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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.
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