t3 Generation (1)
Transcript of t3 Generation (1)
-
8/3/2019 t3 Generation (1)
1/45
GENERATION AND SCREENINGOF PROJECT IDEAS
-
8/3/2019 t3 Generation (1)
2/45
IDENTIFICATION OFFEASIBLE
PROJECTS.
-
8/3/2019 t3 Generation (1)
3/45
GENERATION OF IDEAS
MONITORING THE ENV. CORPORATE APPRAISAL
SCOUTING FOR PROJECT IDEAS
PRELIMINARY SCREENING
PROJECT RATING INDEX
ON BEING AN ENTREPRENEUR
-
8/3/2019 t3 Generation (1)
4/45
GENERATION OF IDEAS
SWOT analysis
Clear articulation of objectives
Fostering a conducive climate
-
8/3/2019 t3 Generation (1)
5/45
Clear articulation of objectives
Cost reduction Productivity improvement
Increase in capacity utilization
Expansion into promising fields
-
8/3/2019 t3 Generation (1)
6/45
Fostering a conducive climate
Motivate employees to think creatively bysuggestion schemes, unconstrainedenvironment, etc.
-
8/3/2019 t3 Generation (1)
7/45
MONITORING THE ENV.
Economic sector
Govt.
Technological
Socio-demographic
Competition
Supplier
-
8/3/2019 t3 Generation (1)
8/45
Economic sector
State of economy
Growth rate of different sectors
Inflation
World economy
Cyclical fluctuations Balance of payment
-
8/3/2019 t3 Generation (1)
9/45
Govt.Sector
Industrial Policy
Tax framework
Subsidies Incentives
Concessions
Exim policy
Lending conditions of banks &
financial institutions.
-
8/3/2019 t3 Generation (1)
10/45
TechnologicalSector
Emergence of new tech.
Access to tech know-how
-
8/3/2019 t3 Generation (1)
11/45
Socio-demographicSector
Population trends
Income distribution
Educational profile Age shifts in population
Women employment
Attitude towards consumption &investment
-
8/3/2019 t3 Generation (1)
12/45
Competition sector
Market share
No. of firms in the industry
Entry barriers
Comparison with substitute interms of quality, price, appeal,functional performance
-
8/3/2019 t3 Generation (1)
13/45
Suppliersector
Availability & cost of raw material
Availability & cost of energy
Availability & cost of money
-
8/3/2019 t3 Generation (1)
14/45
CORPORATE APPRAISAL
Marketing &distribution
Production &
operation Corporate resources
& personnel
Finance & accounting R& D
-
8/3/2019 t3 Generation (1)
15/45
Marketing & distribution
Market image
Market share
Distribution network Customer loyalty
Marketing & distribution costs
-
8/3/2019 t3 Generation (1)
16/45
Production & operation
Condition & capacity of Plant & m/c
Raw material availability
Locational advantage Degree of vertical integration
-
8/3/2019 t3 Generation (1)
17/45
Corporate resources & personnel
Corporate image
Top management dynamism
Employee commitment & competence Clout with govt. & regulatory agencies
-
8/3/2019 t3 Generation (1)
18/45
Finance & accounting
Cost of capital
Tax situation
Borrowing capacity Relations with shareholders & creditors
Cash flows & liquidity
-
8/3/2019 t3 Generation (1)
19/45
R& D
R&D capabilities of firm
Lab & testing facilities
Track record of new product development
-
8/3/2019 t3 Generation (1)
20/45
SCOUTING FOR PROJECT
IDEAS
1.Analyse the performance of existing industries
2.Examine the inputs & outputs of various
industries 3.Review imports & exports
4.Study plan outlays & Govt. guidelines
5.Look at the suggestions of financial institutions& developmental agencies
-
8/3/2019 t3 Generation (1)
21/45
6.Investigate local materials & resources
7.Analyse economic & social trends 8.Study new technological developments
9.Draw clues from consumption abroad
10.Explore the possibility of reviving sickunits
11.Identify unfulfilled psychological needs
12.Attend trade fairs 13.Chance factor might favour
-
8/3/2019 t3 Generation (1)
22/45
1.Analyse the performance of
existing industries
Profitability & capacity utilization ofexisting industries which are profitable &risk free.
-
8/3/2019 t3 Generation (1)
23/45
2.Examine the inputs & outputs ofvarious industries
Raw materials, parts, supplies as inputs
Products, waste product, by product asoutputs
-
8/3/2019 t3 Generation (1)
24/45
3.Review imports & exports
Study of statistics of last 5 to 7 years ofimports & exports.
It improves balance of payment
Generates employment
-
8/3/2019 t3 Generation (1)
25/45
4.Study plan outlays & Govt.guidelines
Guidelines to industries by department ofindustrial development, govt of indiapublished annually .
Gives information regarding structure,location, production performance, licensed& installed capacity , exports, future scope
of various induatries.
-
8/3/2019 t3 Generation (1)
26/45
5.Look at the suggestions offinancial institutions &
developmental agencies
Mckinsey
PWC KSATECHNOPAK
CII
FICCI
IBEF
-
8/3/2019 t3 Generation (1)
27/45
6.Investigate local materials &
resources The national council of applied economic
research (NCAER) publish surveys
regionwise regarding potential of industrialdevelopment, resources , men, material,infrastructure facilities, etc.
-
8/3/2019 t3 Generation (1)
28/45
7.Analyse economic & social trends
Study of economy & social trends can giveideas
Time saving products, leisure &recreational activities, etc.
-
8/3/2019 t3 Generation (1)
29/45
8.Study new technologicaldevelopments
Council of scientific & industrial researchdevelop new products, technology,process, etc.which can be
commercialised.
-
8/3/2019 t3 Generation (1)
30/45
9.Draw clues from consumptionabroad
Products or services which are not knownin India but famous abroad can be studied.
Pre fabricated house, entertainment parks,etc.
-
8/3/2019 t3 Generation (1)
31/45
10.Explore the possibility of
reviving sick units
Close or on the verge of it can be revivedby:
Sound management system
Infuse further capital
Shorter gestation period
-
8/3/2019 t3 Generation (1)
32/45
11.Identify unfulfilled psychologicalneeds
Unfulfilled psychological needs can becatered to.
-
8/3/2019 t3 Generation (1)
33/45
12.Attend trade fairs
It gives latest information about newproducts, developments, etc.
-
8/3/2019 t3 Generation (1)
34/45
13.Chance factor might favour
Sometimes by chance one might comeacross an idea with commercial viability.
-
8/3/2019 t3 Generation (1)
35/45
PRELIMINARY SCREENING
After considering the above mentionedfactors one can generate number of ideasfor project.
They require preliminary screening.
-
8/3/2019 t3 Generation (1)
36/45
PRELIMINARY SCREENING
It consists of :
Compatibility with the promoter
Consistency with govt. priorities Availability of inputs
Adequacy of the market
Reasonableness of cost
Acceptability of risk level
-
8/3/2019 t3 Generation (1)
37/45
1.Compatibility with the promoter:
Idea must be compatible with the
interest , personality & resources
of entrepreneur . Gives him chance to grow with
less risk.
-
8/3/2019 t3 Generation (1)
38/45
2.Consistency with govt. priorities:
Is project consistent with national
goals
Environmental effects Obtaining license
Foreign exchange requirement
-
8/3/2019 t3 Generation (1)
39/45
Availability of inputs
Resources(raw materials,capital,power,technology,etc
.) are easily & reasonablyavailable.
-
8/3/2019 t3 Generation (1)
40/45
Adequacy of the market
Present market(domestic,international)
Sales & distribution
Economic,social,demographic trends. Growth potential ROI
Competitors & their shares Barriers to entry
-
8/3/2019 t3 Generation (1)
41/45
Reasonableness of cost
The cost structure of theproject must enable it to
realize an acceptable profitwith a competitive price.
Cost ofinputs,labour,overheads,distribution,service,etc.
-
8/3/2019 t3 Generation (1)
42/45
Acceptability of risk level
Tech change
Substitute
Competition from imports Business cycle
Governemnt control over price& distribution.
-
8/3/2019 t3 Generation (1)
43/45
PROJECT RATING INDEX
Identify factors relevant for project rating
Assign weights to these factors
Rate the project proposal on variousfactors , using a suitable rating scale
Factor score=factor ratingxfactor weight
Add all the factor scores to get the overallproject rating index
-
8/3/2019 t3 Generation (1)
44/45
PROJECT RATING INDEX
FactorFactorweight
Rating FactorScore
VG5 G4 A3 P2 VP1
ON BEING AN ENTREPRENEUR
-
8/3/2019 t3 Generation (1)
45/45
ON BEING AN ENTREPRENEUR
Willingness to make sacrifices
Leadership
Decisiveness Confidence in the project
Marketing orientation
Strong ego
Open mindedness