Idea secreaning project

GENERATION AND GENERATION AND SCREENING OF SCREENING OF PROJECT IDEASPROJECT IDEAS

GENRATION OF IDEASGENRATION OF IDEAS

Stimulating the Flow of IdeasStimulating the Flow of Ideas SWOT AnalysisSWOT Analysis Clear Articulation of ObjectivesClear Articulation of Objectives Fostering a Conducive ClimateFostering a Conducive Climate

MONITORING THE MONITORING THE ENVIRONMENTENVIRONMENT

Economic SectorEconomic Sector State of the EconomyState of the Economy Overall Rate of GrowthOverall Rate of Growth Growth Rate of Primary, Secondary and Growth Rate of Primary, Secondary and

Tertiary SectorsTertiary Sectors Cyclical FluctuationsCyclical Fluctuations Linkage with the World EconomyLinkage with the World Economy Trade Surplus / DeficitTrade Surplus / Deficit Balance of Payment SituationBalance of Payment Situation


Governmental SectorGovernmental Sector Industrial PolicyIndustrial Policy Government Programmes & ProjectsGovernment Programmes & Projects Tax FrameworkTax Framework Subsidies, Incentives and ConcessionsSubsidies, Incentives and Concessions Import & Export PoliciesImport & Export Policies Financing NormsFinancing Norms Lending Conditions of Financial Institutions Lending Conditions of Financial Institutions

and Commercial Banksand Commercial Banks


Technological SectorTechnological Sector Emergence of New TechnologiesEmergence of New Technologies Access to Technical Know-How, Foreign as Access to Technical Know-How, Foreign as

well as Indigenouswell as Indigenous Receptiveness on the Part of IndustryReceptiveness on the Part of Industry


Socio-Demographic SectorSocio-Demographic Sector Population TrendsPopulation Trends Age Shifts in PopulationAge Shifts in Population Income DistributionIncome Distribution Educational ProfileEducational Profile Employment of WomenEmployment of Women Attitudes Towards Consumption and Attitudes Towards Consumption and

InvestmentInvestment


Competition SectorCompetition Sector Number of Firms in the Industry and the Number of Firms in the Industry and the

Market Share of the Top Few Market Share of the Top Few Degree of Homogeneity and Differentiation Degree of Homogeneity and Differentiation

Among ProductsAmong Products Entry BarriersEntry Barriers Comparison with Substitutes in Terms of Comparison with Substitutes in Terms of

Quality, Price, Appeal and Functional Quality, Price, Appeal and Functional PerformancePerformance

Marketing Policies and PracticesMarketing Policies and Practices


Supplier SectorSupplier Sector Availability and Cost of Raw Materials and Availability and Cost of Raw Materials and

Sub-AssembliesSub-Assemblies Availability and Cost of EnergyAvailability and Cost of Energy Availability and Cost of MoneyAvailability and Cost of Money

CORPORATE APPRAISALCORPORATE APPRAISAL

Marketing and DistributionMarketing and Distribution Market ImageMarket Image Product LineProduct Line Market ShareMarket Share Distribution NetworkDistribution Network Customer LoyaltyCustomer Loyalty Marketing and Distribution CostMarketing and Distribution Cost


Production and OperationsProduction and Operations Condition and Capacity of Plant and Condition and Capacity of Plant and

MachineryMachinery Availability of Raw Materials, Sub-Availability of Raw Materials, Sub-

Assemblies and PowerAssemblies and Power Degree of Vertical IntegrationDegree of Vertical Integration Locational AdvantageLocational Advantage Cost StructureCost Structure


Research and DevelopmentResearch and Development Research Capabilities of FirmResearch Capabilities of Firm Track Record of New DevelopmentTrack Record of New Development Laboratories and Testing FacilitiesLaboratories and Testing Facilities Co-ordination Between Research and Co-ordination Between Research and

OperationsOperations


Corporate Resources and PersonnelCorporate Resources and Personnel Corporate ImageCorporate Image Clout with Governmental and Regulatory Clout with Governmental and Regulatory

AgenciesAgencies Dynamism of Top ManagementDynamism of Top Management Competence and Commitment of EmployeesCompetence and Commitment of Employees State of Industrial RelationsState of Industrial Relations


Financial and AccountingFinancial and Accounting Financial Leverage and Borrowing CapacityFinancial Leverage and Borrowing Capacity Cost of CapitalCost of Capital Tax SituationTax Situation Relations with Shareholders and CreditorsRelations with Shareholders and Creditors Accounting and Control SystemAccounting and Control System Cash Flows and LiquidityCash Flows and Liquidity

PROFIT POTENTIAL OF PROFIT POTENTIAL OF INDUSTIRES – PORTER MODELINDUSTIRES – 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 SCOUTING FOR PROJECT IDEASPROJECT IDEAS

Analyze the Performance of Existing Analyze the Performance of Existing IndustriesIndustries

Examine the Inputs and Outputs of Examine the Inputs and Outputs of Various IndustriesVarious Industries

Review Imports and ExportsReview Imports and Exports Study Plan Outlays and Governmental Study Plan Outlays and Governmental

GuidelinesGuidelines


Look at the Suggestions of Financial Look at the Suggestions of Financial Institutions and Development AgenciesInstitutions and Development Agencies

Investigate Local Materials and Investigate Local Materials and ResourcesResources

Analyze Economic and Social TrendsAnalyze Economic and Social Trends Study New Technological DevelopmentsStudy New Technological Developments Draw Clues for Consumption AbroadDraw Clues for Consumption Abroad


Explore the Possibilities of Reviving Sick Explore the Possibilities of Reviving Sick UnitsUnits

Identify Unfulfilled Psychological NeedsIdentify Unfulfilled Psychological Needs Attend Trade FairsAttend Trade Fairs Stimulate Creativity for Generating New Stimulate Creativity for Generating New

Product IdeasProduct Ideas

PRELIMINARY SCREENINGPRELIMINARY SCREENING

Compatibility with the PromoterCompatibility with the Promoter It Fits the Personality of the EntrepreneurIt Fits the Personality of the Entrepreneur It is Accessible to HimIt is Accessible to Him It offers him the Prospect of Rapid Growth It offers him the Prospect of Rapid Growth

and High Return on the Invested Capitaland High Return on the Invested Capital


Consistency with the Government Consistency with the Government PrioritiesPriorities Is the Project Consistent with the National Is the Project Consistent with the National

Goals and Priorities?Goals and Priorities? Are there any Environmental Effects Are there any Environmental Effects

Contrary to Governmental Regulations?Contrary to Governmental Regulations? Can Foreign Exchange Requirements of the Can Foreign Exchange Requirements of the

Project be Easily Accommodated?Project be Easily Accommodated? Will there be Any Difficulty in Obtaining the Will there be Any Difficulty in Obtaining the

License of the Project? License of the Project?


Availability of InputsAvailability of Inputs Are the Capital Requirements of the Project within Are the Capital Requirements of the Project within

Manageable Limits?Manageable Limits? Can Technical Know-How Required for the Project Can Technical Know-How Required for the Project

be Obtained?be Obtained? Are the Raw Material Required for the Project Are the Raw Material Required for the Project

Available Domestically at a Reasonable Cost? If the Available Domestically at a Reasonable Cost? If the Raw Materials Have to Be Imported, Will there be Raw Materials Have to Be Imported, Will there be Problems?Problems?

Is the Power Supply for the Project Reasonably Is the Power Supply for the Project Reasonably Obtainable from External Sources and Captive Obtainable from External Sources and Captive Power ResourcesPower Resources


Adequacy of MarketAdequacy of Market Total Present Domestic MarketTotal Present Domestic Market Competitors and Their Market ShareCompetitors and Their Market Share Export MarketsExport Markets Sales and Distribution SystemSales and Distribution System Projected Increase in ConsumptionProjected Increase in Consumption Barriers to the Entry of New UnitsBarriers to the Entry of New Units Economic, Social and Demographic TrendsEconomic, Social and Demographic Trends Patent ProtectionPatent Protection


Reasonableness of CostReasonableness of Cost Cost of Material InputsCost of Material Inputs Labour CostsLabour Costs Factory OverheadsFactory Overheads General Administrative ExpensesGeneral Administrative Expenses Selling and Distribution CostSelling and Distribution Cost Service CostService Cost Economies of ScaleEconomies of Scale


Acceptability of Risk LevelAcceptability of Risk Level Vulnerability of Business CyclesVulnerability of Business Cycles Technological ChangesTechnological Changes Competition from SubstitutesCompetition from Substitutes Competition from ImportsCompetition from Imports Governmental Control Over Price and Governmental Control Over Price and

DistributionDistribution

PROJECT RATING PROJECT RATING INDEXINDEX

SOURCES OF POSITIVE SOURCES OF POSITIVE NET PRESENT VALUENET PRESENT VALUE

Economies of ScaleEconomies of Scale Product DifferentiationProduct Differentiation

Effective Advertising and Superior MarketingEffective Advertising and Superior Marketing Exceptional ServiceExceptional Service Innovative Product FeaturesInnovative Product Features High Quality and DependabilityHigh Quality and Dependability


Cost AdvantageCost Advantage Accumulated Experience and Comparative Accumulated Experience and Comparative

Edge on the Learning CurveEdge on the Learning Curve Monopolistic Access to Low Cost MaterialsMonopolistic Access to Low Cost Materials A Favourable LocationA Favourable Location More Effective Cost Control and Cost More Effective Cost Control and Cost

ReductionReduction


Marketing ReachMarketing Reach Technological EdgeTechnological Edge Government PolicyGovernment Policy

Restrictive LicensingRestrictive Licensing Import RestrictionsImport Restrictions High Tariff WallsHigh Tariff Walls Environmental ControlsEnvironmental Controls Special Tax ReliefsSpecial Tax Reliefs

ON BEING AN ON BEING AN ENTREPRENEURENTREPRENEUR

1.1. Are my goals Well Defined?Are my goals Well Defined? Personal AspirationsPersonal Aspirations Business Sustainability and SizeBusiness Sustainability and Size Tolerance for RiskTolerance for Risk

2.2. Do I have the Right StrategyDo I have the Right Strategy Clear DefinitionsClear Definitions Profitability and Potential for GrowthProfitability and Potential for Growth DurabilityDurability Rate of GrowthRate of Growth

ON BEING AN ON BEING AN ENTREPRENEURENTREPRENEUR

3.3. Can I Execute the Strategy?Can I Execute the Strategy? ResourcesResources Organizational InfrastructureOrganizational Infrastructure The Founder’s RoleThe Founder’s Role

QUALITIES AND TRAITS OF A QUALITIES AND TRAITS OF A SUCCESSFUL ENTREPRENEURSUCCESSFUL ENTREPRENEUR

Willingness to Make SacrificesWillingness to Make Sacrifices LeadershipLeadership DecisivenessDecisiveness Confidence in the ProjectConfidence in the Project Marketing OrientationMarketing Orientation Strong EgoStrong Ego