45,400,000 39,100,000 32,800,000 26,500,000 20,200,000 NET CHANGE IN CASH 1,833,561,506 164,806,707 153,818,518 57,922,905 51,459,505 45,836,782 40,711,099 63,442,623 57,700,627 50,483,918 44,152,759 -186,727,609 Plus: Cash at beginning of year 1,833,561,506 1,998,368,213 2,152,186,731 2,210,109,636 2,261,569,141 2,307,405,923 2,348,117,022 2,411,559,645 2,469,260,272 2,519,744,190 2,563,896,949 Cash at the end of year 1,833,561,506 1,998,368,213 2,152,186,731 2,210,109,636 2,261,569,141 2,307,405,923 2,348,117,022 2,411,559,645 2,469,260,272 2,519,744,190 2,563,896,949 2,377,169,340

183




Sale 37,350,000 36,500,000 37,500,000 38,680,000 38,100,000 37,600,000 36,900,000 36,300,000 35,750,000 36,950,000 36,422,000 34,630,000 Other exp 7,870,780 4,732,580 9,177,880 9,671,580 9,623,580 6,463,880 4,735,580 6,488,080 6,458,080 9,636,580 4,737,580 6,458,280 EBITDA 29,479,220 31,767,420 28,322,120 29,008,420 28,476,420 31,136,120 32,164,420 29,811,920 29,291,920 27,313,420 31,684,420 28,171,720 Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 EBIT 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 21,126,175 Interest exp 36,918,000.00 EBT 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 -15,791,825 Taxes (30%) Net inc. 22,433,675 24,721,875 21,276,575 21,962,875 21,430,875 24,090,575 25,118,875 22,766,375 22,246,375 20,267,875 24,638,875 -15,791,825

184







185

Expense Increased 10% Year 2013



Sale 22,200,000 21,150,000 21,610,000 22,450,000 21,750,000 21,030,000 20,530,000 19,670,000 19,400,000 21,650,000 20,700,000 21,530,000 Other exp 8,657,858 5,205,838 10,095,668 10,638,738 10,585,938 7,110,268 5,209,138 7,136,888 7,103,888 10,600,238 5,211,338 71,041,108 EBITDA 13,542,142 15,944,162 11,514,332 11,811,262 11,164,062 13,919,732 15,320,862 12,533,112 12,296,112 11,049,762 15,488,662 -49,511,108 Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 EBIT 6,496,597 8,898,617 4,468,787 4,765,717 4,118,517 6,874,187 8,275,317 5,487,567 5,250,567 4,004,217 8,443,117 -56,556,653 Interest exp 61,683,000 EBT 6,496,597 8,898,617 4,468,787 4,765,717 4,118,517 6,874,187 8,275,317 5,487,567 5,250,567 4,004,217 8,443,117 -118,239,653 Taxes (35%) Net inc. 6,496,597 8,898,617 4,468,787 4,765,717 4,118,517 6,874,187 8,275,317 5,487,567 5,250,567 4,004,217 8,443,117 -118,239,653

186



Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPERATION ACTIVITIES Net income 6,496,597 8,898,617 4,468,787 4,765,717 4,118,517 6,874,187 8,275,317 5,487,567 5,250,567 4,004,217 8,443,117 -118,239,653 Add (Sources of cash) Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 Increase in A/P 0 0 0 0 0 0 0 0 0 0 0 -175,800,000 Subtract (Uses of cash) Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987 Net cash provide by ops. 4,298,898 7,286,619 2,427,900 4,056,917 4,621,717 4,664,732 6,355,187 4,676,161 6,037,161 5,197,606 5,331,680 -296,847,095



187




Sale 24,250,000 23,230,000 23,780,000 24,600,000 23,930,000 23,200,000 22,900,000 22,530,000 22,260,000 23,650,000 23,110,000 23,360,000 Other exp 8,657,858 5,205,838 10,095,668 10,638,738 10,585,938 7,110,268 5,209,138 7,136,888 7,103,888 10,600,238 5,211,338 71,041,108 EBITDA 15,592,142 18,024,162 13,684,332 13,961,262 13,344,062 16,089,732 17,690,862 15,393,112 15,156,112 13,049,762 17,898,662 -47,681,108 Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 EBIT 8,546,597 10,978,617 6,638,787 6,915,717 6,298,517 9,044,187 10,645,317 8,347,567 8,110,567 6,004,217 10,853,117 -54,726,653 Interest exp 60,914,700 EBT 8,546,597 -49,936,083 6,638,787 6,915,717 6,298,517 9,044,187 10,645,317 8,347,567 8,110,567 6,004,217 10,853,117 -115,641,353 Taxes (35%) Net inc. 8,546,597 -49,936,083 6,638,787 6,915,717 6,298,517 9,044,187 10,645,317 8,347,567 8,110,567 6,004,217 10,853,117 -115,641,353

188



Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPERATION ACTIVITIES Net income 8,546,597 -49,936,083 6,638,787 6,915,717 6,298,517 9,044,187 10,645,317 8,347,567 8,110,567 6,004,217 10,853,117 -115,641,353 Add (Sources of cash) Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 Increase in A/P -175,800,000 Subtract (Uses of cash) Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987 Net cash provide by ops. 6,348,898 -51,548,081 4,597,900 6,206,917 6,801,717 6,834,732 8,725,187 7,536,161 8,897,161 7,197,606 7,741,680 -294,248,795



189





190

The Fame Co, Ltd. For The Year Ened December 31, 2013




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192






193





194







195




Sale 22,200,000 21,150,000 21,610,000 22,450,000 21,750,000 21,030,000 20,530,000 19,670,000 19,400,000 21,650,000 20,700,000 21,530,000 Other exp 9,051,397 5,442,467 15,554,562 11,122,317 11,067,117 7,433,462 5,445,917 7,461,292 7,426,792 11,082,067 5,448,217 7,427,022 EBITDA 13,148,603 15,707,533 6,055,438 11,327,683 10,682,883 13,596,538 15,084,083 12,208,708 11,973,208 10,567,933 15,251,783 14,102,978 Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 EBIT 6,103,058 8,661,988 -990,107 4,282,138 3,637,338 6,550,993 8,038,538 5,163,163 4,927,663 3,522,388 8,206,238 7,057,433 Interest exp 61530000 EBT 6,103,058 8,661,988 -990,107 4,282,138 3,637,338 6,550,993 8,038,538 5,163,163 4,927,663 3,522,388 8,206,238 -54,472,567 Taxes (35%) Net inc. 6,103,058 8,661,988 -990,107 4,282,138 3,637,338 6,550,993 8,038,538 5,163,163 4,927,663 3,522,388 8,206,238 -54,472,567

196




Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPERATION ACTIVITIES Net income 6,103,058 8,661,988 -990,107 4,282,138 3,637,338 6,550,993 8,038,538 5,163,163 4,927,663 3,522,388 8,206,238 -54,472,567 Add (Sources of cash) Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 Increase in A/P 0 0 0 0 0 0 0 0 0 0 0 -175,800,000 Subtract (Uses of cash) Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987 Net cash provide by ops. 3,905,359 7,049,990 -3,030,994 3,573,338 4,140,538 4,341,538 6,118,408 4,351,757 5,714,257 4,715,777 5,094,801 -233,080,009



197




Sale 24,250,000 23,230,000 23,780,000 24,600,000 23,930,000 23,200,000 22,900,000 22,530,000 22,260,000 23,650,000 23,110,000 23,360,000 Other exp 9,051,397 5,442,467 15,554,562 11,122,317 11,067,117 7,433,462 5,445,917 7,461,292 7,426,792 11,082,067 5,448,217 7,427,022 EBITDA 15,198,603 17,787,533 8,225,438 13,477,683 12,862,883 15,766,538 17,454,083 15,068,708 14,833,208 12,567,933 17,661,783 15,932,978 Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 EBIT 8,153,058 10,741,988 1,179,893 6,432,138 5,817,338 8,720,993 10,408,538 8,023,163 7,787,663 5,522,388 10,616,238 8,887,433 Interest exp 55,377,000 EBT 8,153,058 -44,635,012 1,179,893 6,432,138 5,817,338 8,720,993 10,408,538 8,023,163 7,787,663 5,522,388 10,616,238 -46,489,567 Taxes (35%) Net inc. 8,153,058 -44,635,012 1,179,893 6,432,138 5,817,338 8,720,993 10,408,538 8,023,163 7,787,663 5,522,388 10,616,238 -46,489,567

198




Period Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPERATION ACTIVITIES Net income 8,153,058 -44,635,012 1,179,893 6,432,138 5,817,338 8,720,993 10,408,538 8,023,163 7,787,663 5,522,388 10,616,238 -46,489,567 Add (Sources of cash) Depreciation 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 Increase in A/P -175,800,000 Subtract (Uses of cash) Increase in A/R 9,243,244 8,657,543 9,086,432 7,754,345 6,542,345 9,255,000 8,965,675 7,856,951 6,258,951 5,852,156 10,156,982 9,852,987 Net cash provide by ops. 5,955,359 -46,247,010 -860,994 5,723,338 6,320,538 6,511,538 8,488,408 7,211,757 8,574,257 6,715,777 7,504,801 -225,097,009



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200







201





202







203




Sale 37,350,000 36,500,000 37,500,000 38,680,000 38,100,000 37,600,000 36,900,000 36,300,000 35,750,000 36,950,000 36,422,000 34,630,000 Other exp 9,051,397 5,442,467 15,554,562 11,122,317 11,067,117 7,433,462 5,445,917 7,461,292 7,426,792 11,082,067 5,448,217 7,427,022 EBITDA 28,298,603 31,057,533 21,945,438 27,557,683 27,032,883 30,166,538 31,454,083 28,838,708 28,323,208 25,867,933 30,973,783 27,202,978 Depre&Amort 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 7,045,545 EBIT 21,253,058 24,011,988 14,899,893 20,512,138 19,987,338 23,120,993 24,408,538 21,793,163 21,277,663 18,822,388 23,928,238 20,157,433 Interest exp 36,918,000.00 EBT 21,253,058 24,011,988 14,899,893 20,512,138 19,987,338 23,120,993 24,408,538 21,793,163 21,277,663 18,822,388 23,928,238 -16,760,567 Taxes (30%) Net inc. 21,253,058 24,011,988 14,899,893 20,512,138 19,987,338 23,120,993 24,408,538 21,793,163 21,277,663 18,822,388 23,928,238 -16,760,567

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By

5331207001 Nathamon Chanklin

5331207022 Pornsawan Hangvinit

5331207026 Petlada Tongprom

5331207027 Pattharee Vachiratanasit

5331207044 Suchitdaporn Kosum

5331207046 Supassorn Tansukatanon

5331207054 Arsa Phanda

5331207055 Isaraphong Malee

Project Feasibility Management 2012

School of Management

Mae Fah Luang University

Semester 2/2555

the fame theme park

Documents

exp ebitda depre

federal reserve bank

shringar cinemas limited

investing activities investment

universal studios hollywood

shopping malls exist

provincial waterworks authority

social advisory council