Project Ideas
GENERATION AND SCREENING OF PROJECT IDEAS Sanjeev Bajaj
What is the difference between a successful venture and an unsuccessful one? The successful one entered into right business at right time. How do you get project ideas? By scanning the environment.
Reader, Finance Area
Generation of Ideas
How to get commercially viable project ideas?
Stimulate the flow of ideas by • Setting clear objectives • Fostering a conducive climate • Encourage research.
Keep your senses in receiving mode.
Scanning the Environment Economic Sector Governmental Sector Technological Sector Socio-demographic Sector Competition Sector Supplier Sector Geographic Sector
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Tools for Identifying Investment Opportunities
Core Competencies Marketing and Distribution Production and Operations Research and Development Corporate Resources and Personnel Finance and Accounting
Among many these three are popular Porter Model : Profit Potential of Industry Life Cycle Approach Experience Curve
Porter Model : Profit Potential of Industry
Life Cycle Approach
Potential Entrants Threat of new entrants Bargaining power THE INDUSTRY of suppliers Suppliers Rivalry among existing firms
Pioneering Stage Rapid Growth Stage Maturity and Stabilization Stage Decline Stage
Bargaining power of buyers
Buyers
Threat of substitute products Substitutes
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The Experience Curve Cost control for long-term survival Key factors which contribute to cost control are Learning effect Technological improvements Economies of scale
How to Get Project Ideas Analyze economic and social trends Study new technological developments Draw clues from consumption abroad Explore the possibility of reviving the sick units Identify unfulfilled psychological needs Attend trade fares Search, search and search
How to Get Project Ideas Analyze the performance of existing industries Examine the inputs and outputs of various industries Review import and export Study plan outlays and governmental guidelines Look at the suggestions of FIs and Developmental Agencies Investigate local materials and resources
Filtering the bad ones Compatibility with promoter Consistency with governmental priorities and policies Availability of inputs Adequacy of the market Reasonableness of cost Acceptability of risk level
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A Successful Entrepreneur Possess following qualities and traits Willingness to make sacrifices Leadership Decisiveness Confidence in the project Marketing orientation Strong ego Open mindedness Receptive
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