Professional Documents
Culture Documents
A project is required for a successful venture so every venturist first search for a project .AS modern business is illusive in nature so it is difficult to find out the opportunities .To find out the opportunities there are so many steps which have to culture.
continued 1 Generation of ideas 2 Monitoring the environment 3 Corporate appraisal 4 Tool for identify investment opportunities 5 Preliminary Screening 6 Project rating Index 7 Sources of positive net present value 8 Self questions of entrepreneur
1 Generation of ideas
It is always seen that the ideas are based on existing field of technology to offer various present product or services. but sometimes the specialized technology and marketing expertise or some other competence feels that he can produce a product which carter to a presently unmeet need or serve a market where demand exceeds supply or effectively compete with similar product. then the idea supported by the associate and approved by financial institutions bank assist the project .it is the SWOT analysis which is used to stimulate the project idea.
Examples
Two successful companies which have been exceptionally in tapping the creativity of employees are Bell telephone laboratory and 3m telephone Hindustan uniliver in India is one of the company which follows the pattern
1 Economic sector State of economics Overall rate of growth Growth rate of different sector Linkage with world economy Balance of payment
2 Governmental Sector Industrial policy Government programmes and projects Tax framework Import and export policy Financing norms
4 Sociodemographic sector Population trends Age shift in population Income distribution Educational profile Employment of women
5 competitive sector No of firms in industry Entry barriers Degree of homogeneity Comparison with substitutes Marketing policies
6 supplier sector Availability of cost of product Availability of cost of money Availability of chain of supply
3. corporate appraisal
For identifying better investment opportunity appraisal of strength and weakness is necessary. Broad areas of corporate appraisals are Marketing and distribution Market image Product line Market share Customer loyalty
cont
Corporate resources and personnel Corporate image Clout with government and regulatory authority State of industrial relation Accounting and finance Financial leverage Tax situation Cost of capital Relation with share capital
1 pioneering
stage; in this stage the product and the technology are introduced and lured by promising entrepreneurs as a result competition arises and only new entrants are survives .
cont
Examine the input and output of various industry Review import and export; Study plan outlays and government guidelines Look at the financial decision of financial institutions and developmental agencies Analyze economic and social trends Study of new technological development Attained trade fairs
6 .Preliminary screening
When feedback phase is over a preliminary screening is required to eliminate the ideas which are not promising in nature. Following aspects are taken care for screening. Comparability with the promoter Consistency with government priorities Availability of inputs Adequacy of market Reasonableness of cost Acceptance of risk factor
Acceptability of risk level; Following points are consider for checking risk level Vulnerability to business cycles Technological changes Competition from imports Shifts in consumer preference Govt control over price and distrubution
Compatibility with the promoter; The idea must be matched with the interest ,personality and resources of the entrepreneur.
A real opportunities have three capabilities i. It fits with personality of the entrepreneur ii. It is accessible to him iii. It offers him the prospectus of rapid growth. Consistency with governmental priorities The project idea must be feasible given the national goals and governmental regulatory framework. Like
Is the project consistent with national goals and priorities Are there any environmental effects contrary to govt regulations Can the foreign exchange requirement may easily fulfilled. Will be there any difficulty in obtaining the license for the project. Availability of inputs; The resources required must be reasonably assured
Adequacy of market; To judged the adequacy of market following factors have to be examined Total present domestic market Competitors and their market share Export markets Competitors and their market shares export markets Sales and distribution system Barriers to the entry for new units
Reasonable in cost; the following should be examined in this regard Cost of material inputs Labour cost Factory overheads General administration expenses Selling and distribution cost Service cost Economic of scale
Thank you
Dr.Namita mishra