At Home Karaoke

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The Miracle can happen at here @ Home

Karaoke
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Preface
This project was written concerning Feasibility Study Project for study,
feasibility and Evaluation of the project. The objective of this report is study the
Feasibility Study to launch new business project. We use the information that we
have research and observed to study the Feasibility Project .The content of this
report consist of Introduction, Industry Profile, Market Feasibility Study,
Technical Feasibility Study, Financial Analysis, Risk Management, and
Summary
We are hoping that our report will be utility and helpful for everybody
who is interested as much as possible. If there are any mistakes in this reporting,
we will apologize about that mistake.
@ Home Karaoke Group

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Executive Summary
Our company project is @Home Karaoke Company. We pound to
present the new complete entertainment center to satisfy the customer in Chiang-
Mai. The business comes along with an awesome karaoke service served to all
customers. As of the primary concern, our product is a “must” related to the
concept of most relaxing, most comfortable, and extreme friendly alike as if the
customers are singing in the charming, luxury, and warmly senses at their homes.
Furthermore, with the professionally in karaoke services, thus we’re appreciated
to provide the most readiness and perfect karaoke rooms altogether with best of
the best premium equipments distributed despite others businesses within the
same market. Beneath the spectacular karaoke rooms, the unique designs and
styles is delivered given varieties of favorable atmospheres for particular
customer. Moreover, the premium food and beverages service is also available to
comfort the customers at highest level.Our product is concerned as an entertainer
in response to customers’ needs who’s habitually music and singing lovers and
those who wish to release themselves out of the daily seriousness. Therefore, our
company is appreciated to present the brand new karaoke service to serve the
needs and want of customers which is always increasing. The reasons why we
chose Chiang-Mai as the destination for the service to take place are because the
average income survey of the residents in the target area that is quite high which
can be observed from the website thaipr.net where the average per capital of the
Chiang-Mai people has tap up to eighty one thousands one hundred and five
baht. That’s ranking the higher income compared against others provinces’
residents in the same region. Thus, the investors can be assured of getting profits
in return.This project is planned to be launch and promote during the year 2011.
In addition, the promotion will be done through Billboard advertising at the most
center of the town along with leaflets distribution for 3 months to inform the
customers of our business.
According to the estimation of profits that’s going to be obtained from
@Home Karaoke, it is expected that there would be profitable visible after the
fourth years of operation and will continue to return on investment within the
fifth year. By the way, the investors are able to see the worthiness of investment
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since the first year though it’s still not possible for the return on investment but
they can be sure that their money won’t be worthless as the revenue will continue
to increase during the next years ahead.
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Contents
Page
Preface A
Executive summary B
Chapter 1 Introduction 1
-Background and Significance of the Project

-Project Objectives
- Benefits of Project
-Activities/Time Frame
Chapter 2 Industry Profile 5
-Nature of Industry
-Situation of Industry
-Product/Service
-Vision of your Organization
-Mission
-Strategy
-Corporate Level
-Business Level
-Functional Level
Chapter 3 14
Market Feasibility Study
- Market Analysis
-General Environment Analysis
-Competition Analysis (3C Analysis)
-STP Analysis
-Marketing Mix Strategy
-Sales Forecast/Profit Estimation
-Marketing Expenses
-Conclusion
Chapter 4 Technical Feasibility Study 31
-Production and Operations Analysis

-Cost of Investment
-Investment Cost
-Operating Cost
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- Management Analysis
-Conclusion
Chapter 5 Financial Analysis 48
-Profit/ Loss Statement

-Cash Flow
-Balance Sheet
-All financial Statements
Chapter 6 Risk Management 50
Chapter7 Summary
Reference
Appendices
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Chapter 1
Background and Significance of the Project
Karaoke shop in Thailand is very popular in teenagers and workers group

because this activity make the customer feel relax from their daily works or their
lessons and also decrease stress too. From the researching of Hotline 1323 that is
the consultant about mental disorder through the telephone they tell that the
growth rate of Thai people who have serious problem in their life are increase
from 28,289 in 2008 to 83,602 in 2009 (http://74.125.153.132/search?
q=cache:UM3D1xSRGIUJ:hi.spiceday.com)
Moreover that; from the researching of Dusit pole tell that Thai people try
to relax from their problems by find the activities that can help them more happy
such as listen to the music and watching movie for 34.61%
( http://www.ryt9.com/s/sdp/484987). So karaoke industry is the best way for
them to relax. But in now a day Thailand there are few of the modern and chic
Karaoke shops that meet with the customer needs and they also don’t provide the
different design karaoke rooms for customer to choose. In contrast; the growth
rate of karaoke industry of Thailand is higher refer from the growth rate of Major
Cineplex. Their net profit increase from 695 in 2006 to 1227 in 2007 so they try
to expand their business and pay more return on equity to the investors from 20%
in 2006 to be 25% in 2007(http://corporate.majorcineplex.com/TH/main.php),
therefore; we try to launch this business.
The name of our company is At Home Karaoke Corporation. The reason

that we use this name is; we want our customers feel like they are singing songs
at their home; they will feel comfortable when they stay at here because we
provide many kinds of service to make the customer more convenient. At Home
Company is located in the city of Chiang Mai,. The reasons that we choose
Chiang Mai to locate our company is; our target market group is the students in
the university and in Chiang Mai they have a lot of universities such as Chiang
Mai, Mae Joe are located in this province so this is the suitable place for us to
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launch our company in order to attack our customers, it is the center of economic
and tourism industry in the Northern part of Thailand. There are 1.6 million of
citizens and growth rate of economic (Gross Provincial Product: GPP) in 2008 is
increase for 10,955 million baths or 9.28%. Many of customers always come to
travel and spend their money at this place especially in festival period, Chiang
Mai people have high costs of living so they will have high power purchase to
spend their money for relaxation because they have revenue per capita 81,105
baths (http://www.thaipr.net), there are many attractions that can attract lot of
tourists in each year. At Home Karaoke has many kinds of songs both Thai and
international songs for different customer style. We use high-technology
equipment to serve our customers such as controller touch screen monitor, LCD
TV, surrounding stereo, wireless microphones, etc.
Objectives
After doing this project we plan to;
1. To know more about the right way to do the good project.
2. To analyze some factors that can abstract the business in the real life such as
economic situation, customer behavior, and also the strength and opportunities of
our competitor .
3. To know more techniques that necessary to concern when doing the business
such as the strength and opportunities of our company.
4. To describe and evaluates the business practices in the various area.
5. To study about planning the karaoke business in Thailand and also try to solve
the problems that can occur when doing the business such as if the revenue of
customer decrease what the promotion that we should select to change this bad
situation to be better.
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Benefits of project
- We will get more knowledge about doing the project and apply it to the
real life.
- Know about planning before making a decision in doing the business.
- Understand the economic situation of Thailand and Chiang Mai.
- Know about the competition and karaoke industry situation in Chiang
Mai
- Get to know about the several of customer behavior in Chiang Mai.
- To be well know in world widely and accept in generally.
- Get to know about how to connect with other business which that related
with karaoke business.
- Get to know about the new technology of studio and equipment of
karaoke business.
- Get to know about the approach of project case study for successfully.
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Grant Chart
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Chapter 2
Industry profile
Nature of Industry
November December January
Week Week Week Week Week Week Week Week Week Week Week Week
Project 1 2 3 4 1 2 3 4 1 2 3 4
Explore market need
Set up strategic plan
Define the business
opportunities
Develop business plan
Plan for action
Identify needed and cost
of resources
Set standard quality of
service
Develop standard of
service
Design concept of
promoting
Organize advertising
Launch business
Karaoke is a Japanese word which “kara” means empty and “oke” means
orchestra, so karaoke means the tape which has only instrumental song without
vocal voice. Karaoke Business was originated in Japan that used in music
production companies for singer practice. Karaoke is useful for concert or music
show because it isn’t necessary to bring musical equipments and musicians.
Karaoke business was established as entertainment business and in 1977 was the
popular year in the entertainment market because Japanese behaviors like
singing. In 1991, the survey showed there are 70,000 Japanese restaurants
installed karaoke and 52 millions people prefer to sing karaoke.
Karaoke was got into Thailand around 1977 which started in Thaniya
area, night clubs area that Thaniya Street was the center of Japanese business
men in the past. The first time of Karaoke in Thailand was popular in night life
people because there are sakes, spirits, and alcohol beverages with women’s
services. At that time, Karaoke was called Eight Tracks Music that means a
music player which plays only instrumental songs, tape as normal tape but it’s
bigger than. Customers can read the lyrics in a paper and sing follow it.
From Thaniya Street, Karaoke is expanded as a night entertainment
around Bangkok and cities even in high class clubs and hotels, restaurants, and
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cafés around Thailand to respond all classes of people. The government

determined night clubs must have musical instruments not more than 2 pieces
that made those night clubs like to use keyboard and sequencer instead full band
that uses MIDI (Music Instrument Digital Interface) system.
Around 1996, Karaoke Business was popular in middle class restaurants
in Bangkok and provinces. Businessmen as investors, who manage Karaoke
jukeboxes business and own them, will bring Karaoke jukeboxes into restaurants
and share profits with restaurant owners 30% and the rest belongs to Karaoke
jukeboxes owners.
When Karaoke is expanded widely and Thai people are more bold
expression, people decrease their attitudes about Karaoke as night entertainment.
Major Cineplex Company is the influencer which makes people changes their
attitudes about Karaoke definitely. It established first Major Karaoke at
Ratchayothin branch. The Major try to create Karaoke Business image to be
Karaoke Clean and emphasizes on students and families groups that makes it is
positive. It also has been supported from music production companies who
produce Karaoke cd and Karaoke equipments are more modern that makes
Karaoke Business is fast growing and very popular. Actually, there are many
Major’s competitors; SF Music City, Big Echo, and Karaoke shops without
women’s service and in day.
In 2002, Thailand began to collect copyright according to WTO condition
that collect from Karaoke Business first. GMM Grammy Public Limited
Company is the first who collect copyright then RS Promotion Public Limited
Company, Copyright Music Limited Company, and others 15 companies follow
collecting seriously other than TECA Company which manages international
music copyright.
Regular Customer
- Students and teenagers around Chiang Mai city
- People who love to sing songs
- At Home’s members
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Product Life Cycle

1. Introduction: At Home Company was established in 2007 and its
vision is “we want to be the leader of karaoke industry in Chiang
Mai’. At Home uses high technology karaoke equipments and has the
many kinds and styles of karaoke rooms with the standard service to
serve customers. In this period, the company promotes by using
signage and local radio stations around Chiang Mai province, and also
promote in the internet to be well-known worldwide. The company
emphasize on main target groups, students and teenagers.
2. Growth: The Company has many promotions to attract customers

more and more; sing more than 3 hours get free an hour, for banquet
also has special gift to customers such as cakes for birthday, free an
hour etc. Promotion of the marketing mix strategy is used most to
attract customers to make they feel loyalty to the Company. The best
service that company selects to serve customers is make positive
words of mouth of customers. At Home expands customer groups to
other but students and teenagers still are main target groups.
3. Maturity: When At Home Karaoke is well-known in Chiang Mai and

there are many regular customers, the company has member club for
those customers to reward them. In this period, the company promotes
product less because product has been popular in karaoke market. So
the company must try to make profits as much as possible.
4. Decline: This situation occurs because of external environment

factors; political, economic, socio-cultural, and technological factors
that can affect and influence to the company. At Home must plan the
support plan to encourage business such as setting lower prices.
Situation:
Nowadays karaoke industry in Thailand is more accepted for Thai
people. Although there are high competition because of it has many
entrepreneurs both of small size and large size. Otherwise it has a jukebox which
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has lower price than Karaoke shops. But Karaoke shops and workplaces still
have continuous growth rate and demand of customers are support to this
business, the power of purchasing of customers in Chiang Mai is increase
because the revenue/ year of them rise for 8.83%. The competition of this
industry can not compete in new of songs but their will compete by use the
different of equipment, decoration, service, etc. So we need to adapt the new
technology in order to get high growth rate in competition. Then the politic
situation in nowadays is also conflict to much. So karaoke business is the best
way for them to avoid from this bad situation. From the research of Dusit pole
tell that Thai people try to relax from their problems by find the activities that
can help them more happy such as listen to the music and watching movie for
34.61% ( http://www.ryt9.com/s/sdp/484987).
: Middle Market
Having continuous growth rate and have variety entrepreneurs are
produce karaoke player for home such as SONY, PANASONIC, SOKEN, LG,
etc. Promotion and marketing competition that make to the market has always
active including to customer behaviors to more evince and see to singing is
relaxation and unique capabilities which make to these business have high
growth in the market. Including to technology is coming to karaoke business
both of mobile, cable TV, Internet, etc. that make to karaoke business is not only
in restaurant or inside the room which the customers can sing a song everywhere
and every time that need or want.
Product and Service

At Home has S, M, and L room sizes. Size S has 16 rooms for 2-4
people; M 10 rooms for 5-10 people; and L 2 rooms for 20-30 people to serve as
banquet or party. Each room has their different styles in term of theme colors,
furniture but they also have same audio and video system in high quality.
Customer will feel they sing their favorite songs in their home. Many kinds of
old and updated songs are available; Thai, Asian, and International more than
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50,000 songs. The karaoke equipments are standard and high technology. The
equipments that be used as follow;
For the service, At home serve high quality services to the customers as
follow;
- At Home has all kinds of snacks and drinks in Thailand, alcohol
drinks for over 18 years.
- Customer Station can make customers feel comfortable when they
want to order snacks, drinks, or they have any problems. Staffs will
know the customer’s want from this.
- Customers can reserve the room an hour early.
- At Home has banquet service: birthday, valentine, festivals.
- Staffs are available to serve customers when they have any problems
or want anything.
- Updated songs suggestion every week
- Internet high speed is available.
- At Home has member registration for regular customers; they will
receive many rights and benefits from the company.
Vision:
“@ Home, to be a leader karaoke company in Chiang Mai”
We want to be the leader of Karaoke industry in Chiang Mai by launch
completely such as party arrangement service in different style, snack and
beverage service, and variety songs for customers’ need and want. Otherwise we
will be first choices for customers when they need to sing songs and relax for
free time and we will be the center of the customer who like sing songs. In
addition we will grow along with the increasing growth of karaoke industry and
have strong base for extend the company in the future. Moreover, we will put
customer first, we will respect with each other and we are professional for all in
our service.
Mission:
@ Home company mission statement is to offer the highest quality at
competitive price and reliable delivery times. @ Home company mission is build
relaxation and enjoyment to the customer or people who like or love in singing
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and voice of songs which their can find at here. Moreover we are no more chart
and fair price for every customer. We will serve service to every class equally.
We will provide the best entertainment center for the people who love
sing songs and prefer to have meeting in private atmosphere and serve service &
products that highest standard quality of integrity. We believe our business will
success depends upon offering quality and value to our consumers or customers.
We also satisfy the needs of stakeholder which that include with customer and
our staff together.
We have a good service, rooms service, and technology that more than
the competitors. We are committing to meet the customer’s demand by
distributing the best service to be the most satisfied and to offer the high quality.
We are committing to serve only copy right music including to we are
limit the age of customer less than 18 years old to drink alcohols and we are not
support to the customers and our staff to use drug in our place.
Strategies of the company
At home is the new karaoke company who wants to growth and get a lot
of benefit in karaoke industry. So we try to plan the good strategies that
appropriate with our business. The first thing that we have to concern before we
will decide to plan the strategies is we have to know about our goal and our
SWOT; strength, weakness, opportunities and threats. Because of; we are the
new company and we only have a few of experience in this industry so we will
have a lot of weakness that make our business can’t compete with our
competitors who growth before us. For these reason the main thing that we have
to do after we know about our weakness is we have to avoid it by set the plan
that can help us to improve or change it to be the opportunities for us.
Corporate level strategy

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We will use growth strategies concept which emphasize on the

professional skill to manage our business. Because we don’t have the best skill in
this industry and exactly that our competitors have more skill than us. So in order
to make us can survive in this industry we should begin to concentrate with only
one product that we do and we should growth step by step and also try to
improve our skill in the same time that we growth. And after we have more skill
and experience in this business that mean we know more about our competitor
we will move our strategies to be more concentrate on diversification growth
because at those time we ready to compete with the other one who stay in the
same industry with us. And we also ready to expand our business to be bigger
than nowadays and after that we will be the leader in karaoke business of Chiang
Mai like we have planed.
Business Level Strategy
This is the way that can help us to have more advantage competition than
the competitors and this is the best way to attract the customers from our
competitor to be our customer instead. So we will use competitive strategies in
order to make competitive advantage for our company that includes;
Product Differentiation;
In Chiang Mai; they have a lot of karaoke room providers but the
competitors who have the same product and service like us have only one
provider in this province. So we have only one competitor who stands in the
same level like us that mean this is the good opportunities for us to compete with
them. Because of we have the same product like them so in order to attract their
customer to be our customers we have to make them impression with our
products and service by make it different to our competitor. However; doing
customer need analysis is the important thing that we have to concern. If we
provide the different product to the customer but if it is not the thing that they
want we will lose instead of get more benefit. So because of these our company
concentrate about the satisfaction of our customer and try to know about our
customer want and need before set the product and service to them. So after we
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launch our products to the customer they will interest with it because all of these
idea are from their opinion and meet with their need.
Functional level strategy

This is the important strategy that can help us to earn more profit because
it relate with many part of our business such as marketing, producing and also
financing. So our business set strategies as follow;
1. Marketing mix strategies

For this strategy we set 4Ps that is product, price, place, promotion follow
the customer behavior survey in order to make it meet with their need and we
also observe from the competitor in order to know about their weakness and use
it to develop our product and service and in addition to make our product and
service different from them.
- Product;
People in nowadays want product that is more innovation and it also have
to different from the other so we try to set karaoke room in different style and
improve more high quality of service than our competitors.
- Price;
Setting product’s price of us based on our competitor product’s price and
relate with our product and service. We will set higher price from the competitor
because we want to make the customer feel like our product and service have
high quality than our competitors.
- Place
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We select Chiang Mai to located our company because from the research
in this province have only one company that have the same business like us.
People in this area have high power purchase to buy our product and service than
the other area in northern of Thailand and more over that Chiang Mai is tourism
area and many people like to go to travel in this area so if we can attract the
customer from them we will get more benefit
- Promotion
We select to promote in many channel because we are the new one so we
have to introduce our product to the customer and make them know more about
us in order to invite them to buy our product and service.
2. Human resource management

All of our staff will be trained to serve high quality of service to the
customer and they have the same standard to do when they have to meet with the
customer because the objective that we already set is to make the customer
satisfy and happy when they experience with our service. However; it must not
against with the good ethic that we do.
3. Financial
We have financial strategies to analyze revenue, company expense, and
operation by consider from all financial resource such as from karaoke room,
internet café and snack and drink or the other service that we provide to the
customer. We have financial database to separate each expense in different kind.
e also have the financial auditor to allocate our money and do report to tell about
how our money is spent or received.
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Chapter 3
Market Feasibility Study
Market analysis
General Environmental Analysis
In order for a firm to effectively compete in an industry, an analysis of its
specific industry must be undertaken. This is done to provide the firm with a
description of the elements in society that directly effect the industry and the
direction managers must take to implement appropriate strategies to survive. This
study is commonly referred to as the general environmental analysis. It primarily
consists of four primary factors, which are political/legal, economic, socio-
cultural, and technology. These four sections describe the external environmental
factors a firm must understand to effectively compete in a specific market.
Political/Legal Factors
Over the past 2-3 years, Thailand faced the political and social problems
that can make entrepreneurs feel unsure for their investment, they also worried
about the domestic insecurity. But because of the economic, social, and
environmental problems make consumers feel stress and concern about their life
more. So, people seek for any entertainment products and services for their life,
singing Karaoke is very interesting choice in present and becomes pleasure and
social activities. Nowadays, the government tries to encourage positive domestic
economy and solves the political problem to make the active investment.
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Economic Factors
The overall economy within the country become positive because of the
government’s economic stimulation policy and the global economic problem is
going to get down. The latest figures from the Fiscal Policy Office forecast the
gross domestic product or GDP at the end of 2009 will be -3% that less than 2.5-
3.5% forecasted.
The overall economy of Northern part has positive sign since the quarter 2. There
are orders to purchase electronics components for the exportation that prevent
lay-workers, so the figures of employment in 2009, May increase to 7.1 millions
people or 9.1%. The domestic spending is increasing; accelerate the
disbursement, and the results of government’s economic stimulation policy that
make Northern people have high power of purchasing.
Chiang Mai is the economic and tourism center of Northern with 1.6
millions populations and also has the continuous of economic growth. At the end
of 2008, the Gross Provincial Product or GPP was 128,975 millions Baht
increases 10,955 millions Baht or 9.28% and the GPP per Capita was 81,105
Baht increases 6,581 Baht or 8.83% that can reflect people and businessmen in
Chiang Mai and the close provinces have high power of purchasing and also
need more finance and investment.
(http://www.thaipr.net/nc/readnews.aspx?
newsid=03BE7A2A1092E67D36497A391540FF2A&query=zdG1w9Lgp9S54L/
pzQ==)
Socio-cultural Factors
Now a day, karaoke become to be the part of entertainment business in

Thailand and the most people like to enjoy with karaoke
(http://www.ryt9.com/s/sdp/484987). Karaoke can select and control a song by
myself. Karaoke is appropriate with friend group or many people group who
come to join in party, anniversary and celebration because good way to make
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relationship in the group that show as people is social animal because people
shouldn’t sing karaoke alone on the other hand karaoke can reduce stress mode
from the work, home or many thing when shout and release emotion. Stress can
happen with everybody such as student, business man, worker and elderly that
we can’t avoid with stress mode so we should find relax methods as similar in
Japan country. Karaoke create pop culture in teenager group explicitly because
hobby of teenager often spend time to entertainment karaoke.
Technological Factors
The information technology or IT is the technology that expands rapidly
and has more functions while it is low price. The result of the IT development
can be applied widely, so IT is involved in human life both directly and
indirectly. For the karaoke business, when karaoke equipments, monitors,
microphones are developed to be more modern and update to meet the customer
needs with convenience, luxury, and more functions that an make electronics
devices are low costs and complete, so the opportunities to do karaoke business
are easier than in the past.
Summary of the General Environmental Analysis

The general environment is a force that must be strongly to considered for
karaoke companies to survive in their industry. The biggest force that weighs
heavily on the industry is economy conditions and technology that can change
the industry in a short period of time. There are many opportunities to be found
in this industry and they mostly outweigh the threats. So, before we will launch
our karaoke company to industry, we should to analysis and know the general
environment of this industry because it is important factors that effect directly for
our business.
Competition analysis
It is the main thing in business planning because it will help us to know
about strength and weakness of our competitors and also help us to change the
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bad situation to be the good opportunities for us. We can analyze competition as
follow;
1. Competitor Analysis
In Chiang Mai have a lot of karaoke room because they are tourism city
that many of people like to travel. So we will have a lot of competitors too but all
of them can separate like this.
1. Direct Competitor
There are the competitors that compete with us in the same market or
have the same target market like us and they also have the same product and
service like our company. From the research we know that in Chiang Mai has
company that provide product and service like us follow these;
1. Bloom Karaoke
Their karaoke shop is located at JJ Market and open 17.00 pm- 02.00 am
in everyday. They provide 9 different room colors according to the different
season such as summer room they provide in orange tone. All the songs are
always updated and 42 inches LCD and wireless microphone are available in
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order tomake the customer more convenience. For the price of V.I.P. room they
begin at 300 baths.
(http://www.bloomkaraoke.com/index.html)
2. Bully Sing along

They provide 21 different karaoke room styles in Kard Suan Kaew
such as
Jail Room Hip Hop Room
Erotic Room Japan Room

-Sound wave
-Yellow melody
-Bed club
-Capsule
-Driving room
-Hip hop
-Jazz
-Sea
-Taytale
-Wanwaan
-Pacha
-Space
-Red beat
-Rung Mod
-Sexy
-Eskimo
-Sky
* For the price; they begin at 120 to 259 baths
(http://www.kadsuankaew.co.th)
2. Indirect Competitor
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There are the competitor who compete with us by select the different
target market but the characteristic of their product and service is like our
company and from the research we will know that in Chiang Mai there are many
kind of karaoke room services as follow;
1. SHINYU THAILAND
2. COCKTAIL LOUNGE & KARAOKE CLUB
3. MUSIC ROOM
4. A.I.I. COCKTAIL LOUNGE & KARAOKE CLUB
5. ZOMBIE KARAOKE
6. MARIKO KARAOKE
7. TOP TEN KARAOKE
8. THER KARAOKE
9. TEN KARAOKE
10. RINKAEW KARAOKE
11. PALACE K.T.V. KARAOKE
12. ORIVIA KARAOKE
13. NIGHT STATION KARAOKE CLUB
14. NEW ORIVIA KARAOKE
15. ALL COCKTAIL LOUNGE & KARAOKE CLUB
16. AGASSI PUB & KARAOKE
17. Major Karaoke
(http://th.yellow.co.th/YellowPages/Chiangmai/karaoke_map.1.html)
2. Customer Analysis
The whole population of Chiang Mai is 1,670,317 and only in Amphor
Muang is 240,046(http://:www.amphoe.com/). Target market that our company
choose is the person who love to sing songs and like to arrange party and from
the research we will know that this kind of customer the most of them age around
15-25 years old (http://dek-d.com/content/all/15633/) and some of them are the
people who are working and always set party to meet with their coworker.
From this characteristic of our target market we can adapt all of this
information to improve our product and service in order to satisfy and attract the
customer from our competitor.
STP Analysis
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1.Segmentation
We separate our market according to their behavior to consuming
karaoke service as follow;
1. come to sing song
2. come to drink
3. come to arrange party
4. come to have sexual
Sexual party
party
sing song
drink drink
sing song Sexual
Target Market.
Our target market of at home Karaoke Company is the people who want
to sing song and set their party because they gain a lot of area in this chart and
we have ability to serve service to them.
Positioning
@ Home karaoke is karaoke rooms that provide different room style for
the various customers but base on the feeling that they are singing song in their
home. There are very appropriate for the people who prefer to sing a song and
want to relax from their work with friends and also their family. We provide high
quality of service to make the customer more convenient and feel like they
singing in their home. High technology equipments are available to please the
modern people who love their health because we not allow smoking in our
karaoke room area like the other place.
28
Marketing Mix Strategies (4P)
The Marketing Mix Strategies are often referred to as the “Four P’s”
since the most important element of marketing are concern with:
The first is Product or Service Strategies, our core products are 28
rooms of Karaoke and 2 rooms for arrange banquet. The rooms for Karaoke have
3 sizes. There are 16 rooms for small sizes (2-4 people), 10 rooms for middle
sizes (5-10 people) and 2 rooms for large sizes (10-15 people). Moreover, in At
Home Karaoke have snacks and drinks in order. The alcohol drinks are only sold
for people who are more than 18 years old only. Each room has their different
styles in term of theme colors, furniture which that decorated in specific styles
but they also have same audio and video system in high quality. Many kinds of
old and updated songs are available; Thai, Asian, and International more than
50,000 songs. The banquet room for not more than 30 people for has a mini party
in private banquet. Our service will provide high standard for everyone to be
satisfied with our service and will come again and again.
Price strategies, we will use high price strategies. The reason is our
product and service is different and we also provide the better product and
service than our competitors. So if we begin to set low price it will make the
customers don’t believe in our good products and service and they will think that
our product and service is not good like we already advantage to them. However;
at the first 3 months after we launch our business we will offer the low price
promotion to them in order to invite the customers to try with our goods because
this is the first time for us to promote our product and service to the customers
and make them know more about us. Moreover that; at the first time that they
come to experience with our service we will make them feel happy and get the
first impression with our product and service that they cannot forget and have to
back to use our service again with their friends who will become to be our new
customers. And because of our target market are the people who get money about
5,000 – 10,000 baht/month and the most of them are the student and people who
are working so they will have power purchase to buy our product and service at
this price. In addition; in different season and different time we will use different
promotion to invite them.
29
Place or Distribution Strategies, At Home Karaoke Company is located

in the city of Chiang Mai, near the Night Barza of Chiang Mai. There is easy to
come and easy to be a meeting point for the customers in Chiang Mai and the
foreigners tourist.
Promotion Strategies, At Home Karaoke promotes company in several

ways for spread our business to be famous and well-known via the web site of
our business and other web site for promote to the people is online and promote
in local radio of Chiang Mai in Hit radio waves for make more customer. And
promote in prominent big signage that’s near the center of teenager and easy to
notice. An advertising campaign carried in one area that requires distribution of
the product to be in advance of the campaign to ensure there are no disappointed
customers. Moreover, we will add more special promotion for attract the
customers who are interested. The company has many promotions; discount or
gift for regular customers, get free singing hour.
Sale Forecast
The whole population of Ching Mai is 1,670,317 and only in Amphor
Muang is 240,046( http://:www.amphoe.com/). Target market that our company
choose is the person who want to sing song and arrange party and the most of
them will be the student who study in the high school and university and the
officers from the research there are 79,098 for student who study in high school
level and there are 61,905 for university student, all of them are study in Amphor
Muang of Chiang Mai province. We forecast that our customer will come to our
karaoke room as follow;
For room size S

We provide 16 rooms
Hours open (12.00-02.00) 14 hrs.
Hours of use 7 hrs.
Prices/hrs/room 180 baht/room
Total revenue (for 1 day) 20,160 baht/room
Total revenue (for 1month) 604,800 baht/room
Total revenue (for 1 year) 7,257,600 baht/room
30
For room size M

We provide 10 rooms
Hours open (16.00-02.00) 14 hrs.
Hours of use 7 hrs.
For room size L

We provide 2 rooms
Hours open (16.00-02.00) 10 hrs.
Hours of use 7 hrs.
For room King size

We provide 2 rooms
Hours open (16.00-02.00) 14 hrs.
Times of use 10 time/month
Prices/time/room 12,000 baht/room
* We set 12,000 baht to be the base price for each room and this price exclude
food price and the other expense.
Total for all revenue in 1 year 17,344,800 baht
So this is the highest revenue that we can do for one years
(Refer from income statement of Major Karaoke in the second quarter of year
2004 (http://www.scis.co.th/prod/pdf/MAJOR-in%20brief%20result
%203Q47%2015-11-04.pdf)
31
Sale figure of the first years.

Price (baht)
1200000
1000000
800000
600000
400000
200000
0
1 2 3 4 5 6 7 8 9 10 11 12
Month
Sale figure of the second years.
Price (baht)
1400000
1200000
1000000
800000
600000
400000
200000
0
1 2 3 4 5 6 7 8 9 10 11 12
32
Month
Sale figure of the third years.
Price (baht)
1400000
1200000
1000000
800000
600000
400000
200000
0
1 2 3 4 5 6 7 8 9 10 11 12
Month
Sale figure of the fourth years.

Price (baht)
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
1 2 3 4 5 6 7 8 9 10 11 12
33
Month
Sale figure of the fifth years.

Price (baht)
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
1 2 3 4 5 6 7 8 9 10 11 12
Month
Sale figures for five years.
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
1st yrs. 2nd 3rd 4th yrs 5th yrs.
yrs. yrs.
34
Explaination
Due to our company is new for his industry and the customer never know
our products so company’s sale in the first year will be lower than the cost that
we use to invest. In the second year sales still lose but it will be better than the
first year because the customer begin to know about our product and service. We
forecast that in the third year sale will be increase and after launch the company
we will receive more customers and can attract market shared in third year. From
the estimation of our company more than 3 years we will have more competitors
and they will attract our customer to be their customer and because of this will
effects to our sale to be little more increase. We will solve this problem by try to
promote our product and service again in order to remind the customer to use our
product again after promote the product our sale will be become to normal
situation.
Marketing Expenses (Sales Incentive)

At Home Karaoke Company has expenses as follow;
- Songs Copyright: The expenses depend on karaoke equipments or

room sizes that collect from the company per month or year. International songs
copy right is always high expenses than Thai songs. The main music companies
are GMM Grammy and RS Promotion.
- Karaoke Equipments: At Home purchases Karaoke Servers, Mirror

Servers, The Customer Stations, Public Players, Device for Songs Ordering,
Audio System equipments; including microphone, mixer, amplifier, and loud
speaker, Video System equipments including large screen TV, LCD or projector,
Reception Station.
35
- Decorated Furniture: all of our building will outsource the other

companies who have more ability than us to design the exterior and exterior
building and also have ability to manage foe all furniture that we want from the
plan which we already set. So we only pay for all inclusive about the building ,
furniture, designer, and labors to make this karaoke room and the company that
we use is Khomekon company (www.khomecon.com)Furniture that the company
uses to decorate will be different depend on the room styles.
- Snacks and Drinks: For food and beverage that will be used when set
the party we also hire the other companies to do it. And the company that we will
use is Chormuang company (http://www.chormuang.com/) and the price will
various follow the design of each party.
- Advertisement: At Home Karaoke is advertised on its own website and

popular websites which people prefer to search everyday; the expense depends
on area’s size that the company must pay per month. Signage costs around
Chiang Mai city that the company must pay the rent per month.
- Marketing Research Expenses: Such as questionnaires to know the

customers’ opinions about the age of customers, their careers, what kinds of their
favorite songs, how often they spend for karaoke, how many hours they sing how
many people they usually sing with, what service they prefer to order etc.
- Internet Service: At Home has internet service to serve customers. New high
technology computers, 5, and high speed internet system are available.
36
Conclusion:
At the first time the business of karaoke shop in Thailand often launch in
stand alone feature and to be the prominent karaoke shop in community area.
After that, when business of karaoke shop expands to karaoke entertainment
center that provide food, beverage, and other service for satisfy our customer’s
need. In the future, we are focus to expand our business to relate with other
business for add more service to be completely center. Although @ Home
Karaoke Company is a medium-sized business in the present but in the future we
aspect to lead our @ Home Karaoke Company to being in The Stock Exchange
of Thailand in this reason, we need to make stability and try to relate with other
business. In first period, we may have restaurant and café business in our
Karaoke shop and moreover @ Home Karaoke Company will add more branch
and each branch also have restaurant and café business too and @ home has
expand in business world as open new strategy with additional service, agent to
sell concert ticket respond the customer value to be life style entertainment that
create satisfactions for customers and increase more comfortable in other service
especially standard service such as reserve ticket system and check show time
movie. In the project must to collaborate with alliance and develop technology
for prepare to growth the business that name are call" @ home ticket center". All
of this is business we'll hope to expand in the future.
From foregoing, we have a good service, place, promotion to the
customers’ attraction and believe to be a famous in short time period, as well as a
good promotion. We will aspect to be leader of karaoke shop in Chiang Mai
province. @ Home Company will be launch to completely karaoke center and be
fully high technology equipment with the best audio stereo and video system
completely which up to standard level of karaoke shop in this area. From this
case study, we find that the customer’s behavior more emphasis on the
comprehensive entertainment center along with interesting sing song in karaoke
shop that high standard quality in audio stereo, video system, and modern
decorated in every room and around shop. For @ Home Karaoke Company area
37
we have 1, 600 square meters that include the karaoke room have and have 1,275
square meters and internet café have 100 square meters. @ Home Karaoke
Company locates in center of Muang Chiang Mai and also near Night Braza of
Chiang Mai which we will be the large and modern karaoke shop in Chiang Mai.
Our karaoke shop have beautiful decorate, comfortable, extra room, and the best
of audio stereo and video system completely. Moreover that education center,
culture and transportation of north and connect with other province such as
Lumpon, Lumpang and Phayoa that the best location. In the part of project are
ready in transportation for comfortable because be out from the airport
international 700 m that a number of tourists as Thai people and foreign pass the
passage entry-exit average 3 million person that base on Mahidol street opposite
Chiang Mai- Hang dong street in 6 size of traffic. From our availability in these
several sides that make @ Home Karaoke Company is ready to create and
develop high class level entertainment and emphasis on target market for
teenager, working age and much more. For decoration is use in many style and
emphasis to be the leader of modern high technology karaoke system. So, before
we make decision to launch this business at Chiang Mai Province. We try to find
the best location for easy to eyes and survey our target market at Chiang Mai
province. The reasons that we should this location are include:
1. Chiang Mai Province and near region are loss the karaoke shops that
high standard quality.
2. High number of the people who come to sing songs at karaoke shops
and has same life style of people in Bangkok. So that is interesting to
investment in Chiang Mai province.
3. We believe in our efficiency and good location which in center of
Chiang Mai province and near Night Braza’s Chiang Mai province
that is the biggest province in northern part of Thailand and have the
populations more than 1,000,000 people
38
Chapter 4
Technical Feasibility Study
Production and operations Analysis
Product Characteristics (in detail)

At Home has S, M, and L room sizes. Size S has 16 rooms with for 2-4
people; M 10 rooms, for 5-10 people; and L 2 rooms for 13-15 people and we
also provide king size 2 rooms to serve as banquet or party. Each room has their
different styles in term of theme colors, furniture but they also have same audio
and video system in high quality. Customer will feel they sing their favorite
songs in their home. Many kinds of old and updated songs are available; Thai,
Asian, and International more than 50,000 songs. The karaoke equipments are
standard and high technology. The equipments that be used as follow;
Karaoke Server, a huge store space that is set in the server room. It can be
ordered by customers and sent out into customer room at anytime and
immediately. Mirror Server, the backup of Karaoke Server that match up with
the number of Karaoke Server and it is also set in the server room actually. When
Karaoke Server meets any problems, Mirror Server will continue to work to
make sure the normal business of karaoke room.
The Customer Station will be set in every customer rooms that customers
can order services such as snacks and drinks on the LCD TV. This will help
staffs to serve customers more efficiently.
Public Player for playing the ordered songs from several customer
stations. It can be played with order.
Device for Songs Ordering for customer to select the songs, including
remote controller, barcode songbook, smart keypad, barcode scanner, touch
screen, etc. They should be set in customer room which needs one unit.
Audio System provides the high quality audio to the customers, including
the microphone, mixer, amplifier, and loud speaker. The audio system should be
set in the customer room.
Video System provides the high quality video to the customers, including
large screen TV, LCD or projector. The video system should be set in the
customer room.
Reception Station for customers to check in, check out, reservation,
charge, keep record and print the account. The reception Station should be set in
the reception desk.
39
For the service, At home serve high quality services to the customers as follow;
- At Home has all kinds of snacks and drinks in Thailand, alcohol
drinks for over 18 years.
- Customer Station can make customers feel comfortable when they
want to order snacks, drinks, or they have any problems. Staffs will
know the customer’s want from this.
- Customers can reserve the room an hour early.
- At Home has banquet service: birthday, valentine, festivals.
- Staffs are available to serve customers when they have any problems
or want anything.
- Updated songs suggestion every week
- Internet high speed is available.
- At Home has member registration for regular customers; they will
receive many rights and benefits from the company.
Specification and feathers

Our business @ Home karaoke provide different style of karaoke room to
satisfy the customers. In order to make us to be the leader of this industry in
Chiang Mai so we try to make our service different from our competitors. We
provide the 10 different room styles and 2 for same as follow;
For size S we provide 16 rooms as follow;
1. Emotion room
It will be designed in dark room and open pink light for the whole room
and furniture that will be provided in this room emphasize on the black
tone.
2. Romantic room
It will be designed in white room and open dark yellow light for the
whole room and furniture that will be provided in this room emphasize on
white colors.
3. Natural Room
It will be design in dark green room and decorated with many of trees.
Furniture that will be provided in this room emphasize on brown and
green colors.
40
4. Super Space room

It will be designed in dark blue room and open yellow light for the whole
room and decorated with the equipment that make the customer feel like
they are sing song in the real space.
5. Devil room
It will be designed in black room and dark light for the whole room and
decorated with the equipment that make the customer feel like they are
sing song in the real cemetery such as the coffin and the mock ghost .
6. Sweet room
It will be designed in pink room and open dark yellow light for the whole
room and decorated with the cute furniture and emphasize on the pink
furniture.
7. Spring room
It will be designed in green and bright yellow room and decorated with
the equipment that make the customer feel like they are sing song among
the tree garden such as the muck spring tree.
8. Music room
It will be designed in colorful room and open different color light for the
whole room and decorated with the equipment such as the music
equipment.
9. Disco room
It will be designed in dark room and open many different light color for
the whole room and decorated with the equipment that make the customer
feel like they are sing song among the real pub such as bar and the stage
for them to dance.
10. Under the hell

It will be designed in dark red room and open red light for the whole
room and decorated with the equipment that make the customer feel like
they are sing song in the real hell such as the copper Pan and the hell
trees.
41
11. Rest room

The color of wall is orange and around the room has sanitary ware such
as lavatory, bathtub something like that. In the room also has sofa because
customer will have seat when they want to rest from sing those songs. The light
that use in the room is orange light for classic of this room.
12. Living room

This room, we use yellow that customers feel to sing in living room at
their home. Sofa that we use to decorate is white sofa which is L shape and can
contain 3-5 persons on its. And the wall has many pictures to decorate like home.
The light that we use to in this room is spotlight.
13. Kitchen room

Decoration is Europe style that has many wares such as pans, pot, and
ladle locate around the room. The center of room has dining table set, it make
customers’ feel like the kitchen in their home. The color of wall is white. The
lamp give the white light and hang on ceiling.
14. Library room

Library room is decorated like general in homes that has much furniture
such as shelf which has many books. Otherwise, in the center of the room has
black sofa like in real library room and sofa has soft color and comfortable. The
light is soft orange for relax customers’ eye. The color of wall is light brown.
15. Theater room

In this style, we don’t emphasize the light because in theater not turn on
the light. The room is decorated by white sofa that lay 2 rows which each row
has 3 white sofas and two rows is slope. We use vermilion to be the color of
walls.
16. Office room

The color of wall is light brown because it is soft color that makes
customers’ eye to rest. In the room have many office desks and chairs to be
office styles. The wall has many small lamp that give white light.
For size M we provide 10 rooms as follow;
17. Lawn
Decoration same as lawn in front of the homes that floor has green grass
which is artificial. We use white swing to be furniture in this style and in the
room has small flowers in many vases around the room. We use green and paint
the trees around the room that customers feel to stay among real natures.
18. Bedroom
Decoration is modern style that the center has large bed and in front of
large bed has small sofa that made from leather. The color of wall is young
purple and paint pink small flowers. The lamp is orange light for emphasize the
color of wall.
42
19. Dressing room

Two sides of wall are large mirror and another two sides of wall are
wardrobes that have many styles of clothes which customers can wear while they
sing those songs. The center of ceiling has big lamp to hang. We decorate this
room by using purple sofa locate in the center of room. Moreover, the wall has
soft pink that suit with purple sofa.
20. Classroom
This room decorate like the classroom in school that has blackboard in
behind of room. In the center of room has tables and chairs about 5 set. While the
wall is decorated by many boards like the real classroom.
21. Deck room

The ceiling of this room is more special than other rooms because the
ceiling has many small lights like the stars in the sky. And color of wall is black
because of it emphasize those lights on ceiling and sofa is comfortable style and
is young blue color like seating among those stars.
22. Music room

This room is decorated by many musical instruments such as drum,
guitar, violin, etc. The wall can keep the voice more than other rooms because
this room has loudly voice from those musical instruments. The color of wall is
red because it helps to view the bright. Beside the room have young grey sofa
that is modern style.
22. Bar room

This room like small size pub that has modern chairs and tall chairs
shape. Those chairs are colorful because they not swallow with the black wall.
The light of this room is more special than other rooms that use the light in the
pub. The center of this room has counter bar which consists of liquor bottles but
not real.
23. Princess room

In this room use luxury furniture such as purple sofa that make from wool
of sheep, or even bed that like real princess bed. Color of wall is gold color
because it likes the real room of princess. The light that is used to be spotlight for
emphasizes the color of wall. And another side of room has white swing and the
floor has soft brown carpet.
24. Golf course room

The floor of this room use artificial grass that like in golf course. This
room don’t use sofa like other rooms but use the car that use to drive in golf
course. Moreover, in this room has golf club and holes for customer to play like
in the real golf course. Color of wall is white because it not views to oppose with
the color of artificial of grass.
25. Garage room

This room the entrance is slide doors and color of wall is orange like the
color or rust. And the center of room has classic car that is red. The tools that use
43
to repair the car are located around this room. The light that we use to be dim like
the real garage in the home.
For size L we provide 2 rooms as follow;
26. Art s room

The wall of this room is white because of many pictures are decorated in
this room like gallery and many flowers are painted on the wall. Sofa that use in
this room is black and the light that is use in this room is young orange light for
emphasize those pictures on the wall.
27. Sea room

This room strange more than other rooms because this room is
cheerfulness room. The wall of this room is blue and paint many clouds like the
sky when they see at the beach. The floor of this room use sand and the center of
this room locate the chairs beach. Moreover, it has big umbrella among those
chairs beach.
For the King Size we provide;

29. Formal room
30. Formal room
For room 11 st and 12 nd we provide in formal style because this two rooms
we will provide to the customers who want to set their meeting or party at
our Karaoke shop. The style of this two rooms is bright green and yellow
color and furniture of this room will be the same as those 1o rooms but it
will be more than and also adapt for the request of our customers.
Service process
Because of our product position is set to provide the convenience to the customer
by offer the high service quality to them so we will provide our service process
to be 2 parts that are as follow;
1. Before the stage
For this part; the customer will be not direct touch with this process. It will be
the process that we prepare for the customer when they come to experience with
our service. We provide the good atmosphere for our customer such as we will
clean all room for everyday and every time that the rooms are used. We not allow
the customers to smoke in our shop but we still provide the place for them to
smoke.
2. Behind the stage
The customers will be direct experience with this part. So the main person
that we have to concern in this step is our employees. For all employees that will
meet with our customer we will trend all of them to be more polite and have
ability to provide the thing that the customer want by fast in order to make them
more satisfy with us. Moreover that we will prepare all of equipment available
when the customers want for example; if the microphone is fall we will prepare it
to solve this problem.
44
Before the stage Behinds the stage
Meet
Good Customers
come to @ Employees
atmosphere
of karaoke Home karaoke
rooms
-Trend all of employees

- Not allow to smoke
And zoning smoke zone - Prepare necessary equipments
Location
Our karaoke building will be located at Chiang Mai- Lumpoon Road,

Tumbon Nhong Hoi, Amphor Muang, Chiang Mai Province. There are 1,200
square metres, width 36 metres and long 33 metres. It near UFO bowling and at
the in front of this lane have a lot of shops because it is the center of business in
Chiang Mai, Chiang Mai 89, for example of shops at the in front of this lane are
Bangkok Bank, Lotus express, Restaurant and Seven- Eleven are available. The
customer can come to this place easily because it provide the good road and easy
to find. Its far from Chiang Mai Airport only 10 minutes.
(Reference; http://www.teedinn.com/webboard_detail.asp?wb_id=24128)
45
Facility layout
Facility layout
Our building has four floors that the first floor divides into three parts.
The first part in the first floor consist of seating zone that has two sides, internet
zone that locate nearby seating zone in the left side of building for customers to
wait the empty rooms, and last zone is reception that locate the center in the first
part for reservation or even payment the services and ask about some information
that relate our karaoke shop. While the second part is administration part that
consist of marketing department, accounting department, maintenance/technical
department, and owner room. In the front of building, we have car parking for
provide convenience when customers drive car to our karaoke shop. And fourth
part is small sizes singing room that have 4 rooms.
46
The second floor consists of small room sizes that have 12 rooms. The
rest room locates in the left hand side and opposite small room size. And medium
room sizes also locate in the second floor but it has 1 room only because another
medium room sizes locate in the third floor. In the second floor we have staff
room for waiting customers when they have problem or order food and beverage.
And behind staff room, we have preparation room for prepare food and beverage
and store equipment.
47
The third floor consists of medium rooms that have 9 rooms. Also we
have preparation room and rest room both of men and women room.
The top floor or fourth floor has two large singing rooms and two king
sizes rooms for organize party that can hold about 20-30 person per room.
48
Equipment of S 16 rooms (per each room):
1. A Pair of Dual Channel Handheld Dynamic Wireless Microphone
Brand: UHF; ENBAO

Model: SG-922
Price: 3,900 Baht
Reference: http://www.paisarn- outlet.com/index.php?

lay=show&ac=cat_show_pro_detail&cid=11313&pid=11224
2. A Computers with karaoke players including 22,000 songs
Brand: UHF
Model: Satandalone Karaoke
Price: 27,900 Baht
Reference: http://www.karaoke-thai.com/index.php?
lay=show&ac=article&Id=538673972&Ntype=7
3. A Pair of 8 inches karaoke speakers
Brand: DECCON
Model: DC-K8
Price: 3,200 Baht
Reference: http://www.paisarn-outlet.com/index.php?
lay=show&ac=cat_showcat&l=2&cid=10863
4. Samsung LCD TVs Series 3 32 inches
Brand: Samsung
Model: LA32B450C4
Price: 17,900 Baht
Reference: http://www.lcdtvthailand.com/spec/detail.asp?param_id=235
5. Song copyright collecting with GMM Music Publishing Limited

Company
Brand: GMM Music Publishing Limited Company
Price: 5,000 Baht
49
Equipment of M 10 rooms (per each room):
1. A Pair of Dual Channel Handheld Dynamic Wireless Microphone
Brand: UHF; ENBAO

Model: SG-922
Price: 3,900 Baht

Brand: UHF
Price: 27,900 Baht
3. A pair of double 15 inches karaoke speakers
Brand: NTS
Model: PP 15
Price: 6,500 Baht

4. Samsung LCD TVs Series 6 46 inches
Brand: Samsung
Model: LA46B530P7R
Price: 57,900 Baht
Reference: http://www.lcdtvthailand.com/spec/detail.asp?param_id=231

Company
Price: 5,000 Baht
50
Equipment of L 2 rooms (per each room):

1. A set of 4 wireless microphones
Brand: LEISE
Model: LS-949
Price: 6,900 Baht
Reference:http://www.audiocity2u.com/index.php?
Brand: UHF
Price: 27,900 Baht
3. 15 inches PA 2 speakers
Brand: YAMAHA
Model: A-15
Price: 14,000 Baht
4. Electric motor screen 100 inches
Brand: Vertex
Model: 100”
Price: 9,000 Baht
Reference: http://pratima-
ishop.tarad.com/product.detail_164998_th_297884#
5. Data Projector 2,600 ANSI lm

51
Brand: SONY
Model: VPL-EX70
Price: 39,900 Baht
Reference: http://www.peak.co.th/business/projector/projector_vpl-
ex70.html
6. Song copyright collecting with GMM Music Publishing Limited Company

Price: 5,000 Baht
Equipment of King Size 2 rooms (per each room):
1. 2 sets of 4 wireless microphones
Brand: LEISE
Model: LS-949
Price: 6,900 Baht
Reference:http://www.audiocity2u.com/index.php?
Brand: UHF
Price: 27,900 Baht
3. 15 inches PA 4 speakers
Brand: YAMAHA
Model: A-15
Price: 56,000 Baht
4. Electric motor screen 100 inches

52
Brand: Razr
Model: 150”
Price: 22,500 Baht
Reference: http://pratima-
ishop.tarad.com/product.detail_164998_th_958875
5. Data Projector 3,000 ANSI lm
Brand: SONY
Model: VPL-DX11
Price: 39,900 Baht
Reference: http://www.peak.co.th/business/projector/projector_vpl-
dx11.html
Company
Price: 5,000 Baht
Other equipment:
1. Air Condition
53
Brand: Daikin
Model: 1). NU - Series: FHC - Sky Air (Cassette Type) BTU 18,000
Price: 48,000/unit 15
2). NU - Series: FHC - Sky Air (Cassette Type) BTU 36,000
Price: 68,000/unit 3
3). Sky Air (TWin Cassette Type) BTU 43,600 Price:
110,000/unit 7
Reference: http://www.coolaireng.com/webpage/Allair-
conpages/daikin/daikin-cassette.htm
2. Computers (CPU)
Brand: HP
Model: Pavilion a1370L
Price: 19,600
Reference:http://www.itfocusthai.com/index.php?
lay=show&ac=article&Id=356707
3. LCD Monitors
Brand: HP 2009f
Model: FZ464AA#A2K
Price: 5,339
Reference: http://rarkar.com/th/product/4000445-HP-2009f-FZ464AA
Logistics Management
Our business is karaoke that provide service to customers and this

business can’t move service to customers but those customers who must come to
our shop for use our business follow advertisement or word of mouth. So we will
not concern about the logistics management.
Facility Management
54
Because we are the Karaoke service provider and we locate near the
community area so we have to concern with all of stakeholder that will be
affected with our business
-If the building structure is not strong, the loud noise may make the
building is fractured.
-Too loud noise may result to other people, so we should build sound
proof rooms.
-Many cheap entertainment devices, such as a boom box, have karaoke

mode which removing vocal voice from general audio CD that control center
removal. The removing vocal can demonstrate low capability which general
impact is the echo of sound track because of echo stereo.
Cost of Investment
Pre Operation Cost
Landscape cost 7,800,000 Baht
The company establishment permission 4,850 Baht
Others 20,000 Baht
Total 7,824,850 Baht
(http://www.ktpaudit.com/service.register.html?
gclid=CI_x7NSNoZ8CFYIvpAodJQ4uIw)
55
Chapter 5
Investment Cost
No. of
No. List Price/Unit unit Price Percent
1 Land 7,800,000 16.04%
2 Building and Furniture 35,000,000 35,000,000 71.97%
3 Air Condition
1).BTU 18,000 48,000 25 1,200,000 2.47%
2).BTU 36,000 68,000 7 476,000 0.98%
3).BTU 43,600 110,000 10 1,100,000 2.26%
4 A pair of dynamic wireless microphone 3,900 26 101,400 0.21%
5 A set of 4 wireless microphones 6,900 6 41,400 0.09%
6 Computers with karaoke players 27,900 30 837,000 1.72%
7 8 inches karaoke speakers 3,200 16 51,200 0.11%
8 Double 15 inches karaoke speakers 65,000 10 650,000 1.34%
9 Double 15 inches PA speakers 14,000 12 168,000 0.35%
10 Samsung LCD TVs Series 3 32 inches 17,900 16 286,400 0.59%
11 Samsung LCD TVs Series 6 46 inches 57,900 10 579,000 1.19%
12 Data Projector 2,600 ANSI lm 39,900 2 79,800 0.16%
13 Data Projector 3,000 ANSI lm 49,900 2 99,800 0.21%
14 Electric motor screen 100 inches 9,000 2 18,000 0.04%
15 Electric motor screen 150 inches 22,500 2 45,000 0.09%
16 Computers (CPU) 19,600 4 78,400 0.16%
17 Computers LCD monitors 5,339 4 21,356 0.04%
Total 48,632,756 100.00%
56
Depreciation
Annual Monthly
Investment Amount Depreciation Depreciation Depreciation
Building 35,000,000.00 20 years 1,750,000.00 145,833.33
Air Condition BTU 18000 1,200,000.00 5 years 240,000.00 20,000.00
Air Condition BTU 36000 476,000.00 5 years 95,200.00 7,933.33
Air Condition BTU 43600 1,100,000.00 5 years 220,000.00 18,333.33
Dynamic wireless microphone 101,400.00 5 years 20,280.00 1,690.00
4 wireless microphones 41,400.00 5 years 8,280.00 690.00
Computers with karaoke
players 837,000.00 5 years 167,400.00 13,950.00
8 inches karaoke speakers 51,200.00 5 years 10,240.00 853.33
15 inches karaoke speakers 650,000.00 5 years 130,000.00 10,833.33
15 inches PA speakers 168,000.00 5 years 33,600.00 2,800.00
LCD TVs 32 inches 286,400.00 5 years 57,280.00 4,773.33
LCD TVs 46 inches 579,000.00 5 years 115,800.00 9,650.00
Data Projector 2,600 ANSI lm 79,800.00 5 years 15,960.00 1,330.00
Data Projector 3,000 ANSI lm 99,800.00 5 years 19,960.00 1,663.33
Electric motor screen 100
inches 18,000.00 5 years 3,600.00 300.00
Electric motor screen 150
inches 45,000.00 5 years 9,000.00 750.00
Computers (CPU) 78,400.00 3 years 26,133.33 2,177.78
Computers LCD monitors 21,356.00 3 years 7,118.67 593.22
Total 40,832,756.00 2,929,852.00 244,154.33
Operating Cost
Because of our company is provide service to the customer so we will
don’t have production process. So we will don’t have raw material cost and
direct labor cost. But we still have manufacturing overhead and we estimate the
manufacturing overhead cost per month as follow;
1. Salary of employees
- Receptionists 3 persons Cost/person 12,000 Total
36,000 baht
- Accountant 2 persons 16,000 32,000
- Marketers 5 persons 20,000
100,000
- Maintenance 4 persons 7,000 28,000
- Managers 1 persons 50,000 50,000
- Staff 6 persons 7,000 42,000
- House keepers 5 persons 6,000 30,000
- Security 2 persons 6,000 12,000
2. Repair and maintenance 35,000
_________________________________________________________________
_
Total
365,000
57
Chapter 6
Risk management
PEST Analysis
Political Factors
Political and legal factor can build both of opportunities and

threats to manage the business. The politics has any effect on the operations
because of when we think to launch, we need to learn about political and legal
that have certainty or not and make sure those company are established according
the legal. But the political in Thailand not have certainty because of gathering in
each day that send the affect to entrepreneurs. The legal is also need to learn all
of legal that relate directly about karaoke business. Internal political problems
also unclear and to be an important factor that can make economy of Thailand
have the risk of slowing down before schedule estimated. Economic of
Thailand indicate to slow down point to a problem before the
political crisis within the country. Begin from quarter 4 of 2005 by
economic slowed down clearly in the part of the demand for private sector
in both investment and consumption. Although the government still
efforts to stimulate the economy will continue to matter.
Economic Factors
Economic growth
Thailand Gross Domestic Product (GDP) contracted 2.80% over the last 4
quarters. The Thailand Gross Domestic Product is worth 261 billion dollars or
0.42% of the world economy, according to the World Bank. The economy of
Thailand is an emerging economy which is heavily export-dependent, with
exports accounting for more than two thirds of gross domestic product (GDP).
Well-developed infrastructure, a free-enterprise economy, and generally pro-
investment policies, made Thailand one of East Asia's best performers. However,
overall economic growth has fallen sharply in 2008 and 2009 as global downturn
and persistent political crisis stalled infrastructure mega-projects, eroded investor
and consumerconfidence.
\
58
(http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?
Symbol=THB)
Interest rates
Thailand benchmark interest rate stands at 1.25 percent. In Thailand,

interest rate decisions are taken by The Bank of Thailand’s Monetary Policy
Committee. The main interest rate is the 1-day repurchase
(http://www.tradingeconomics.com/Economics/Interest-Rate.aspx?
symbol=THB)
Exchange rates
59
Thai Baht Exchange Rate Live Chart (USDTHB), quotes, historical data,
forecast and news. The exchange rate between two currencies specifies how
much one currency is worth in terms of the other. The spot exchange rate refers
to the current exchange rate. The forward exchange rate refers to an exchange
rate that is quoted and traded today but for delivery and payment on a specific
future date. The foreign exchange market is one of the largest markets in the
world with nearly 4 trillion USD worth of currency changing hands every day.
(http://www.tradingeconomics.com/Economics/Currency.aspx?Symbol=THB)
Inflation rate
Thailand suffers the economic recession in 2009. So power of buyers is
decrease that it sends the affect to this business. Moreover the cost of business
has high price due to the inflation rate are increase following Thailand inflation
rate stands at 3.50 percent year-over-year. Inflation rate refers to a general rise in
prices measured against a standard level of purchasing power. The most well
known measures of Inflation are the CPI which measures consumer prices, and
the GDP deflator, which measures inflation in the whole of the domestic
economy. The economy of Thailand is an emerging economy which is heavily
export-dependent, with exports accounting for more than two thirds of gross
domestic product (GDP). Well-developed infrastructure, a free-enterprise
economy, and generally pro-investment policies, made Thailand one of East
Asia's best performers. However, overall economic growth has fallen sharply in
2008 and 2009 as global downturn and persistent political crisis stalled
infrastructure mega-projects, eroded investor and consumer confidence.
(http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?
symbol=THB)
Overview of economic growth in Thailand indicated to slow down from

the beginning at level of 7-8% per year. Remain only 4-5% per Damage resulting
from the random risk of economic crisis in 1997; it is a very high value that
allow the development of various financial systems have limitations were too
cautious. Make savings not lending as they should. But hoard money is
60
overflowing the banks that lead to lower deposit interest rates remaining low and
the conditions and the inflation rate higher real interest rates negative and the
result from the strict financial system makes shopping in the growth difficult.
The business lacks of equity which that can not take advantage of savings in
financial institutions by loaning money. That result made business is not growing
and public revenues continue. Economic development is not very balanced in
both of period before or after the crisis. Internal political problems also unclear
and to be an important factor that can make economy of Thailand have the risk of
slowing down before schedule estimated. Economic of Thailand indicate to slow
down point to a problem before the political crisis within the country. Begin from
quarter 4 of 2005 by economic slowed down clearly in the part of the demand for
private sector in both investment and consumption. The investment of private
business in the quarter growth only 4 percent decrease, from 9.3 percent to 11.6
in the quarter 3 of year 2548 and the costs for private consumption in quarter 4 of
year 2548 growth only 4.0 percent, down from 4.5 percent in 3rd quarter of the
same year. This represents growth of the private sector that is the lowest in the
past 3 years ago. The main reason is the inflation rate and interest rate has risen
rapidly while the prices of oil still remain high and combined with the effect of
price controls the business must bear the burden of higher costs as the price has
been approved to adjust delay. Made to adjust prices at a later time to offset the
high cost burden increased during the accumulation has not been approved to
adjust the price. The slowing down of private consumption has a direct impact to
the environment. The private investment particularly of business parts that rely
primarily on domestic markets but the private investment to exports are not
affected because exports to the criteria well.
Technological Factors
With the amount of high competitive in this industry that is one of all
factors to occur new technology to support those competitive. Moreover most of
this business is related with technology more than other business. And jukeboxes
are the best examples of high technology which have important roles with this
business due to they have low cost more than building karaoke rooms. The
computers and LCD are another technology that we must update those
technologies to support the growth of technology.
Internal risk
Operational risk
Nowadays many of technologies are fast developed and it can effect to
our company because we set our vision to be the leader in karaoke industry of
Chiang Mai so we have to update our equipment follow the development in order
to satisfy our customer. However; we have to spend a lot of money to buy it and
it will effect to the company profit.
Human resource risk

The staff is very important to the company because they are the person
who serve service to the customer and make the customer satisfy with our
service. So if they don’t have enough knowledge to serve the high quality of
service to the customer it will make them complain our company. Because of
61
these we will train to all of our employees to have more skill to serve the good
service and make the customer more convenience.
Marketing risk
Karaoke industry is the industry that easy to launch and if some
entrepreneurs can make their service better than the other it will make them can
get more benefit. So we have to develop our karaoke service by improve our
equipment to be better and also train the employees to have more skill in serving
service.
Financial risk
Launching karaoke room is easy but to be the leader in this industry is
very difficult because we have to have a lot of budget to manage all of the things
in our company and if in the future, this situation are occurred we will loan some
money from the Bank in order to decrease the responsibility of the entrepreneur.
Five Force Model

1. Rivalry Among Current Competitors
A survey of the market karaoke in Chiang Mai, find a karaoke
business operators in the 2 groups that have direct and indirect. Direct
have approximately 2 more direct and more indirect than about 20.
Locations of competitive operators are not located near each
other. However, a management system within karaoke has similar style of
them so that enabling customers scramble competition occurs. Each
karaoke has uniquely different, so depending on each customer's interest.
However, these karaoke may think of new strategies that sales to
competition with the combined group. Therefore, entrepreneur should
develop products and services of karaoke continued to prevent any
advantage of this customer base hijacked by the competition.
2. Bargaining Power of Suppliers

The most various audio devices and components are made from
the same source, so a supplier bargaining power over because the source
of products of this type are not many but also how that can be used to
reduce the bargaining power of the operators. Suppliers must purchase a
lot of products to the same time that negotiate with supplier and lower
wholesale prices are making cost the price down. Entrepreneur can make
more profit without increasing price or other promotions to attract
customers.
3. Bargaining Power of Customers

Karaoke has priced near the same standard as a source of goods
production and cost the same that customers will not be able to bargain
because the trading price of each karaoke has a similar low price. Our
karaoke advantage over competitors because they have more room to
choose for customer interest and customer has brand loyalty
4. Threat of Substitute Products or Services

62
Karaoke has trend to be easy to replace because now a cabinet

karaoke coin has more development and increasingly that people are
focused as well as a karaoke home theater that can buy VCD karaoke
singer at our favorite. Therefore, we must develop our technology for
attract to return customer.
5. Threat of New Entrance

Karaoke can build the competition to difficult due to high
production and costs that make a little more competitive. How to prevent
threats of new competition is brand building is to be up to customers to
know and brand may be show a brochure distributed by the market, in the
short-term customers will attract and it is generally known. New
entrepreneur who want to do business, they must join the group if the
group is isolated or not then that have the opportunity to sell will be less
because brand has built a group is strong enough to draw customers to
contribute too.
One alternative is branch brand to expand karaoke that the same
ownership and block to other entrepreneur to enable racing operations
because karaoke is crowded already will vie for customers and reduce
revenues themselves.
63
Chapter 7
Conclusion
@ Home Karaoke Company is impossible because from
the calculation and analysis it can not provide a lot of profit to the investors
so it should have a better management and coworker should more
communication together and decrease the risk by diversify the risk to the
other business that involved with this business.
64
Grant Chart
November December January

Week Week Week Week Week Week Week Week Week Week Week Week
Project 1 2 3 4 1 2 3 4 1 2 3 4
Explore market need
Set up strategic plan
Define the business
opportunities
Develop business plan
Plan for action
Identify needed and cost of
resources
Set standard quality of service
Develop standard of service
Design concept of promoting
Organize advertising
Launch business
65
Depreciation Year1
66
Investment Amount Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
35,000,00
Building 0 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67
Air Condition 100,
BTU 18000 1,200,000 100,000.00 100,000.00 100,000.00 000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Air Condition
BTU 36000 476,000 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67
Air Condition
BTU 43600 1,100,000 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
Dynamic
wireless
microphone 101,400 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00
4 wireless
microphones 41,400 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Computers
with karaoke
players 837,000 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00
8 inches
karaoke
speakers 51,200 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67
15 inches
karaoke
speakers 650,000 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67
15 inches
PA speakers 168,000 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00
LCD TVs 32
inches 286,400 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67
LCD TVs 46
inches 579,000 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00
Data
Projector
2,600 ANSI
lm 79,800 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00
Data
Projector
3,000 ANSI
lm 99,800 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67
Electric
motor
screen 100
inches 18,000 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Electric
motor
screen 150
inches 45,000 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00
Computers
(CPU) 78,400 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33
Computers
LCD
monitors 21,356 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67
40,832,75
Total 6 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67
67
68
Depreciation Year2
69
Building 35,000,000 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67
Air Condition
BTU 18000 1,200,000 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Air Condition
BTU 36000 476,000 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67
Air Condition
BTU 43600 1,100,000 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
Dynamic
wireless
microphone 101,400 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00
4 wireless
microphones 41,400 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Computers with
karaoke players 837,000 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00
8 inches
karaoke
speakers 51,200 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67
15 inches
karaoke
speakers 650,000 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67
15 inches PA
speakers 168,000 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00
LCD TVs 32
inches 286,400 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67
LCD TVs 46
inches 579,000 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00
Data Projector
2,600 ANSI lm 79,800 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00
Data Projector
3,000 ANSI lm 99,800 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67
Electric motor
screen 100
inches 18,000 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Electric motor
screen 150
inches 45,000 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00
Computers
(CPU) 78,400 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33
Computers LCD
monitors 21,356 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67
Total 40,832,756 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67
70
Depreciation Year 3
71
35,000,00
Building 0 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67
Air Condition BTU
18000 1,200,000 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Air Condition BTU
36000 476,000 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67
Air Condition BTU
43600 1,100,000 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
Dynamic wireless
microphone 101,400 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00
4 wireless
microphones 41,400 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Computers with
karaoke players 837,000 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00
8 inches karaoke
speakers 51,200 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67
15 inches karaoke
speakers 650,000 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67
15 inches PA
speakers 168,000 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00
LCD TVs 32
inches 286,400 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67
LCD TVs 46
inches 579,000 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00
Data Projector
2,600 ANSI lm 79,800 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00
Data Projector
3,000 ANSI lm 99,800 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67
Electric motor
screen 100 inches 18,000 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Electric motor
screen 150 inches 45,000 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00
Computers (CPU) 78,400 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33 6,533.33
Computers LCD
monitors 21,356 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67 1,779.67
40,832,75
Total 6 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67 3,402,729.67
72
Depreciation Year 4
73
Building 35,000,000 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67
Air Condition
BTU 18000 1,200,000 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Air Condition
BTU 36000 476,000 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67
Air Condition
BTU 43600 1,100,000 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
Dynamic
wireless
microphone 101,400 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00
4 wireless
microphones 41,400 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Computers
with karaoke
players 837,000 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00
8 inches
karaoke
speakers 51,200 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67
15 inches
karaoke
speakers 650,000 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67
15 inches PA
speakers 168,000 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00
LCD TVs 32
inches 286,400 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67
LCD TVs 46
inches 579,000 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00
Data Projector
2,600 ANSI lm 79,800 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00
Data Projector
3,000 ANSI lm 99,800 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67
Electric motor
screen 100
inches 18,000 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Electric motor
screen 150
inches 45,000 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00
Total 40,733,000 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67
74
Depreciation Year 5
75
Building 35,000,000 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67 2,916,666.67
Air Condition
BTU 18000 1,200,000 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00
Air Condition
BTU 36000 476,000 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67 39,666.67
Air Condition
BTU 43600 1,100,000 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67 91,666.67
Dynamic
wireless
microphone 101,400 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00 8,450.00
4 wireless
microphones 41,400 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Computers with
karaoke players 837,000 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00 69,750.00
8 inches
karaoke
speakers 51,200 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67 4,266.67
15 inches
karaoke
speakers 650,000 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67 54,166.67
15 inches PA
speakers 168,000 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00
LCD TVs 32
inches 286,400 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67 23,866.67
LCD TVs 46
inches 579,000 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00 48,250.00
Data Projector
2,600 ANSI lm 79,800 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00
Data Projector
3,000 ANSI lm 99,800 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67 8,316.67
Electric motor
screen 100
inches 18,000 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Electric motor
screen 150
inches 45,000 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00
Total 40,733,000 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67 3,394,416.67
76
Profit/lose statement year 1
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Revenues
Service Revenues 347,000 321,000 312,000 321,000 347,000 338,900 322,000 299,000 289,700 330,000 342,000 384,000
Total Revenues 347,000 321,000 312,000 321,000 347,000 338,900 322,000 299,000 289,700 330,000 342,000 384,000
Expenses
Salaries and wage expenses 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000
Electricity expenses 198,500 200,400 250,000 268,000 210,000 215,000 196,000 200,700 196,000 247,800 195,000 220,500
Water supply expenses 4,000 4,000 4,500 4,600 4,200 4,100 4,000 4,150 3,900 4,200 4,000 4,000
Telephone 780 780 850 900 720 760 750 700 730 845 730 700
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300
Repair and maintenance equipment 0 0 100 550 280 150 0 0 0 0 0 0
Total opening expenses 572,580 574,480 624,750 643,350 584,500 589,310 570,050 574,850 569,930 622,145 569,030 594,500
- - - - - - - - - - - -
Net income/loss 225,580 253,480 312,750 322,350 237,500 250,410 248,050 275,850 280,230 292,145 227,030 210,500
77
Profit/lose statement year2
Revenues
Total Revenues 347,000 321,000 312,000 321,000 347,000 338,900 322,000 299,000 289,700 330,000 342,000 384,000
Expenses
Telephone 780 780 850 900 720 760 750 700 730 845 730 700
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300
- - - - - - - - - - - -
Net income/loss 225,580 253,480 312,750 322,350 237,500 250,410 248,050 275,850 280,230 292,145 227,030 210,500
78
Revenues
Total Revenues 347,000 321,000 312,000 321,000 347,000 338,900 322,000 299,000 289,700 330,000 342,000 384,000
Expenses
Telephone 780 780 850 900 720 760 750 700 730 845 730 700
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300
- - - - - - - - - - - -
Net income/loss 225,580 253,480 312,750 322,350 237,500 250,410 248,050 275,850 280,230 292,145 227,030 210,500
79
Revenues
Total Revenues 773,000 776,000 732,000 841,000 841,000 831,000 820,000 841,000 851,000 903,200 902,000 931,000
Expenses
Salaries and wage expenses 365000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000
Telephone 990 900 940 989 920 890 900 880 920 880 870 920
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300
Net income/loss 133,210 121,250 31,360 130,211 196,290 180,260 175,500 206,060 206,180 193,620 247,130 255,840
80
Revenues
Total Revenues 786,000 776,000 754,000 865,000 854,000 848,000 832,000 854,000 865,300 903,200 912,000 941,000
Expenses
Salaries and wage expenses 365000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000
Telephone 905 900 910 920 905 900 890 905 910 900 890 900
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300
Net income/loss 166,395 150,700 118,490 224,280 249,045 246,950 207,270 243,895 250,490 258,230 297,710 332,300
81
Income statement of year 1 Jan Feb Mar Apr May June July Aug Sep Oct
82
Sale in units
Sale revenue 670,100 780,000 870,000 947,000 790,000 669,000 690,000 784,000 870,000 960,00
Total sale 670,100 780,000 870,000 947,000 790,000 669,000 690,000 784,000 870,000 960,00
Gross margin 670,100 780,000 870,000 947,000 790,000 669,000 690,000 784,000 870,000 960,00
Operating Expense
Operating Income 670,100 780,000 870,000 947,000 790,000 669,000 690,000 784,000 870,000 960,00
Marketing expense
Administration expense
Salaries and wage expenses 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,00
Electricity expenses 187,000 188,500 222,000 224,000 200,500 195,000 190,000 193,400 189,400 224,00
Water supply expenses 3,780 3,800 4,400 4,600 3,970 4,020 3,850 3,860 3,760 4,30
Telephone 800 780 775 700 720 680 705 700 680 68
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,30
Repair and maintenance equipment - - 300 540 200 110 - - - 13
Total Administrative expense 560,880 562,380 596,775 599,140 574,690 569,110 563,855 567,260 563,140 598,41
Total expense 560,880 562,380 596,775 599,140 574,690 569,110 563,855 567,260 563,140 598,41
EBIT 109,220 217,620 273,225 347,860 215,310 99,890 126,145 216,740 306,860 361,58
Interest 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Interst income -307,446.67 -199,046.67 -143,441.67 -68,806.67 -201,356.67 -316,776.67 -290,521.67 -199,926.67 -109,806.67 -55,081.6
Tax income -92,234.00 -59,714.00 -43,032.50 -20,642.00 -60,407.00 -95,033.00 -87,156.50 -59,978.00 -32,942.00 -16,524.5
Net income/Loss -215,212.67 -139,332.67 -100,409.17 -48,164.67 -140,949.67 -221,743.67 -203,365.17 -139,948.67 -76,864.67 -38,557.1
Sale in units
Sale revenue 789,000 871,000 945,000 1,150,000 1,041,000 987,000 960,000 998,000 1,050,000 1,250,00
Total sale 789,000 871,000 945,000 1,150,000 1,041,000 987,000 960,000 998,000 1,050,000 1,250,00
Gross margin 789,000 871,000 945,000 1,150,000 1,041,000 987,000 960,000 998,000 1,050,000 1,250,00
Operating Expense
83
Operating Income 789,000 871,000 945,000 1,150,000 1,041,000 987,000 960,000 998,000 1,050,000 1,250,00
Marketing expense
Telephone 780 780 850 900 720 760 750 700 730 84
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,30
Repair and maintenance equipment 0 0 100 550 280 150 0 0 0
Total expense 572,580 574,480 624,750 643,350 584,500 589,310 570,050 574,850 569,930 622,14
EBIT 216,420 296,520 320,250 506,650 456,500 397,690 389,950 423,150 480,070 627,85
Interest 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Interst income -200,246.67 -120,146.67 -96,416.67 89,983.33 39,833.33 -18,976.67 -26,716.67 6,483.33 63,403.33 211,188.3
Tax income -60,074.00 -36,044.00 -28,925.00 26,995.00 11,950.00 -5,693.00 -8,015.00 1,945.00 19,021.00 63,356.5
Net income/Loss -140,172.67 -84,102.67 -67,491.67 62,988.33 27,883.33 -13,283.67 -18,701.67 4,538.33 44,382.33 147,831.8
Sale in units
Sale revenue 997,000 1,049,000 1,150,000 1,200,000 1,170,000 1,090,000 1,180,000 1,170,000 1,160,000 1,398,00
Total sale 997,000 1,049,000 1,150,000 1,200,000 1,170,000 1,090,000 1,180,000 1,170,000 1,160,000 1,398,00
Gross margin 997,000 1,049,000 1,150,000 1,200,000 1,170,000 1,090,000 1,180,000 1,170,000 1,160,000 1,398,00
Operating Expense
Operating Income 997,000 1,049,000 1,150,000 1,200,000 1,170,000 1,090,000 1,180,000 1,170,000 1,160,000 1,398,00
Marketing expense
84
Telephone 800 800 850 880 810 815 800 790 810 84
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,30
Repair and maintenance equipment 100 80 120 300 280 0 0 160 0
Total expense 575,250 589,180 612,670 615,080 584,390 584,115 586,160 575,100 580,810 609,54
EBIT 421,750 459,820 537,330 584,920 585,610 505,885 593,840 594,900 579,190 788,45
Interest 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Interst income 5,083.33 43,153.33 120,663.33 168,253.33 168,943.33 89,218.33 177,173.33 178,233.33 162,523.33 371,788.3
Tax income 1,525.00 12,946.00 36,199.00 50,476.00 50,683.00 26,765.50 53,152.00 53,470.00 48,757.00 111,536.5
Net income/Loss 3,558.33 30,207.33 84,464.33 117,777.33 118,260.33 62,452.83 124,021.33 124,763.33 113,766.33 260,251.8
Sale in units
Sale revenue 1,270,000 1,190,000 1,149,000 1,360,000 1,360,000 1,287,000 1,179,000 1,197,000 1,269,000 1,579,00
Total sale 1,270,000 1,190,000 1,149,000 1,360,000 1,360,000 1,287,000 1,179,000 1,197,000 1,269,000 1,579,00
Gross margin 1,270,000 1,190,000 1,149,000 1,360,000 1,360,000 1,287,000 1,179,000 1,197,000 1,269,000 1,579,00
Operating Expense
Operating Income 1,270,000 1,190,000 1,149,000 1,360,000 1,360,000 1,287,000 1,179,000 1,197,000 1,269,000 1,579,00
Marketing expense
Telephone 990 900 940 989 920 890 900 880 920 88
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,30
Repair and maintenance equipment 300 250 400 300 190 50 0 160 0 20
85
Total expense 639,790 654,750 700,640 710,789 644,710 650,740 644,500 634,940 644,820 709,58
EBIT 630,210 535,250 448,360 649,211 715,290 636,260 534,500 562,060 624,180 869,42
Interest 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Interst income 213,543.33 118,583.33 31,693.33 232,544.33 298,623.33 219,593.33 117,833.33 145,393.33 207,513.33 452,753.3
Tax income 64,063.00 35,575.00 9,508.00 69,763.30 89,587.00 65,878.00 35,350.00 43,618.00 62,254.00 135,826.0
Net income/Loss 149,480.33 83,008.33 22,185.33 162,781.03 209,036.33 153,715.33 82,483.33 101,775.33 145,259.33 316,927.3
Sale in units
Sale revenue 1,057,700 1,270,000 1,320,000 1,579,000 1,380,000 1,370,000 1,270,000 1,381,000 1,420,000 1,680,00
Total sale 1,057,700 1,270,000 1,320,000 1,579,000 1,380,000 1,370,000 1,270,000 1,381,000 1,420,000 1,680,00
Gross margin 1,057,700 1,270,000 1,320,000 1,579,000 1,380,000 1,370,000 1,270,000 1,381,000 1,420,000 1,680,00
Operating Expense
Operating Income 1,057,700 1,270,000 1,320,000 1,579,000 1,380,000 1,370,000 1,270,000 1,381,000 1,420,000 1,680,00
Marketing expense
Salaries and wage expenses 365000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,000 365,00
Telephone 905 900 910 920 905 900 890 905 910 90
Internet 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,300 4,30
Repair and maintenance equipment 0 600 300 300 750 700 340 500 400 77
Total expense 619,605 625,300 635,510 640,720 604,955 601,050 624,730 610,105 614,810 644,97
EBIT 438,095 644,700 684,490 938,280 775,045 768,950 645,270 770,895 805,190 1,035,03
Interest 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Interst income 21,428.33 228,033.33 267,823.33 521,613.33 358,378.33 352,283.33 228,603.33 354,228.33 388,523.33 618,363.3
Tax income 6,428.50 68,410.00 80,347.00 156,484.00 107,513.50 105,685.00 68,581.00 106,268.50 116,557.00 185,509.0
86
Net income/Loss 14,999.83 159,623.33 187,476.33 365,129.33 250,864.83 246,598.33 160,022.33 247,959.83 271,966.33 432,854.3
Balance sheet
Balance Sheet of Year 1 January Febuary March April May June July August September
Assets
Current assets
cash 1,800,000 500,000 0 290,000 0 0 0 1,200,000 520,00
87
Land 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,00
Other cash assets 496,049 1,156,479.33 1,956,265.33 1,985,054.33 2,245,707.66 2,685,393.33 2,785,802.33 1,920,552.33 2,934,826.3
Total current assets 9,103,951.33 9,456,479.33 9,756,265.33 10,075,054.33 10,045,709.66 10,485,393.33 10,585,802.33 10,920,552.33 11,254,826.3
Fixed assets
Building 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,00
Less: accrumulated depreciation 145,833.00 291,667.00 437,500.00 583,333.00 729,167.00 875,000.00 1,020,833.00 1,166,667.00 1,312,500.0
Plant and equipment 5,832,756 5,832,756 5,832,756 5,832,756 5,832,756 5,832,756 5,832,756 5,832,756 5,832,75
Less: accrumulated depreciation 98,321 196,642 294,963 393,284 491,605 589,926 688,247 786,568 884,88
Total fixed assets 40,588,602 40,344,447 40,100,293 39,856,139 39,611,984 39,367,830 39,123,676 38,879,521 38,635,36
Total assets 49,692,553.33 49,800,926.33 49,856,558.33 49,931,193.33 49,657,693.66 49,583,223.33 49,709,478.33 49,800,073.33 49,890,193.3
Liabilities&Equity
Liabilities
Taxes payable -92,234.00 -59,741.00 -43,032.50 -20,642.00 -60,407.00 -95,033.00 -87,156.50 -59,978.00 -32,942.0
Long term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,00
Total current liabilities 49,907,766.00 49,940,259.00 49,956,967.50 49,979,358.00 49,939,593.00 49,904,967.00 49,912,843.50 49,940,022.00 49,967,058.0
Equity
Owner equity 0 0 0 0 0 0 0 0
Retain earning -215,213 -139,333 -100,409 -48,165 -140,950 -321,744 -203,365 -139,949 -76,86
Total current equity -215,213 -139,333 -100,409 -48,165 -140,950 -321,744 -203,365 -139,949 -76,86
Total current liabilities and equity 49,692,553.33 49,800,926.33 49,856,558.33 49,931,193.33 49,657,693.66 49,583,223.33 49,709,478.33 49,800,073.33 49,890,193.3
Assets
Current assets
cash 2,100,000 3,400,500 2,300,330 890,870 3,050,000 2,000,540 1,865,000 1,950,900 2,500,00
Land 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,00
Other cash assets 2,371,003 1,264,758 2,632,812 1,472,826 2,507,701 3,742,505 4,122,466.32 4,306,814 4,057,88
Total current assets 12,271,003 12,465,258 12,733,142 10,163,696 13,357,701 13,543,045 13,787,466.32 14,056,814 14,357,88
88
Fixed assets
Building 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,00
Less: accrumulated depreciation 1,895,833.00 2,041,667.00 2,187,500.00 2,333,333.00 2,479,167.00 2,625,000.00 2,770,833.00 2,916,667.00 3,062,500.0
Less: accrumulated depreciation 1,278,173 1,376,494 1,474,815 1,573,136 1,671,457 1,769,778 1,868,099 1,966,420 2,064,74
Total assets 49,929,753 49,879,853 49,903,583 50,089,983 50,039,833 49,981,023 49,981,290.32 50,006,483 50,063,40
Liabilities&Equity
Liabilities
Taxes payable -60,074 -36,044 -28,925 26,995 11,950 -5,693 -8.015 1,945 19,02
Long term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,00
Total current liabilities 49,939,926 49,963,956 49,971,075 50,026,995 50,011,950 49,994,307 49999991.99 50,001,945 50,019,02
Equity
Owner equity 0 0 0 0 0 0 0 0
Retain earning -10,172.67 -84,102.67 -67,491.67 62,988.33 27,883.33 -13,283.67 -18,701.67 4,538.33 44,382.3
Total current equity -10,172.67 -84,102.67 -67,491.67 62,988.33 27,883.33 -13,283.67 -18,701.67 4,538.33 44,382.3
Total current liabilities and equity 49,929,753 49,879,853 49,903,583 50,089,983 50,039,833 49,981,023 49,981,290.32 50,006,483 50,063,40
Assets
Current assets
cash 2,350,400 4,050,400 0 0 3,380,700 1,257,800 3,560,800 3,900,500
Land 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,00
Other cash assets 5,125,785 3,708,010 10,080,074 8,371,818 5,235,963 7,523,292.33 5,552,401 5,457,916 9,586,86
Total current assets 15,276,185 15,558,410 17,880,074 16,171,818 16,416,663 16,581,092.33 16,913,201 17,158,416 17,386,86
Fixed assets
Building 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,00
89
Total assets 50,005,083 50,043,153 50,120,663 50,168,253 50,168,943 50,089,218.33 50,177,173 50,178,233 50,162,52
Liabilities&Equity
Liabilities
Taxes payable 1,525 12,946 36,199 50,476 50,683 26,765.50 53,152 53,470 48,75
Long term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,00
Total current liabilities 50,001,525 50,012,946 50,036,199 50,050,476 50,050,683 50,026,765.50 50,053,152 50,053,470 50,048,75
Equity
Owner equity 0 0 0 0 0 0 0 0
Retain earning 3,558.33 30,207.33 84,464.33 117,777.33 118,260.33 62,452.83 124,021.33 124,763.33 113,766.3
Total current equity 3,558.33 30,207.33 84,464.33 117,777.33 118,260.33 62,452.83 124,021.33 124,763.33 113,766.3
Total current liabilities and equity 50,005,083 50,043,153 50,120,663 50,168,253 50,168,943 50,089,218.33 50,177,173 50,178,233 50,162,52
Assets
Current assets
cash 2,054,000 3,490,500 3,005,000 0 0 2,509,000 0 6,500,700 3,400,89
Land 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,00
Other cash assets 8,557,726.33 7,267,650.33 7,907,643.33 12,354,877.33 11,662,340.33 9,315,693.33 11,964,316.33 5,732,560.33 9,135,873.3
Total current assets 18,411,726.33 18,558,150.33 18,712,643.33 19,154,877.33 19,462,340.33 19,624,693.33 19,764,316.33 20,033,260.33 20,336,763.3
Fixed assets
Building 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,00
90
Total assets 50,213,543.33 50,118,583.33 50,031,693.33 50,232,544.33 50,298,623.33 50,219,593.33 50,117,833.33 50,145,393.33 50,207,513.3
Liabilities&Equity
Liabilities
Taxes payable 64,063.00 35,575.00 9,508.00 69,763.30 89,587.00 65,878.00 35,350.00 43,618.00 62,254.0
Long term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,00
Total current liabilities 50,064,063.00 50,035,575.00 50,009,508.00 50,069,763.30 50,089,587.00 50,065,878.00 50,035,350.00 50,043,618.00 50,062,254.0
Equity
Owner equity 0 0 0 0 0 0 0 0
Retain earning 149,480.33 83,008.33 22,185.33 162,781.03 209,036.33 153,715.33 82,483.33 101,775.33 145,259.3
Total current liabilities&equity 50,213,543.33 50,118,583.33 50,031,693.33 50,232,544.33 50,298,623.33 50,219,593.33 50,117,833.33 50,145,393.33 50,207,513.3
Assets
Current assets
cash 6,630,090 4,700,480 5,010,000 2,500,500 2,560,450 2,040,870 1,590,000 2,450,780 1,700,45
Land 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 7,800,00
Other cash assets 6,686,121.33 9,063,720 9,035,373 12,040,046 12,058,244.33 12,813,113 13,381,686 12,881,914.33 13,913,92
Total current assets 21,116,211.33 21,564,200 21,845,373 22,340,546 22,418,694.33 22,653,983 22,771,686 23,132,694.33 23,414,37
Fixed assets
Building 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,00
Less: accrumulated depreciation 7,145,833.00 7,291,667 7,437,500.00 7,583,333.00 7,729,166.00 7,875,000.00 8,020,833.00 8,166,666.00 8,312,500.0
Total assets 50,021,428.33 50,228,033 50,267,823 50,521,613 50,358,378.33 50,352,283 50,228,603 50,348,228.33 50,388,52
Liabilities&Equity
Liabilities
91
Taxes payable 6,428.50 68,410 80,347 156,484 107,513.50 105,685 68,581 106,268.50 116,55
Long term debt 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000 50,000,00
Total current liabilities 50,006,428.50 50,068,410 50,080,347 50,156,484 50,107,513.50 50,105,685 50,068,581 50,106,268.50 50,116,55
Equity
Owner equity 0 0 0 0 0 0 0 0
Retain earning 14,999.83 159,623.33 187,476.33 365,129.33 250,864.83 246,598.33 160,022.33 241,959.83 271,966.3
Total current liabilities&equity 50,021,428.33 50,228,033 50,267,823 50,521,613 50,358,378.33 50,352,283 50,228,603 50,348,228.33 50,388,52
Cash Flow
Statement of cash flow
Year 1 January February March April May June July August September
Cash flow from operating activity
Cash recived on cash sale 670,100 780,000 870,000 947,000 790,000 669,000 690,000 784,000 870,00
Adjust depreciation 244,154.33 244,154.33 244,154.33 244,154.33 244,154.33 244,154.33 244,154.33 244,154.33 244,154.3
Cash paid for income tax -92,234.00 -59,714.00 -43,032.50 -20,642.00 -60,407.00 -95,033.00 -87,156.50 -59,978.00 -32,942.0
Other cash expense
Net cash flow fom Operating activity 822,020 964,440 1,071,122 1,170,512 973,747 818,121 846,998 968,176 1,081,21
92
Cash flow from selling and administrative activity

Administrative expense 560,880 562,380 596,775 599,140 574,690 569,110 563,855 567,260 563,14
Cash outflow from S and A activity 560,880 562,380 596,775 599,140 574,690 569,110 563,855 567,260 563,14
Cash flow fom financing activity
cash inflow
Borroing cash 50,000,000 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0
Repayment the principle 0 0 0 0 0 0 0 0
Interest payment 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Cashoutflow from financing activity 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Net cashflow from investment activity 50,416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Net cash increase or decrease 51,382,900 964,440.33 1,667,896.83 1,769,652.33 1,548,437.33 1,387,231.33 1,410,852.83 1,535,436.33 1,644,352.3
0h
Year 2 January February March April May June July August September
Cash recived on cash sale 789,000 871,000 945,000 1,150,000 1,041,000 987,000 960,000 998,000 1,050,00
Cash paid for income tax -60,074.00 -36,044.00 -28,925.00 26,995.00 11,950.00 -5,693.00 -8,015.00 1,945.00 19,021.0
Other cash expense
Net cash flow fom Operating activity 973,080 1,079,110 1,160,229 1,421,149 1,297,104 1,225,461 1,196,139 1,244,099 1,313,17
cash inflow
Borroing cash 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0
93
Net cashflow from investment activity 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.67 416,666.6
Net cash increase or decrease 1,545,660 1,079,110.33 1,784,979.33 2,064,499.33 1,881,604.33 1,814,771.33 1,766,189.33 1,818,949.33 1,883,105.3

Year3 January February March April May June July August September
Cash recived on cash sale 997,000 1,049,000 1,150,000 1,200,000 1,170,000 1,090,000 1,180,000 1,170,000 1,160,00
Cash paid for income tax 1,525.00 12,946.00 36,199.00 50,476.00 50,683.00 26,765.50 53,152.00 53,470.00 48,757.0
Other cash expense
Net cash flow fom Operating activity 1,242,679 1,306,100 1,430,353 1,494,630 1,464,837 1,360,920 1,477,306 1,467,624 1,452,91
cash inflow
Other 0 0 0 0 0 0 0 0

94
Cash recived on cash sale 1,270,000 1,190,000 1,149,000 1,360,000 1,360,000 1,287,000 1,179,000 1,197,000 1,269,00
Other cash expense
cash inflow
Other 0 0 0 0 0 0 0 0

Cash recived on cash sale 1,057,700 1,270,000 1,320,000 1,579,000 1,380,000 1,370,000 1,270,000 1,381,000 1,420,00
Other cash expense
95

cash inflow
Other 0 0 0 0 0 0 0 0
Sale decrease 5%
Year Lists Revenue Expenses Total
1 Sale revenue 9,565,645
Salaries and wage expenses 4,380,000
Electricity expenses 2,378,800
Water supply expenses 47,860
Telephone 8,595
Internet 51,600
Repair and maintenance
equipment 1,700
Total Expenses 6,868,555
96
Total Year 1 9,565,645 6,868,555 2,697,090

Telephone 9,245
Internet 51,600
equipment 1,080
Total Year 2 11,866,450 7,089,475 4,776,975
Telephone 9,815
Internet 51,600
equipment 1,280
Total Year 3 13,484,300 7,062,105 6,422,195
Telephone 10,999
Internet 51,600
equipment 1,940
Total Year 4 15,130,650 7,965,289 7,165,361
97

Telephone 10,835
Internet 51,600
equipment 5,110
Total Year 5 16,157,315 7,444,745 8,712,570
Profit of operation in 5 Years
Sale decrease 10 %
Telephone 8,595
Internet 51,600
equipment 1,700
Total Year 1 9,062,190 6,868,555 2,193,635
98

Telephone 9,245
Internet 51,600
equipment 1,080
Total Year 2 11,241,900 7,089,475 4,152,425
Telephone 9,815
Internet 51,600
equipment 1,280
Total Year 3 12,774,600 7,062,105 5,712,495
Telephone 10,999
Internet 51,600
equipment 1,940
Total Year 4 14,334,300 7,965,289 6,369,011
99

Telephone 10,835
Internet 51,600
equipment 5,110
Total Year 5 15,306,930 7,444,745 7,862,185
Profit of operation in 5 Years 26,289,751
Sale decrease 15%

Telephone 8,595
Internet 51,600
equipment 1,700
Total Year 1 8,558,735 6,868,555 1,690,180
100

Telephone 9,245
Internet 51,600
equipment 1,080
Total Year 2 10,617,350 7,089,475 3,527,875
Telephone 9,815
Internet 51,600
equipment 1,280
Total Year 3 12,064,900 7,062,105 5,002,795
Telephone 10,999
Internet 51,600
equipment 1,940
Total Year 4 13,537,950 7,965,289 5,572,661
101
Telephone 10,835
Internet 51,600
equipment 5,110
Total Year 5 14,456,545 7,444,745 7,011,800
Sale increase 5%

Telephone 8,595
Internet 51,600
equipment 1,700
Total Year 1 10,572,555 6,868,555 3,704,000
102
Telephone 9,245
Internet 51,600
equipment 1,080
Total Year 2 13,115,550 7,089,475 6,026,075
Telephone 9,815
Internet 51,600
equipment 1,280
Total Year 3 14,903,700 7,062,105 7,841,595
Telephone 10,999
Internet 51,600
equipment 1,940
Total Year 4 16,723,350 7,965,289 8,758,061
Telephone 10,835
103
Internet 51,600
equipment 5,110
Total Year 5 17,858,085 7,444,745 10,413,340
Sale increase 10%

Telephone 8,595
Internet 51,600
equipment 1,700
Total Year 1 11,076,010 6,868,555 4,207,455
Telephone 9,245
Internet 51,600
104

equipment 1,080
Total Year 2 13,740,100 7,089,475 6,650,625
Telephone 9,815
Internet 51,600
equipment 1,280
Total Year 3 15,613,400 7,062,105 8,551,295
Telephone 10,999
Internet 51,600
equipment 1,940
Total Year 4 17,519,700 7,965,289 9,554,411
Telephone 10,835
Internet 51,600
Repair and maintenance 5,110
105
equipment
Total Year 5 18,708,470 7,444,745 11,263,725
Sale increase 15%

Telephone 8,595
Internet 51,600
equipment 1,700
Total Year 1 11,579,465 6,868,555 4,710,910
Telephone 9,245
Internet 51,600
equipment 1,080
106
Total Year 2 14,364,650 7,089,475 7,275,175

Telephone 9,815
Internet 51,600
equipment 1,280
Total Year 3 16,323,100 7,062,105 9,260,995
Telephone 10,999
Internet 51,600
equipment 1,940
Total Year 4 18,316,050 7,965,289 10,350,761
Telephone 10,835
Internet 51,600
equipment 5,110
Total Year 5 19,558,855 7,444,745 12,114,110
107
No. Name ID Tel. E-mail 1203302

1. Miss Theerada Kongthong 5031205144 084-3727047 pook_look16@hotmail.com
2. Miss Theerarat Kongsakpakdee 5031205145 083-8647820 miss-whitday@hotmail.com PROJECT
3. Miss Wilairat Thonghong 5031205176 084-6573585 joizet_jungle@hotmail.com
4. Miss Sarocha Nimsuphan 5031205183 082-0281406 l3e_u@hotmail.com
5. Miss Oranuch Todamrongrat 5031205193 086-9173639 good_2050@hotmail.com
6. Miss Uratchat Mavangnootoon 5031205198 084-7631162 ek.niti@hotmail.com
7. Miss Wiwanda Poothong 5031205218 081-2488626 Ice_4pa-yoon@hotmail.com
8. Miss Siraprapha Nonpayom 5031205507 084-0002464 Watz4@hotmail.com
FEASIBILITY STUDY & EVALUATION
Business Administration School of Management
Tourism Management Major
Section 02
108

At Home Karaoke

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1

The Miracle can happen at here @ Home

@ Home Karaoke Group

-Background and Significance of the Project

Market Feasibility Study

Chapter 4 Technical Feasibility Study 31

-Production and Operations Analysis

Chapter 5 Financial Analysis 48

-Profit/ Loss Statement

Chapter 6 Risk Management 50

Background and Significance of the Project

Karaoke shop in Thailand is very popular in teenagers and workers group

The name of our company is At Home Karaoke Corporation. The reason

cafés around Thailand to respond all classes of people. The government

Product Life Cycle

2. Growth: The Company has many promotions to attract customers

3. Maturity: When At Home Karaoke is well-known in Chiang Mai and

4. Decline: This situation occurs because of external environment

Product and Service

Strategies of the company

Corporate level strategy

We will use growth strategies concept which emphasize on the

Business Level Strategy

Functional level strategy

1. Marketing mix strategies

2. Human resource management

Now a day, karaoke become to be the part of entertainment business in

Summary of the General Environmental Analysis

2. Bully Sing along

Jail Room Hip Hop Room

Erotic Room Japan Room

Marketing Mix Strategies (4P)

Place or Distribution Strategies, At Home Karaoke Company is located

Promotion Strategies, At Home Karaoke promotes company in several

For room size S

For room size M

For room size L

For room King size

Sale figure of the first years.

Sale figure of the second years.

Sale figure of the third years.

Sale figure of the fourth years.

Sale figure of the fifth years.

Sale figures for five years.

Marketing Expenses (Sales Incentive)

- Songs Copyright: The expenses depend on karaoke equipments or

- Karaoke Equipments: At Home purchases Karaoke Servers, Mirror

- Decorated Furniture: all of our building will outsource the other

- Advertisement: At Home Karaoke is advertised on its own website and

- Marketing Research Expenses: Such as questionnaires to know the

Production and operations Analysis

Product Characteristics (in detail)

Specification and feathers

For size S we provide 16 rooms as follow;

4. Super Space room

10. Under the hell

11. Rest room

12. Living room

13. Kitchen room

14. Library room

15. Theater room

16. Office room

For size M we provide 10 rooms as follow;