Etps Feasibility Report

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    PROJECT REPORT

    In the partial fulfillment for the award of Bachelor of Technology

    Degree In

    MECHANICAL ENGINEERING

    From

    Kurukshetra University, Kurukshetra

    SUBMITTED TO:- SUBMITTED BY-

    Er. Gaurav Mehta ABCDZ (2708200)

    AP-ME Deptt. Mech. 8Th

    Sem.

    June-2012

    DEPARTMENT OF MECHANICAL ENGINEERING

    JAN NAYAK CHAUDHARY DEVI LAL COLLEGE OF ENGINEERING

    SIRSA

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    ACKNOWLEDGEMENT

    It gives us a great pleasure to present this SSI project report on

    XYZ Pvt. Ltd. I would like to express our sincere thanks, with a

    deep sense of gratitude to our Guide Er. Gaurav Mehta, AP-ME

    Department for his keen interest, valuable guidance and constant

    motivation which is primarily responsible for completion of this

    Project report.

    I am thankful to all the Mechanical Engineering Department

    for their valuable guidance, suggestions and timely help. The well

    experienced and skilled staff of Mechanical Department imparted

    us technical knowledge to a great extent by preparing this Project

    Report under the guidance of our guide and Mechanical

    department.

    ABCZ (2708200)

    B. Tech. (Mechanical Engg.)

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    CERTIFICATE

    This is to certify that me the students of B.Tech. VIIIth

    Semester

    (Mechanical Engineering) have successfully completed the SSI

    project report entitled Concrete pipe in the partial fulfillment

    for the award of Bachelor of Technology Degree in Mechanical

    Engineering from Kurukshetra University, Kurukshetra during the

    academic year 2011.

    I wish him a prosperous & bright future with all the great

    silvery success in their career.

    ABCZ (2708200)

    Er. Gaurav Mehta Er. Rajdeep Singh

    AP-ME Deptt. HOD -ME Deptt.

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    PROJECT REPORT

    Under Small Scale Industries Schemes

    1. Firm Name:-XYZ Pvt. Ltd.

    .2. Address:- Plot no 41, Phase-II, Industrial Area, Sirsa

    (Haryana)-125055

    3. Nature of Business: -Manufacturing of XYZ Products.

    4. Target: - 500 Units per month.

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    CONTENTS

    Description Page No.

    Introduction to Small Scale Industry 7 MSME 8 How to Start a Small Scale Industry 9 Financial Requirements 31 Small Industrial Development Organization 32 Important schemes of Financial SFC 34 Concept of Marketing 36 Steps In Marketing Management 40 Product Classification 41 Organization Structure of SSI 47 Organization Under SSI 48 SWOT analysis 50 Market Potential 73 Basis and Presumption 74 Raw Material 87 Conclusion 89

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    INTRODUCTION TO SMALL SCALE INDUSTRY

    The SSI (SMALL SCALE INDUSTRY) today is immense for the

    growth of the country. Small scale industries are the industries

    which are run with the help of hired labors and which also use

    some simple machine and power.

    The investment scale in this industry from 5 lakh to 1crore for

    fixed assets. Irrespective number of worker engaged is small scale

    industry unit.

    In India these type of industries are permuted to meet with the

    problem of excess population & unemployment so the government

    of India praise entrepreneur to step up small scale industries by

    aiding him by giving loans, land, guidance etc. The strategy

    adopted by the government is:-

    1. Public entrepreneurship should remain confined only to those

    industries & sector where private enterprise, individual or

    corporate, is generally not attracted. Existing public

    entrepreneurship be improved through better management & by

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    putting relative greatly emphasis on research &development. There

    is need to streamline the R&D wing of public sector enterprise.

    2. All possible efforts are made very seriously (not casually) for

    the development of an industrial culture. It should be realize that

    the central core of entrepreneurship is the motive force since by its

    nature; entrepreneurship implies positive action and individual

    with the right kind of combination of ability can pursue their goal

    with unremitted courage and enthusiasms.

    3. There is need to development management education and

    industrial training.

    4. The development of backward region / area constitutes a new

    challenge. Program for their development be drawn up and should

    be effective implemented.

    5. Adequate measure is a must for mobilizing & casting the

    entrepreneurs talent in the country. In this context, it should be

    realized that entrepreneurs are not the grief of a particular classes.

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    6. Economic administration by the state should be improved and

    made more effective so that economic policy may be fully

    achieving their objective in the overall interest of economy.

    7. Financial institute should provide adequate and timely credit and

    timely create and technical assistance, especially to the small and

    medium sized enterprise. They may also impart knowledge about

    the need of economy and they should file their massive data in

    term of growth of new entrants or entrepreneurs in the field of

    industry.

    Definitions of Micro, Small & Medium Enterprises

    In accordance with the provision of Micro, Small & Medium

    Enterprises Development (MSMED) Act, 2006 the Micro, Small

    and Medium Enterprises (MSME) are classified in two Classes:

    (a) Manufacturing Enterprises- The enterprises engaged in the

    manufacture or production of goods pertaining to any industry

    specified in the first schedule to the industries (Development and

    regulation Act,1951). The Manufacturing Enterprise are defined in

    terms of investment in Plant & Machinery.

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    (b) Service Enterprises: The enterprises engaged in providing or

    rendering of services and are defined in terms of investment in

    equipment. In India, the Micro and Small Enterprises (MSEs)

    sector plays a pivotal role in the overall industrial economy of the

    country. It is estimated that in terms of value, the sector accounts

    for about 39% of the manufacturing output and around 33% of the

    total export of the country. Further, in recent years the MSE sector

    has consistently registered higher growth rate compared to the

    overall industrial sector. The major advantage of the sector is its

    employment potential at low capital cost. As per available

    statistics, this sector employs an estimated 31 million persons

    spread over 12.8 million enterprises and the labour intensity in the

    MSE sector is estimated to be almost 4 times higher than the large

    enterprises.

    http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/India
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    Enterprises Investment in plant & machinery

    Micro

    Enterprises Does not exceed twenty five lakh rupees

    Small

    EnterprisesMore than twenty five lakh rupees but

    does not exceed five crore rupees

    Medium

    Enterprises

    More than five crore rupees but does not

    exceed ten crore rupees

    Service Sector

    Enterprises Investment in equipments

    MicroEnterprises Does not exceed ten lakh rupees:

    Small

    Enterprises

    More than ten lakh rupees but does not

    exceed two crore rupees

    Medium

    Enterprises

    More than two crore rupees but does not

    exceed five core rupees

    MINISTRY OF MICRO, SMALL AND MEDIUMENTERPRISES

    The President under Notification dated 9th

    May 2007 has amended

    the Government of India (Allocation of Business) Rules, 1961.

    Pursuant to this amendment, Ministry of Agro and Rural

    Industries (Krishi Evam Gramin Udyog Mantralaya) and Ministry

    of Small Scale Industries (Laghu Udyog Mantralaya) have been

    merged into a single Ministry, namely, MINISTRY OF MICRO,

    SMALL AND MEDIUM ENTERPRISES ( SUKSHMA LAGHU

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    AUR MADHYAM UDYAM MANTRALAYA) Worldwide, the

    micro small and medium enterprises (MSME) have been accepted

    as the engine of economic growth and for promoting equitable

    development. The major advantage of the sector is its employment

    potential at low capital cost. The labour Intensity of the MSME

    sector is much higher than that of the large enterprises. The

    MSME constitute over 90% of total enterprises in most of the

    economies and are credited with generating the highest rates of

    employment growth and account for a major share of industrial

    production and exports. In India too, the MSME play a pivotal

    role in the overall industrial economy of the country. In recent

    years the MSME sector has consistently registered higher growth

    rate compared to the overall industrial sector. With its agility and

    dynamism, the sector has shown admirable innovativeness and

    adaptability to survive the recent economic downturn and

    recession.

    As per available statistics (4th

    Census of MSME Sector), this sector

    employs an estimated 59.7 million persons spread over 26.1

    million enterprises. It is estimated that in terms of value, MSME

    sector accounts for about 45% of the manufacturing output and

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    around 40% of the total export of the country.

    TRAINING INSTITUTES

    National Entrepreneurship Development Institutes

    National Institute for Entrepreneurship and Small BusinessDevelopment (NIESBUD), NOIDA

    National Institute of Micro, Small and Medium Enterprises(NIMSME)

    (Formerly National Institute of Small Industry Extension

    Training (NISIET))

    Indian Institute of Entrepreneurship (IIE), GuwahatiOthers

    MSME Development Institutes

    Tool Rooms

    Central Footwear Training Centres, Agra & Chennai Fragrance and Flavour Development Centre, Kannauj

    Process-cum-Product Development Centre, Agra

    Electronics Service & Training Centre, Ram Nagar

    Institute for Design of Electrical Measuring Instruments,Mumbai

    http://niesbud.nic.in/http://niesbud.nic.in/http://niesbud.nic.in/http://niesbud.nic.in/http://www.nimsme.org/http://www.nimsme.org/http://www.nimsme.org/http://www.nimsme.org/http://iie.nic.in/http://www.laghu-udyog.com/sido/sisi.htmhttp://www.laghu-udyog.com/sido/sisi.htmhttp://www.laghu-udyog.com/sido/sisi.htmhttp://www.laghu-udyog.com/NASApp/senetwar/ctrlDRSearch.jsp?MethodType=getOffTypeListinghttp://www.laghu-udyog.com/NASApp/senetwar/ctrlDRSearch.jsp?MethodType=getOffTypeListinghttp://www.laghu-udyog.com/NASApp/senetwar/ctrlDRSearch.jsp?MethodType=getOffTypeListinghttp://www.laghu-udyog.com/sido/ktdfw01x.htmhttp://www.laghu-udyog.com/sido/ktdfw01x.htmhttp://www.laghu-udyog.com/sido/ktdfw01x.htmhttp://www.ffdcindia.org/training.htmhttp://www.ffdcindia.org/training.htmhttp://www.ffdcindia.org/training.htmhttp://www.ppdcagra.com/http://www.ppdcagra.com/http://www.ppdcagra.com/http://www.estcindia.com/http://www.estcindia.com/http://www.estcindia.com/http://www.idemi.org/training.htmhttp://www.idemi.org/training.htmhttp://www.idemi.org/training.htmhttp://www.idemi.org/training.htmhttp://www.idemi.org/training.htmhttp://www.idemi.org/training.htmhttp://www.estcindia.com/http://www.ppdcagra.com/http://www.ffdcindia.org/training.htmhttp://www.laghu-udyog.com/sido/ktdfw01x.htmhttp://www.laghu-udyog.com/NASApp/senetwar/ctrlDRSearch.jsp?MethodType=getOffTypeListinghttp://www.laghu-udyog.com/sido/sisi.htmhttp://iie.nic.in/http://www.nimsme.org/http://www.nimsme.org/http://niesbud.nic.in/http://niesbud.nic.in/
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    ECOMOMIC PERFORMANCE

    Production

    The small-scale industries sector plays a vital role in the growth of

    the country. It contributes almost 40% of the gross industrial value

    added in the Indian economy. It has been estimated that a million

    Rs. of investment in fixed assets in the small scale sector produces

    4.62 million worth of goods or services with an approximate value

    addition of ten percentage points. The small-scale sector has grown

    rapidly over the years. The growth rates during the various plan

    periods have been very impressive. The number of small - scale

    units has increased from an estimated 0.87 million units in the year

    1980-81 to over 3 million in the year 2000. When the performance

    of this sector is viewed against the growth in the manufacturing

    and the industry sector as a whole, it instills confidence in the

    resilience of the small-scale sector.

    Employment

    SSI Sector in India creates largest employment opportunities for

    the Indian populace, next only to Agriculture. It has been estimated

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    that 100,000 rupees of investment in fixed assets in the small-scale

    sector generates employment for four persons

    Generation of Employment - Industry Group-wise

    Food products industry has ranked first in generating employment,

    providing employment to 0.48 million persons (13.1%). The next

    two industry groups were Non - metallic mineral products with

    employment of 0.45 million persons (12.2%) and Metal products

    with 0.37 million persons (10.2%). In Chemicals & chemical

    products, Machinery parts except Electrical parts, Wood products,

    Basic Metal Industries, Paper products & printing, Hosiery &

    garments, Repair services and Rubber & plastic products, the

    contribution ranged from 9% to 5%, the total contribution by these

    eight industry groups being 49%. In all other industries the

    contribution was less than 5%.

    Per unit employment

    Per unit employment was the highest (20) in units engaged in

    beverages , tobacco & tobacco products mainly due to thehigh employment potential of this industry particularly in

    Maharashtra, Andhra Pradesh, Rajasthan, Assam and Tamil

    Nadu. Next came

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    Cotton textile products, Non- metallic mineral products, Basic

    metal industries and Electrical machinery and parts. Per unit

    employment was the highest in metropolitan areas and

    lowest in rural areas. However, in Chemicals & chemical

    products, Non-metallic mineral products and Basic metal

    industries per unit employment was higher in rural areas as

    compared to metropolitan areas/urban areas. In urban areas

    highest employment per unit was in Beverages, tobacco

    products (31 persons) followed by Cotton

    textile products , Basic metal industries and Non-metallicmineral products.

    Location-wise Employment DistributionRural

    Non-metallic products contributed 22.7% to employment

    generated in rural areas. Food Products accounted for 21.1%,

    wood products and chemical products shared between them 17.5%.

    Urban

    As for urban areas, Food Products and Metal Products almost

    Equally shared 22.8% of employment. Machinery parts except

    Electrical , Non-metallic mineral products, and Chemicals &

    Chemical products between them accounted for 26.2% of

    Employment. In metropolitan areas the leading industries were

    Metal products, Machinery and parts except electrical and Paper

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    products & printing .

    Export

    SSI Sector plays a major role in India's present export

    performance .45%-50% of the Indian Exports is contributed by SSI

    sector . Direct exports from the SSI Sector account for nearly 35%

    of total exports. Besides direct exports, it is estimated that small-

    scale industrial units contribute around 15% to exports indirectly.

    This takes place through merchant exporters, trading houses and

    export houses. They may also be in the form of export orders from

    large units or the production of parts and components for use for

    finished exportable goods. It would surprise many to know that

    non-traditional products account for more than 95% of the SSI

    exports. The exports from SSI sector have been clocking excellent

    growth rates in this decade. It has been mostly fuelled by the

    performance of garments, leather and gems and jewellery units

    from this sector. The product groups where the SSI sector

    dominates in exports, are sports goods, readymade garments,

    woolen garments and knitwear, plastic products, processed food

    and leather products. The SSI sector is reorienting its export

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    strategy towards the new trade regime being ushered in by the

    WTO.

    Opportunity

    The opportunities in the small-scale sector are enormous due to the

    following factors:

    :-Extensive Promotion & Support by Government

    :-Less Capital Intensive

    :-Reservation for Exclusive Manufacture by small scale

    sector

    :-Project Profiles

    :-Funding - Finance & Subsidies

    :-Machinery Procurement

    :-Raw Material Procurement

    :-Manpower Training

    :-Technical & Managerial skills

    :-Tooling & Testing support

    :-Reservation for Exclusive Purchase by Government

    :-Export Promotion

    :-Growth in demand in the domestic market size due to

    overall

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    :-economic growth

    :-Increasing Export Potential for Indian products

    :-Growth in Requirements for ancillary units due to the

    increase in number of green field units coming up in the large

    scale sector.

    :-Small industry sector has performed exceedingly well

    and enabled

    :-our country to achieve a wide measure of industrial growth

    and diversification.

    By its less capital intensive and high labour absorption nature, SSI

    Sector has made significant contributions to employment

    Generation and also to rural industrialisation. Thissector is ideally

    suited to build on the strengths of our traditional skills and

    knowledge, by infusion of technologies, capital and innovative

    marketing practices. This is the opportune time to set up projects in

    the small-scale sector. It may be said that the outlook is positive,

    indeed promising, given some safeguards. Thisexpectation is based

    on an essential feature of the Indian industry and the demand

    structures. The diversity in production systems and demand

    structures will ensure long term co-existence of many layers of

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    demand for consumer products / technologies / processes. There

    will be flourishing and well grounded markets for the same

    product / process, differentiated by quality, value added and

    sophistication. This characteristic of the Indian economy will allow

    complementary existence for various diverse types of units. The

    promotional and protective policies of the Govt. have ensured the

    presence of this sector in an astonishing range of products ,

    particularly in consumer goods. However, the bugbear of the sector

    has been the inadequacies in capital, technology and marketing.

    The process of liberalization coupled with Government support

    will therefore , attract the infusion of just these things in the sector.

    Small industry sector has performed exceedingly well and enabled

    our country to achieve a wide measure of industrial growth and

    diversification. By its less capital intensive and high labour

    absorption nature, SSI sector has made significant contributions to

    employment generation and also to rural industrialization. This

    sector is ideally suited to build on the strengths of our traditional

    skills and knowledge, by infusion of technologies, capital and

    innovative marketing practices. So this is the opportune time to set

    up projects in the small scale sector. It may be said that the outlook

    is positive, indeed promising, given some safeguards . This

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    expectation is based on an essential feature of the Indian industry

    and the demand structures. The diversity in production systems

    and demand structures will ensure long term co-existence of many

    layers of demand for consumer products / technologies / processes.

    There will be flourishing and well grounded markets for the same

    Product / process, differentiated by quality , value added and

    sophistication. This characteristic of the Indian economy will allow

    complementary existence for various diverse types of units. The

    promotional and protective policies of the Govt. have ensured the

    presence of this sector in an astonishing range of products,

    particularly in consumer goods . However, the bug bear of the

    sector has been the inadequacies in capital , technology and

    marketing . The process ofliberalization will therefore, attract the

    infusion of just these things in the sector.

    MSME and their role in socio economic development

    The importance of Micro, small and medium enterprises (MSME)

    for its contribution in the Indian economy growth is a matter of

    record and needs no further elaboration. However with the

    changing focus from economic growth to inclusive growth, MSME

    sector role in the socio economic development of India needs to be

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    understood, explored and facilitated. What is so significant about

    MSME that makes them special in their relation to socio

    economic development of the country?

    Here are few facts which may give answer to this question.

    Wide spread reach: There are around 12.34 million (1) MSMEs,

    including 1.9 million registered one which are spread out across

    the length and breadth of India. They may be touching the lives of

    123.4million directly or indirectly which is roughly 10% of Indias

    population.

    Major share in GDP: MSMEs combined output is roughly 7%

    of countrys Gross Domestic Production (GDP).

    Big employment generator; MSME sector is the second largest

    manpower employer in the country next only to agriculture sector.

    It provides employment to more than 20 million people which is

    roughly 2 % of countrys population. Looked from social angle, it

    helps in solving the unemployment and under-employment

    problem in the society.

    Facilitates balanced regional development: Dispersion of

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    MSMEs in all parts of the country helps in removing regional

    imbalances by promoting decentralized development of industries.

    MSME can be found everywhere, which may be rural, urban,

    coastal, desert, mountains, forest, backward/ forward areas. This

    decentralized concept also helps in reducing the other problems

    like pollution, congestion, housing, sanitations etc.

    Helps in equitable distribution of wealth/ income: When the

    entrepreneurial talent is allowed to grow in different regions and

    areas, the income is also distributed instead of being concentrated

    in the hands of few. This help in solving a big social issue of

    bridging the gap between rich and poor.

    Act as nursery for entrepreneurship: MSMEs provide a natural

    habitat for entrepreneurs. Through this platform, the latent/ raw

    talent available locally can hone their skills and talents, to

    experiments, to innovate and transform their ideas into goods and

    services needed by the society.

    HOW TO START A SMALL SCALE INDUSTRY

    The steps involved in starting a small scale industry are:-

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    Product Identification: Conduct market survey and study theproduct as regard their demand in the market.

    Check whether it is a seasonal product or it has demandedthroughout the year.

    Study similar product available in the market that can beprobable competitor. Analyze them as regards their utility,

    quality and cost.

    Find whether can be exported. Decide the product that you are going to manufacture, on the

    basis of:-

    a) Market Surveyb) Financial implication involvedc) Technical knowhow availabled) Experience in the line, etc.

    Preparation of preliminary project report to get rough idea on

    machinery, raw material and financial requirement.

    Select a proper site for locating the unit.

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    1. Take a building for factory on hire or construct your ownfactory building.

    2. Get yourself conversant with the rules and other informationavailable from small-scale industries, Ministry of Industry,

    New Delhi.

    3. Prepare a scheme in detail to manufacture the selected productsuch a scheme should include the requirement of and the

    approximate cost of:-

    i. Land and buildingii. Machinery, tools and other equipment

    iii.

    Direct labour

    iv. Indirect labourv. Direct material cost

    vi. Indirect material costvii. Selling and distribution overheads

    viii. Working Capital for a unit timeix. Depreciationx. Total production cost per unit time

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    xi. Percentage of profit. Make a detailed project report Apply for registration. The scheme after it has been prepared is sent for

    approval to the Directorate of Industries of the

    particular state.

    A small scale unit has to get itself registered with theDirectorate of industries in order to avail various

    facilities provided by the government, such as:-

    I. Financial assistanceII. Raw materials water and power

    III. Import licenseIV. Factory accommodationV. Government order

    If required apply for loan.

    Apply for income tax and sales tax numbers. Recruit personnel.

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    REGISTRATION OF SMALL SCALE INDUSTRIES

    REQUIREMENT

    Even if State Directorate of Industries does not demand for

    licensing under development of SSIs but we should go for its

    registration for our profit. Some special things are there which are

    necessary to be licensed. The incentive scheme provided by the

    government is also provided to those firms which are registered so

    for this reason registration is beneficial.

    The registration of SSI is of two types:-

    1)Provisional registration.2)Permanent registration.

    The provisional registration is provided to the unit for starting two

    years. This is provided before production. If still the firm could not

    run in actual production it can also be renewed by state directorate

    of industries.

    INCENTIVE FACILITIES

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    In every state various incentive schemes are provided for

    development of these SSIs. The methods and amounts are

    depending on the industrial policy and financial state of that area.

    Various facilities are:-

    Capital subsidy Diesel generator subsidy Electricity subsidy Project report subsidy Technical know how subsidy Interest subsidy Sales tax subsidy Interest free loan against commercial taxes Seed money assistance

    TYPES OF CONSTITUTIONS

    The criteria of classification may be depend on limits of statutory

    norms, capital investment, quantum of loan, annual income etc.

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    Basic names of constitutions are:-

    Proprietorship: as its name implies only one person is theowner of the company. All the machinery setup, all

    facilities, workers, money investment is in the hand of a

    single body. He is the only responsible person for all types

    of profits and losses. The only problem in this case is that

    all losses and accidents happened are only suffered by the

    owner only.

    Partnership: in this type two or more person shared thefirm. According to INDIAN PARTNERSHIP ACT 1932 a

    partnership deed is prepared in which all the terms and

    conditions are included. The firm is drive according to

    these terms. In case of any problem all the partners will

    suffer equally.

    Private limited company: in private limited companythere is minimum two and maximum fifty promoter

    director. The registration is done under the company act

    1956 under REGISTRAR OF COMPANIES. Company

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    made its MEMORANDUM & ARTICLES OF

    ASSOCIATION and all the scope of work is regulate

    under these.

    Public limited company: private limited and publiclimited are almost of same configuration with the only

    difference that public limited company can sale its shares

    in general public but private limited company is not

    authorized to do so.

    Co-operative society: under co-operative society act thefirms are registered by state co-operative department. The

    group can be minimum of ten members. These are also

    work under the norms and conditions made by its own

    memorandum and articles of association.

    FINANCIAL REQUIREMENT

    Since independence, government of India has been giving all

    possible encouragement of SSI. A number of organizations have

    been step up by the government of India to provide assistance and

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    incentive to small scale industry. These packet ages of assistance

    are providing to SSI by a large number of organization operative at

    national &state level. Development program are being carried out

    at two level

    1.National Level2.State Level

    AGENCIES WHICH WORK AT NATIONAL LEVEL ARE:-

    a) Small Scale Industrial Board (SSIB)

    b)Small Scale Industries Development Organization (SIDO)c)National Small Scale Industrial Corporation (NSIC).

    AGENCIES WHICH WORK AT STATE LEVEL ARE:-

    a)State Directorate of Industries (SDI)b)District Industrial Centre (DIC)c)State Small Industrial Corporation (SSIC)d) State Financial Corporations (SFCs)e)Commercial Banksf) Small Industries Development Bank of India (SIDBI).

    NATIONAL LEVEL SSIB

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    It is all advisory body and comprises state government ministry

    office and representative of several institution & association. Its

    functioning is to plan, advice &coordinate the activities of center

    and state government. As such it does not render direct help to

    entrepreneur. However, it helps to government in involving new

    polices and program for small scale sector.

    SMALL INDUSTRIAL DEVELOPMENT ORGANIZATION

    (SIDO)

    Its headquarter at Nirman Bhavan, new Delhi headed by the

    development commissioner (SSI) has a network of small industries

    Service Institute (SISIs) one in each state which help In

    economical, technical, industrial information services,

    management casualty services, training & marketing.

    NSIC

    Its headquarter at New Delhi & regional office at Kolkata,

    Mumbai, Chennai, Guwahati etc.

    Facilities provided:-

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    Supply of machine and equipment on hire purchase

    1.) Distribution of scare raw material imported components.

    2.) Marketing assistance

    3.) Assistance to SSI in securing order for railway and defense.

    4.) Operating a credit guarantee scheme for those units which are

    registered within.

    STATE FINANCIAL CORPORATION

    Almost every state has its own financial cooperation to provide

    machine and long term loans small and medium sale industries.

    Amount of loan varies from Rs. 5000 to Rs. 6 Lakh and these are

    repayable in equal installments spread over a period of 10-12

    years.

    Important schemes of financing SFC are

    1) A loan scheme for financing of village and cottage industries.

    Under this scheme they are financed to the extent of Rs. 25,000

    and the interest rate is very low.

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    2) Assistance to tiny units these grant assistance up to Rs. 2.00

    lakh.

    3) Scheme for technical entrepreneur in order to encourage self

    employment these corporation provide financial assistance up to

    Rs.2.00 lakh at very low interest rate to such technical

    entrepreneurs who have acquired a diploma or degree in any

    discipline of engineering .

    4) Loans to hotel industry

    5) Scheme for SC/ST Grant financial assistance to SC/ST

    entrepreneurs at a nominal margin rates are charged at the rate of

    10%.

    6) Scheme for physically handicapped these provide financial

    assistance up to Rs. 3.00 lakh at a rate of 10%.

    COMMERCIAL BANKS

    SBI and its subsidiary banks and other nationalized banks provide

    liberal term loans and working capital to small scale entrepreneurs

    and these loans are advanced for purchase of machine and material

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    and to the technical entrepreneurs to encourage self employment.

    Specialized institute like, Central Institute of Tool Design,

    Hyderabad, Central Tool Room, Ludhiana and Kolkata, Central

    Institute of Hand Tool Jalandhar, Institute for Design of Electrical

    Measuring Instruments (IDEMI) Mumbai, Integrated Trading

    centre, Nilokhedi, National institute of small Industry Exton,

    Hydrabad and National Institute for Entrepreneurship and Small

    Business Development. They conduct special courses,

    programmers, Workshops, training programmers for the benefits of

    small scale industries.

    Credit Support

    Credit is the prime input for sustained growth of small scale sector

    and its availability continued to be a matter of concern. To provide

    credit support to the various SSI units various policies have been

    formulates by the GOI. Various institutes like SFC, SIDC,

    NISC, and SIDBI are providing financial supports to various SSI

    units

    CONCEPT OF MARKETING

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    Studies reveal that different organizations have different

    perception of marketing and these different perceptions have led to

    the promotion of different concept of marketing. It is found that at

    least 5 distinct concept of marketing have guided and are still

    guided business terms. They are:

    1. Exchange concept.

    2. Production concept.

    3. Product concept.

    4. Sales concept.

    5. Marketing concept.

    1. Exchange concept:- the exchange concept of marketing as the

    name indicates hold that the exchange of a product b/w the seller a

    buyer is a central idea of marketing. But a proper scrutiny of the

    marketing would readily reveal that marketing is very much

    broader than exchange. The other important aspect of marketing

    such as concern for the customer, the generation of the venue

    satisfaction, the creative selling and integrated action for service

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    the customer get completely overshadowed in this concept of

    marketing.

    2. Production concept: - According to the production concept

    marketing is a merely related to production .They believe that

    marketing can be managed by managing production. The concept

    hold that consumer would as a rule supported these product that

    are product in a great volume and allow unit cost organization

    voting for this concept are influenced by a drive to produce all that

    they can .They do achieve high production efficiency and a

    substantial reduction in the unit cost of production. Yet they often

    do not get customer as they expected. Customers after all are

    motivated by a verity consideration in their purchases. Easy

    availability and low cost are not only parameters governing the

    costumers buying action and the production concept thus fails to

    drive as the right marketing polices for the enterprise.

    3. Product concept: - The product concept is somewhat stiff from

    the production concept where as the production concept seeks to

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    win markets & profits via high volume of production and low unit

    cost of production. The product concept to seek to archive the

    same results via product excellence, improved product, new

    products and ideally design and engendered products. It also places

    emphasis on quality assurance. Origination that subscribes to the

    product concept of marketing believes that customer goods

    automatically vote for products of high quality they spent

    considerable energy. Time and money own research and

    development brings in a verity of new product. They do not bother

    to study the market and consumer in depth. They get totally

    embraced with the product and almost forget the customer for

    whom the product is actually meant. They fail to find what the

    customers actually needs and what they would gladly aspect.

    4. Sale concept: - the sale concept maintains that a company

    cannot expect its product to get pick up automatically by the

    costumer. the company has to consciously promote and push its

    heavy advertisement, high power personal selling, large scale sale

    promotion, heavy price discount and strong publicity and public

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    relation are the normal tool used by the origination that relay on

    the concept. Evidently the sale concepts too generate marketing

    myopia just as a exchange concept, production concept and

    product concept. Its lead to wrong or inadequate understanding of

    the market and consequently a total failure in the market place.

    5. Marketing concept

    Importance of marketing to the society:-

    a)Marketing helps to achieve maintain and rise the standard ofliving marketing bring new variety of good to the consumer

    and better and rigorous marketing gives soon for mass

    production. Under mass production the cost of product is low

    people can more goods for their money, which results in high

    standard of living.

    b)Marketing increases employment opportunity.c)Marketing helps to increases national income.d)Marketing is a connecting link between consumer and

    producer.

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    e)Marketing helps to maintain stability:-economic stability is thesine of any efficient and dynamic economy and economy

    stability is maintained only when there is balance in supply and

    demand. If production is more then demand the access goods

    cannot be sold at acceptable prices then stokes of goods would

    be picked up and there would be glut all the market in fall in

    price. Similarly, if production is less then demand price is

    shooting up resulting in higher price. In such a situation

    marketing maintains the economic stability by balancing

    production and consumption.

    STEPS IN MARKETING MANAGEMENT

    1. Product planning

    2. Sale Forecasting

    3. Pricing Policy

    4. Distribution Strategy

    5. Role of Advertising (personal selling)

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    6. Quality

    1. Product planning:-product planning may be defined as the act

    of marketing out and supervising the search, screening,

    development and commercialization of new product, modification

    of existing line.

    Product planning involves three important considerations

    a)The development and Induction of new ideas.b)The modification of exiting lines as may be required in term of

    changing costumers need and performance.

    c)The discontinuance of elimination of marginal or unprofitableproduct.

    Product can be classified as:-

    1. Customer products

    2. Industrial products

    3. Defense products

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    1. Costumer products:-goods design for use ultimately by the

    costumer or household and in such from they can be used without

    commercial processing.

    2. Industrial products:-goods which are designed to be sold

    primarily for use in producing goods destined to be sold primarily

    to the ultimate consumers.

    3. Sale Forecast Defined: - a sales forecast is an estimate for the

    amount or unit sale for a specified future period under a purposed

    marketing plan or program.

    As define by American marketing association it is an estimate of

    sales in dollars or physical units for a specified future period

    under a purposed marketing plan or program and under an

    assumed set of economic and other forces outside the unit for

    which forecast is made.

    Marketing of proper sale forecast require an assessment of:-

    1 The outside uncontrollable forces likely to influences the

    company sales.

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    2. The internal proposed changes in the marketing strategies and

    tactics of the company which are likely to affect the sale.

    Sales forecast can be for a specified product line or can be for a

    market as a whole or for any portion of it. According to the time

    period, the sales forecast can be divided under three types-

    1. Short Run Forecasts: - which generally extends from a few

    weeks to about six months or at most one year in future.

    Companies mostly do this as day-to-day forecasts for their

    production control needs and to plan for long term financial

    needs.

    2. Medium Range Forecasts: - which extends from one year to

    about four years into future.

    This type of forecasting is important for

    a)Estimating profits, budgeting expenses etc.b)Determining dividing policyc)Deciding rate of maintenance expenditured)Determining schedule of operation.

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    It is use full for the following purposes:-

    a) Estimating inventory requirement

    b) Providing adequate shipping facilities

    c) Assessing production worker requirements.

    d) Estimating working capital needs

    e) Setting production runs for each product

    f) Fining sales quotes

    3. Long Range Forecast: - Extending to least five years into

    futures and in case of really large organization extending over a

    longer period up to ten years or even more.

    It is useful in following ways:-

    1. Anticipating the magnitude and timing of capital expenditures

    required for new facilities in the future.

    2. Determining probable trends and range of cash inflow from

    sales.

    3. Estimating companies long range personnel needs.

    4. Highlighting futures problems.

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    3. Pricing polices: - Pricing is a very critical decision. Pricing

    decision is not easy to make. Hence sound pricing policies must be

    adopted to ensure that the originations secure satisfactory profit.

    For pricing decision a marketing manager has to be familiar with

    economic concept useful in pricing decision. He has to consider

    various pricing factor which infusing price a part from cost such as

    costumer characteristics, the economical product characteristics,

    competitive environment and government control whenever

    applicable. The pricing of the product materially affected the

    demand for it as well as the origination competitive ability for

    expenditure if the quality of the product is to be improved this may

    be possible only if the costumer are willing to pay higher price for

    it. Besides, if the product is not properly priced there might be

    reluctance from the channels of distribution.

    4. Distribution Strategy: - distribution may be defined as an

    operation or a series of operation, which physically bring goods

    manufactured or produced by only particular manufactured into the

    hands of the final consumers to the users. Distribution strategies

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    consist of distribution or sub-dividing the total products of a

    manufacturer on a geographical basis to various specific markets.

    There may be a state market, a National Market or even a

    worldwide market for the production while defining a strategy we

    have to deal with two aspects. First, is the organizational aspects, it

    is concerned with how and through what channels we should

    distribute. For this general marketing policy is responsible for

    deciding the various channels for distribution. Secondly, is the

    operational aspect of distribution or the physical distribution, it is

    concerned with moving of goods from one place to other,

    including the warehousing storage and transportation costs as well

    includes. These aspects are sometimes described as logistics of

    distribution

    Advertising: - To counter the market at National and

    International level the GOI set up various institutes like:- 1) Export

    Credit Guarantee Corporation Ltd. (ECGC)

    2) State Trading Corporation. (STC)

    3) Trade Development Authority.

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    4) National Small Industries Corporation. (NSIC)

    Organizational Structure of SSI: - There are 28 SISIs set up in

    State Capital and other industrial cities all over the country. The

    main activities of these institutions are as follows: -

    -Assistance/Consultancy of prospective entrepreneurs.

    - Project profiles.

    -Entrepreneurship development programmes.

    - Motivational campaigns.

    -Production index.

    - Management development programmes.

    -Energy conservation.

    -Quality control and up gradation.

    -Export promotion.

    -Market surveys.

    -Intensive technical assistance.

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    Organizations under SSI:-

    1) Regional Testing Centers (RTCs)

    2) Field Testing Stations (FTSs)

    3) Tool Rooms / Tool Design Industries (TRs/TDs)

    4) Trading institutes:

    - National Institute of Small Industry Extension Training

    (NISIET)

    -National Institute for Entrepreneurship and small business

    development (NIESBUD), New Delhi.

    -Integrated Training Centre (Industries), Nilokhedi (Haryana).

    5) Product-cum- Process Development Centre (PPDICs)

    Six centers are in existence. There are:-

    - Firozabad for Glass Industry.

    - Kannauj for Essential Oils.

    - Meerut for Sports Goods and Leisure Time Equipment.

    - Agra for foundry and forgings.

    - Ramnagar for Electronic Industries.

    -Mumbai for Electrical Measuring Instruments.

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    The main motive of these centers is to upgrade the technology of

    the manufacturer and help in energy conservation.

    Training Institutes:- All the three training institutes mentioned

    above are an autonomous body and are under the administrative

    control of the office of DC (SSI).Their objectives is to identify

    and motivate traditional /nontraditional entrepreneurs and to

    provide training at National and International level .These

    institutes provide training by imparting seminars and workshops

    on topical issues . The integrated Training Centre (Industry),

    Nilokhedi is the only institute that imparts training to the junior

    field staff i.e. Investigators / SIPOs to expose to and educate them

    in the programmes and policies of development and promotion of

    small industries. At present its training consists of courses like

    1) Rewinding of electric motors and house wiring.

    2) Repair to diesel engine and agricultural water pumps.

    3) Servicing and repair to automobiles (cars and scooters).

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    SWOT Analysis

    Introduction

    Environmental opportunities are only potential opportunities unless

    the organization can utilize resources to take advantage of them

    and until the strategic leader decides that it is appropriate to pursue

    the opportunity. It is therefore important to evaluate environment

    opportunities in relation to the strengths and weaknesses of the

    organizations resources, and in relation to the organizations

    resources, and in relation to the organizational culture. Real

    opportunities exist when there is a close fit between environment,

    values and resources. An evaluation of an organizations strengths

    and weaknesses in relation to environmental opportunities and

    threats is generally referred to as a SWOT analysis. The following

    report will look closely into the SWOTs concept, its main aspects,

    and criteria for successful and effective SWOT analysis.

    SWOT is an acronym for Strengths, Weaknesses, Opportunities,

    Threats. Occasionally, it may also be found as a WOTS up

    analysis or the TOWS analysis. A SWOT analysis is a planning

    tool used to understand the Strengths, Weaknesses, Opportunities,

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    and Threats involved in a project or in a business. It involves

    stating the objective of the business or project and identifying the

    internal and external factors that are either supportive or

    unfavourable to achieving that objective. SWOT is often used as

    part of a strategic or business planning process, but can be useful

    in understanding an organisation or situation and decision-making

    for all sorts of situations.

    The concept

    Any organisation undertaking strategic planning will at some point

    assess its own strengths and weaknesses. When combined with an

    inventory of opportunities and threats in the organisations external

    environment, the organisation is effectively making a SWOT

    analysis, that is it is establishing its current position in light of its

    Strengths, Weaknesses, Opportunities and Threats.

    There are several ways of graphically representing the SWOT

    analysis matrix or grid. Examples are shown later in this factsheet.

    While at first glance the SWOT looks like a simple model and easyto apply, experience shows that to do a SWOT analysis that is both

    effective and meaningful, requires time and a significant resource.

    It requires a team effort and cannot be done effectively by only one

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    person. The SWOT methodology has the advantage of being used

    as a 'quick and dirty' tool or a comprehensive management tool,

    and that one (the quick) can lead to the other (the comprehensive).

    This flexibility is one of the factors that has contributed to its

    success.

    The term SWOT analysis is in itself a curious term, for a SWOT

    is not an analysis in itself, but a number of elements when used

    together form a valuable framework for analysis. It is essentially a

    summary of a set of previous analyses even if those were just 15

    minutes of mini-brainstorming with yourself in front of your

    computer although this approach is not recommended! The

    analysis, or more correctly interpretation, comes after the SWOT

    summary has been produced.

    History

    The SWOT analysis technique is credited to Albert Humphrey who

    led a research project at Stanford University in the 1960s and

    1970s using data from leading companies involved in long range

    planning processes. The original goal was to identify why

    corporate planning failed. Humphrey created a team method forplanning originally called SOFT analysis (Satisfactory,

    Opportunity, Fault, Threat) which was used by organisations like

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    WH Smith who made it part of their long range planning

    programme for almost 20 years.

    The thinking behind the tool was:

    What is good in the present is Satisfactory. What is good in the future is an Opportunity.

    What is bad in the present is a Fault. What is bad in the future is a Threat.

    Humphreys work has developed the implementation to use the

    SOFT in the context of six categories which provide a framework

    by which issues can be developed into actions and managed using

    teams:

    Product: what are we selling? Process: how are we selling it? Customer: to whom are we selling it? Distribution: how does it reach them?

    Finance: what are the prices, costs and investments? Administration: how do we manage all this?

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    SWOT / TOWS ANALYSIS: - These can be defined as follows

    and can of below type for industry or organization:-

    STRENGTH:- Determine an organisations strong points. This

    should be from both internal and external customers. Strength is a

    resource advantage relative to competitors and the needs of the

    markets a firm serves or expects to serve. It is a distinctive

    competence when it gives the firm a comparative advantage in the

    marketplace.

    WEAKNESS:-Determine an organisations weaknesses, not only

    from its point of view, but also more importantly, from customers.

    Although it may be difficult for an organisation to acknowledge its

    weaknesses it is best to handle the bitter reality without

    procrastination. A weakness is a limitation or deficiency in one or

    more resources or competencies relative to competitors that

    impedes a firms effective performance

    OPPORTUNITIES:- Another major factor is to determine how

    organisations can continue to grow within the marketplace. After

    all, opportunities are everywhere, such as the changes in

    technology, government policy, social patterns, and so on. An

    opportunity is a major situation in a firms environment. Key

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    trends are one source of opportunities. Identification of a

    previously overlooked market segment, changes in competitive or

    regulatory circumstances, technological changes, and improved

    buyer or supplier relationships could represent opportunities for the

    firm.

    THREATS:- No one likes to think about threats, but we still have

    to face them, despite the fact that they are external factors that are

    out of our control, for example, the recent economic slump in Asia.

    It is vital to be prepared and face threats even during turbulent

    times. A threat is a major unfavourable situation in a firms

    environment. Threats are key impediments to the firms current or

    desired position. The entrance of new competitors, slow market

    growth, increased bargaining power of key buyers or suppliers,technological changes, and new or revised regulations could

    represent there threats to a industrials firms success.

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    TABLES & DIAGRAM:-

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    How to Write a Good SWOT Analysis

    In order to write a good SWOT the following criteria must be

    taken

    Make your points long enough, and include enough detail, to

    make it plain why a particular factor is important, and why it can

    be considered as a strength, weakness, opportunity or threat.

    Include precise evidence, and cite figures, where possible;

    Be a specific as you can about the precise nature of a firms

    strength and weakness. Do not be content with general factors like

    economies of scale;

    Avoid vague, general opportunities and threats that could be put

    forward for just about any organisation under any circumstances;

    Do not mistake the outcomes of strength (such as profits and

    market share) for strengths in their won right;

    Improvements is not the same as strength do not confuse the

    two.

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    Avoid contradicting yourself in the course of the analysis, by

    having strengths and weaknesses that are essentially different

    aspects of the same strategy of resource. Come to a reasoned

    conclusion about whether the good points outweigh the bad ones.

    Situational analysisSWOT ANALYSIS

    Translating SWOT issues into actions under the six categories1.Product (what are we selling?)2.Process (how are we selling it?)3.Customer (to whom are we selling it?)4.Distribution (how does it reach them?)5.Finance (what are the prices, costs and investments?)6.Administration (and how do we manage all this?)

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    SWOT ANALYSIS DIAGRAM

    Quadrant 1 is the most desirable position. The firm faces a lot ofopportunities and with complimentary internal strengths to execute

    those opportunities. That situation supports growth oriented

    strategies to exploit or capitalize on the match. Microsoft and

    American Online companies follow this intensive development

    strategy. The least favourable situation would be quadrant 4. The

    firm faces many environmental threats and it is in a weak position.

    This situation will call for strategies that reduce or redirect

    involvement in the products or markets examined by SWOT

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    analysis. A lot of companies in an insolvent situation may fall into

    this segment.

    A firm in quadrant 2 with key strengths would face an unfavorable

    environment. The strategies here is to use current strengths to build

    long term opportunities in better product markets. Transportation

    firms such as Greyhound bus company when faced with long term

    threats such as increased competition from rail and airlines and

    rising costs diversified into non passenger services such as freight

    and financial services.

    A firm in quadrant 3 encounters impressive and favourable market

    opportunity but is constrained by internal weaknesses. The strategy

    for this firm is to focus on eliminating the internal weaknesses so

    that market opportunities can be pursued more effectively.

    SWOT analysis provides an excellent means through which

    managers can examine their firms current positions. However it

    does not detail or show how firms try to identify or spot internal

    strengths and weaknesses. A Functional Analysis whereby

    departments such as Marketing, Finance Information Systems and

    Operations are thoroughly examined to detect past trends of sales,

    costs, profitability and productivity. These results are compared

    with industry standards. This further reduces the analysis to Value

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    Chain Analysis - dividing the firm into sets of separate activities

    that add value.

    SWOT analysis is a simple framework for generating strategic

    alternatives from a situation analysis. The SWOT framework was

    described in the late 1960's by Edmund P. Learned, C. Roland

    Christiansen, Kenneth Andrews, and William D. Guth in Business

    Policy, Text and Cases (Homewood, IL: Irwin, 1969). The

    following diagram shows how a SWOT analysis fits into a

    strategic situation analysis.

    Situation Analysis

    / \

    Internal Analysis External Analysis

    / \ / \

    Strengths Weaknesses Opportunities Threats

    |

    SWOT Profile

    The internal and external situation analysis can produce a large

    amount of information, much of which may not be highly relevant.

    The SWOT analysis classifies the internal aspects of the company

    as strengths or weaknesses and the external situational factors as

    opportunities or threats. By understanding these four aspects of its

    situation, a firm can better leverage its strengths, correct its

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    weaknesses, capitalize on golden opportunities, and deter

    potentially devastating threats.

    Internal Analysis

    The internal analysis is a comprehensive evaluation of the internal

    environment's potential strengths and weaknesses. Factors should

    be evaluated across the organization in areas such as:

    Company culture Company image Organizational structure Key staff Access to natural resources Position on the experience curve

    Operational efficiency Operational capacity Brand awareness Market share Financial resources Exclusive contracts Patents and trade secrets

    The SWOT analysis summarizes the internal factors of the firm as

    a list of strengths and weaknesses.

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    External Analysis

    An opportunity is the chance to introduce a new product or service

    that can generate superior returns. Opportunities can arise when

    changes occur in the external environment. Many of these changes

    can be perceived as threats to the market position of existing

    products and may necessitate a change in product specifications or

    the development of new products in order for the firm to remain

    competitive. Changes in the external environment may be related

    to:

    Customers Competitors Market trends Suppliers Partners Social changes New technology Economic environment Political and regulatory environment

    Markets (customers) Competition Technology Supplier markets

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    Labour markets The economy The regulatory environment The last four items in the above list are macro-environmental

    variables, and are addressed in a PEST analysis.

    The SWOT analysis summarizes the external environmental

    factors as a list of opportunities and threats.

    SWOT Profile

    When the analysis has been completed, a SWOT profile can be

    generated and used as the basis of goal setting, strategy

    formulation, and implementation. The completed SWOT profile

    sometimes is arranged as follows:

    Strengths Weaknesses

    1.

    2.

    3.

    1.

    2.

    3.

    Opportunities Threats

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    1.

    2.

    3.

    1.

    2.

    3.

    Applications and when to use it

    A SWOT analysis can be used for:

    Workshop sessions Brainstorm meetings Problem solving Planning Strategic planning Product evaluation Competitor evaluation Personal development planning decision making

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    Subject of SWOT analysis:

    (define the subject of theanalysis here)

    Strengths

    Advantages ofproposition

    Capabilities Competitive advantages USP's (unique selling

    points)

    Resources, Assets,People

    Experience, knowledge,data

    Financial reserves, likelyreturns

    Marketing - reach,distribution, awareness

    Innovative aspects Location and

    Weaknesses

    Disadvantages ofproposition

    Gaps in capabilities Lack of competitive

    strength

    Reputation, presence andreach

    Financials Own known

    vulnerabilities

    Timescales, deadlinesand pressures

    Cash flow, start-up cash-drain

    Continuity, supply chain

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    geographical

    Price, value, quality Accreditations,

    qualifications,

    certifications

    Processes, systems, IT,communications

    Cultural, attitudinal,behavioural

    Management cover,succession

    robustness

    Effects on core activities,distraction

    Reliability of data, planpredictability

    Morale, commitment,leadership

    Accreditations, etc

    Processes and systems,etc

    Management cover,succession

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    Opportunities

    Market developments Competitors'

    vulnerabilities?

    Industry or lifestyletrends

    Technologydevelopment and

    innovation

    Global influences New markets, vertical,

    horizontal

    Niche target markets Geographical, export,

    import

    New USP's Tactics - surprise, major

    contracts, etc

    Business and product

    Threats

    Political effects Legislative effects Environmental effects IT developments Competitor intentions -

    various

    Market demand New technologies,

    services, ideas

    Vital contracts andpartners

    Sustaining internalcapabilities

    Obstacles faced Insurmountable

    weaknesses

    Loss of key staff Sustainable financial

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    development

    Information andresearch

    Partnerships, agencies,distribution?

    Volumes, production,economies

    Seasonal, weather,fashion influences

    backing

    Economy - home, abroad Seasonality, weather

    effects

    Advantages and disadvantages of using SWOT analysisAdvantages

    Simple four box framework. Facilitates an understanding of the strengths and weaknesses

    of the organisation.

    Encourages the development of strategic thinking. Enables a management team to focus on strengths and build

    opportunities.

    Can enable an organisation to anticipate future businessthreats and take action to avoid or minimise their impact.

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    Can enable an organisation to spot business opportunities andexploit them fully.

    Flexible.

    Disadvantages

    Some users over simplify the amount of data used fordecisionsit is easy to use scant data.

    To be effective this process needs to be undertaken on a

    regular basis.

    The best reviews require different people being involvedeach having a different perspective.

    Access to quality internal data sources, this can be timeconsuming and politically difficult (especially in more

    complex organisationsparent company etc).

    The pace of change makes it increasingly difficult toanticipate developments that may affect an organisation in

    the future.

    The risk of capturing too much data is that it may make itdifficult to see the wood for the trees and lead to paralysis

    by analysis. The data used in the analysis may be based on assumptions

    that subsequently prove to be unfounded (good and bad).

    Lacks detailed structureso easy to miss key elements.

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    SWOT analysis dos and donts

    DO get other people involved. DO exploit any expertise and resources that are already

    available within the organisation.

    DO use SWOT analysis in conjunction with other techniques,such as PESTLE analysis, PRIMO-F analysis, Porter's five

    forces, competitor analysis or scenario planning etc.

    DO incorporate your analysis within an ongoing process formonitoring changes in the business environment.

    DONT try to do this on your own. DONT jump to conclusions about the future based on the

    past or the present.