Idea generation Primary screening or pre-feasibility study Project feasibility or detailed feasibility study Support study Detailed project.

Idea generationPrimary screening or pre-feasibility

studyProject feasibility or detailed

feasibility studySupport studyDetailed project report (DPR)Design or planning Implementation or executionTermination of project

Idea generation or project identification

Preliminary screening or pre feasibility study

Project feasibility or feasibility study

Detailed project reporter formal approval from sponsors

Planning, organizing & scheduling of project activities

Direction & controlling of activities

Termination of project (commissioning)

Support Study

Market & demandAnalysis

Technical Analysis

Financial Analysis

Social cost benefit Analysis

Environmental & risk analysis

Idea generation is the process of grouping logical thoughts based on some factors.

Basis for other steps in completing steps.

Important for continuous growth of organization.

Survival in the competitive market.Contribution towards development of

society.

Performance of existing industry Examining the inputs and outputs of

various industries Review of imports and exports Availability of cheap materials & labor

locally Price trend, to find demand – supply gap Government guidelines Analysis of economic and social trends Study of new technological developments others

Preliminary screening is done with a view to avoid unnecessary cost and efforts in detailed study, if idea is not looking worthwhile in first instance

DEFINITION : Preliminary screening can be defined as a series of steps to know whether or not a complete detailed feasibility study should be made.

To determine whether project (idea) is promising business opportunity or not.

Whether it justified a detailed analysis or not

To find out any critical aspect on which success or failure depends

To formulate a plan for detailed feasibility study

Acceptable risk levelConsistency with government

prioritiesAvailability of inputsAdequacy of marketReasonableness of the costsCompatibility with promoters

Support study can be defined as – An in-depth investigation into any one or a couple of critical aspects (areas) of a project, to help the feasibility study.

Critical aspect here means those areas whose success or failure decides the success of failure of business or project.

It guarantees the success of Project It works as basic terms of reference

for Project It describes the nature and complexity

of Project It gives an idea about investment in

Project It also provides us the possible future

difficulties It gives an idea about economic and

social benefits

Pre-Feasibility Pre-Feasibility StudyStudy

Feasibility StudyFeasibility Study

ObjectiveObjective

To determine whether To determine whether or not the Project idea or not the Project idea needs further needs further investigation investigation

To determine the true To determine the true profitability of the profitability of the Project and selecting Project and selecting the Project.the Project.

ScopeScope Over-view studyOver-view study Detailed studyDetailed study

Type of DataType of Data Secondary DataSecondary Data Primary DataPrimary Data

Time involvedTime involved LowLow HighHigh

AccuracyAccuracy

LowLow HighHigh

Cost involvedCost involved LowLow HighHigh

Market and Demand analysisTechnical analysisFinancial analysisSocial Cost-Benefit analysisEnvironmental and risk analysis

Meaning:“Doing project feasibility is not the

end of Project formulation stage. It also includes documentation of it, which is known as Detailed Project Report.”

Definition:

“A formal written document containing the process of Project formulation and briefing the Project scope”

Objectives:

It work as formal communication to Project Promoters for their approval.

It also fulfills the need of Project Report to be provided to the financial institutions/banks

It can also be submitted as Project Reports to Govt. Departments for necessary approval.

General information about the Project Background and experience of the Project

Promoters Details and working of already owned

businesses. Details of the proposed Projects Schedule of implementation Project costs Means of financing the Project Marketing and selling arrangements Profitability and cash-flow estimates Mode of payment of term-loans Government Approvals.

PROJECT MARKETPROJECT MARKET&&

DEMANDDEMAND

Objective SpecificationObjective Specification

Collection of Data

Collection of Data

Market SurveyMarket Survey

Market Description

Market Description

Demand Forecasting

Demand Forecasting

MARKET PLANNINGMARKET PLANNING

“Market Survey is a technique that is aimed at gathering all possible information (primary data) by conducting interviews.”

Defining the Target MarketSelecting the SampleDeveloping the QuestionnaireTraining the SurveyorsRecording the InformationInterpreting the Information

Competition in MarketStudy of Market SegmentsPriceMethods of DistributionSales PromotionConsumers Interest

Demand ForecastingDemand Forecasting

“Demand Forecasting is the art of predicting demand for a product or a service at some future date on the basis of certain present and past behaviour patterns of some related events.”

AccuracySimplicityEconomyTimelinessAvailability

Survey of buyer’s intentions Collective opinion method Expert opinion method Controlled experiments Study of general economic

environment

a) Trend Projection Methodb) Graphical Methodc) Regression Analysis

Market Planning Market Planning Market Planning Market Planning

This steps under Market and Demand Analysis is not related to actual analysis, but related to Market plans of new firm (if idea under consideration is selected). Under this step, four P’s of Marketing viz Product, Price, Place and Promotion should be well designed to achieve the expected level of Market Penetration.