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Project Appraisal

Project Appraisal

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Published by robinkapoor

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Published by: robinkapoor on Jan 02, 2009
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12/02/2014

 
Project Appraisal- 1Project and Environmental Analysis - Some BasicPointsThe new era of GLOBALISATION AND ECONOMICLIBERALISATION provides ample opportunities for growth which may be encashed through prudentinvestment strategy. A firm must take timely actions for adapting itself to the changed environment.A capital project needs to be launched by:
Analysing past environment
Studying existing environment
Forecasting future environmentAn environment is defined to mean the conditions, prevailing at a particular point of time, which influencethe process of initiation and development of a capital project.
Business Environment
Which is reflected by:- State of technology- Availability of resources- Rate of inflation- Economic policies of Government- Commercial laws
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Social Environment
Which is reflected by:- Awareness of Social responsibility- Status of consumers' preferences- Increased customers/investors protection- Status of education- Growth in population and it's distribution
Political Environment
Which is reflected by:- Attitude of Government towards liberalisation- Political stability- SecurityThe inherent characteristic of an environment is:CHANGEThe environmental Changes:Provide -OpportunitiesCreate-ComplexitiesPose-ThreatsAdd-RisThe complexity and risk in a particular project isreflected in:
Resource constraint
Longer time period involved (i.e. Longer Gestation period)
Increased dependence
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In order to meet objectives in a situation of violetand rapid changes in the socio-economic-politicalenvironment, an organisation needs to build upstrengths and capability to convert threats intoopportunities. It needs to be vigilant, analytical inapproach, and initiative- taking to meet challenges posed by dynamic environment. An analysis of externalenvironment would throw light on:
The strategies and plans of growth of competitors.
Existing government policy.
The scope for growth and an improvement in themarket position.An indepth analysis would show the financial,technological, marketing and managerial strengths of the company, and this would help in formulation of suitable investment strategy to meet objectives of theorganisation. The impact of government plans and policies on the environment should be ascertained, andthe inter-linkage between government plans and business plans of the company should be established.This is shown in he Figure I below:
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John Wilfred added this note
May I request you to kindly mail me this document. It is quite useful and well explained.
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Gaurav Gupta added this note
good document, can u please mail this document to me at gauravravigupta@rediffmail.com. Thank you
gavaksh1 added this note
it will be highly appreciated it you can mail this document to me.... i need it urgently.... @ gavaksh2408@gmail.com
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