Identification of a new project is a complex problem. Project selection process starts with the generation of project ideas. In order to select the most promising project, the entrepreneur needs to generate a few ideas about the possible project one can6 undertake. The project ideas as a process of identification of a project begins with an analytical survey of the economy (also known as pre-investment surveys). The surveys and studies will give us ideas.
Generation Of Ideas• Most of the project ideas involve combining existing fields of technology or offering variants of present product or services.
Stimulating The Flow of ideas•
clear articulation of objectives
Increase in capacity utilization
A clear articulation and prioritization of objectives helps in channelizing the efforts of employees and production them to think more imaginatively. Fostering The Conducive Climate
To tap the creativity of people and to harness their
entrepreneurial skills, a conducive organisation climate has to be fostered. Two conspicuous examples of organisation which have been exceptionally successful in tapping the creativity of employees are the Bell Telephone Laboratory and the 3M Corporation. While the former has succeeded in harnessing creativity by providing an unconstrained environment, the latter has effectively nurtured the entrepreneurial skills of its employees as sources of idea generation. The project ideas can be generated from various internal and external sources.
• Knowledge of market, products, and services,potential customer choice. • Emerging trends in demand for particular product.
• Scope for producing substitute product.
• Market survey & research.
• Going through Professional magazines.
• Making visits to trade and exhibitions.
• Government guidelines & policy.
• Ideas given by the experienced person.
• Ideas by own experience.
Monitoring The Environment
Firm must systematically monitor the environment and access its competitive abilities. For the purpose of monitoring, the business environment may be divided into six categories 1)Economic Sector
State Of The Economy
• Overall Rate Of growth
• Growth rate of primary , secondary and tertiary sector
• Cyclical fluctuation
• Linkage with the world economy
• Trade surplus / deficit
• Balance payment situation
• Industry Policy
• Government Plans and Projects
• Tax Framework
• Subsidies, incentives and concessions
• Import and export policies
• Financing norms
• Lending conditions of financial institutions and commercial banks
• Emergence of new technologies
• Access to technical know how, foreign as well as indigenous • Receptiveness on the part of industries
• Population trends
• Age shift in population
• Income distribution
• Education profile
• Employment Of Women
• Attitudes toward consumption and investment
• Number of firms in the industry and the market share of the top few ( four or few) • Degree of homogeneity and differentiation among products • Entry barrier
• Comparison with substitutes in term of quality, price, appeal and functional performance• Marketing policies and practices 6)Supplier Sectors
• Availability and cost of raw materials and sub assemblies • Availability and cost of energy
• Availability and cost of money
• A realistic appraisal of corporate strength and weakness is essential for identifying investment opportunities which can be profitably exploited. The broad and important aspects are • Marketing and Distribution
• Production and Operations
• Research and Development
• Corporate Resource And Personnel
• Finance and Accounting
Marketing and Distribution
• Market Image
• Product line
• Market Share
• Distribution network
• Customer Loyalty
• Marketing and distribution
Production And Operations
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