Feasibility-Study-of-Business-Plan_GROUP-1-สมบูรณ์

Feasibility Study of Business Plan Tor Rungrueang Khon Kaen Ltd.,Part Present Professor. Jongrak Hong-ngam Professor. Jakrapun Suksawat Created by Group 1 : Construction Business 613320176-7 Sirikwan Ananthawan 613320080-0 Cattreya Saeysema 613320207-2 Kittitat Tanongsak EC112010 COST-BENEFIT ANALYSIS (การวิเคราะหต์ ้นทุนกบั ผลตอบแทน) Semester 2/2019 Faculty of Economics Khon Kaen University

Feasibility Study of Business Plan Tor Rungrueang Khon Kaen Ltd.,Part Present Professor. Jongrak Hong-ngam Professor. Jakrapun Suksawat Created by Group 1 : Construction Business 613320176-7 Sirikwan Ananthawan 613320080-0 Cattreya Saeysema 613320207-2 Kittitat Tanongsak EC112010 COST-BENEFIT ANALYSIS (การวิเคราะหต์ ้นทนุ กับผลตอบแทน) Semester 2/2019 Faculty of Economics Khon Kaen University

I Sirikwan Ananthawan. Cattreya Saeysema. Kittitat Tanongsak., March 2020, Faculty of Economics, Khon Kaen University. Feasibility Study of Business Plan Tor Rungrueang Khon Kaen Ltd.,Part (66 pp.) Advisor: Professor. Jongrak Hong-ngam Professor. Jakrapun Suksawat ABSTRACT This business plan goal is aimed to study the possibility of Tor Rungrueang Khon Kaen Ltd.,Part store paste product development, Recreating the brand awareness and image will provide worthiness and pleasure product and service for customer. If the customer is satisfied with the purchase of construction materials, the customer will return to buy and repeat. The research result found the possibility of investing to improve this business is dramatically high, It is needs to invest money about 1.373121 Billion Bath and will have NPV value equal 31,891,901.42 Bath, IRR equal 100.21 percentage and Payback Period of 1.7 years. Keywords: Business Plan, Satisfaction, Construction, Khon Kaen Province

II Acknowledgement The preparation of a Feasibility Study of Business Plan can completed due to the courtesy of the Professor. Jongrak Hong-ngam, Professor. Jakrapun Suksawat for the consultation guided improve. This includeds examing the Feasiblity Study of Business Plan, the successful completion of a well. We would like to thank all the professor in University who taught and advised more, including all relevant persons. Therefore, we would like to thank you very much for this opportunity. Organizer Team

III TABLE OF CONTENTS Page ABSTRACT.......................................................................................................................................................I ACKNOWLEDGEMENT..................................................................................................................................II TABLE OF CONTENTS.................................................................................................................................III TABLE OF CONTENTS(Continued) .......................................................................................................... IV TABLE OF CONTENTS(Continued) ........................................................................................................... V LIST OF TABLE........................................................................................................................................... VII LIST OF FIGURES .......................................................................................................................................VIII CHAPTER 1. Introduction........................................................................................................................................... 1 1.1 Background of Business Plan......................................................................................................... 1 1.2 Objectives of Business Plan........................................................................................................... 1 1.3 Expected Benefits............................................................................................................................ 1 1.4 Report Scope.................................................................................................................................... 2 1.5 History of Business .......................................................................................................................... 2 1.6 Location of Business....................................................................................................................... 2 1.7 Competitive Analysis....................................................................................................................... 3 1.8 Competition Conditions and Origin of the Competition ........................................................ 4 1.8.1 Competition level .................................................................................................................... 4 1.8.2 Strengths / Competitive advantages .................................................................................... 4 1.8.3 Market occupant....................................................................................................................... 4 1.9 Marketing Environment Analysis Tool (Five Force Model) ..................................................... 5 1.9.1 Rivalry among Current Competitors ..................................................................................... 5 1.9.2 Bargaining Power of Suppliers................................................................................................ 5 1.9.3 Bargaining Power of Customer............................................................................................... 6 1.9.4 Threat of Substitute Products or Services........................................................................... 6 1.9.5 Threat of New Entrants........................................................................................................... 6 1.10 Business Environment Analysis................................................................................................... 6

IV TABLE OF CONTENTS Page 1.10.1 Analysis of internal environmental factors ....................................................................... 7 1.10.2 Analysis of external environmental factors ...................................................................... 8 1.11 McKinsey 7s Model ..................................................................................................................... 10 1.11.1 Strategy.................................................................................................................................. 10 1.11.2 Structure................................................................................................................................ 11 1.11.3 System.................................................................................................................................... 11 1.11.4 Shared Values....................................................................................................................... 11 1.11.5 Skills........................................................................................................................................ 11 1.11.6 Style........................................................................................................................................ 11 1.11.7 Staff......................................................................................................................................... 11 1.12 Business Model CANVAS ............................................................................................................ 12 1.12.1 Customer segment............................................................................................................... 12 1.12.2 Customer relationships ....................................................................................................... 12 1.12.3 Channels ................................................................................................................................ 12 1.12.4 Value proposition................................................................................................................. 13 1.12.5 Key activities.......................................................................................................................... 13 1.12.6 Key resource.......................................................................................................................... 13 1.12.7 Key partner............................................................................................................................ 13 1.12.8 Cost structure........................................................................................................................ 14 1.12.9 Key activities.......................................................................................................................... 14 2. Market Feasibility Study ..................................................................................................................15 2.1 Types of Products and Services.................................................................................................. 15 2.2 Business Goals................................................................................................................................ 15 2.3 Business Objectives....................................................................................................................... 15 2.4 Business Strategy ........................................................................................................................... 16 2.5 Detail of Products and Services, Product Sales Process........................................................ 16 2.6 Highlight........................................................................................................................................... 22

V TABLE OF CONTENTS(Continued) Page 2.7 Vision................................................................................................................................................ 22 2.8 Income from Construction Materials......................................................................................... 22 3. Production Feasibility Study ..........................................................................................................25 3.1 Production Planning on Production Factors ............................................................................ 25 3.1.1 Human Resource .................................................................................................................... 25 3.1.2 Method..................................................................................................................................... 25 3.1.3 Resources................................................................................................................................. 26 3.1.4 Machine.................................................................................................................................... 26 3.2 Production Planning Process....................................................................................................... 27 3.2.1 Customer Require................................................................................................................... 27 3.2.2 Material Requirement Planning ........................................................................................... 27 3.2.3 Production Planning............................................................................................................... 27 3.23 Cost Planning................................................................................................................................ 28 3.3.1 Fixed Cost ................................................................................................................................ 28 3.3.2 Variable Cost ........................................................................................................................... 31 4. Organization Feasibility Study.......................................................................................................34 4.1 Business Information..................................................................................................................... 34 4.2 Internal and External Employees in the Organization........................................................... 34 4.2.1 Internal employee position.................................................................................................. 34 4.2.2 External employee position................................................................................................. 35 4.3 Organization Structure Chart....................................................................................................... 35 4.4 Internal and External Employees in the Organization........................................................... 34 4.5 Employee Organization Plan and Business expenses............................................................ 36 4.5.1 Internal Employee Organization Plan and Business expenses ..................................... 36 4.5.2 Internal Employee Organization Plan and Business expenses ..................................... 36

VI TABLE OF CONTENTS (Continued) Page 5. Financial Feasibility Study ..............................................................................................................15 5.1 Net Present Value (NPV)............................................................................................................... 37 5.2 Internal Rate of Return: IRR ........................................................................................................ 38 5.3 B / C Ratio of Benefit to Cost .................................................................................................... 39 5.4 Payback Period............................................................................................................................... 40 5.5 Break Even Point............................................................................................................................ 42 REFERENCES............................................................................................................................................... 44 APPENDIX ................................................................................................................................................... 45 DATA5Y....................................................................................................................................................... 46 PROJECT5................................................................................................................................................... 56 Organizer Profile ....................................................................................................................................... 66

VII LIST OF TABLE Page CHAPTER 2. Market Feasibility Study ..................................................................................................................15 Table 2.1 shows List of Construction Materials. ............................................................................ 23 3. Production Feasibility Study ..........................................................................................................25 Table 3.1 shows The Salary of Employees..................................................................................... 29 Table 3.2 shows Machine and Equipment expenses.................................................................... 29 Table 3.3 shows Office Equipment and Vehicles.......................................................................... 29 Table 3.4 shows Depreciation of Machine and Equipment......................................................... 30 Table 3.5 shows Depreciation of Office Equipment and Vehicles............................................. 30 Table 3.6 shows The Scrap Value..................................................................................................... 31 Table 3.7 shows Utility expenses...................................................................................................... 31 Table 3.8 shows Necessary Materials and Packaging Materials .................................................. 32 Table 3.9 shows Wage......................................................................................................................... 33 Table 3.10 shows Repair and Maintenance expenses.................................................................. 33 4. Organization Feasibility Study.......................................................................................................34 Table 4.1 shows The Position Information of Employees within the Organization................ 34 Table 4.2 shows The Position Information of Employees outside the Organization............. 35 Table 4.3 shows Internal Employees Recruitment Plan. ............................................................. 35 Table 4.4 shows Internal Employees Plan and Business expenses........................................... 36 Table 4.5 shows External Employees Plan and Business expenses.......................................... 36 5. Financial Feasibility Study ..............................................................................................................37 Table 5.1 shows Break Even Point of Information. ....................................................................... 43 Table 5.2 shows Break Even Point of Production.......................................................................... 43

VIII LIST OF FIGURES Page CHAPTER 1. Introduction........................................................................................................................................... 1 Figure 1.1 Location, Tor Rungrueang Khon Kaen Ltd.,Part............................................................. 3 Figure 1.2 Five Force Model................................................................................................................. 5 Figure 1.3 SWOT Analysis...................................................................................................................... 7 Figure 1.4 McKinsey 7s Model............................................................................................................ 10 Figure 1.5 Canvas.................................................................................................................................. 12 Figure 1.6 Canvas of Tor Rungrueang Khon Kaen Ltd.,Part.......................................................... 14 2. Market Feasibility Study ..................................................................................................................15 Figure 2.1 Product Sales Process....................................................................................................... 16 Figure 2.2 PVC Pipe. ............................................................................................................................. 17 Figure 2.3 Asbestos Cement Pipe...................................................................................................... 17 Figure 2.4 Bolts / Nails......................................................................................................................... 18 Figure 2.5 Water color ......................................................................................................................... 18 Figure 2.6 Steel bar / Shaped steel.................................................................................................. 19 Figure 2.7 Miscellaneous..................................................................................................................... 19 Figure 2.8 Wheel excavator................................................................................................................ 20 Figure 2.9 Crawler excavator.............................................................................................................. 20 Figure 2.10 Air pump............................................................................................................................ 21 Figure 2.11 Concrete extraction machine ....................................................................................... 21 4. Organization Feasibility Study.......................................................................................................34 Figure 4.1 shows Management Structure within the Organization............................................. 35 APPENDIX .................................................................................................................................................. 45 Figure Appendix 1 shows Interview Entrepreneur......................................................................... 65 Figure Appendix 2 shows the Organizer with CANVAS Model..................................................... 65

1 Chapter 1 Introduction 1.1 Background of Business Plan Construction materials are necessary for every type of construction. Nowadays, Khon Kaen Province has many new buildings since new generations prefer to come back to help with the business at birthplace or start a new business. From the original, with values working in Bangkok (Capital). Resulting in increased demand for construction materials. Therefore, the organizer need to study for knowledge to study the feasibility of business. Tor Rungrueang Khon Kaen Ltd.,Part is considered a business that is currently demanding in the market, due to the rapid expansion of buildings in Khon Kaen Province. By this business plan was created to be a guideline for business development to be able to sustainably to understand the operation system and be able to become a leader in the sale of construction materials in Khon Kaen Province. However, aside from the rapid growth of the construction business. The organizer still found a Pain point, that is selling only construction materials which many competitors. Resulting in customers making a difficult decision in choosing a store and inconvenience when the time of building because their must contact both the construction materials store and the contractors (Krungsri Research, May2019). Which is a background of study the feasibility of business. 1.2 Objectives of Business Plan 1.2.1 To develop and improve the original business plan of Tor Rungrueang Ltd.,Part 1.2.2 To study the marketing strategy in selling construction materials. 1.2.3 To improve the work of all parties to be more skilled and systematic. 1.2.4 To specify business direction more clearly. 1.3 Expected Benefits 1.3.1 Enhance planning and analysis skills. 1.3.2 Able to know basic information about business, investment, finance and profits. 1.3.3 Make known the business potential as planned.

2 1.4 Report Scope Learning: Created a business plan for construction materials. Duration: Second semester (January 2020-March 2020) 1.5 History of Business “Tor Rungrueang Khon Kaen Ltd.,Part” is a business which sell construction materials and construction services, founded by Mr. Kamic Chotisirirat in 1992, currently has 13 employees. The store is located in Mueang District, Khon Kaen Province. There is space for offices, warehouse and parking lot for transportation including in-store facilities in total of approximately 2 rais. Tor Rungrueang Khon Kaen Ltd.,Part has ordered products for sale and delivery to customers at various locations such as homes or government center. The construction material trading business is still a business that can continuously grow because the construction of buildings throughout the year. Also because various buildings, whether buildings, houses, temples, shopping centers, or even various departments have to be renovated structure, due to buildings tend to deteriorate with time. Tor Rungrueang Khon Kaen Ltd.,Part also offer delivery service to customers. The store has cars and trucks that are used for transportation and can support transportation in all areas, both small and large areas. There is a device to facilitate the customers and the employees of the store, causing the distribution of products possible easily. Also Including the store having a known supplier which is a cheaper price than anywhere and able to exchange products when needed. Resulting in delivering products to customers without delay. This makes the organizer foresees opportunities which is business that can be used to study the feasibility of business. 1.6 Location of Business Location: 22 / 1-2 Mittraphap Road, Nai Mueang Sub-district, Mueang District, Khon Kaen Province, 40000 (3 floors blue building, beside Mittraphap Road) Phone: 043 236 839

3 Figure 1.1 Location, Tor Rungrueang Khon Kaen Ltd.,Part 1.7 Competitive Analysis This content present the competition analysis under the concept and theory of Porter's Five Force Model (2008), including the competitive conditions and the origin of business competition, business status analysis, product location analysis and the analysis of the business competitive advantages. The five business aspects of the Five Forces Model are: 1) Bargaining power of consumers 2) Bargaining power of suppliers 3) Threats from new entrepreneurs 4) The threat of substitute products 5) Competition within the same industry Construction materials store is a shop that requires a lot of capital in the establishment because it requires investment. Build warehouses, including cars that need to be used inside the store and used for large amounts of delivery. Therefore, in Khon Kaen Province, there are many materials stores that have been established for many years. The number of new business competition is small due to the investment risk.

4 1.8 Competition Conditions and Origin of the Competition 1.8.1 Competition level Construction materials store is a shop that requires a lot of investment in the establishment because it requires investment. Build warehouses, including cars that need to be used inside the store and used for large amounts of delivery. Therefore, in Khon Kaen Province, there are many materials stores that have been established for many years. The number of new business competition is small due to the investment risk. 1.8.2 Strengths / Competitive advantages Tor Rungrueang Khon Kaen Ltd.,Part is a business that has been operating for a long time. Therefore has an advantage in terms of customers which have a large existing customer base. The store's location is not far from the city, which is easy to travel to select the product by yourself and also there is enough parking. Products are standard and available in many types and brands. Including a car and many employees, allowing to deliver products quickly and not delayed like other stores. 1.8.3 Market occupant Those who occupy the market in Khon Kaen province divided according to the sales characteristics can be divided into 2 types, which are the sale of construction materials with a retail and wholesale type. 1.8.3.1 Wholesale stores are stores that sell all kinds of construction materials and various brands. 1.8.3.2 Retail stores are stores that sell all kinds of construction materials, focusing on retail with delivery service. The market leader in this section is Tor Rungrueang Khon Kaen Ltd.,Part because it was in operation for a long time. It is well-known among construction material users in Khon Kaen Province and has a large number of existing customers. 1.8.3.3 Competition Source Tor Rungrueang Khon Kaen Ltd.,Part has a low risk in competing with new competitors because running a construction materials store requires a lot of investment. Causing not many new investors to invest in building material trading business competition. Therefore only occurs in stores that were originally founded. Which each store has its own existing customer base. However, there must be an attraction that will allow new customers to choose to use the service.

5 1.9 Marketing Environment Analysis Tool (Five Force Model) Figure 1.2 Five Force Model. 1.9.1 Rivalry among Current Competitors Store business competition for Tor Rungrueang Khon Kaen Ltd.,Part is considered at a moderate level because there are few competitors. In the case of a wholesale store, there will be different customers, so it will not affect the business of the store. In part of retail stores, even if having the same group of customers, but each store has its own regular customer group, which the Tor Rungrueang Khon Kaen Ltd.,Part has a unique product that is hard to find from other stores. There are complete products and fast delivery services, allowing customers who walk in the store to find all the products, it is a feature that can attract new customers to use the service. 1.9.2 Bargaining Power of Suppliers Some construction-related products have not many suppliers in nearby provinces. Bargaining may not be done as much as it should be. For example, colored steel underground pipelines in which the supplier is far from Khon Kaen Province, therefore the bargaining power is quite small, but if the store orders large quantities of goods, the bargaining power will increase. Some products have many suppliers and always come to offer products at the store, which makes the store have a high bargaining power with the supplier, such as miscellaneous products, screws, screws, as well as the store has other operators that is a manufacturer of some products, makes it possible to buy products at a cheaper price elsewhere. Therefore helps to reduce the product cost a lot.

6 1.9.3 Bargaining Power of Customer Bargaining power of consumers can be divided into 2 cases: if buying in large quantities, customers can choose to buy products at wholesale stores at a cheap price, giving this group of customers a lot of bargaining power. If buying a small quantity of goods, the bargaining power is low, because if you buy products at a wholesale store, you won't get a cheap price, and still don't have delivery service, so you can buy products in retail stores only. 1.9.4 Threat of Substitute Products or Services Substitute products of construction materials are few, because construction materials are unavoidable in each construction. 1.9.5 Threat of New Entrants Construction materials are a business that requires a lot of investment money, therefore not many new entrepreneurs come in. Because if going to do business on construction materials, it must use the space for placing the product, and must use many vehicles to run the business. Including having sufficient knowledge about construction, therefore it is difficult for new entrepreneurs to compete, because the risk is higher than other businesses. 1.10 Business Environment Analysis Present the content of internal environment analysis and external environment analysis that affect business under the concept and theory of SWOT Analysis by Albert Humphy (Komol Wonganan and Apicha Prakobseeng, 2012) to be summarized as risk factors that may affect the business operations are divided into internal and external risk factors as follows: The key principle of SWOT Analysis is to analyze the business situation which can be divided into 2 parts which are internal environment and external environment which SWOT stands for Strength, Weakness, Opportunity and Threat in doing business, there must be a SWOT analysis of the business in order to be aware of past-present conditions In order to be able to formulate strategies for further organization development.

7 Figure 1.3 SWOT Analysis. 1.10.1 Analysis of internal environmental factors It is used to analyze the strengths and weaknesses of the business as follows: 1.10.1.1 Marketing Is a market analysis to know whether you can sell products or not, by an important factor in market analysis is a schedule of market segmentation and marketing mix. Situation : Tor Rungrueang Khon Kaen Ltd.,Part is a business that is passed down from generation to generation and wants to expand to be larger in order to support the growing market of customers. Is a relatively stable business and has a large customer base. The effect : The store has many existing customers, but for new customers may not have confidence in the store, because may have been customers of other bigger stores. 1.10.1.2 Technical Is an analysis of the ability to produce products or services and analysis of the ability of the organization to comprise of location analysis buildings, machinery, equipment, production capacity, cost of production, organizational structure and various management. Situation : Tor Rungrueang Khon Kaen Ltd.,Part has a spacious location, it's not far from the city center and there is still a car for sufficient shipping which make the shipping not delayed. The effect : Currently, most of the store's customer base is still old customers, if you can attract new customers to buy more products, It will increase sales.

8 1.10.1.3 Sales Is a sales analysis that can create satisfaction for customers or not. Situation : The store management has a lot of knowledge about construction and there are employees who have knowledge of construction as well, so it is a good advantage to be able to advise customers without knowledge. The effect : If on the day that the management is not present, the salesperson may not be able to give advice. 1.10.1.4 Finance Is an important step that must be taken into account before making any business decisions. It is the analysis of the cost of what is paid out. Is it worth the return? Situation : Tor Rungrueang Khon Kaen Ltd.,Part are an extension of the business, so there is no need to invest any more cars or machinery and the area to expand. The store is already an existing area. Just invest in a new office and warehouse. Including executives must have a reserve fund in case of insufficient working capital. 1.10.2 Analysis of external environmental factors Is the opportunity and obstacles of the business to be analyzed as follows: 1.10.2.1 The seller Is the production, or the raw material is the analysis of the people or organizations that supply products to other companies. The store has suppliers who have been business partners for many companies and have a good relationship all the time, resulting in fast delivery. There is rarely a delay in delivery. The effect : If the supplier has a problem within the company causing delay in delivery of the shop. The store's products can be stocked, due to Tor Rungrueang Khon Kaen Ltd.,Part have suppliers of each type of product just one place only. 1.10.2.2 Politics and Law Is a very important factor for business operations, because government policies including political competition, it may affect foreign investment and Thai people's own investment. Situation : Nowadays, the government has encouraged people to turn their attention to doing more business. With a policy coming out to support the business, especially the SME business, which results in many new entrepreneurs

9 The effect : Tor Rungrueang Khon Kaen Ltd.,Part regarded as SME business. if in the future want to invest or expanding the business may be able to request a loan to invest more. 1.10.2.3 Economic Economic factors affecting business operations with many things to consider, such as the baht value, oil price, various product prices, etc. Situation : Thailand is a country that depends heavily on energy, especially the oil that has been imported to use a lot. Oil use in manufacturing, transportation or even tourism. Therefore, the fluctuation of world oil will affect the price of oil in Thailand, which from the past rebound, the oil price has adjusted up throughout the impact. If the oil price is very high, it will affect the transportation of goods for distribution, resulting in increased costs. The product price must also increase, which may result in selling of the product more difficult. 1.10.2.4 Social Is another factor that is important to the decision-making process of consumers in society, it consists of families, communities, and countries. Each society is different in terms of attitude, beliefs, values and culture. Situation : The store's location is not far from the city and has a surrounding community. Including still being expanded community sources out of the city a lot, causing continuous demand for construction materials. The effect : Due to the expansion of the community outside the city, which is in the neighborhood of the shop Tor Rungrueang Khon Kaen Ltd.,Part Therefore is an opportunity to be able to sell products continuously. 1.10.2.5 Technology Nowadays, there are many new emerging technologies, including the introduction of those technologies to help the business to be easy and modern. More to meet the needs of consumers. Situation : Currently, Tor Rungrueang Khon Kaen Ltd.,Part has brought technology in the program of selling products to help in sales, product inspection can be done precisely. Sales can be made easier by billing through computer programs, including drive-through systems for the convenience of customers to buy products in small quantities.

10 Customers can buy products faster, because there is no need to wait for the product inspection, because salespeople can see the stock on the computer. Including not having to get out of the car in the case that goes into the compartment drive – through. 1.10.2.6 Competitors Competitors are important in business operations. Which, if we know what competitors in the sales strategy, then we will know in which direction our business strategy should be adjusted. Situation : Competitors of Tor Rungrueang Khon Kaen Ltd.,Part is considered not much because it is a business that requires investment, quite high, so there are not many new traders to invest, therefore, the store's competitors are open stores for a long time. The effect : Since there are not many competitors, therefore, there is not much need for concern in this area, but must plan to draw the attention of the old customers not to change to buy another store. Attract new customers to use the service of Tor Rungrueang Khon Kaen Ltd.,Part 1.11 McKinsey 7s Model Figure 1.4 McKinsey 7s Model. 1.11.1 Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in the market. - The company went into contract and quotation by oneself and selling construction materials that are specialized.

11 1.11.2 Structure represents the way business divisions and units are organized and includes the information of who is accountable to whom. - The decision-making power is with the executive management. 1.11.3 Systems are the processes and procedures of the company, which reveal business’ daily activities and how decisions are made. - Work as a team and covers all aspects of construction. 1.11.4 Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide employee behavior and company actions and thus, are the foundation of every organization. - Emphasizing customer care in order to impress and return to use the service. 1.11.5 Skills are the abilities that firm’s employees perform very well. They also include capabilities and competences. - This company emphasizing skills in large structure, such as pipe. 1.11.6 Style represents the way the company is managed by top-level managers, how they interact, what actions do they take and their symbolic value. - Management style is based on orders from executive to the head and sent directly to the subordinates. 1.11.7 Staff element is concerned with what type and how many employees an organization will need and how they will be recruited, trained, motivated and rewarded. - Select employees with knowledge from experience.

12 1.12 Business Model CANVAS Figure 1.5 Canvas. 1.12.1 Customer segment The total customer is divided into segments based on the manner in which an organization’s products or services address a specific need for the segment. The customer segment is an essential part of an organization’s business model and is key to ensuring that the product features are aligned with the segment characteristics and needs. 1.12.2 Customer relationships An organization must select the kind of relationship it will have with its customer segment in order to create financial success and sustainability. For an entrepreneur, the priority is to identify the type of relationship he/ she has with the customer. Then the value of the customer must be evaluated in terms of the frequency of his expenditure on the firm products and services. Loyal customers are relationships that the company should aim to invest in as they will yield steady revenue throughout the year. 1.12.3 Channels The medium through which an organization provides its value proposition to its customer segment is known as a channel. There are various options for channels available to an organization, and the selection is based on the channel that is the quickest, most efficient with the least amount of investment required. There are two basic kinds of channels; Company owned channels such as store fronts or Partner Channels such as Distributors. A company can opt to choose either one or employ a combination of both.

13 1.12.4 Value proposition An organization’s value proposition is the combination of products and services it provides to its customers. The value proposition provides value through a number of attributes such as customization, performance, “getting the job done”, brand/status, design, newness, price, cost and risk reduction, accessibility, as well as convenience/usability. 1.12.5 Key activities Activities that are key to producing the company’s value proposition. An entrepreneur must start by listing the key activities relevant to his/her business. These activities are the most important processes that need to occur for the business model to be effective. Key activities will coincide with revenue streams. Now it is important to evaluate which activities are key by adding or removing some and evaluating their impact. 1.12.6 Key resource These are the assets of the organization fundamental to how it provides value to its customers. Resources can be categorized as human, financial, physical and intellectual. For an entrepreneur, it is important to begin with listing your resources. This gives you a clear idea of what final product or service your company needs to create for the customer and which resources are dispensable, resulting in cost savings for your company. Once the final list of resources is available, the company can decide on how much it needs to invest in these key resources to operate a sustainable business. 1.12.7 Key partner To create efficient, streamlined operations and reduce risks associated with any business model, an organization forms partnerships with its high-quality suppliers. Key partnerships are the network of suppliers and partners who complement each other in helping the company create its value proposition. An entrepreneur must begin by identifying its key partners followed by making future partnership plans. This can be done through an evaluation of the partnership relationship to judge which characteristics of the relationship need improvement and what kind of future partnerships will be required.

14 1.12.8 Cost structure This defines the cost of running a business according to a particular model. Businesses can either be cost driven i.e. focused on minimizing investment into the business or value driven i.e. focused on providing maximum value to the customer. Fixed Costs: costs that remain the same over a period of time. Variable Costs: as the name suggests, these costs vary according to a variance in production. The first step for an entrepreneur is to obviously identify all costs associated with the business. A realistic understanding of the costs of the business is one of the hallmarks of a good business model. After identification, it is important to list all the costs on the canvas, so they are visually present and then create plans for each cost. Some costs may be decreased through certain measures while others may go up if you decide that an investment in a particular section will result in future gains. 1.12.9 Revenue streams A revenue stream is the methodology a company follows to get its customer segments to buy its product or service. When setting up revenue streams, it is important to recognize that an effective price for the product and/or service will be arrived at through the process of elimination. Different iterations of prices should be listed and evaluated. It is important, in the end to take a break ad reflect on possible avenues open to you as a business. Canvas of Tor RungRueang Khon Kaen Ltd. Figure 1.6 Canvas of Tor Rungrueang Khon Kaen Ltd.,Part

15 Chapter 2 Market Feasibility Study 2.1 Types of Products and Services Distributes various types of construction materials and offers delivery to customers. Providing fast delivery services. There is a delivery vehicle that can be accessed in all areas, both in easily accessible and hard to reach areas. Providing quality product selection before delivery to customers. Tor Rungrueang Khon Kaen Ltd.,Part conducted a survey from customer about what is necessary in the construction and then went to select products to sell to customers. The products to be sold must be manufactured from certified factories and has been accepted by customer. The store is constantly searching for new products from the market to offer to customers. Appearance: Select products by everything has to meet the standards of the product, such as accuracy, color charging. Quality: Select products from factories or production sites that have been standardized and are durable for use. Utility: Make sure that the product can actually be used and meets the qualifications of that product. Security: Ensure that the product is practical, durable. 2.2 Business Goals 2.2.1 Increase profits and sales according new generation. 2.2.2 Received quality acceptance from customer of the product. 2.2.3 Develop services to meet the highest needs of customers. 2.3 Business Objectives 2.3.1 Build credibility and acceptance by customers of construction materials. 2.3.2 Increasing complete options for customers.

16 2.4 Business Strategy Tor Rungrueang Khon Kaen Ltd.,Part went into contract and quotation by oneself, which most customers are government center. In additional, applied modern trade according new generation to selling construction materials that are specific used and take care impressive after-sales service. 2.5 Details of Products and Services, Product Sales Process Order products from factory Sold Customer Orders Shipping Customer pick up Complete order Figure 2.1 Product Sales Process. Tor Rungrueang Khon Kaen Ltd.,Part order products from the factory of each type, directly for sale in front of the store. And when there are customers ordering the products, the products are delivered at various locations, both retail and wholesale, but the retail is still mainly focused on the higher profits.

17 Products and Services in Tor Rungrueang Khon Kaen Ltd.,Part 1) PVC pipe Figure 2.2 PVC pipe. 2) Asbestos Cement Pipe Figure 2.3 Asbestos Cement Pipe.

18 3) Bolts / Nails Figure 2.4 Bolts / Nails. 4) Water color Figure 2.5 Water color.

19 5) Steel bars / Shaped steel Figure 2.6 Steel bar / Shaped steel. 6) Miscellaneous Figure 2.7 Miscellaneous.

20 Vehicles and Production Equipment 7) Wheel excavator. Figure 2.8 Wheel excavator. 8) Crawler excavator Figure 2.9 Crawler excavator.

21 9) Air pump Figure 2.10 Air pump. 10) Concrete extraction machine. Figure 2.11 Concrete extraction machine.

22 2.6 Highlight 2.6.1 Fast delivery. 2.6.2 The store location is in a convenient location for contacting. 2.6.3 Have a network of construction materials stores in nearby provinces can exchange products when needed. 2.7 Vision Tor Rungrueang Khon Kaen Ltd.,Part is a small entrepreneur who has expertise in selling construction materials in both quality and service in Khon Kaen around for 28 years. 2.8 Income from Construction materials No. List of Materials Amount Per Price/Unit Unit Value/Month Month (Piece) (Baht) 1. PVC pipe size 18 mm. Class 13.5 1,800 53 Tube 95,400 2. PVC pipe size 20 mm. Class 13.5 1,350 64 Tube 86,400 3. PVC pipe size 25 mm. Class 13.5 1,200 101 Tube 121,200 4. PVC pipe size 35 mm. Class 13.5 1,000 132 Tube 132,000 5. PVC pipe size 40 mm. Class 13.5 1,200 170 Tube 204,000 6. PVC pipe size 55 mm. Class 13.5 1,680 260 Tube 436,800 7. PVC pipe size 65 mm. Class 13.5 1,800 430 Tube 774,000 8. PVC pipe size 80 mm. Class 13.5 1,765 600 Tube 6,354,000 9. PVC pipe size 100 mm. Class 13.5 1,200 965 Tube 1,158,000 10. PVC pipe size 125 mm. Class 13.5 1,390 1,455 Tube 2,022,450 11. PVC pipe size 150 mm. Class 13.5 1,400 2,050 Tube 2,870,000 12. PVC pipe size 200 mm. Class 13.5 1,200 3,485 Tube 4,182,000 13. PVC pipe size 250 mm. Class 13.5 1,350 5,245 Tube 705,750 14. PVC pipe size 300 mm. Class 13.5 1,450 7,435 Tube 10,780,750 15. PVC pipe size 350 mm. Class 8.5 1,100 9,770 Tube 7,056,500 16. PVC pipe size 400 mm. Class 13.5 900 12,565 Tube 11,308,500 17. Iron pipe size ½ in. BS-M 700 573 Tube 401,100 18. Iron pipe size ¾ in. BS-M 800 737 Tube 589,600

23 No. List of Materials Amount Per Price/Unit Unit Value/Month Month (Piece) (Baht) 19. Iron pipe size 1 in. BS-M 830 1,097 Tube 910,510 20. Iron pipe size 1 1/4 in. BS-M 800 1,410 Tube 1,128,000 21. Iron pipe size 1 1/2 in. BS-M 780 1,624 Tube 1,266,720 22. Iron pipe size 2 in. BS-M 760 2,286 Tube 1,737,360 23. Iron pipe size 2 1/2 in. BS-M 840 2,817 Tube 2,366,280 24. Iron pipe size 3 in. BS-M 680 3,665 Tube 2,492,200 25. Iron pipe size 4 in. BS-M 850 5,340 Tube 4,539,000 26. Iron pipe size 5 in. BS-M 700 7,265 Tube 5,085,500 27. Iron pipe size 6 in. BS-M 870 8,621 Tube 7,500,270 28. TOA WoodStain 250 1,285 Tank 321,250 29. Delta Acrylic emulsion paint 150 1,860 Tank 279,000 30. FreshiClean 240 1,625 Tank 390,000 31. JOTUN Majestic 290 1,490 Tank 432,100 32. Asbestos Cement Pipe 4 292 32 Piece 9,344 33. Asbestos Cement Pipe 6 384 37 Piece 14,208 34. Asbestos Cement Pipe 8 400 49 Piece 19,600 35. Asbestos Cement Pipe 10 434 90 Piece 39,060 36. Asbestos Cement Pipe 12 692 170 Piece 117,640 Total income in 1 month (Baht) 77,926,492 Table 2.1 Shows List of Construction Materials. Conclusion From the table 2.1 show necessary materials and packaging materials. We can see type of PVC pipe size 18 mm. Class 13.5 and PVC pipe size 65 mm. Class 13.5 have the highest the amount of sales per month with the amount of sales are 1800 tubes. Type of PVC pipe size 400 mm. Class 13.5 have the least the amount of sales per month with the amount of sales are 900 tubes. Type of Iron pipe that have the highest the amount of sales per month is Iron pipe size 6 in. BS-M with the amount of sales are 870 tubes. Type of Iron pipe size 3 in. BS-M have the least the amount of sales per month with the amount of sales are 680 tubes.

24 Type of house paint that have the highest the amount of sales per month is JOTUN Majestic with the amount of sales are 290 tanks. Type of Delta Acrylic emulsion paint have the least the amount of sales per month with the amount of sales are 150 tanks. Type of Asbestos Cement Pipe that have the highest the amount of sales per month is Asbestos Cement Pipe 12 with the amount of sales are 692 pieces. Type of Asbestos Cement Pipe 4 have the least the amount of sales per month with the amount of sales are 292 pieces.

25 Chapter 3 Production Feasibility Study 3.1 Production Planning on Production Factors There are 4 factors in the production process (4M in Production Process). Therefore, the production process will focus on the ability to control production with the goal of controlling good quality production, being consistent, and able to produce products that meet the target. In dealing with factors or variables in production, in general, it is usually important to control the four main factors which are Man, Method, Material, and Machine, or commonly referred to as 4M, because these factors are important to affect the quality of the production. Details of factors in each group: 3.1.1 Human Resource Human Resource (Man) is a worker, staff or personnel from both inside and outside. It is considered the most important factor because any production or operation will occur, must rely on people both in ideas, planning, operations or management, resulting in production or business activities of all forms. Developing real people is the most important thing in order to be successful in running a business. - Manpower management must develop human resources in terms of knowledge, skills, and plan to use people to be as effective and effective as possible. 3.1.2 Method Method is the mechanism, procedure or process of work of production. Currently, this is a factor that should be given priority because the success of the activities must come from the operations and procedures of production or good business operations which must have management, planning, tracking, inspections and production controls or activities by setting a procedures for good work efficiency. - Work procedure management must have work process development, bringing new technology knowledge and plan the work process well, having simple steps, saving time, can be easily monitored. And the management and control process to ensure that all work is carried out efficiently and resulting.

26 3.1.3 Resources in this part we could classify into 2 parts by the following: 3.1.3.1 Money is fund or capital which used to conduct business both from internal and external capital in business. Capital is the most important factor because every business cannot operate without capital for operation. In other words, running a business requires capital because it will be the business driver and various factors to be carried out both in terms of human wages, operating expenses, and the cost of purchasing materials for business operations. Focusing on money development is therefore the most important thing to be successful in business operations. 3.1.3.2 Material are stuffs, raw materials, parts, spares, products, services, or other equipment that are used to produce products or services. It is the next most important thing because every business relies on what is obtained in this group to be used as production resources. Therefore, must know how to manage raw materials to be efficient and can be sufficient for production, manage to get the low cost of production, and make the business achieve the most profitable. - Material management, it is the operation of how to waste the least amount of production resources or to use for optimal benefit. 3.1.4 Machine Machine is machinery, tools, equipment, or equipment to facilitate production. In this section, although it is the last part of the factor because if considering about production, it still can run even have only the first 3 factors, but production may still have limitations on ability. It may not be able to produce large quantities without the tools and machinery to help because the factors in this group will be the part that helps to fulfill the part that human ability cannot do, for example continuous work time, accuracy of production, speed of operation, standard consistency or endurance in certain situations that humans cannot do, such as weather in high or low temperatures or environment with toxic gases etc. Therefore, it can be seen that many times the success of the production can be determined by the factors in this group. In other words, using factors in this group can be used to decide the success of the job.

27 - Machine Management by using machines to be worthwhile, there is quality control of machinery, maintenance, and always improving the working conditions. For the most efficiency and effectiveness with work by focusing on high quality precision and using the least time and the least cost. 3.2 Production Planning Process 3.2.1 Customer Require The customer's requirements plan is the first step in production planning. Customer demand data may be derived from many methods, such as directly from the customer. This method, if available, can be very accurate. Easy production planning, customer demand data from forecasting this type of information must have sufficient good data to make the production planning accurate. There must be many types of analysis which each type of data has different variances. 3.2.2 Material Requirement Planning Material Requirements Plan means the provision of sufficient materials, parts, and semi- finished materials to meet production needs which can be estimated from customer demand estimates. The required bill of materials is specified in the Bill of Material (BOM), which specifies the type of material and parts, the amount of consumption per unit, and including other necessary information such as delivery times from suppliers. In the case of external orders, internal capacity for parts manufactured by oneself, all information must be clear in terms of both quantity and delivery time. 3.2.3 Production Planning After the customer's requirements plan has been prepared and sufficient materials have been prepared, will make a production plan which has the following main steps: 3.2.3.1 Process Planning Process planning is the process and production sequence. A good process must be the shortest process which means that the production time is minimal until the finished product is produced.

28 3.2.3.2 Machine Planning In the production process that requires the use of the main machine, the machinery must be used to meet the maximum benefit. In theory, the machine must work 24 hours every day. Or without any downtime but in actual work, there are many times when the machine is lost, such as stopping to adjust work pieces, stopping for repairs, stopping because there is no work to feed, stopping to check work pieces, etc. 3.2.3.3 Man Planning Labor planning is similar. With the plan for the use of machinery is to provide continuous work processes as much as possible, but must not forget the labor laws that determine the time to work. Rest is clear, so labor planning is many times as difficult as planning machinery. 3.2.3.4 Store Planning Storage planning means planning for inventory control to be at an appropriate level, which means that it is sufficient for use and not too high under a specified level. This storage plan includes Planning for product storage during production, semi-finished goods, and finished goods. 3.3 Cost Planning 3.3.1 Fixed Cost Fixed Cost is a stable cost not increasing and not decreasing according to the quantity of production (Quantity), which the business of Tor Rungrueang Khon Kaen Ltd.,Part have to pay regularly whether production is large or small, such as staff salaries Depreciation Machinery and equipment expenses And office equipment and vehicles expenses As shown in the table below

29 3.3.1.1 Salary No. Position Amount(Person) Salary Rate Value(Baht) (Baht) 1. Secretary 1 100,000 100,000 2. Accounting officer 3 20,000 60,000 3. Sales department 3 15,000 45,000 4. Marketing 2 15,000 30,000 5. Stock-clerk 4 15,000 80,000 Total expenses in 1 year (Baht) (315,000)x(12)=3,780,000 Table 3.1 shows The Salary of Employees. 3.3.1.2 Machine and Equipment expenses No. List Amount Price Per Unit (Baht) Value(Baht) 3,000,000 1. Wheel Excavator 1 3,000,000 400,000 420,000 2. Crawler excavator 1 400,000 720,000 4,540,000 3. Air pump 1 420,000 4. Concrete extractors 2 360,000 Total expenses (Baht) Table 3.2 shows Machine and Equipment expenses. 3.3.1.3 Office equipment and vehicles expenses No. List Amount Price per unit (Baht) Value (Baht) 30,000 1. File cabinet 5 6,000 72,000 30,000 2. Desk chair 16 4,500 200,000 9,600,000 3. Phone 4 7,500 90,000 9,000 4. Computer and printer 4 50,000 15,000 5. Trucks and cars 8 1,200,000 10,046,000 6. Air conditioning 3 30,000 7. Vacuum cleaner 1 9,000 8. Fan 20 750 Total expenses (Baht) Table 3.3 shows Office Equipment and Vehicles.

30 3.3.1.4 Depreciation and Scrap value 3.3.1.4.1 Depreciation of Machine and equipment No. List of Machines Useful life Value Scrap Depreciation (Year) Value Per Year (Baht) 1. Wheel Excavator 10 3,000,000 1,650,000 270,000 2. Crawler excavator 10 400,000 220,000 36,000 3. Air pump 10 420,000 231,000 37,800 4. Concrete extractors 10 720,000 396,000 64,800 Total expenses (Baht) 4,540,000 2,497,000 408,600 Table 3.4 shows Depreciation of Machine and Equipment. 3.3.1.4.2 Depreciation of office equipment and vehicles No. List of Office Equipment Useful Value Scrap Depreciation and Vehicles Life Value Per Year(Baht) (Year) 1. File cabinet 5 30,000 3,000 5,400 2. Desk chair 5 72,000 7,200 12,960 3. Phone 5 30,000 3,000 5,400 4. Computer and printer 5 200,000 20,000 36,000 5. Trucks and cars 5 9,600,000 960,000 1,728,000 6. Air conditioning 5 90,000 9,000 16,200 7. Vacuum cleaner 5 9,000 900 1,620 8. Fan 5 15,000 1,500 2,700 Total expenses (Baht) 10,046,000 1,004,600 1,808,280 Table 3.5 shows Depreciation of Office Equipment and Vehicles.

31 3.3.1.4.3 Scrap Value No. List Percen Value Depreciation Scrap Value tage Per Year (Baht) 16,050,000 10,030,000 1. Land 100 16,050,000 0 2,497,000 2. Building 10 11,800,000 354,000 1,004,600 3. Machine and 10 4,540,000 408,600 29,581,600 equipment 4. Office equipment 10 10,046,000 1,808,280 and vehicles Total expenses (Baht) 42,436,000 2,570,880 Table 3.6 shows The Scrap Value. 3.3.2 Variable Cost Variable costs are the cost of manufacturing the product changes according to the amount of product manufactured which the business of Tor Rungrueang Khon Kaen Ltd.,Part must be paid when different production costs are used, such as Utility expenses, Necessary Materials and Packaging Materials, Wage, Repair and Maintenance expenses as show in the table below. 3.3.2.1 Utility expenses Amount Per Price/Unit Unit Value/Year No. List of Utility Year (Piece) 4 (Baht) 11 Watt 200,000 Expenses 50,000 1. Electricity bill of Cubic 55,000 5,000 meter machine Time 18,000 2. Water bills Watt 140,000 Liter 540,000 3. Phone 6,000 3 953,000 4. Electricity bills 35,000 4 5 Fuel cost 36,000 15 Total expense in 1 year (Baht) Table 3.7 shows Utility expenses.

32 3.3.2.2 Necessary Materials and Packaging Materials No. List of Materials Amount Per Year Price/Unit Unit Value/Year (Piece) (Baht) 1. PVC pipe size 18 mm. Class 13.5 21,600 53 Tube 1,144,800 2. PVC pipe size 20 mm. Class 13.5 16,200 64 Tube 1,036,800 3. PVC pipe size 25 mm. Class 13.5 14,400 101 Tube 1,454,400 4. PVC pipe size 35 mm. Class 13.5 12,000 132 Tube 1,584,000 5. PVC pipe size 40 mm. Class 13.5 14,400 170 Tube 2,448,000 6. PVC pipe size 55 mm. Class 13.5 20,160 260 Tube 5,241,600 7. PVC pipe size 65 mm. Class 13.5 21,600 430 Tube 9,288,000 8. PVC pipe size 80 mm. Class 13.5 21,180 600 Tube 12,708,000 9. PVC pipe size 100 mm. Class 13.5 14,400 965 Tube 13,896,000 10. PVC pipe size 125 mm. Class 13.5 16,680 1455 Tube 24,269,400 11. PVC pipe size 150 mm. Class 13.5 16,800 2050 Tube 34,440,000 12. PVC pipe size 200 mm. Class 13.5 14,400 3485 Tube 50,184,000 13. PVC pipe size 250 mm. Class 13.5 16,200 5245 Tube 84,969,000 14. PVC pipe size 300 mm. Class 13.5 17,400 7435 Tube 129,369,000 15. PVC pipe size 350 mm. Class 8.5 13,200 9770 Tube 84,678,000 16. PVC pipe size 400 mm. Class 13.5 10,800 12565 Tube 135,702,000 17. Iron pipe size ½ in. BS-M 8,400 573 Tube 4,813,200 18. Iron pipe size ¾ in. BS-M 9,600.0 737 Tube 7,075,200 19. Iron pipe size 1 in. BS-M 9,960.0 1,097 Tube 10,926,120 20. Iron pipe size 1 1/4 in. BS-M 9,600 1,410 Tube 13,536,000 21. Iron pipe size 1 1/2 in. BS-M 9,360 1,624 Tube 15,200,640 22. Iron pipe size 2 in. BS-M 9,120 2,286 Tube 20,848,320 23. Iron pipe size 2 1/2 in. BS-M 10,080 2,817 Tube 28,395,360 24. Iron pipe size 3 in. BS-M 8,160 3,665 Tube 29,906,400 25. Iron pipe size 4 in. BS-M 10,200 5,340 Tube 54,468,000 26. Iron pipe size 5 in. BS-M 8,400 7,265 Tube 61,026,000 27. Iron pipe size 6 in. BS-M 10,440 8,621 Tube 90,003,240 28. TOA WoodStain 3,000 1,285 Tank 3,855,000 29. Delta Acrylic emulsion paint 1,800 1,860 Tank 3,348,000

33 No. List of Materials Amount Per Year Price/Unit Unit Value/Year (Baht) (Piece) 4,680,000 5,185,200 30. FreshiClean 2,880 1,625 Tank 112,000 170,200 31. JOTUN Majestic 3,480 1,490 Tank 235,200 468,000 32. Asbestos Cement Pipe 4 3,500 32 Piece 1,411,000 33. Asbestos Cement Pipe 6 4,600 37 Piece 948,076,080 34. Asbestos Cement Pipe 8 4,800 49 Piece 35. Asbestos Cement Pipe 10 5,200 90 Piece 36. Asbestos Cement Pipe 12 8,300 170 Piece Total expense in 1 year (Baht) Table 3.8 shows Necessary Materials and Packaging Materials. 3.3.2.3 Wage No. Position Amount Wage/Time Wage (Person) (in 1 year) (Baht/Person/Year) 1. Porter 2 300 (300 Baht)x(313 time/year) = 93,900 Baht 2. Chauffeur 2 300 (300 Baht)x(313 time/year) = 93,900 Baht Total expense in 1 year (Baht) 187,800 Table 3.9 shows Wage. 3.3.2.4 Repair and maintenance expenses No. Repair and maintenance Percentage Price (Bath) Value/Year (Bath) expenses of Price 590,000 227,000 1. Building 5 11,800,000 502,300 2. Machine 5 4,540,000 1,319,300 3. Office equipment and 5 10,046,000 vehicles Total expense in 1 year (Baht) Table 3.10 show Repair and Maintenance expenses.

34 Chapter 4 Organization Feasibility Study Tor Rungrueang Khon Kaen Ltd.,Part manage business by internal and external employees which has the organization management plan as follows.: 4.1 Business Information Business name : Tor Rungrueang Khon Kaen Ltd.,Part Business model : Contruction materials distribution and Contractor business. 4.2 Internal and External Employees in the Organization 4.2.1 Internal employee position. Employee within the organization are employees who work permanently for the organization and will receive compensation in salary. There are a total of 13 employees follows.: No. Position Amount Role Salary (Person) (Bath) 1. Secretary 1 – Monthly planning. 100,000 – Coordinate with the organization. 2. Accounting 3 – Summary of income - expenses for each day. 20,000 officer – Examine employees' salaries. – Track overdue bills. – Making documents for payment. 3. Sales 3 – Selling products. 15,000 department – Billing when trading. – Manage queue delivery. – Check small product in the store. 4. Marketing 2 – Public relations. 15,000 – Media design. 5. Stock-clerk 4 – Check all in-out products. 15,000 – Count the products every month. Table 4.1 shows The Position Information of Employees within the Organization.

35 4.2.2 External employee positions Employee outside the organization are not employees of the organization and will receive compensation for wages each time the organization hires. There are a total of 4 employees follows.: No. Position Amount(Person) Role 1. Porter 2 Lift the product and check. 2. Chauffeur 2 Drive car for delivery. Table 4.2 shows The Position Information of Employees outside the Organization. 4.3 Organization Structure Chart Entrepreneur Secretary (1) Accounting officer Sales department Marketing (2) Stock-Clerk (4) (3) (3) Figure 4.1: shows Management Structure within the Organization. 4.4 Internal Employee Recruitment Plan No. Position Role Condition/Qualification 1. Secretary – Monthly planning. – Age not less than 25 years-old. – Coordinate with the – Graduated Bachelor. organization. – Have work experience. 2. Accounting – Summary of income - – Age not less than 25 years-old. officer expenses for each day. – Graduated in Accounting or – Examine employees' salaries. similar. – Track overdue bills. – Can solve immediate problems. – Making documents for payment.

36 3. Sales – Selling products. – Age not less than 18 years-old. department – Billing when trading. – Have speaking ability. – Manage queue delivery. – Check small product in the store. 4. Marketing – Public relations. – Age not less than 25 years-old. – Media design. – Have VDO, Photo editing ability. 5. Stock-Clerk – Check all in-out products. – Age not less than 18 years-old – Count the products every – Have agility in movement. month. Table 4.3 shows Internal Employee Recruitment Plan. 4.5 Employee Organization Plan and Business expenses 4.5.1 Internal Employee Organization Plan and Business expenses No. Position Salary(Bath) Amount(Person) 1. Secretary 100,000 1 2. Accounting officer 20,000 3 3. Sales department 15,000 3 4. Marketing 15,000 2 5. Stock-Clerk 15,000 4 Table 4.4 shows Internal Employee Plan and Business expenses. 4.5.2 External Employee Organization Plans and business expenses No. Position Wage/Time Amount Wage (Per 1 Year) (Person) (Bath/Person/Year) 1. Porter 300 2 (300 Bath)x(313Times/Year) = 93,900 Bath 2. Chauffeur 300 2 (300 Bath)x(313Times/Year) = 93,900 Bath Table 4.5 shows External Employee Plan and Business expenses.

37 Chapter 5 Financial Feasibility Study For Financial Feasibility study of Tor Rungrueang Khon Kaen Ltd.,Part business which is a construction material store have 5 financial plans, which are Net Present Value, Internal Rate of Return, B/C Ratio, Pay Back Period and Break Even Point. Which is applied to conduct business as follows: 5.1 Net Present Value (NPV) Net Present Value (NPV) is the difference between the present value of the sum of the net cash outflows and the net cash inflows. We use the Net Present Value (NPV) to analyze the feasibility of the project. If the net present value of net cash inflows greater than PV, net cash flow inflows NPV is greater than 0, and on the other hand, NPV is negative. In theory, investors should choose to invest in projects with the highest and highest NPV value among them. Select available in practice, finding a Net Present Value depends on the accuracy of evaluating variables, which is quite difficult. (ADMINHOONDB, 2013) Formula ������������������ = −������0 + ������ (1 ������������ ������)������ + ∑ ������=1 ������0 = Initial capital ������ = Cash flow ������ = Discount Rate T = Time The purpose of finding a Net Present Value is to help us decide the investment possibilities from a financial perspective. NPV measures the rate of return of a project by comparing it with the return that can be obtained. Investments in other projects that provide returns equal to the Discount Rate.

38 NPV > 0: Can be invested. The return on investment is greater. NPV = 0: The breakeven point should be considered based on factors other than money. NPV < 0: Should be avoided. The return on investment is less than. Formula ������������������ = −������0 + ������ (1 ������������ ������)������ + ∑ ������=1 3,500,070,000 6,500,030,000 ������������������ = −2,905,982,000 + (1 + 0.07)1 + (1 + 0.07)2 10,000,200,000 10,000,200,000 10,029,782,000 + (1 + 0.07)3 + (1 + 0.07)4 + (1 + 0.07)5 = 31,891,901.42 Conclusion From finding NPV equal to 31,891,901.42. Therefore, from the theory, we should invest in store business, Tor Rungruang Khon Kaen Ltd.,Part because NPV is greater than 0 5.2 Internal Rate of Return: IRR IRR (Internal Rate of Return) is a form of return measurement that is considered fast money investments and lose that money slowly is better than investments that lose money fast but get late. In financial IRR means a discount rate that causes the present value of the net present value to be zero. Formula 0 = −������������0 + (1 ������������1 + (1 ������������2 + (1 ������������3 + (1 ������������������ + ������������������)1 + ������������������)2 + ������������������)3 + ������������������)������ ������������������ = Net cash flow each year ������ = Year of investment

39 Interpretation of results 1. If IRR is greater than financial costs, indicating that investment makes profits Agree to invest. 2. If the IRR is equal the financial cost, it shows that the investment made a loss. Should reject investment. 3. If IRR is less than the financial cost, it show that the investment has the same result. The Calculation 0 = −������������0 + (1 ������������1 + (1 ������������2 + (1 ������������3 + (1 ������������������ + ������������������)1 + ������������������)2 + ������������������)3 + ������������������)������ 432,675 993,945 1,014,676 0 = −686,561 + (1 + 0.4503)1 + (1 + 0.4503)2 + (1 + 0.4503)3 1,020,775 1,046,521 + (1 + 0.4503)4 + (1 + 0.4503)5 Conclusion Internal Rate of Return (IRR) is equal to 100.21%, that is, the investment of the business has the internal Rate of Return of the project is 100.21%. When compared to the specified loan interest rate or discount rate, 7% shows that the IRR is greater. Financial costs, therefore investment is profitable agree to invest. 5.3 B / C Ratio of benefit to cost The present value of the benefit divided by the Present Value of the total cost to determine whether each project or business is economically worthwhile. Formula ������ ∑������������=������ (������ ������������ ������ + ������)������ ������������������������������ = ∑������������=������ ������������ (������ + ������)������

40 Bt = Cash flow received at year t Ct = Cash flow paid at year t K = Discount rate N = Project life Decision criteria B / C greater than 1 indicates that it is worth the investment. B / C equals 1, indicating that at par B / C less than 1 indicates that it is not worth the cost of loss. ������ 3,500,070 + 6,500,030 + 10,000,200 + 10,000,200 + 10,029,782 ������ (1 + 0.07)1 (1 + 0.07)2 (1 + 0.07)3 (1 + 0.07)4 (1 + 0.07)5 ������������������������������ = 3,488,669 5,868,919 9,423,518 8,961,450 8,975,115 (1 + 0.07)1 + (1 + 0.07)2 + (1 + 0.07)3 + (1 + 0.07)4 + (1 + 0.07)5 = 1.087 Conclusion From the calculation of B / C Ratio of the store, Tor Rungrueang Khon Kaen Ltd.,Part more than 1 Therefore, it can be concluded that Worth the investment. 5.4 Payback Period Is the period of return in the form of cash inflows is equal to the cash outflow of investments. Regardless of the value of money by the time involved calculating the payback period, therefore look at the cash flow received. It is not the profit or loss of the business. The point is that the cumulative effect of the cash flow is equal to the initial capital, the first capital is obtained and the payback period (Terra BKK, U.K.). Formula Time period is capital = ������������������������������������ ������������ ������������������������������ ������������������������������������ ������������������������������������������ + ������������������������������������������������������ ������������������ℎ ������������������������ ������������������������������������������������������ ������������������������������������ ������������������ℎ ������������������������