growth strategy

By : 

6/21/2010 1 By Dr. Krisdaporn Rujithamrongkul AIESEC

1. Economy & Export : 

6/21/2010 2 1. Economy & Export AIESEC The details of Economy and Export The situation and competitiveness Which industrials in Thailand will be growth Which things that exporter need government support A) What to Make Growth

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6/21/2010 3 Macro: What Co. 1 Micro: How Co 3 Co 4 Co. 2 Co. 5 Co. 5

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6/21/2010 4 1995 1998 2000 Capital Import Export Living cost GDP % 1.1) Thailand Economy

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6/21/2010 5 1995 1998 2000 Growth Rate Thailand Economy Situation

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6/21/2010 6 1995 1997 1998 Rate of Living cost %

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6/21/2010 7 Year 1995 and 2001 NO. OF FACTORY NO. OF EMPLOYMENT GNI/ GDP (Garment) GDP Per Capita Year 1995 Total Export Million US$ 4,660.00 (About 90%) Million US$ 4,194.00 Year 1997 Total Export Million US$ 3,289.00 (About 33%) Million US$ 1,100.00 Year 2001 Total Export Million US$ 3,159.64 (About 21%) Million US$ 659.00 Year 2001 Total Export Million US$ 2,721.50

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6/21/2010 8 1.2) Export: Thailand’s Competitiveness Key Issues in the Thai Economy 5 Clusters (Employment & Wages) :- 1. Automotive by Dr. Suteera 2. Software 3. Fashion : Textile and Apparel 4. Food / Beverages 5. Tourism

1.3) Thailand’s Export 1995-2000 : 

6/21/2010 9 1.3) Thailand’s Export 1995-2000 World export Share Textile Apparel** 0 0 % down up Chang in World Export Share Food/ Berages 3 % Tours Computer Transportation or Automotive * Furniture

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6/21/2010 10 Globalization or Dynamic How What 8’P Survival & Growth Government. Support

1.4) Theory : 

6/21/2010 11 1.4) Theory Competitiveness Advantage Theory SWOT Analysis by 5 Forces & MKG Mix Theory Growth Theory Management Theory The role of Financial by Mr. Sukit

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6/21/2010 12 Porter (1985, 1990, 2003) Competitiveness : 5 Forces Competitiveness Advantage: Diamond System Dr. Michael E. Porter

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6/21/2010 13 Garment Exporter Analysis Firm Strategy & Rivalry Factor (input) conditions Demand Conditions Related & Supporting Industry Thai Design Skill Infrastructure Design Research & Develop Price Foreigner and Subcontractors Material Import How Government

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6/21/2010 14 Determined by Productivity CT HM NRS Apparel Competitiveness Value Product Service Nation Domestic Foreign Firm Trading + Local Ind. Traded Ind. Devaluation What What + How Traded Ind.

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6/21/2010 15 SWOT

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6/21/2010 16 Need Tax Infrastructure Government Material Interest O: Opportunities from T: Threats External Threats World Economy Price Exchange Government Material Past Future

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6/21/2010 17 Critical Cash Payment Skill labour Miss order Innovation P-Framework S: Strengths and W: Weakness Enlarge Money Payment Miss order Internal Problems S-Framework Ex-Framework Samples Salesmen Past Future

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6/21/2010 18 8 P’ S

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6/21/2010 19 Delivery Market Successful Marketing Mix: 8 P' s Kotler: 4’P: Price Product Promotion Place Deter man: 3 P's Position Period Prefer Name Effect from Strategy Lee+Park:2003, Loh:2002 Prefer Relation

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6/21/2010 20 Performance

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6/21/2010 21 McMahon (2001) Financial Characteristics : PER Sale Growth Sale Liquidity Profit Enterprise Characteristics : IND Enterprise Size SME Growth การเติบโตของ อุตสาหกรรมขนาด เล็กและกลาง Dr. Richard G.P. MaMahon

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6/21/2010 22 Growth

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6/21/2010 23 Growth Theory Mark(1867-1894) Keynesians (1936), Harrod (1939), Domar(1946), O’Farrel & Hitchen (1988), Yvon Gase (1988), After Mark / Hahn F. (1987) Schumpeter (1911), Solow-Swan(1956) Develop Growth: Profit & Sale System Labor Labor Techno Dr. Karl Mark Dr. Joseph A. Schumpeter

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6/21/2010 24 Management

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6/21/2010 25 Management: Carson & Gilmore (2000) How’s Factors Market Strategy Business’s Successful ความสำเร็จของอุตสาหกรรม Competency Network Frameworks & Standards Innovation Dr. David Carson

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6/21/2010 26 1.5) Industrials’ Structure Down stream Medium Stream Upper Stream

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6/21/2010 27

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6/21/2010 28 Apparels commodity chain / the structure of Thai Garments Yarn Textile Garments Apparels Export Marketing Homework CMT Subcontractors industrials Agency F- Subcontractors Direct Center Retail Wholesale Foreign F-Office Cotton Synthetic

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6/21/2010 29 Supply Chain Management

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6/21/2010 30 2. Entreprenures 1. Definition or Means A PERSON WHO IS NOT ONLY SELF-EMPLOYED BUT GENERATES EMPLOYMENT AND INCOME FOR OTHERS THROUGH A COMBINATION OF EFFORTS REQUIRING ZEAL AND CAPABILITY TO TRANSFORM PHYSICAL, LAND, FINANCIAL, NATURAL AND HUMAN RESOURCES FOR PRODUCTION AND STRATEGIES POSSIBILITIES TO EXTRACT THE BUSINESS POTENTIAL WITHIN ANY SITUATION

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6/21/2010 31 Entreprenures Gender Age Education Experience 2.1 The Characters: Physical/ Object According the Business

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6/21/2010 32 2.2. The Entreprenures Competency or potentials Competency by: Experimental learning + Experience + Communication & Coordination + Judgments Cumulated Knowledge of Doing - Technical Expertise - Business Acumen - MKG Environment Develop overtime + Learning from success & Failures Theory - Concept -Technique

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6/21/2010 33 2.3 The Characters traits of Successful Entrepreneurs Drive Hard Work Hard Play Hard Finish Well

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6/21/2010 34 Age:41-45 Age 41-45 Male Female Single and Man Married More B.B.A 2.4 Entrepreneurs Characters More B.B.A Production -Experience Past Future

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6/21/2010 35 3. New Entreprenures' Characters in Future ? 4. New Entreprenures' Skills and This Program

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6/21/2010 36 SME: National Enterprise or Home Nation Sample

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6/21/2010 37 STRATEGIES (1) Which are the key factors that can be identified using the Growth Strategy (2) How the key factors are to be identified using the Growth Strategy (3) To integrate the Growth factors identified into business performance to develop a Growth Strategy 5. Market Characters

Position in the Market : 

6/21/2010 38 Position in the Market Matter of Law or Agreement…Quota The Types of Products…Boy, Girl etc The Kinds of Materials…Woven, Knit etc Which Class of Products…Low, High etc Where to export (regional)...US, ASIA etc

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6/21/2010 39

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6/21/2010 40 Shifts in the Regional Structure of Japanese Apparel Imports from 1990 to 1999 Middle East: Low-Medium High China AFTA/ China ASIA

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6/21/2010 41 Shifts in the Regional Structure of U.S. Apparel Imports from 1990 to 2001 NAFTA

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6/21/2010 42 Advantage Position in Market Knitted Fashion Lady ASIA ASIA - USA NUS Synthetic Medium Girl SUS Boy Past Future

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6/21/2010 43 Shifts in the Regional Structure of European Apparel Imports from 1990 to 1999 EFTA EU

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6/21/2010 44 Q-Matter Knitted Boy EU EU - ETC OTH Lady and Boy Past Future Advantage Position in Market

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6/21/2010 45 Wage Material Labor Wage Material Capital Capital Labor 6. Market Sources Change effected Past Future

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6/21/2010 46 Agency Sub-Representative Agency Sub-Representative Produce-Export Industrials Age Industrials Age 7. Industrials’ Characters Thai-Partner Past Future Export Types

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6/21/2010 47 Employee-Size Machine-Size Performance Indicators No-Performance Sale 45,46 8. Performance Profit45 Past Future

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6/21/2010 48 Production Framework Network Network -Internet Competency B) How to Make Growth Innovation Framework -Scale Innovation -CMS MK-Strategy MK-Effected Performance How Factors identified Growth Past Future

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6/21/2010 49 See you Again in AFTERNOON

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6/21/2010 50 The Growth Strategies for Small-Medium sized Garment Export Industries

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6/21/2010 51 Growth Strategy

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6/21/2010 52 Growth Strategies Growth level Indicators M1- revenuers added M2- profit added M3- strong added M4- strong and profit added

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6/21/2010 53 What Internal Market Char Market Changed Entrepre Char How Network Innovation Market Strategies 8 P ’s effected Performance External Industrials Char Performance Framework & Standard Competency Model 1. Revenue added Revenue added

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6/21/2010 54 Model 1. External Developed Market 1.Buyers’ Economy 3.Material in country 2.Rate of Exchange 4.Gov. Policy 5.Price

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6/21/2010 55 Market 1.Money Enlarge 2.Miss order 3.Payment Collected 4.Skill 5.Frameworks & Standard Model 1. Internal Developed

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6/21/2010 56 ASIA High Class Low Class Model 1. Market Developed North USA High Class South USA Boy Cloth Medium Class Europe Medium Class MFA/ ATC agreement / matters of law, culture / buy potential OTHER Men Cloth Ladies Cloth

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6/21/2010 57 4.Wage Up 1.Capital Sources Up 2.Material Sources Down 3.Labors Sources Up Model 1. Market sources Developed

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6/21/2010 58 3. Foreign-Representatives 4. Produced & Export 2. Agency 1. Industrials’ Age Model 1. Industrials' Developed 5. Partner

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6/21/2010 59 3. Married 4. Education more than BBA 2. Female 1. Ages 41- 45 Model 1. Entreprenures' Developed

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6/21/2010 60 4. Rate of Profit Down 2. Machines’ amount: Size 3. Rate of Sales Up 1. Labors’ amount: Size Model 1. Performance Developed

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6/21/2010 61 7. Produce in Factory 3.Music to added job 5. Checking before work 2. Reduce Missing Each Step 1. Participated 4. Goal Setting 6. Standardization Model 1. Production Framework Developed

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6/21/2010 62 4.Jointed same Business 2. Government Guarantee NW 6. Agency in Oversea 5. Agency in Thailand 1. Famous Brand & Bigger NW 3. Training Organization 7. Retails and Wholesales in Thailand 10. Buyers’ Advised 8. Shop by Internet 9. Contract Clearly Model 1. Network Developed 11. Related more than 10 years

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6/21/2010 63 4. Quality & Saving Judgments 2.Good Material Managed 6. Acumen to solve problem 5.Skill learning 1.Cash-Credit sources 3. Machines & Technology Managed 7. Information Managed Model 1. Competency Developed 8. Buyers’ Visited

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6/21/2010 64 4.Package Designed-Software 2.Internet-Software 6.OBM-Software by Brand 5.ODM-Software by Design 1.CMS-Hardware Computer Move System by Assembly line 3.New Styles-Software 7.OEM-Software by Service Original Equipment Manufacture Model 1. Innovation Developed

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6/21/2010 65 Model 1. Strategies Deleloped 4. Internet by B2B 2. Government’s MK Information 6. Copy 5. Good brand 1. Niche Market 3. Government’s Exhibition

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6/21/2010 66 10. Value added and Cost Saving from Business in Thailand 8. Differentiated 11. More CMT that miss less than 2 % 7. New Goods 9. Oversea Network concentrated Model 1. Strategies Devloped

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6/21/2010 67 Model 1. Strategies Developed 17. GUANXI and Honest 13. Buy Copy right, brand or representatives 14. Foreign partner who have MK 15. Knowledge concentrated 16. Work Environment Changed 12. oversea Design Adjusted

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6/21/2010 68 4. Place: Distribution 1. Product: Unit Price 2. Product: Unit Cost 3. Product: Quantity 5. Period / lead Time / Delivery 6. Prefer Names 7. Position 8. Prefer Relationship Model 1. Market Mix Developed

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6/21/2010 69 4. Rate of Sales Growth Before 2. Festival Work Less Than 12 Hours 1. CMT/ Stitching Subcontractors amount: Size 3. Capital More than 20 Million Model 1. Performance Developed

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6/21/2010 70 What Model 2. Profit added ( ≥ 25 % ) Tax Frameworks Entrepreneurs’ AGE How Cash/credit sources Comp Profit added CMT Control Comp Extend MK by Government Place / Distribution Rate of Sale Growth Before

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6/21/2010 71 Performance make S&R What Model 3. Strong & Rapid Growth Internal make S&R Market make S&R Skill Labor Sources make S&R How Network Strong & Rapid Innovation Strategy Unit Price Performance

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6/21/2010 72 Model 3. Produce S&R Developed 2.Hardware & Software Innovation 3.Framework & Standard 1.Skill labors

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6/21/2010 73 Model 3. Market S&R Developed North USA Synthetics High Class Cloths Ladies’ Fashion South USA High Class Cloths EU Knitted High Class Cloths

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6/21/2010 74 Model 3. Sources Changed Make S&R Skill Labors Sources UP

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6/21/2010 75 Model 3. Performance make S&R Developed 3.Sale Rate (Before + Now) 1. Capital Less than 20 Million 2.Liquidity (Now)

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6/21/2010 76 Model 3. Network make S&R 1. Jointed same Business 2. Retails &Wholesales by IT 3. Contract Clearly

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6/21/2010 77 Model 3. Innovation make S&R 1. CMS: Computer Move System 2. New design by Material in Thailand and Oversea combined 3. ODM: Design

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6/21/2010 78 1. JIT: Just in Time 2. Delivery by honest Model 3. Strategies make S&R

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6/21/2010 79 Model 3. Performance make S&R 1. Capital Less than 20 million 2. Machines’ Amount: Size 3. Liquidity (Now) 4. Rate of Sale Growth Before

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6/21/2010 80 What Model 4. 1 S&R w Profit added ≥ 25 %*** Sales framework Productions Framework How Checking before Production Production Types by Cycle Relationship and Honest Namely Performance Skill labor Amount: Size S&R Growth Profit added

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6/21/2010 81 What Model 4.2 S&R w Profit added ≥ 25 % Sales framework Productions Framework How Production Types by Cycle Relationship and Honest Namely Industrials’ AGE S&R Growth Profit added

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6/21/2010 82 What Model 6. M-S-R Profit added 10-25% for Small Exporter Government Support Capital to enlarge Business How Products Design by Oversea ST Skill - Knowledge developed ST M-S-R Growth Profit added

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6/21/2010 83 Conclude: Garment / Apparel Export

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6/21/2010 84 Skill Labors Production System Sales System A Rapid Growth Strong Growth Survival Namely Need Government Support Help by Themselves Summary: Export Growth

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6/21/2010 85 Namely Survival A Rapid Growth Strong Growth Goverment Subsidizes Production Framework Sales Framework Skill Labors Profit

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6/21/2010 86 Advise from Apparel Exporters

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6/21/2010 87 Goverment Policy should be Supported 1.Materials 2.Strategies 3.Competitive 3.Research/D 4.Account

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6/21/2010 88 Question Export Entrepreneur in Future ? 3. How About of This Program ? 2. Which Things are the New Exporter need to do ? 4. Government should be doing ?

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6/21/2010 89 WHAT Market Changed Markets Characters Threats & Problem Industrials Characters Entrepreneurs Characters IP + EX MK STU IND ENP SALE GROWTH WHAT 1-5 / All Growth level Growth Integrated

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6/21/2010 90 Growth Integrated HOW Framwork+Standard Network Copetency Innovation 8P’s Mix FRAMSD NW COM INN EFF Strategy ST Growth Level

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6/21/2010 91 Growth Level Growth Level SALE GROWTH HOW 1-5 / All FRAMSD NW COM INN EFF ST Growth Integrated

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6/21/2010 92 Recession Profit added Growth Level Medium Growth Entrepreneur Reason Strong Growth Fixed Growth Rapid Growth Growth Integrated

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6/21/2010 93 Entrepreneurs’ Reason Medium Growth Recession Fixed Growth Medium Growth Strong Growth Rapid Growth Recession Fixed Growth Strong Growth Rapid Growth Growth Integrated Entrepreneurs’ Reason

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6/21/2010 94 Strong Growth Revenue added Profit added Recession Fixed Growth Strong Growth Rapid Growth Medium Growth What & How Growth Integrated Growth Developed Rapid Growth

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6/21/2010 95

Thanks you very much : 

6/21/2010 96 Thanks you very much Hope New Entrepreneurs as you are Good luck.