Generation & Screening of Project Ideas
-
Upload
vineet-maheshwari -
Category
Documents
-
view
544 -
download
0
Transcript of Generation & Screening of Project Ideas
GENERATION AND SCREENING OF PROJECT IDEAS
GENERATION OF IDEAS
Stimulating the Flow of Ideas SWOT Analysis Clear Articulation of Objectives
Cost Reduction Productivity improvement Increase in capacity utilisation Improvement in contribution margin Expansion into promising fields
Fostering a Conducive Climate
MONITORING THE ENVIRONMENT
Economic Sector State of the Economy Overall Rate of Growth Growth Rate of Primary, Secondary and Tertiary
Sectors Cyclical Fluctuations Linkage with the World Economy Trade Surplus / Deficit Balance of Payment Situation
MONITORING THE ENVIRONMENT
Governmental Sector Industrial Policy Government Programmes & Projects Tax Framework Subsidies, Incentives and Concessions Import & Export Policies Financing Norms Lending Conditions of Financial Institutions and
Commercial Banks
MONITORING THE ENVIRONMENT
Technological Sector Emergence of New Technologies Access to Technical Know-How, Foreign as well as
Indigenous Receptiveness on the Part of Industry
MONITORING THE ENVIRONMENT
Socio-Demographic Sector Population Trends Age Shifts in Population Income Distribution Educational Profile Employment of Women Attitudes Towards Consumption and Investment
MONITORING THE ENVIRONMENT
Competition Sector Number of Firms in the Industry and the Market
Share of the Top Few Degree of Homogeneity and Differentiation Among
Products Entry Barriers Comparison with Substitutes in Terms of Quality,
Price, Appeal and Functional Performance Marketing Policies and Practices
MONITORING THE ENVIRONMENT
Supplier Sector Availability and Cost of Raw Materials and Sub-
Assemblies Availability and Cost of Energy Availability and Cost of Money
CORPORATE APPRAISAL
Marketing and Distribution Market Image Product Line Market Share Distribution Network Customer Loyalty Marketing and Distribution Cost
CORPORATE APPRAISAL
Production and Operations Condition and Capacity of Plant and Machinery Availability of Raw Materials, Sub-Assemblies and
Power Degree of Vertical Integration Locational Advantage Cost Structure
CORPORATE APPRAISAL
Research and Development Research Capabilities of Firm Track Record of New Development Laboratories and Testing Facilities Co-ordination Between Research and Operations
CORPORATE APPRAISAL
Corporate Resources and Personnel Corporate Image Clout with Governmental and Regulatory Agencies Dynamism of Top Management Competence and Commitment of Employees State of Industrial Relations
CORPORATE APPRAISAL
Financial and Accounting Financial Leverage and Borrowing Capacity Cost of Capital Tax Situation Relations with Shareholders and Creditors Accounting and Control System Cash Flows and Liquidity
PROFIT POTENTIAL OF INDUSTIRES – PORTER MODEL
Potential Entrants
THE INDUSTRY Rivalry Among Existing Firms
Substitutes
Suppliers Buyers
Threat of New Entrants
Threat of Substitute Products
Bargaining Power of Buyers
Bargaining Power of Suppliers
SCOUTING FOR PROJECT IDEAS
Analyze the Performance of Existing IndustriesExamine the Inputs and Outputs of Various
IndustriesReview Imports and ExportsStudy Plan Outlays and Governmental
GuidelinesLook at the Suggestions of Financial
Institutions and Development AgenciesInvestigate Local Materials and Resources
SCOUTING FOR PROJECT IDEAS
Analyze Economic and Social TrendsStudy New Technological DevelopmentsDraw Clues for Consumption AbroadExplore the Possibilities of Reviving Sick
UnitsIdentify Unfulfilled Psychological NeedsAttend Trade FairsStimulate Creativity for Generating New
Product Ideas
PRELIMINARY SCREENING
Compatibility with the Promoter It Fits the Personality of the Entrepreneur It is Accessible to Him It offers him the Prospect of Rapid Growth and High
Return on the Invested Capital
PRELIMINARY SCREENING
Consistency with the Government Priorities Is the Project Consistent with the National Goals
and Priorities? Are there any Environmental Effects Contrary to
Governmental Regulations? Can Foreign Exchange Requirements of the
Project be Easily Accommodated? Will there be Any Difficulty in Obtaining the
License of the Project?
PRELIMINARY SCREENING
Availability of Inputs Are the Capital Requirements of the Project
within Manageable Limits? Can Technical Know-How Required for the
Project be Obtained? Are the Raw Material Required for the Project
Available Domestically at a Reasonable Cost? If the Raw Materials Have to Be Imported, Will there be Problems?
Is the Power Supply for the Project Reasonably Obtainable from External Sources and Captive Power Resources
PRELIMINARY SCREENING
Adequacy of Market Total Present Domestic Market Competitors and Their Market Share Export Markets Sales and Distribution System Projected Increase in Consumption Economic, Social and Demographic Trends Patent Protection
PRELIMINARY SCREENING
Reasonableness of Cost Cost of Material Inputs Labour Costs Factory Overheads General Administrative Expenses Selling and Distribution Cost Service Cost Economies of Scale
PRELIMINARY SCREENING
Acceptability of Risk Level Vulnerability of Business Cycles Technological Changes Competition from Substitutes Competition from Imports Governmental Control Over Price and Distribution
SOURCES OF POSITIVE NET PRESENT VALUE
Economies of ScaleProduct Differentiation
Effective Advertising and Superior Marketing Exceptional Service Innovative Product Features High Quality and Dependability
SOURCES OF POSITIVE NET PRESENT VALUE
Cost Advantage Accumulated Experience and Comparative Edge on
the Learning Curve Monopolistic Access to Low Cost Materials A Favourable Location More Effective Cost Control and Cost Reduction
SOURCES OF POSITIVE NET PRESENT VALUE
Marketing ReachTechnological EdgeGovernment Policy
Restrictive Licensing Import Restrictions High Tariff Walls Special Tax Reliefs
ON BEING AN ENTREPRENEUR
1. Are my goals Well Defined? Personal Aspirations Business Sustainability and Size Tolerance for Risk
2. Do I have the Right Strategy Clear Definitions Profitability and Potential for Growth Durability Rate of Growth
ON BEING AN ENTREPRENEUR
3. Can I Execute the Strategy? Resources Organizational Infrastructure The Founder’s Role
QUALITIES AND TRAITS OF A SUCCESSFUL ENTREPRENEUR
Willingness to Make SacrificesLeadershipDecisivenessConfidence in the ProjectMarketing OrientationStrong Ego