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


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


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

Indigenous Receptiveness on the Part of Industry


Socio-Demographic Sector Population Trends Age Shifts in Population Income Distribution Educational Profile Employment of Women Attitudes Towards Consumption and Investment


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


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


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?


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


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


Reasonableness of Cost Cost of Material Inputs Labour Costs Factory Overheads General Administrative Expenses Selling and Distribution Cost Service Cost Economies of Scale


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


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


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

Documents

Generation & Screening of Project Ideas