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Practical Manual

B.Sc (Ag) 3rd year

Name:_________________________

I.D.No:________________________

Batch:_________________________

Course No. : AEXT 391

Entrepreneurship Development &

Communication skills

Credits 2(1+1)

Dr.V.Sudha Rani

Associate Professor

DEPARTMENT OF AGRICULTURAL EXTENSION

COLLEGE OF AGRICULTURE, RJENDRA NAGAR

ACHARYA N. G. RANGA AGRICULTURAL UNIVERSITY

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INDEX

Se.No Particulars of the Exercise Date of Signature of the

submission course I/c
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ACHARYA N. G. RANGA AGRICULTURAL UNIVERSITY

COLLEGE OF AGRICULTURE, RJENDRA NAGAR.
DEPARTMENT OF AGRICULTURAL EXTENSION

Certified that this is a Bonafied record of the work done in the

laboratory and in field during the year 20 to 20 by

Name:

Class:

Course No:

ID. No:

Signature of the Course I/c

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Exercise:

Date :

Importance Of Communication, Communication Skills in an

Enterprise/Organization.

Aim:- By the end of practical session, student will be to understand & experience the
importance of communication, communication skills in an enterprise/organization that are
essential for an entrepreneur.

Introduction:-

Communication is vital part of our day to day life from womb to tomb human being
as a social animal live in constant interaction and communication with others and
environment. We do communicate orally or verbally, non-verbally by gestures etc
listening, writing and by reading. Communication is central to all activities of human
being. The work place is not exception except that 80% of our work time is spent in some
kind of communication. By reading reports, news, listening to co-workers, writing replies,
making presentations before groups and interacting with superiors etc.

Communication involves at least 2 people the sender & the receiver and constantly
roles are inter changed. As an entrepreneur one is required to communicate effectively to
run enterprise successfully. The four important skills of communication are vital to
become successful entrepreneur, they are writing, speaking (presentation), listening and
reading for example a poorly written cover letter may prevent you for being hired for the
job. On the other hand ability to write effectively and make clear presentations can make
the different between being promoted or left behind you need effective, persuasive
communication skills for professional/career advancement in any organization or
enterprise.

Important of Communication & Communication Skills:-

There are two aspects of communication in any enterprise one is the development &
maintenance of communication and the other is use of technologies or channels for
effective flow of information.z
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Social advancement has to be matched & the development of efficient techniques of

communication, to sustain the tempo of the growth therefore a great deal of importance is
attached to communication and maintaining efficient system of communication in modern
professional organization gathering and marshalling of data/information necessary for
decision making is enabled through effective communication in organization.

In India where other languages are also used for communication purpose, out of the
total time spent on communication we use

English - 64.4%

Hindi - 27.22%

Regional - 8.64%

This entails the importance of effective communication skills needed in English.

Though we spend 45% of our time in listening are study revealed that we hear only
are quarter of what is being told. The following is the table indicating how we spend our
communication time.

Writing - 9%

Reading - 16%

Talking - 30%

Listening - 45%

The following table indicated how learning is ordered and how importance is
attached to each activity in teaching/education.
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Form of Order learned Extent used Extent taught

communication

Listening 1st 1st 4th

Speaking 2nd 2nd 3rd

Reading 3rd 3rd 2nd

Writing 4th 4th 1st

In recent years the importance of communication has greatly iced as a result of 3

important aspects. They are growing complexity in organizational & individual behaviour
& fast changing scenario.

A survey by Beta-research Corporation on behalf of the New York Times, asked

several hundred recruiting managers to name the most important behaviour/things they
consider in Job seekers during interview. “Effective communication skills” confidence in
ones own abilities.

Whatever may be the form of communication that an entrepreneur are,

communication skills are critical to the success in the workplace/enterprise. However the
following are the general skills needed to enable com, to be more successful.

 Understanding the purpose of communication

 Analyzing the audience
 Communicating verbally & non verbally
 Giving each communication greater impact
Listening, Speaking, Reading and Writing are the skills that are generally used in
formal meetings/workshops where important decisions are made. During such situations
as an entrepreneur or professional expert should be able to speak & write clearly. So that
his/her point of view is clearly understood. But generally hours of time is spent in meeting
hardly any concrete decisions are taken. A study revealed nearly $ 37 billion is wasted in
unproductive meetings.
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Communication performs a number of functions and plays a significant role in

running and growth of an enterprise. They are classified into 2 i.e. external & internal
functions.

a) Internal is within the organization:

 to generate & disseminate info

 to direct & instruct employees
 to maintain & improve morale
 to cultivate a sense of belonging.
b) External functions that is outside the organisation

 to sell & obtain goods & services

 to liaise with other organizations
 to create goodwill.
Generally in any organization following types of information is needed by members

 Info of immediate concern

 Info related to working environment
 Info about personal benefits
 Info about organisation / or enterprise as a whole its objectives, goals, structures
etc.

AIM:- To experience how & what actually the communicators the receiver receives
through various forms of communication oral/written, reading & listening.

GENERAL EXERCISE:-

Message by :-

Actual message:

Message received by the last member/ audience

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My learning form exercise:-

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Exercise II

The best experience/ worst experience:

Message received by the last member:

My learning’s from this exercise:-

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Exercise III : Influence of communication on Efficiency and Effectiveness

Situation I:

Result:

My learnings:

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Situation II:

Result :

My learnings:

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Exercise:
Date : LISTENING SKILLS
Aim:-

To learn different types of listening skills through practical exercises

Listening:-

Listening is a process of receiving, interpreting and reacting to the messages

received from the communication sender. Listening is a process involving awareness,
reception, and perception.

MISCONCEPTIONS / MYTHS ABOUT LISTENING

 Listening is the Same thing as Hearing

Listening is not an automatic process. Listening is different from hearing. In
hearing, the sound waves strike the eardrum, causing vibrations. These are transmitted to
the brain. Listening occurs only when the brain. Listening occurs only when the brain
swings into action by reconstructing these electronic impulses by giving meaning to the
sounds. True listening is a dynamic process. It involves more than the passive act of
hearing. Hearing is with ears, but listening is with mind.

 All Listeners Receive the same Message

If this were so, why some people will sleep or not enjoy the
Speech/Presentation/Lecture. All listeners do not receive the same message in a uniform
manner. Listening is a very demanding activity. It demands not only full attention but also
proactive interest in what the speaker is talking about. This may not always easy for all
Listeners.
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 Good readers are good listeners

 Listening improves with age
 Listening skills are difficult to learn
The researches found that shortly after a 10-minute oral
presentation the average listener will have retained only 50% of what was said after
48 hrs they are likely to remember only 10%.

If you want to be a more effective listener then you must not only open the lines of
communication and relax but you must compel others to do the same. You only hear with
your ears (which are always open), but listen with your mind.

Two-ears is a blessing:

Most successful leaders and managers LISTEN. Many qualities can take you to the
pinnacle of your profession, but what can “keep” you there is effective listening. “The
better you listen, the luckier you get”, says KEVIN J. MURPHY, a U.S. management
consultant. According to him, listening is the accurate perception of what is being
communicated and an open mind is therefore the key to communication. We are blessed
with two ears and one mouth (or shall we say one tongue) - a constant reminder that we
should listen twice as much as we talk.

The most common complaint is “He (or she) doesn’t listen to me”. Whether it is
officer to subordinate or subordinate to officer, all have the same complaint. We seldom
listen half of what is said and we may not be fully attentive to the other half. Hearing is
momentary, either you get the message and remember it, or it’s gone for ever.

Distortions in listening:

The exercise that you have participated in a game where one person whispers two
or three sentences to the next person standing in a line. In the end the message barely
resembles the original thought. It produces much fun and enjoyment among participants
besides being an effective learning lesson. Not listening properly can result in a disaster.
A survey carried out amongst top executives of United States attending a seminar on
listening had three typical answers: “Frankly, I had never thought of listening as an
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important subject by itself”, “Now I realise that many of the troubles in my company have
resulted from someone not hearing something or getting it in a distorted way”, “We seem
to have inadvertently overlooked listening as a facet of communication. It is the most
important link but obviously the weakest one”.

Listening is least taught:

Perhaps the biggest oversight has been the least attention paid to listening in our
classroom instructions. Our primary attention has been on reading and writing. Very little
emphasis is paid on speaking and almost no attention to skills of listening. This is strange
because there is so much lecturing in colleges and schools. The only training listening has
been in the form of admonitions or commands: “Listen” or “Listen carefully”.

The two-way communication:

Even in countries like United Kingdom and United States of America, teaching
listening skills has assumed significance only in the last four or five decades. In India such
a realization has yet to take a shape although many multinational and progressive
companies have recently started training programmes in listening skills. As LEE
IACOCCA, Chairman and CEO, Chrysler Corporation in his autobiography says,
“Listening is one skill that can make the difference between a mediocre company and a
good company”. Globalisation, market competition, and the advent of faster electronic and
computer techniques have made it imperative that we widely spread the message of
effective communication, especially listening skills, in schools, colleges, universities and
all professional sectors including government offices. The art of listening can be learnt and
taught for all age groups, what is needed is practice and will.

TYPES OF LISTENING

1. IGNORING: Completely not listening to others.

2. PRETENDING: Yeah! Right, uh-huh are the some of the expressions of those who
practice pretending.
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3. FAKE LISTENING: Many listeners mistake silence for listening. They steadfastly
fix their eyes on the speaker and try to project themselves as good listeners. In fact they
miss many important points.

4. MARGINAL LISTENING: A poor listener is a marginal listener. Day dreamers,

poor listening habitués, wandering attention and avoiding understanding of complex points
by finding escape routes are the characteristics of marginal listeners.

5. EVALUATIVE LISTENING: This traps a listener into the temptation of passing

hasty judgments or unfounded evaluations about the speaker.

6. SELECTIVE LISTENING: Hearing only certain part of the speech / conversation etc,
and think that is important to them.

7. ATTENTIVE LISTENING: Paying attention and focusing energy on the words that
are being said. It is a process to observe and understand what is said and to assimilate the
viewpoint of the speaker. Listening to this type is more useful in solving complex
problems.

8. EMPATHIC LISTENING OR ACTIVE LISTENING: This is the highest from of

listening. This listening with intent to understand. The understanding of speakers frame of
mind, their paradigm and understand how they feel. This type of listeners practices a lot of
mental paraphrasing.

Listening for success:

The problems are almost the same in a one-to-one conversation particularly when
the other side is your superior and group listening. Here your self-confidence, integrity,
and character will play a significant role. Many a times people do not talk to you for
getting solutions to their problems, they want an empathetic ear. Psychiatrists make their
living listening and helping patients feel better by just lending a friendly ear.

In conclusion, what we urgently need is awareness about the huge benefits of

effective listening amongst all categories of people: students-teachers, children-parents,
civil servants-citizens, superiors-subordinates. All of us, irrespective of age and status can
improve our aural skills. People who listen well have a much better chance for success.
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Developing listening skills are very important for various reasons. Here are some of the
many benefits you get out of becoming a good listener.
Benefits of being a good listener:
1. When you listen to the other person with full attention, it shows that you are giving
respect
to the person. By giving the person respect, you gain his respect and love.
2. The other guy in turn will listen carefully to what you have got to say.
3. Listening skills will help you in knowing more about the person which can be helpful in
your professional life as well as personal life.
4. By knowing more about the other person, you increase your chances of making friends
with him/her. You endear yourself in their eyes.
5.You can improve relationships with people by being a good and sympathetic listener to
their concerns and problems.
6. Listening skills help in improving conversation skills, and you can avoid many
confusions,
misunderstandings and conflicts if only you develop the willingness to lend more
attentive
ears to the speaker. In a nut shell listening
1. Helps in creating happy work environment

2. Reduces tensions and hostilities

3. Saves time

4. Improves management - employee relations

5. Early problem solving

6. Increases output productivity

Now that you know some of the benefits of listening skills, read below a few tips to help
you become a good listener:
1. Be willing to become a good listener:
Develop the willingness. If you are not willing to do something you will not make the
effort. In order to develop willingness, understand the benefits of becoming a good listener.
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2. Respect the other person:

Unless you respect the other person, you will be unwilling to lend an attentive ear to
him/her. In addition to respect, also try to develop genuine interest and liking for people.
This will add warmth to your interactions with them.
3. Focus completely on the speaker:
Focus on the speaker and what is being said rather than thinking or composing your own
reply, otherwise you will miss many of the things the speaker is saying.
4. Face the speaker, nod your head and provide visual cues that you are paying attention
to him/her.
5. Don’t interrupt: Let the speaker finish his statement before you reply. If you want to
interrupt the speaker or raise a point, be patient till you get a chance.
6. Give oral encouragements like "I see", "I understand", "I agree" etc. which will send
signals to the speaker that you are really listening to him or her.
7. Occasionally summarize and repeat back in your own words what you understand of
what they’re saying so that they know you’re hearing them and also to prevent any
misunderstandings and confusion.

8. If you wish to remember a certain piece of information which the speaker is saying,
repeat it back immediately and aloud. Then, as soon as it’s convenient, write down that
information which you want to remember.
9. While at a meeting or conference, take notes.
This will help you in remembering key information. The notes can also be helpful for
discussions at that meeting.
10. Even if the speaker becomes silent for some time or is thinking of something, don’t
try to rush and fill up the silence. Give the speaker a chance to compose his/her thought.
11. Ask questions:
Asking questions is a very effective way of showing that you are paying attention. Give
him/her chance to respond to one question before throwing another one at him/her.
12. Try to be relaxed:
Whether you are standing or sitting, try to be relaxed and comfortable so that you can pay
better attention to the speaker. If you feel discomfort, then it is likely to distract your
attention.
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13. Give proper feedback:

People sometimes would be interested in your opinion about a topic. Provide an honest
feedback whenever you are asked or where it is appropriate.
14. Develop interest in the other person:
By becoming curious about the other person, you will find that most of the above
mentioned listening tips come automatically to you.
When Should You Stop Listening?
You also need to know when to stop listening. Having good listening skills does not mean
that you allow others to waste too much of your time, or encourage them to indulge in
useless gossip, running down other people or complaining of life's problems etc. You have
to know when to stop encouraging the person if he/she crosses reasonable limits.

Conclusion:-

Most successful leaders and managers listen. Many qualities can take you to the
pinnacle of your profession. But what can “keep” you there is effective Listening. “The
better you listen, the luckier you get” says Kevin S.M, a U.S management Consuttant.
According to him, listening is the accurate perception of what is being communicated and
an open mind is therefore the key to communication. We are blessed with two ears and one
mouth - a constant reminder that we should listen twice as much as we talk.

Exercises of Listening Skills

Exercise No: 1

The purpose of this exercise is listening the sounds by closing the eyes for 5
minutes, and listing out the different sounds listened

Sounds I could list:

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Exercise No: 2

Through this exercise we can asses which type of listener you are i.e. Ignoring,
pretending, take listening, marginal listening, evaluative listening, Attentive listening &
empathic or Active listening.

What type of listener I am ?

List bad listening habits that you have:

How do I improve my listening?

Exercise No: 3

Title of the topic discussed:

No. of members in the group:

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Observations made:

Group Exercise-Listening skill analysis:

Se.No Name of the member Type of listening Improvement required

My learning’s from this exercise on listening skills:

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Conclusion:
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Exercise:

Date : READING SKILLS

AIM:-

To learn Reading skills through practical exercises.

Introduction:-

Reading skills are extremely important as they improve one’s ability to

communicate effectively. They are useful for immediate accomplishment like keeping up
to date information, improving writing ability. In fact, proficiency in reading is a pre-
requisite to good writing ability. But reading alone will not help you unless you develop
ability to comprehend what you have read. Listening and reading are strictly individual
traits and are often taken for granted. We can pretend to read and listen which is not the
case with speaking and writing. We may be hearing a speech but not listening (with mind)
it is as much as we may be seeing a page of book but not reading it. What one effectively
listens and reads becomes a valuable raw material for effective speaking and writing.

Reading is one of the 3R’s of elementary education the only one literally beginning
with the letter R, the other two R’s being (w)riting and (a)rithmetic, the principle focus of
reading is on comprehension or understanding.

Reading is a process:-

It is a visual process:- Eye movement eye span and perception span

It is a Brain process:- Word resources (or) vocabulary, background knowledge, general

education etc.

Defining Reading:-

- Means learning to pronounce words

- Learning to identify words and get their meaning
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- Learning to bring meaning to a text in order to get meaning from it.

An average reader reads 250 words/minute A very good reader reads 500-600 wpm
An Exceptional reader reads 1000 or more wpm.

Good Reading depends upon you,

 Your sharpness of your thinking facilities

 Your ability to remember & retain what you read &
 Your word power.
For effective reading: you have to read twice

First a quick reading to follow author’s pattern of thinking and organization of

thoughts and to get to know the general meaning (over view)

In the Second reading, you get to know the particular details (what you are looking
for). You can understand details more effectively and remember them more easily once
you have grasped the central theme. This approach is very useful to study and subject.

Comprehension is the main aim of reading. Rapid perception and thinking help good
comprehension. Mind can also be trained for aggressive comprehension. Your word
vocabulary has to be simultaneously increased. (Read regularly “It pays to enrich your
word power” sector in readers digest).

One of the best tools for a rapid, effective reading is skimming. But it depends upon the
purpose, and also whether the material before you lands itself to skimming.

Reading skills enable:-

1. To read the written form as meaningful language

2. Read anything and fluency

To mentally interact with the message one should have the following skills:-

a) Word attack skill:- Ability to convert graphic symbols to intelligible language.

b) Comprehensive skill:- Ability to use context and prior knowledge to aid reading and
to make sense of what reads and hears.
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c) Fluency skill:- Ability to see larger segment and phrases as whole as an aid to reading
and writing more quickly.

d) Critical Reading skill:- Ability to analyze, evaluate and synthesize what one reads.
Ability to see relationship of ideas and use them as an aid in reading.

How we actually read:

Reading any written material involves Eye movement over the words and sentences.

The Eye movement : Saccade

-------------------------------
------------------------------- Fixation
-------------------------------
-------------------------------
---------

What we think how actually the eye movement is

In 1890 a French ophthalmologist Emile Javal found the actual movement of the eye.

He said there are what called fixations and saccades while reading. Fixation is nothing but
fixing eye over a certain word for a brief period of time. While saccade is the jumping over
certain words without any fixation.

Jack and Jill Went up the Hill ---- slow reader

Jack and Jill Went up the Hill ---- fast reader.

The No of fixations and length of fixations determine the speed of reading. A slow reader
has 15 fixations with 1 ½ seconds fixation time for each fixation. While the fast reader has
only 7 fixations with 1/5th second as fixation time. Hence to become a Fast reader you
should stop fixing on each word and cut down the length of each fixation.
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Regression: It happens while reading that is reader tends go back to the already read
material again and again.

Visual wandering: it is another phenomena which generally happens. Reader tends to

visualize and imagine about what he has read without reading further fully.

This regression and visual wandering result in unmotivated reading habits.

Reading faster is influenced by mental and physical barriers. The mental barriers are
certain myths, lack of motivation and concentration. The physical barriers that influence
speed of reading are position or posture, environment and eyesight problems.

The Styles or Approaches of reading:

1. Study reading: The reading speed is up to 200 wpm. It is like a first gear in car –
slow but powered gear. The comprehension, understanding is very high and one can
easily memorize and recall what is read. This style is helpful when you read for
examinations.
2. Slow reading: 200-300 wpm. It is of very little use unless the matter is more
difficult or complex.
3. Rapid reading: Most commonly used and useful style of reading. 300-800 wpm.
Used for material of average difficulty. This reading results only in 60-70%
comprehension. Line by line progress or groups of words at a time is read.
4. Skimming: It is the fastest gear with 600-60,000 wpm. Comprehension value of
this reading is very low. It is a valuable tool for an entrepreneur. There are three
methods followed while skimming, they are scanning, sampling and locating.
Scanning and sampling are used when only general outline of the material is
required. While locating is used when only certain information from mass of
material. Ex- telephone directory.
Scanning is done without fixation reader wander

across the material from bottom to top, diagonally

across and erratically all over page .

Sampling : in this certain writings are chosen as sample Scanning

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to get out line – First and last paragraph & first sentence
-----------------
of each paragraph. First follow sampling if confident then

scan material well.

Thus though skimming is very fast it has poor capacity -----------------

for comprehension and retention. Hence one has to Sampling

change the style or approach of reading depending up on requirement of

comprehension and retention.

Factors affecting the style of reading:

Nature of the material: How badly or how good it is written, prior knowledge of the
material and interest in the material affect the style of reading.

Purpose of reading: If it is for recall retention and comprehension study style is

appropriate. If not required to remember /recall only understanding and 60-70%
comprehension then rapid reading is suitable. To get overview or out line Skimming is
useful.

Other factors: Environment , reader state of mind and relaxation also affect style of
reading

Some Suggestions:-

For developing reading skills and accomplishing success in reading are listed
below.

1. Objective of reading should be clear in mind. Normally people read things in which
they are interested.

2.Use the technique of skimming which means reading for major ideas and not each word
while scanning the material one should continue a silent communication with the author of
the material i.e. responding to the materials is one’s means of understanding the author’s
concepts.
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3.Take brief notes along with reading to remember what has been read.

4.One should read critically and then write down his own views related to the concepts.

In conclusion, some tips for faster and better reading:

- Make a quick survey of chapter headings, table of contents, introductory chapter,

graphs and illustrations, and the preface. (it will give an insight about the contents and
nature of the material. It also helps deciding whether to read details)

- Learn to read by PARAGRAPHS. A para generally contains one leading idea

around which supporting details are arranged. Find this idea rapidly.

- Reading the “main idea” in each para may be sufficient.

- If details are important, reading proficiency can be increased by organizing

subsidiary ideas and facts.

- Watch for the directional word

- Real fast reader knows how to glean the essential ideas by SKIMMING.

- These readers generally have a comprehensive knowledge of language and subject

matter and know how to synthesise. They seek really essential or specific ideas of facts.

A word of Caution:-

 Best readers cannot read everything with the same speed.

 Reading speed depends upon reading objectives eg:- Novels, Fiction, Economic
theory
 Motivation to read determines reading speed eg:- sports news by sports lover
 Psychological barriers that impedes effective reading
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Exercise No:- 1

The exercise is to read communication on following instructions. This exercise

tells us any communication/instruction should be read first thoroughly before attempting an
reply. Any communication should be read once or twice to understand.

Exercise No:- 2

In this exercise the words were repeated twice, but one read we could not find the repeated
words after twice or thrice we could trace it out.

Exercise No:- 4

This exercise is on training your eye which helps in improving reading through
stresses the training of the eyes & stresses the training of the mind and Rapid Rhythmic
Reading.

Conclusion:-

The exercise of the Reading skills topic makes effort to improve reading skills.
Such skills can be learnt and developed with guidance and through reading improvement
courses or practice & practice. The exercise is helpful & easily understandable.
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Exercise No:- 1

COMMUNICATION ON FOLLOWING INSTRUCTIONS

1. Read carefully all of the following directions before doing anything.

2. Print your name, last name first, on the top line following the name.
3. Draw a circle around the word “all” in the direction number 1.
4. Underline the word “Name” in direction number2.
5. In direction number 4,draw a circle around the word Underline & in sentence number 1.
6. Now, draw a circle around the title of this paper.
7. Circle the numbers of the sentences 1,2,3,4 and 5 and put an “X” over number.

8. In the sentence number 7, circle the even numbers, and underline the odd numbers. Put
a circle around the number 4 in the fifth sentence.

9. Write, “I can follow directions” above the title of this sheet. Start directly over the
word, “Test”
10. Underline the sentence you have just written.

11. Draw square about ½ inch to the side of the upper left hand corner of this paper. Draw
a circle around the square.

12. Cross out the numbers 8 through 12. Now circle the same numbers.

13. Put an X in the square inside the circle in the upper left hand corner.

14. In the space under the last direction on this paper, copy neatly, by printing, direction
number1.
15. Now that you read all of the directions as stated in direction number1, follow direction
number 2 only. Do not follow, any of the other directions, omit them entirely.

Note: Please do not give this test away by any comment or exclamation. If you have
read this far, just pretend that you are still writing. Let’s see how many people really
following directions carefully.
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Exercise No:- 2

MAGIC
IS A
A FINEART

PARIS IN THE BIRD IN THE

THE SPRING THE HAND
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Reading skills for academic study: Skimming for gist

Exercise 3

Read the first sentence of each paragraph in the following text.

THE PERSONAL QUALITIES OF A TEACHER

Here I want to try to give you an answer to the question: What personal qualities are desirable
in a teacher? Probably no two people would draw up exactly similar lists, but I think the
following would be generally accepted.

First, the teacher's personality should be pleasantly live and attractive. This does not rule out
people who are physically plain, or even ugly, because many such have great personal charm.
But it does rule out such types as the over-excitable, melancholy, frigid, sarcastic, cynical,
frustrated, and over-bearing : I would say too, that it excludes all of dull or purely negative
personality. I still stick to what I said in my earlier book: that school children probably 'suffer
more from bores than from brutes'.

Secondly, it is not merely desirable but essential for a teacher to have a genuine capacity for
sympathy - in the literal meaning of that word; a capacity to tune in to the minds and feelings
of other people, especially, since most teachers are school teachers, to the minds and feelings
of children. Closely related with this is the capacity to be tolerant - not, indeed, of what is
wrong, but of the frailty and immaturity of human nature which induce people, and again
especially children, to make mistakes.

Thirdly, I hold it essential for a teacher to be both intellectually and morally honest. This does
not mean being a plaster saint. It means that he will be aware of his intellectual strengths, and
limitations, and will have thought about and decided upon the moral principles by which his
life shall be guided. There is no contradiction in my going on to say that a teacher should be a
bit of an actor. That is part of the technique of teaching, which demands that every now and
then a teacher should be able to put on an act - to enliven a lesson, correct a fault, or award
praise. Children, especially young children, live in a world that is rather larger than life.

A teacher must remain mentally alert. He will not get into the profession if of low
intelligence, but it is all too easy, even for people of above-average intelligence, to stagnate
intellectually - and that means to deteriorate intellectually. A teacher must be quick to adapt
himself to any situation, however improbable and able to improvise, if necessary at less than
a moment's notice. (Here I should stress that I use 'he' and 'his' throughout the book simply as
a matter of convention and convenience.)

On the other hand, a teacher must be capable of infinite patience. This, I may say, is largely a
matter of self-discipline and self-training; we are none of us born like that. He must be pretty
resilient; teaching makes great demands on nervous energy. And he should be able to take in
his stride the innumerable petty irritations any adult dealing with children has to endure.
 29

Finally, I think a teacher should have the kind of mind which always wants to go on learning.
Teaching is a job at which one will never be perfect; there is always something more to learn
about it. There are three principal objects of study: the subject, or subjects, which the teacher
is teaching; the methods by which they can best be taught to the particular pupils in the
classes he is teaching; and - by far the most important - the children, young people, or adults
to whom they are to be taught. The two cardinal principles of British education today are that
education is education of the whole person, and that it is best acquired through full and active
co-operation between two persons, the teacher and the learner.

(From Teaching as a Career, by H. C. Dent)

Reading skills for academic study: Skimming for gist following your routine style
Exercise 3

THE PERSONAL QUALITIES OF A TEACHER

Here I want to try to give you an answer to the question: What personal qualities are desirable
in a teacher? Probably no two people would draw up exactly similar lists, but I think the
following would be generally accepted.

First, the teacher's personality should be pleasantly live and attractive. This does not rule out
people who are physically plain, or even ugly, because many such have great personal charm.
But it does rule out such types as the over-excitable, melancholy, frigid, sarcastic, cynical,
frustrated, and over-bearing : I would say too, that it excludes all of dull or purely negative
personality. I still stick to what I said in my earlier book: that school children probably 'suffer
more from bores than from brutes'.

Secondly, it is not merely desirable but essential for a teacher to have a genuine capacity for
sympathy - in the literal meaning of that word; a capacity to tune in to the minds and feelings
of other people, especially, since most teachers are school teachers, to the minds and feelings
of children. Closely related with this is the capacity to be tolerant - not, indeed, of what is
wrong, but of the frailty and immaturity of human nature which induce people, and again
especially children, to make mistakes.

Thirdly, I hold it essential for a teacher to be both intellectually and morally honest. This does
not mean being a plaster saint. It means that he will be aware of his intellectual strengths, and
limitations, and will have thought about and decided upon the moral principles by which his
life shall be guided. There is no contradiction in my going on to say that a teacher should be a
bit of an actor. That is part of the technique of teaching, which demands that every now and
then a teacher should be able to put on an act - to enliven a lesson, correct a fault, or award
praise. Children, especially young children, live in a world that is rather larger than life.

A teacher must remain mentally alert. He will not get into the profession if of low
intelligence, but it is all too easy, even for people of above-average intelligence, to stagnate
intellectually - and that means to deteriorate intellectually. A teacher must be quick to adapt
himself to any situation, however improbable and able to improvise, if necessary at less than
 30

a moment's notice. (Here I should stress that I use 'he' and 'his' throughout the book simply as
a matter of convention and convenience.)

On the other hand, a teacher must be capable of infinite patience. This, I may say, is largely a
matter of self-discipline and self-training; we are none of us born like that. He must be pretty
resilient; teaching makes great demands on nervous energy. And he should be able to take in
his stride the innumerable petty irritations any adult dealing with children has to endure.

Finally, I think a teacher should have the kind of mind which always wants to go on learning.
Teaching is a job at which one will never be perfect; there is always something more to learn
about it. There are three principal objects of study: the subject, or subjects, which the teacher
is teaching; the methods by which they can best be taught to the particular pupils in the
classes he is teaching; and - by far the most important - the children, young people, or adults
to whom they are to be taught. The two cardinal principles of British education today are that
education is education of the whole person, and that it is best acquired through full and active
co-operation between two persons, the teacher and the learner.

(From Teaching as a Career, by H. C. Dent)

EXERCISE NO:- 4

TRAINING YOUR EYES

There are two basic methods for improving your reading. The first method stresses
the training of the eyes; the second method stresses the training of the mind.

Begin with eye training. Eye training means three things:

1. Increasing your eye-span or the number of words you can grasp in one glance.

2. Reducing the number of times your eyes regress, flick back, or re-read.

3. Getting a more rhythmical and regular way of moving the eyes while reading.

Increasing your eye-span means to see more with one glance of your eyes. The great
footballer, Pele, for example, sees not only the players in front of him but those far to the left
and right. Great readers do the same.
 31

Think of the way you would read your promotion letter lying on your boss’s desk. In
one avid glance you would catch it all. No going back, no word by word; rather, instant
comprehension. That’s the way we should read.

The Public Enemy No. 1 of reading is moving our lips as we read. This slows our
reading to the pace of speaking.

Word by word

Reading is like

Inch-by-inch walking. Unfortunately,

many of us

do this since

this was the

way we learned

to read; but

what is good

for the child

is disastrous for

the adult.

Develop a rhythm and read on smartly. On the next few pages are exercises which
will show you how your eye works, how to increase your eye-span, and how to develop
greater rhythm and speed in getting meaning from the printed
 32

Freedom 7

Bron free 8

Read freely 11

Clouds in sky 13

Schools of fish 15

Questions in mind 17

Reading and freedom 19

To read is to be free 21

Slaves can’t read books 23

Reading frees men’s minds 25

Ignorance makes men captive 27

Ignorance chains a man’s captive 29

 33

Knowledge liberates men’s mind 31

Question
8 8

Think hard 10

Seek meaning 12

Teach yourself 14

Educate yourself 16

Talk about reading 18

Read the great books 20

Increase your learning 22

Increase your vocabulary 24

Concentration is the thing 26

Look for the flow of thought

8

Read on
7
 34

Big jumps
9 9

Greedy eyes
11

Don’t go back 13

Don’t move lips

15

Catch the meaning

17

Reading is thinking 19

Watch first sentences 21

Watch out for key words 23

One thought one paragraph 25

Grasp quickly central ideas 27

Scan all headings and italics 29

Increase your general knowledge 31

 35

Catch the meaning: that’s the game

33

Read daily 10

Remain alert 12

Read half hour 14

Read as you ride 16

Search for meaning 18

Meaning is the thing 20

Only meaning satisfies 22

Mind is made for meaning 24

Read last paragraphs first 26

Always note words in italics 28

Meaning is what really matters 30

Read at least half an hour a day 32

 36

RAPID RHYTHMIC READING

[Exercise]

Here’s another healthy practice. Read the following several times. Each time try to read it a
little faster, but without losing any meaning. You will need a watch for this exercise. Try to
do it smoothly, grasping a whole phrase with each glance or fixation of the eye, and only
three fixations per line. Alright, check the time and start.

The secret of reading lies in

thinking with questions. To read is to think

with questions. We try to follow

the writer’s thought but also many questions

must dance in out heads. Is this true?

Do I agree? What follows? Where next?

Such questions must be in our heads

as we read

With regular practice we can increase our eye-span.

Our eyes move by stops and starts across the page.

These fixations or glances are important

in reading. You should try to grasp

as many words as you can in one fixation.

Grasping many words in one fixation is very helpful.

to both the mind and the eye. The mind

 37

gets more meaning and the eye. has less work

when you read word-by-word the mind

gets less meaning and also the muscles

of the eye become tired. Three stops

or fixations to a line is sufficient.

So remember the less stops for the eyes,

the better for the mind.

Do this exercise every day for five minutes

each time trying to increase your speed

as you read. You will need a watch

to keep time but push yourself faster and faster

along the lines but of course without any loss

of meaning. There should be a rhythm

You can become if you will a skilled reader,

a thinking reader a faster reader. an intelligent reader.

It all depends on your determination to practice.

Theory without practice is sterile. Practice without theory

Is blind. Resolve today to become skilled

In the art of reading. Do this exercise

for five minutes every day before picking up

your regular reading. The rhythm will carry over

from this exercise to the other.

 38

You have finished. See the time Write it down/record.

Seconds

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Average time: _______

Remember: Go a little faster than what is comfortable, and keeping trying to increase the

speed.

My learning’s from these exercises on reading skills are :







Conclusion:
 39

Exercise:

Date : TAKING LECTURE NOTES

I. There are many reasons for taking lecture notes.

A. Making yourself take notes forces you to listen carefully and test your understanding of
the material.

B. When you are reviewing, notes provide a gauge to what is important in the text.

C. Personal notes are usually easier to remember than the text.

D. The writing down of important points helps you to remember then even before you have
studied the material formally.

II. Instructors usually give clues to what is important to take down. Some of the more
common clues are:

A. Material written on the blackboard.

B. Repetition

C. Emphasis 1. Emphasis can be judged by tone of voice and gesture.

2. Emphasis can be judged by the amount of time the instructor spends on

points and the number of examples he or she uses.
D. Word signals (e.g. "There are two points of view on . . . " "The third reason is . . . " " In
conclusion . . . ")

E. Summaries given at the end of class.

F. Reviews given at the beginning of class.

III. Each student should develop his or her own method of taking notes, but most students
find the following suggestions helpful:

A. Make your notes brief.

1. Never use a sentence where you can use a phrase. Never use a phrase where you can
use a word.
2. Use abbreviations and symbols, but be consistent.

B. Put most notes in your own words. However, the following should be noted exactly:

1. Formulas, 2. Definitions & 3. Specific facts

C. Use outline form and/or a numbering system. Indention helps you distinguish major
from minor points.
 40

D. If you miss a statement, write key words, skip a few spaces, and get the information
later.

E. Don't try to use every space on the pa

page.
ge. Leave room for coordinating your notes with
the text after the lecture. (You may want to list key terms in the margin or make a
summary of the contents of the page.) F. Date your notes. Perhaps number the pages.

NOTE MAKING
Here are some hints on note making.

1. Don't write down everything that you read or hear. Be alert and attentive to the main
points. Concentrate on the "meat" of the subject and forget the trimmings.
2. Notes should consist of key words or very short sentences. If a speaker gets sidetracked it
is often possible to go back and add further information.
3. Take accurate notes. You should usually use your own words, but try not to change the
meaning. If you quote directly from an author, quote correctly.
4. Think a minute about
out your material before you start making notes. Don't take notes just to
be taking notes! Take notes that will be of real value to you when you look over them at a
later date.
5. Have a uniform system of punctuation and abbreviation that will make sens
sensee to you. Use
a skeleton outline and show importance by indenting. Leave lots of white space for later
additions.
6. Omit descriptions and full explanations. Keep your notes short and to the point.
Condense your material so you can grasp it rapidly.
7. Don't worry about missing a point.
8. Don't keep notes on oddly shaped pieces of paper. Keep notes in order and in one place.
9. Shortly after making your notes, go back and rework (not redo) your notes by adding extra
points and spelling out unclearar items. Remember, we forget rapidly. Budget time for this
vital step just as you do for the class itself.
10. Review your notes regularly. This is the only way to achieve lasting memory.

The table below shows some conventional English symbols and ab

abbreviations.
breviations. You will need
specific ones for your own subject.

and & because

and others (people) et. al. before example :
and other things etc.
centimeter cm
answer A
century C
, approx.,
approximately chapter ch.
c.
at @ compare cf.
 41

correct not lead to

decreases, falls not proportional to

number No. or #
degrees ?
page p.
department dept.
pages pp.
divided by ?>
east E percent %
plus +
equal to =
possibly poss.
equivalent to
probably prob.
especially esp.
for example e.g. proportional to
governnment govt. question Q

greater than > results from

grows, increases results in, leads to

same as above "
important N.B.
in one year p.a. similar to
that is to say, in other
information info. i.e.
words

kilogram kg therefore

less than < south S

maximum max. unlikely ??

minimum min. uncertain, not sure ?

minus - very v.

much greater than >> with reference to re.

much less than << wrong X
multipied by
/P>
north N west W

not come from year yr.

not equal
 42

Improve Reading Comprehension

The Purpose of Reading.

The purpose of reading is to connect the ideas on the page to what you already know. If you
don't know anything about a subject, then pouring words of text into your mind is like
pouring water into your hand. You don't retain much. For example, try reading these
numbers:

7516324 This is hard to read and remember.

751-6324
6324 This is easier because of chunking.
123-4567
4567 This is easy to read because of prior knowledge and structure.

Similarly, if you like sports, then reading the sports page is easy. You have a framework in
your mind for reading, understanding and storing information.

Comprehension skills are the ability to use context and prior knowledge to aid reading and to
make sense of what one reads and hears.

Comprehension is based on:

 knowledge that reading makes sense
 readers' prior knowledge
 information presented in the text, and
 the use of context to assist recognition of words and meaning.

Improving Comprehension.
Reading comprehension requires motivation, mental frameworks for holding ideas,
concentration and good study techniques. Here are some suggestions.

Develop a broad background.

Broaden your background knowledge by reading newspapers, magazines and books.
Become interested in world events.

Know the structure of paragraphs.

Good writers construct paragraphs that have a beginning, middle and end. Oft
Often,
en, the first
sentence will give an overview that helps provide a framework for adding details. Also, look
for transitional words, phrases or paragraphs that change the topic.

Identify the type of reasoning.

Does the author use cause and effect reasoni
reasoning,
ng, hypothesis, model building, induction or
deduction, systems thinking?

Anticipate and predict.

Really smart readers try to anticipate the author and predict future ideas and questions. If
you're right, this reinforces your understanding. If you're wrong,
wrong, you make adjustments
quicker.
 43

Look for the method of organization.

Is the material organized chronologically, serially, logically, functionally, spatially or
hierarchical?

Create motivation and interest.

Preview material, ask questions, and discuss ideas with classmates. The stronger your
interest, the greater is your comprehension.

Pay attention to supporting cues.

Study pictures, graphs and headings. Read the first and last paragraph in a chapter, or the first
sentence in each section.

Highlight,
hlight, summarize and review.
Just reading a book once is not enough. To develop a deeper understanding, you have to
highlight, summarize and review important ideas.

Build a good vocabulary.

For most educated people, this is a lifetime project. The best way to improve your vocabulary
is to use a dictionary regularly. You might carry around a pocket dictionary and use it to look
up new words. Or, you can keep a list of words to look up at the end
end of the day. Concentrate
on roots, prefixes and endings.

Use a systematic reading technique like SQR3.

Develop a systematic reading style, like the SQR3 method and make adjustments to it,
depending on priorities and purpose. The SQR3 steps include Sur
Survey,
vey, Question, Read, Recite
and Review.

Monitor effectiveness.
Good readers monitor their attention, concentration and effectiveness. They quickly
recognize if they've missed an idea and backup to reread it.

Should You Vocalize Words?

Yes, although it is faster to form words in your mind rather than on your lips or throat. Eye
motion is also important. Frequent backtracking slows you down considerably.

Rowntree (1976: 40-64)

64) outlines what he calls the 'SQR
'SQR3'' approach to reading and note
taking from text. He suggests that students should use the following activities in order to get
the most from a reading in the most efficient way.

1. Survey - flip through the chapter or book and note the layout, first and last chapters or
paragraphs, look at the headin
headings
gs used, familiarise yourself with the reading.
2. Question - Ask questions about the way the reading is structured and think about the
questions you will need to keep in mind while reading. Think about whether or not
you think the book is relevant or if it'
it'ss current and if it suits the purpose of your study.
 44

3. Read - read actively but quickly, looking for the main points of the reading - don't
take any notes - you might want to read through twice quickly.
4. Recall - Write down the main points of the reading and any really important facts, and
opinions that help support the main points. Also record the bibliographic details.
5. Review - repeat the first three steps over and make sure you haven't missed anything.
At this point you might like to finalise your notes and re-read your notes or write
down how the material you've just covered relates to your question or task.

Listening comprehension skill

Listening comprehension is the receptive skill in the oral mode. When we speak of listening
what we really mean is listening and understanding what we hear.
In our first language, we have all the skills and background knowledge we need to understand
what we hear, so we probably aren't even aware of how complex a process it is. Here we will
briefly describe some of what is involved in learning to understand what we hear in a second
language.
Richards (1983, cited in Omaggio, 1986, p. 126) proposes that the following are the micro-
skills involved in understanding what someone says to us. The listener has to:

 retain chunks of language in short-term memory

 discriminate among the distinctive sounds in the new language
 recognize stress and rhythm patterns, tone patterns, intonational contours.
 recognize reduced forms of words
 distinguish word boundaries
 recognize typical word-order patterns
 recognize vocabulary
 detect key words, such as those identifying topics and ideas
 guess meaning from context
 recognize grammatical word classes
 recognize basic syntactic patterns
 recognize cohesive devices detect sentence constituents, such as subject, verb, object,
prepositions, and the like
 45

The Cornell Note Taking System

Recall Column Record column

------2 1/2”-------- ----------------6” --------------------

Reduce ideas and facts to

concise jottings and

summaries as cues for Record the lecture as fully and as

Reciting, Reviewing, meaningfully as possible.

and Reflecting.

The format provides the perfect opportunity for following through with the 5 R's of note-
taking. Here they are:

1. Record. During the lecture, record in the main column as many meaningful facts and
ideas as many as you can. Write legibly.

2. Reduce. As soon after as possible, summarize these ideas and facts concisely in the
Recall Column. Summarizing clarifies meanings and relationships, reinforces continuity, and
strengthens memory. Also, it is a way of preparing for examinations gradually and well ahead
of time.

3. Recite. Now cover the column, using only your jottings in the Recall Column as cues or
"flags" to help you recall, say over facts and ideas of the lecture as fully as you can, not
mechanically, but in your own words and with as much appreciation of the meaning as you
can. Then, uncovering your notes, verify what you have said. This procedure helps to transfer
the facts and ideas of your long term memory.

4. Reflect. Reflective students distill their opinions from their notes. They make such
opinions the starting point for their own musings upon the subjects they are studying. Such
musings aid them in making sense out of their courses and academic experiences by finding
relationships among them. Reflective students continually label and index their experiences
and ideas, put them into structures, outlines, summaries, and frames of reference. They
rearrange and file them. Best of all, they have an eye for the vital-for the essential. Unless
ideas are placed in categories, unless they are taken up from time to time for re-examination,
they will become inert and soon forgotten.

5. Review. If you will spend 10 minutes every week or so in a quick review of these notes,
you will retain most of what you have learned, and you will be able to use your knowledge
currently to greater and greater effectiveness.

©Academic Skills Center, Dartmouth College 2001

 46

Subject: Topic: Date:

Course no: Course title:

Recall column Record lecture notes

 47

Exercise:

Date : WRITING SKILLS

If we read what a person has written but fail to understand properly what he means, it
is a case of miscommunication.

Any written document is a verbal structure consisting of words, sentences, phrases,

clauses which form paragraphs and text. How to attain effective writing style. It is hard
requiring enormous and rigorous practice. The organizations are also unable to realize what
heavy price they are paying because of miscommunication.

Good writing is writing that works. It is clear at 1st reading it demands no further
explanation. For most of the professionals, writing is not something that comes easily. In the
present age of ICT it seems unnatural and old fashioned to use written communication yet it
has its own place in organizational communication. Effective writing is a skill which can be
learnt. But people generally complain of the following.

 I lack confidence
 I know what I want to say, But I cannot put it down
 I waffle
 I don’t have time to improve
Choice of Words & Phrases:-

1) Original sentence: Fuel tank deformation was present

Revised sentence: Fuel tank was deformed

2) O.S: Accident frequency depends on the adequacy of road seen visibility

R.S: Accident frequency depends on how well the road can be seen

Prefer specific to general words:-

1) O.S: The company has brought out 40 publications this year

R.S: ‘Books’ replaced at publications

2) O.S: She has developed a new gas lighter

R.S: She has designed a new gas lighter.

 48

Prefer to be objective than subjective

Ex: (1) Prepare a formulation - formulate

(2) Tender resignation - resigned

Clichés

He felt no stone unturned in his efforts to achieve tenure finally, a sadder but wiser
man, he learned that in this day & age, tenured professorships are few & far between.

His campaign ground to a halt, and yet subsequent faculty meetings, he was
conspicuous by his absence. His concluded to his farewell to his students with these words of
wisdom ‘ Last but not least follow the advice ‘ - Do as I say, not as I do

Use of Jargon

Jargon ridden: The responsibility of a person involved in pedagogical pursuits is to

impart knowledge to those sent to him for instruction

Jargon free: The teacher’s job is to instruct students.

The biota exhibited a 100% mortality response.

All the plants & animals died.

Tautology – Redundancy

Eg 1) The preliminary studies required a total of 240 man hours.

2) Total & complete protection of all control components is impracticable under all

conditions.

ACTIVE – PASSIVE VOICE

1) Decision was made by supervisor to call in the workers for over time.
2) The supervisor decided to call in the workers for over time.
There is no point many way – my boss correct everything any way

To be an effective writer, a profession should cultivate certain habits, attitudes &

qualities of mind some of them are
 49

a) Visualize what you want/wish to say. If you are clear about what to communicate,
words would automatically follow to express it clear thinking and clear writing go
together.
b) Prepare 1st draft tout much caving for the mechanics of writing.
c) Stop when you have finished saying what you wanted to say. Remember professional
writes to express but not to impress.
d) Revise the draft carefully by editing.
e) Approach the problem a scientist’s objectivity, detachment & passion for both.
f) Don’t belabor a point unnecessarily to make your writing crisp & sharp.
A Systematic approach for effective writing: Any writing should involve following stages

 Preparation & planning

 Writing
 Checking
I Preparation & Planning

The best way to prepare for writing is to answer series of Questions – 5w’s & 1 H.
They are why, who, what, where, when & how. This helps to clarify certain issues before
writing. Instead of preparing list of contents to be covered in document, it is better to follow
pattern plans. Pattern plans are increasingly popular for organization of information. It
allows to access info through associates as well a logical connections. Following are steps to
develop pattern plan.

1) Take plain sheet of paper & draw a circle in middle.

2) Write down subject (title) or picture in the circle.
3) Write down any idea connected with subject omit nothing.
4) Highlight the key ideas using different colours.
5) Group info around these key ideas using branches & twings. Add and edit items.
6) Continue the process until pattern plan is complete. Now list key ideas as headings in
a logical sequence.
50
 51

Pattern plans harness creativity & link logically. The advantages of pattern plans are.
Rapidity: More ideas in shortest time
Completeness: We can get whole picture of the subject at a glance.
Efficiency: gather & structure material simultaneously.
Individuality: It is our record of thinking. If it makes sense to us, it is much likely to
make sense to reader.
II WRITING: Produce a 1st draft write fast-, write as you speak. It is not time to think but
to put words flow on to the page.

III CHECKING: Follow 10 point plan for checking

1. Paragraphs: Page should not have less than.2 paragraph breaks Use short para’s,
isolate action points. Use sub-heading & be consistent in layout. Open each para
with topic sentence i.e. it is short summarizing.
Use link words and phrases to guide the reader from one para to another Ex;-
However, moreover, As a result, in addition etc.

2. Sentences: Short sentences are easier to read than long ones. Average length is 17
words per sentence. 25 and above is difficult to understand.
3. Subject & Verb: Each sentence should have subject & verb. Verb must be finite,
having tense.
4. Sentence Land Scope: Put important ideas at the beginning or end of sentence as
attention will be more. Ideas buried in middle will risk being lost. Break long
sentences to chunks of 5-10 words.
5. Passive-active Verbs: Beware of writing impersonally. Use of passive voice lacks
personal touch. Always use active voice.
6. Adjectives & Adverbs: Keep or use adjectives & adverbs which are absolutely
necessary.
7. Accuracy: Use of right word for the right expression or action. Use Jargon in its
rightful place.
8. Brevity: Use short words; eliminate clinches Ex; As matter of fact, As such, By &
large etc. And watch out for tautology – why to say same thing twice
Eg: True facts are, enclose here with, declined to accept.
 52

9. Clarity: Clarity is hall mark of plain English/ any language. The text written must
leave no room for ambiguity. Avoid vague phrase, loaded words; Replace abstract
nouns with concrete nouns.
10. Spelling & Punctuations: Spelling matters as it contributes to our professional &
public image. Do not use words unfamiliar to you, always use simpler, shorter words
use dictionary for correct usage of world. Beware of the spell checker. Use thesauri
to improve vocabulary.
Punctuation provides expression & voice to words. Less punctuation is better.

WRITING SKILLS EXERCISE

Orginal Paragraph:

Revised Version:

Orginal Paragraph:
 53

Revised Version:

Orginal Paragraph:

Revised Version:

Orginal Paragraph:

Revised Version:
 54

II. Considering the 10 point check plan for effective writing do the following

a) Underline where corrections are required in the given document .

b) Give suggestions i.e., write separately How it is to be modified

c) Identify and write the clichés, tautology and redundant words.

III. Consider that you have been asked write a note/ document / report

Prepare ‘pattern plan’ on a selected topic related to agriculture

 55

Exercise:

Date : PRESENTATION SKILLS

“Suggestion of an idea as a solution to any given problem” is known as presentation.

To create, develop and deliver an effective presentation is a learned skill. No one is a borne
speaker. In a study conducted in USA out of 2543 adults, 40.6% of them ranked speaking
before a group as most frightening ie., their greatest fear. This speaks of how every body has
fear to present information before a group.

How to improve our presentation skills and become a good speaker.

Why presentations? - “Presentations are to impart knowledge by activating listeners,

when we want to get our idea / technology shared, understood & accepted by people through
verbal communication integrated with visual communication”.

Extension talk is appropriately effective for covering an material in shortest time &
for introducing any subject to all size of audience. Though talk presentation resembles
lecture in certain aspects, it differs in two ways as -

- It emphasizes more on informality and involvement of audience (two way interaction)

by stimulating & motivating them skillfully.

- It is not just to inform, but to persuade and transform them in terms of their behaviour
not by hit or mis but intentionally.

Three aspects of presentation situation constituting “speech triangle” are speaker, speech &
audience Speaker

Speech Audience

When one decides to give presentation, his efforts should be concentrated in using his skills
and abilities. Basic skills needed by a speaker for effective presentation are
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- Creative, developing skills

- Delivering skills.
- Feed back or follow up skills.
Planning: Answer 3 Q’s for effective structuring of presentation

4) What are your Audience

5) What is purpose or goal of your / presentation
6) What are limiting factors with in which you have to present?
First ‘Q’ can be answered by taking up proper audience analysis (both
demographically & physchographically ). For 2nd ‘Q’ by Goal and aim analysis

For 3rd ‘Q’ the answer is “situational analysis” plan for possible physical facilities at
the venue of presentation.

Preparation: “To fail to prepare to fail”. Building the content for your presentation
itself a major task requiring certain skills like humanizing, personalizing, visualizing,
specifying & dramatizing the information gathered. Then divide the collected information
into

- Introduction
- Body of information
- Summary & conclusion
- Feed back.
Prior to this collect information from libraries, experts views & their experiences,
journals, periodicals etc. Mull over the theme throughout. Write down recollecting all your
possible ideas& experiences you had with subject of the topic, try to relate it to the theme.
Wrapping & whooping of your knowledge and experience.

Using mind mapping and after developing the content of speech, prepare the answer for all
possible queries from audience.

Visuals preparation in support of topic: Select where visual material / aids could be used
in support of your presentation. How best you can present your ideas visualized depending
upon time given to you and type of audience.

- Arrange or keep ready all the equipment & materials required for your

presentation.
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Speaker preparation: Charlesss F. Kittering - U.S speaker said “I hardly believe in

preferring to write on piece of paper, rather I like to prefer to write on minds of audience”.
Piece of paper can not stand between me & my people. Presenting without having a note
before group people, come with experience & confidence.

- For this one should have positive expectancy of their presentation.

Just before presentation:

- Take deep breaths 1 to 10 times before you get on to stage.

- Have pep talk - that you would present well.
- Keep mind occupied.
Presentation skills while delivering talk

Mind, body & voice of speaker must energise the presentation. Critical part of
presentation is introduction. Speaker is judged within first 60 seconds.

So gain listeners attention. Give personal introduction.

Use Zinger’s to capture audience attention.

- Key notes, vital statistics, importance etc

- Arresting tiles - Quotes of famous people.
Analogies - Humor - Anecdotes, experiences.

Allot 15% of total time of your presentation for introduction. Talk @ 150
words /minute. Use a poster, specimen present a dialogue, crack joke or your own experience
etc. to make your introduction sustain the interest of audience further.

Presenting body of information:

- Present only key essential points with support from visuals.

- If time permits cover desirable, on further queries from audience cover
possible.
- State with force how problems can be solved with provided information.
- Allot 70 to 80% of time for covering body of information
- Repeat, rephrase the question before you answer.
- Don’t give personal opinion, present about initiative taken by organization in
that view.
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- For proxy questions - direct him to ask the same the concerned.
- Tackle if syndrome people use humour, make him realize, that to many it’s
become more hypothetical.
Summary: Summaries all key points in brief only essentials. State you are going to
summaries. Have a trial close before feed back session to see the acceptance of the theme by
audience. Recapitulate in short briefly all the essential points in forceful statements.

Conclusion: It is final part of presentation of topic with a view to

- Climax presentation
- Emphasize key points
- To appeal & drive for action
Feedback session: in general it is asked for feedback namesake only. Invite questions for
better participation. Ask questions to see how far your message has reached the audience
mind. Ask direct, open, general passed on questions to audience, as you have prepared.

Close the session: Close the session with positive appeal and your next possible meeting
with them. Return to the final theme of attention. Distribute handouts if any. Thank the
audience.
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Exercise : Prepare plan of presentation’ and presentation out line for selected topic

Plan of presentation
1. General subject :
2. Subject of presentation :
3. Presentation No :
4. Prepared by :
5. No. of participants :
6. Type of Participants :
7. Participants knowledge :
8. Duration of presentation : Min.
________________________________________________________________________
1. Aim/ Objective:

2.Source of material for presentation:

3. Main teaching aids 4. Material for presentation

a. a.

b. b.

c. c.

d. d.

5.Teaching place & its arrangements :

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Presentation out line

Duration Time Headings Content Teaching aids

1. Introduction

2. Body of information

3. Recapitulation/ summary

4. Feed Back: How & what questions

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Exercise:
Date : Identification of Business Opportunities
INTRODUCTION

The entrepreneur gets information regarding various numerable investment

opportunities from the magazine. Internet, financial institutions, government, commercial
organizations, friends, relations and so on. To choose the best business opportunity from the
information collected requires ingenuity, skill and foresight on the part of the entrepreneur.

As an entrepreneur, he has to select feasible and rewarding opportunity to choose such

good business opportunity. For this purpose he has to evaluate following idea and understand
gap between demand and supply.

1. Study government rules and regulations regarding different business opportunities.

2. Extensive study of promising investment opportunity.

3. SWOT analysis of business potential (strength, weakness, opportunities and

threats)

4. Market survey.
People satisfy their needs and wants with goods and services. These goods, or services, or
goods plus services, or just an idea refers to a product. Therefore, a Product refers to all the
things offered to a market.

A product may be defined as “a set of tangible, intangible and associated attributes capable of
being exchanged for a value with ability to satisfy consumer and business needs”.

For e.g. While purchasing the tangible product i.e. Hybrid seed, we are also purchasing the
intangible services like free technical services, etc.

The associated attributes or peripheral factors may include reputation of the manufacturer, the
warranty, credit facilities, delivery terms, the brand name, the courtesy of salesmen, etc. For
e.g. Johnson & Johnson offers not just the soap or powder but also mother’s love.
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SOURCES OF BUSINESS OF PRODUCT IDEAS

1. Market characteristics – Unfulfilled demand a product will open the door for new
product. Supply and demand of various products and demand for new products should also
be analysed.

ex. The success of Kellogs as morning breakfast as quick and notorious food calories food is
example of success of new idea.

The acceptance of ‘SINTEX’ water tank is another example.

2. Import and Export – The Government of India is encouraging exports and various EXIM
policy encourage entrepreneur to think about the new option.

3. Emerging new technology and scientific know how – Commercial exploitation of

indigenous or imported technologies and know-how is another source of project idea.

4. Social and Economic Trends – Social and Economic status of people are always dynamic
in nature and offer wide opportunities. An entrepreneur should observe such changes. For
example there is now shift towards readymade garments; possessing consumer durables,
western outfit, priority and preferences for cosmetics, etc.

5. Product profile – An analytical study of the end products and by products can through
light on new project idea. For example by product of sugar industry gave rise to one more
large scale industry called paper industry.

6. Changes in consumption pattern – Changes in consumption pattern of the people in the

home country and foreign countries also requires the entrepreneurs attention.

7. Revival of sick units – A sick unit gives ample investment opportunities in the hands of
dynamic entrepreneur. He can revitalize and turn a sick unit into a profitable one.

8. Trade fairs and Trade Journals – Magazines, journals, industries or trade fairs offer wide
scope for business opportunities.

IDENTIFYING A BUSINESS OPPORTUNITY

An entrepreneur is said to be an opportunity seeker. For the potential entrepreneur his first-
task is to identify, explore and then select an attractive business opportunity.
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Opportunity can be defined as an attractive and excellent project idea which an

entrepreneur search for and accepts such idea as a basis for his investment decision. A good
business opportunity must be capable of being converted into feasible projects.

Two major characteristics of a business opportunity should be highlighted.

1. Good and wide market scope i.e. gap between present or likely demand and supply.

2. An attractive, acceptable and reliable return on investment.

Business opportunity needs to be analysed from the view points of production,

commercial, managerial, potential & prospective demand for the product technical viability
etc.

STEPS IN IDENTIFICATION OF BUSINESS OPPORTUNITY

Identification of opportunity involves following steps.

I. Preliminary evaluation

II. Selection of product or service

III. Conduct a market survey

IV. Contractual programmes to collect sufficient information about proposed venture

V. Succeeding in the market.

I PRLIMINARY EVALUATION

As soon as entrepreneur realizes regarding business opportunity, he has to evaluate

investment opportunities against set of specific criteria to select those project ideas which are
commercially feasible. The criterias are:

1. Is opportunity compatible with the promoter.

2. Is opportunity compatible with government regulations and priorities.

3. Whether raw materials are easily available.

4. What is the size of the potential market.

5. Whether cost justifies the project.

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6. What is the risk inherent in the project.

1. Compatible with the promoter – The entrepreneur must conform that the project
undertaken should be compatible with men, material, money market available at his disposal.
Project beyond the capacity of the entrepreneur are bound to fail.

2. Compatible with government regulations and rules – Entrepreneur should bot violate
government regulations and priorities. He must carefully take into account all related rules
and regulations of the government regarding investment, license, reservation of certain
categories of items etc.

3. Easy availability of raw materials – Cost and availability factors of raw materials should
be considered carefully. Scarcity of raw materials will cause delay in production process.

4. Potential market – Potential market, nature of competition, competitors availability of

substitutes, barriers and the possibility of entry of substitutes and technological developments
taking place in the industry should assessed and evaluated by the entrepreneur.

5. Cost of the project – The cost of the project should be reasonable in the sense that a
desired profit margin can be realized from a competitive price. A study of the cost structure
under raw material cost, labour cost direct expenses, factory overheads, administrative
expenses, selling and distributive overheads, and after sales services costs will give a good
idea regarding different types of cost.

6. Inherent risk in the project should be analysed – Risk related to the project such as
changes in demand, technological developments, entry of substitutes, competition and
seasonal variations should be assessed before working on a project.

II SELECTION OF PRODUCT OR SERVICE

Entrepreneur should identify the product which he wish to manufacture. While deciding
about the product following points should be considered.

1. Potential demand for the product or service.

2. Estimated volume of demand for the product.

3. Assess potential of existing competitor and estimate about probable competitors.

4. Study the scope for future demand.

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5. Infrastructural facilities – power, transport etc.

6. Current status of technology and scientific development in the field.

7. Availability of raw material and required labour.

8. Government policies, legislation, controls.

9. Environmental factor.

10. Degree of profitability for the product.

11. Information regarding particular line of product.

12. Locational advantage of the product.

13. If product belongs to an ancillary unit and serves as major component for the parent
industry. It provides a ready demand hence selection of this type of product entails easy
marketability.

14. Selection of a product would also be assessed in favour of availability of skilled and
unskilled labour.

15. Study the various characteristic of the proposed product to be produced.

III CONDUCT A MARKET SURVEY OR PURPOSE OF MARKET SURVEY

Market survey with reference to the availability of raw material, equipments and distribution
and consumer behaviour should be conducted.

1. Raw material availability:

a. Search for leading suppliers of raw material required for the concerned product.

b. Study the price policy of various suppliers and analyse impact of price fluctuation

on production.

c. Fix time for order execution.

d. Study local and outside source of raw materials – the advantages and

disadvantages.
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e. Through analysis of credit facilities, advance payments, terms and conditions for

suppliers.

2. Equipment, availability:

a. Identify major manufacturer here and abroad.

b. Comparative features of various manufacturers.

c. Price structure of different brands.

d. Repair maintenance and after sales service facilities.

e. Guarantees and warranties by suppliers.

f. Technical and skilled staff requirement.

g. Machinery and delivery schedules.

3. Marketing and Distribution:

a. Selection of best channel of distribution.

b. Advertising and publicity programme for the product.

c. Product positioning

d. Outstanding features of product or service.

e. Market features and practices – credit facility, minimum order, incentives.

f. Business terms, commission, stocks, warehouse facilities.

4. Consumer Behaviour:

a. Motivate buyers to but new product.

b. Analyse the buyers purchasing power.

c. Analysis of consumption pattern to capture the major market share.

d. Understand the preference for durability, service, economy.

e. Understand consumer characteristics of different region and devise appropriate

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sales message, accordingly.

IV CONTACTUAL PROGRAMMES TO COLLECT SUFFICIENT

INFORMATION ABOUT PROPOSED VENTURE
Entrepreneur often need information and guidance, particularly in the initial stages, on
product potential, raw materials, policies, facilities, procedures, finance formalities,
incentives etc. It can be collected through State Government agencies.

Contact with central state level agencies set can be helpful in collecting sufficient
information about proposed venture. Industrial Finance Corporation of India (IFCI) in
collaboration with Industrial Development Bank of India (IDBI) Industrial Credit and
Investment Corporation of India (ICICI), state organizations and banks, have set up a
network of state level technical consultancy agencies. They offer a package of professional
and consultancy services to stimulate industrial growth.

Entrepreneurship development programmes of 6 weeks duration and designed to

impart following information:

1. How to develop entrepreneurial capabilities

2. Identify viable projects for potential entrepreneurs.

3. Impart managerial skills.

4. Help and secure necessary financial and infrastructural related assistance. These

technical consultancy agencies also monitor the progress of the unit..

V SUCCEDING IN THE MARKET

There is no way your business will earn money and profit unless customers buy product or
service. The secret formulae for the entrepreneur’s success are to produce what customers
want.

Following are the important characteristics which help the entrepreneur to succeed in
the market:

1. Study people and their needs before starting any project.

2. Identify unsatisfied needs.

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3. Design product in such a way that it should satisfy the customer better than the

competitors product.

4. Ensure that what customer feel about the product which entrepreneur is offering.

5. Always look for newer and more effective ways of reaching a customer.

6. Entrepreneurs must have clear vision, goals and objectives, well defined mission, and
employees participation about the proposed project.

7. Constant feedback of results as well as setting and adherence of high gives an organization
a cutting edge over others. Planning, foresight and analysis are also important qualities.

8. The process of systematic market research is used to develop products or process

and to provide value for money to the customers. This helps to gain the market share.

9. Another important characteristic for successful business is a commitment to innovation

which is vitamin keeping ahead of the competition and perhaps the most difficult one to
achieve yet most of the organizations just do not give due importance for the same.

Exercise : List out different products or Business ideas in the field of agriculture which
can be taken up as agrienterprise.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
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Exercise:

Date : Selection of Product

INTRODUCTION AND MEANING OF A PRODUCT
People satisfy their needs and wants with goods and services. These goods, or services, or
goods plus services, or just an idea refers to a product. Therefore, a Product refers to all the
things offered to a market. Hence, product is one of the important component of marketing in
respect of which an entrepreneur is required to take crucial decisions in a company.

A product may be defined as “a set of tangible, intangible and associated attributes capable of
being exchanged for a value with ability to satisfy consumer and business needs”.

According to Alderson “Product is a bundle of utilities consisting of various product

features and accompanying services”.

Schwartz defines as “A product is something a firm markets that will satisfy a

personal want or fill a business or commercial need and includes all the peripheral factors
that may contribute to consumer’s satisfaction”.

For e.g.. While purchasing the tangible product i.e./, a vehicle, we are also purchasing
the intangible services like free services, etc.

The associated attributes or peripheral factors may include reputation of the

manufacturer, the warranty, credit facilities, delivery terms, the brand name, the courtesy of
salesmen, etc. For e.g. Johnson & Johnson offers not just the soap or powder but also
mother’s love.

Criteria For Selecting A Product

Internal External
Factors Factors
a) Cost a) Demand of consumers e) Demographic factors
b) Experience b) Competition i) Size of population
c) Differentiation i) Pure competition ii) Trends in birth and death rate
d) Financial strength ii) Monopolistic competition iii) Age distribution
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e) Functional Departments iii) Oligopoly iv) Educational groups

f) Personal factors of iv) Pure monopoly v) Geographical distribution
an entrepreneur c) Suppliers vi) Occupation
d) Technological f) Economic conditions
improvements g) Natural Environment
h) Political and legal rule
i) Socio-cultural Factor
CRITERIA FOR SELECTING A PRODUCT
An entrepreneur can decide to sell a completely new product or modify the existing product
and sell, or, sell a product which is existing in the market i.e., which is sold by another
company.

The decision as to what to sell, how to sell and to whom to sell the product depends
upon various criterias. They can be broadly classified as Internal factors and External factors.

1. Internal Factors

The factors within the organization are called as internal factors. The selection of a product,
to a great extent depends upon the internal factors. They are:

a) Cost – If the entrepreneur is thinking of a completely new product, the cost will be
very high, as it includes cost of research and product development, other than, initial
investment on new machinery, training to employees and on raw materials. If it is just
modification on any existing product, then the cost will be lesser and if the entrepreneur is
planning to sell any existing product, then the cost will be comparatively lesser. Hence,
depending upon the cost or the capacity to spend, the type of product can be determined.

Also, if the entrepreneur starts a new firm, the start-up costs will be quite high, but if
the entrepreneur is purchasing an existing business, these costs may be reduced considerably.

b) Experience – Cost advantages offer are enjoyed by those who were first into the
business or who have experience in the technology required. The first companies into
biotechnology, such as Genentech and Biogen, established early leads in scientific
knowledge, attracted important researches, and stayed well ahead of new entrants.
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Companies already experienced in electronics and the technology of business

machinery, such a IBM, Hewlett-Packard, NCR and Xerox found it easier to enter the
computer industry than other without similar experience.

c) Differentiation – The extent to which an enterprise can establish a brand image,

service, product innovation or reputation describes its differentiation or distinct competency.
An entrepreneur should select a product which different from the competitor, and this
difference need not be real/actual difference, but it can be just psychological. For e.g. –
Kinetic differentiating itself from all other scooters. Also, Mercedes-Benz, has a distinct
image and a small but secure market.

d) Financial strength – If an entrepreneur selects a luxury product/specialty product

like cars, vehicles, jewellery, etc., then very high initial investment is required, which calls
for finance from other sources like financial institutions, shares, loans, etc.

If the product is semi-luxury or shopping goods, like T.V., V.C.R., washing machine,
etc., then investment is comparatively lesser. But if the product is a convenience goods or
perishables like soap, cereals, vegetables, clothes, etc, then very less investment is required.
Hence depending upon the financial strength (ones own or borrowings) the type of product
can be selected.

e) Functional Departments – All the departments in an enterprise have an impact on

the entrepreneur’s plans and actions. The finance department is concerned with the
availability of funds, Research Development department focus on innovation, purchasing
department has to obtain sufficient suppliers of raw materials the manufacturing department
is responsible for acquiring sufficient productive capacity to meet the production target.
Therefore, to make a decision on selection of product, the entrepreneur has consult and get
support of all the departmental heads.

f) Personal factors of an entrepreneur – The nature of an entrepreneur is also a

deciding criteria for a product. If he is self-confident, optimistic, able to take, responds
positively to challenges, flexible, versatile, creative, dynamic, resourceful, percaptia with
foresight and has knowledge of market, he can take up a completely new product Otherwise,
it is better to take up an already existing product.
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2. External Factors

The forces outside the organization also effect the decision for selecting a product by an
entrepreneur. They are

(a) Demand of consumers – Successful entrepreneurs are those that can recognize
and respond profitably to unmet needs and trends of the consumers. Unmet needs always
exist. Entrepreneurs can make a fortune if they could solve any of the problems like
medicine for cancer or mental diseases, nonfattening tasty nutritious food, voice-controlled
computers, etc.

Product can be selected by identifying the need or trends. A new product is likely to
be more successful if it is in line with strong need of the consumer.

(b) Competition – An enterprise is surrounded and effected by a host of competitors.

These competitors have to be identified and monitored to capture and maintain customer
loyalty.

The Strength of the competitors, and the number and type of competitors, are affected
by the type of market structure within which the entrepreneur will operate. There are four
basic types of market structure. They are

(i) Pure competition

(ii) Monopolistic competition
(iii) Oligopoly
(iv) Pure monopoly
(i) Pure competition – Here there are many small sellers and many small

buyers. All are selling homogenous product, and, they sell under the same conditions as they
have complete information and understanding among each other.

If an entrepreneur doesn’t want to take up any risk or face competition then he can enter
into such a market as there is free and easy entry into the industry. For eg. Vegetables,
fruits, cereals, etc.

(ii) Monopolistic competition – Here there are many sellers and many buyers, but each
sellers offering is somewhat differentiated from the others.
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The entrepreneur can choose to sell a product which is a little different from the others
products. This difference can be a real or actual difference in the product or just a
psychological difference, which is shown through advertisements. For eg clothes, slippers,
vehicles, etc. The more consumers perceive a seller’s offering to differ in desirable ways
from rival offerings, the more control that seller has over its price.

(iii) Oligopoly – Oligopoly exists when a few large interdependent firms account for the
bulk of an industry’s sales. Each oligopolist has a large number of industry’s, and each tries
to anticipate what the others will do. For Eg. Steel, aluminum, cement, cool drinks,
automobiles, etc. Here, huge investment is required and the product sold is the same. The
difference lies only in the way it is sold, like, home delivery, credit, quick delivery, additional
gifts, etc.

A new entrepreneur would find it very difficult to enter an oligopolistic industry as the
financial resources required is very high and also new comer would lack certain specialized
production and marketing skills, and customers are generally loyal to a particular
brand/seller.

(iv) Pure monopoly – It is the opposite of pure competition. A monopoly exists when one
firm produces a product that has no close substitute. For Eg. One firm selling natural gas
and electricity may serve all the people in a given city. Those who want to but its offerings
must pay the monopolist price, which is however, regulated by local or state government.
Such a company is allowed to operate as a monopoly because the government believes one
company can serve more effectively than several competing companies.

An entrepreneur with innovative ideas and good Research and development facilities can
invent something new and remain a monoploy and capture the entire market.

The important characteristics of four types of market structure can be summarized as

follows:

If an entrepreneur is selecting special-use products, such as medical equipment, he will

have few direct or indirect substitute to consider. If it is commodity goods, such as soft
drinks, he must consider many direct substitutes but few indirect ones because the consumer
rarely makes a rational choice among dissimilar expenditures. If an entrepreneur is selecting
higher-priced durable goods, such as furniture’s VCRs, he will have tremendous competition
from direct and indirect substitutes.
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(c) Suppliers – Suppliers are individuals or business firms who provide resources needed
by the company and its competitors to produce goods and services. Supply shortages, labour
strikes and other events can prevent fulfilling delivery promises and damage customer
goodwill in the long run.

Entrepreneurs, therefore, keeping the internal resources in mind, need to check upon
the availability of raw materials for the possible products that he

Market Structure Number Size of Control over Product Entry into

of sellers prices industry
sellers
(i) Pure Many Small None Homogenous Easy
competition
(ii) Monopolistic Many Varies Depends on Differentiated Relatively
competition extent of easy
differentiation
(iii) Oligopoly Small Large Considerable Fairly Difficult
(prices tend to homogenous
be stable)
(iv) Pure One Varies Maximum No close Difficult
Monopoly substitutes
can sell. He has to check upon various suppliers of the raw materials their promptness,
efficiency and other facilities provided and decided upon the product to be sold.

(d) Technological improvements – Technology is knowledge to do new or old tasks

in a better way, the most dramatic force shaping people’s lives is technology. The economy’s
growth rate is affected by how many major new technologies are discovered. Today, more
ideas are being worked on, the time lag between new ideas their successful implementation is
decreasing rapidly, and the time between introduction and peak production and peak
production is shortening considerably.

As entrepreneur, therefore, should keep in pace with the change in technology. He

should think of selecting a new product or an existing product, which is updated. Otherwise,
he will not survive in the market for a long period of time.

As products become complex because of technology, the public needs to be assured of

their safety. Safety and health regulations have increased, by the government agencies,
specially in the areas of food, automobiles, clothing, electrical appliances and constructions.
Entrepreneur must be aware of these regulations when selecting new products. They need to
work closely with T & D people to encourage more market-oriented research. They must be
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alert to undesirable side effects of any innovation that might harm the users and create
consumer distrust and opposition.

(e) Demographic Factors – Market means people, with money and with a will to
spend their money to satisfy their need. Hence an entrepreneur should take into consideration
the Demographic Factors, that is, the scientific study of Human Population and its
distribution structure.

Entrepreneurs should take into consideration the size, growth rate, education,
geographical distribution, occupation, and age distribution of the demography before
deciding upon the product.

(i) Size of population – The world population is showing an explosive growth. This
means growing human needs, but does not mean growing market unless there is sufficient
purchasing power and enough resources available. Otherwise cost will increase and therefore
profit margin will decrease.

(ii) Trends in birth and death rate – Growing population indicates high birth rate or a
baby boom. This increases the need for by products. But if death rate is increasing, then,
there will be need for medicines, bandages, etc.

(iii) Age distribution – In recent years there is a decline in death rate which implies
increase in life expectancy. When the market consists of more teenagers, the sales growth of
sports equipment, denims and records are predicted. Age group of 25-35 years will be
interested in vacations, consumer durables, insurance, etc. Age group of 36-55 are members
who have been well established in their work life and are a major market for large homes,
cars and expensive clothing. Age above 55 years is a market for medicines, walking sticks,
LIC policies retired homes, etc.

(iv) Educational groups – Demography can be broadly classified into illiterates and
literates. Illiterates opt. for agricultural products like axe, tractors, etc. They also would like
to purchase radio, T.V., etc, while and literates have a tendency to purchase quality books,
magazines computers, C.D., etc.

(v) Geographical distribution – People living in different parts of the world have
different demand. Moreover in a country the demand of different states vary, also, the
demand of a rural area is different from urban area.
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(vi) Occupation – Occupation is also a criteria for selection of a product. Hence an

entrepreneur should consider the distribution of people who are working and non-working
population. People of a high position or status prefer, costly furnitures, garden, Air
conditions, cars, etc.

(f) Economic condition – An entrepreneur requires people as well as purchasing

power. The purchasing power in an economy depends on current income, prices, savings,
debt and credit availability. Entrepreneur should take into consideration trends in income and
consumer – spending patterns.

High economic growth assures higher levels of employment and income and hence
people will be ready to purchase expensive goods like cars, real estate, etc. Low economic
growth or currency devaluation leads to lesser spending, and hence, people will go in for
products that are not very expensive or goods sold on installments.

(g) Natural Environment – Natural environment consists of raw-materials, energy,

pollution and government intervention in resources management. An entrepreneur should use
the available resources carefully and conserve the scarce resources.

An entrepreneur, before selecting a product, should take into consideration the

availability of resources and energy, whether it is free from pollution, and, if any government
restrictions are applicable to the selected resources. Now-a-days government is interfering in
proper disposal of chemicals and nuclear waste, littering problem, non-biodegradable bottles,
plastic and other packaging materials which cause public apathy. Entrepreneur, therefore,
needs to pay attention to the natural environment for both obtaining resources and avoiding
damages to natural environment.

(h) Political and Legal rules – Political and legal rules are different in every
country. Business are influenced by laws, government agencies, and pressure groups, as they
limit various activities of an organization. Change in the government leadership itself can
bring about various changes to an enterprise.

An entrepreneur should be aware of various laws protecting consumers, competition,

society’s interest, etc. An entrepreneur should not only produce goods products, but also sho
relevant advertisements, good package, reasonable price and required services.
 77

For selection of a product, the legal systems related to taxation, licensing, bank
lending, hiring practices, safety regulations, etc should be considered. For Eg. National
Traffic and Safety Act, provides for the creation of compulsory safety standards for
automobiles and tires. Toy safety Act, gives the government the power to recall dangerous
toys quickly when they are found, etc.

(i) Socio – Cultural Factors – It comprises the entrepreneur’s relationship to society

and society’s culture. It refers to the sum total of cognitive elements such as habits, customs,
beliefs, values, norms, signs, etc. It stands for a value system over a period like eating,
dressing, walking, learning, writing, creative activities, destructive activities, etc. Therefore,
it refers to all the symbols, artifacts and the behavioral patterns that are passed on from one
generation to another. For Eg. American culture, Indian culture, European culture or North-
Indian and south-Indian culture or Mumbai culture, Tamil-Nadu culture, etc.

Taking into consideration, the Indian customers, they are heterogeneous as

they differ in language, religion, caste and social customs. For Eg. Hindus give different
preference for colors, festivals, clothing, etc, while muslims are different and Christians are
also different from each other. Some religions restrict consumption of meat, alcohols,
smoking, etc. During festivals, people do not hesitate to spend heavily on good clothing,
food, traveling, ornaments, furnishings, etc.

The entrepreneur should take into consideration change in life-styles, social values
and increasing standard of living. Earlier to 1960’s there existed the stereotype families, with
the working father, house-keeping mother and two children. But, now, life-style have
changed. There is greater importance given to recreational activities, greater care to health,
and personality, emphasis is given to quality goods and changing role of women in the
society.

Therefore, an entrepreneur has to take into consideration the values, beliefs and
attitudes shared by members of a society on which he is concentrating on, before deciding
upon a product.

An entrepreneur, therefore, before selection of a product, has to make an analysis of

one self, i.e., the internal factors and also make a deep study of the external factors as it is
ever changing.
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BARRIERS TO THE SUCCESSFUL DEVELOPMENT OF NEW

PRODUCTS/WHY DO NEW PRODUCTS FAIL

The failure of a new product and generally considered on the basis of its lack of ability to
generate the expected profit. Some of the reasons for the failure of a new product are as
follows:

(1) Technical problems – Too complicated a product or poor performance of a

product that is not superior to any of the existing products may fail.

(2) Poor Timing – Introducing a product when it is not required also leads to failure
of a product.

(3) Prohibitive Costs of Development – Many ideas screened before selecting one
good idea, which becomes very expensive.

(4) Niche and Fragmented Marketing – Entrepreneurs now-a-days try to concentrate

only on selected market segment, rather than mass market, which means lower sales and
profit.

(5) Development time – Many individuals may be working on similar ideas. Only
those who can develop these ideas faster than the competitors have a chance to succeed.

(6) Competitors – Generally competitors imitate a successful product, thereby

reducing the sale of the product.

(7) Governmental constraints – The rules and regulations imposed by the government
are ever changing, which becomes difficult for an entrepreneur.
Exercise : Consider the criteria and evaluate the products/ ideas that you have identified
in the previous exercise and select one product or idea. Give justification for each idea/
product identified in cases of either rejection or selection.
Product / idea I :

Selected for enterprise / rejected (tick mark appropriate one)

Justification:
 79

Product / idea II :

Selected for enterprise / rejected (tick mark appropriate one)

Justification:

Product / idea II :

Selected for enterprise / rejected (tick mark appropriate one)

Justification:

Product / idea IV :

Selected for enterprise / rejected (tick mark appropriate one)

Justification:

Product / idea V :

Selected for enterprise / rejected (tick mark appropriate one)

 80

Justification:

Product / idea VI :

Selected for enterprise / rejected (tick mark appropriate one)

Justification:

Product / idea VI :

Selected for enterprise / rejected (tick mark appropriate one)

Justification:

Exercise: 2 Prepare a product selection matrix table considering various criteria

 81

Project Idea selection matrix table

Se. Project Idea Different Selection criteria Accepted /

No rejected
Internal External factors
 82

Exercise:

Date : PROJECT FORMULATION FOR ESTABLISHING AN ENTERPRISE

We know from available literature on development of Entrepreneurship what do

entrepreneurs do but relatively little about how do entrepreneurs make their enterprises as
running concern.

Small entrepreneurs also need to draw the business plans because right from the
conception of a business idea up to production involves numerous decisions to be taken.
Formulation of project report/business plan is one of 1st corner stones to be laid down in
setting up an enterprise.

MEANING OF PROJECT REPORT

Webster New 20th century Dictionary defines a project as a scheme, design, a

proposal of something intended or devised. In simple words, project report or business plan
is a written statement of what an entrepreneur proposes to take up.

A project report can best be defined as a well evolved course of action devised to
achieve the specified objective with in a specified period of time. So to say, it is an operating
document.

SIGNIFICANCE OF PROJECT REPORT:

An objective without a plan is a dream. The preparation of a project report is of great

significance for an entrepreneur. The project report serves the 2 essential functions. First
and most important, the project report is like a road map. It describes the direction to get
there. It also enables an Entrepreneur to know that he is proceeding in the right direction
some hold the view that without well spelled out goals and operational methods/tactics, most
business flounder on the rocks of hard times.

The 2nd function of the project report is to attract lenders and investors. Although, it
is not mandatory, for the small enterprises to prepare project reports, yet it is useful and
beneficial for them to prepare the project report for various reasons. The preparations of
project report is beneficial for those small enterprises which apply, for financial assistance or
not. If yes, how much. Similarly, other organizations which provide various assistance such
 83

as work shed, raw material, seed/margin money etc, are equally interested in knowing the
economic soundness of the proposal.

Project report provides following other advantage.

 A plan of action
 A blue print for the future
 Reduces risk of failure
 Helps in identifying market and customers.
 Shows requirement of land, labour, capital
 Saves time and energy of entrepreneur, banker etc
 Gives confidence that enterprise will succeed.
The size and type of enterprise will be the deciding factors for the amount and type of
info to be included in the project report. Generally following information should be given in
the project report.

1. GENERAL INFORMATION:- The following aspects should be covered in it.

a) Biodata of entrepreneurs: It should include name, address, qualification, experience

and other capabilities of the entrepreneurs.
b) Enterprise profile: Paste performance, present status of enterprise, the way it is
organized, the problems it faces etc should be mentioned.
c) Constitution and organization: Whether enterprise or firm is registered and the
register of firms. Whether a registration certificate from the directorate of
Industries/District industries centre has been obtained or will be applied later on.
d) Product details: The utility and range of products to be prepared should be
mentioned.
2. Project Description:

a. Site: Location of site, whether owned or leased land, whether it is suitable to the type of
enterprise being planned etc. Should be mentioned. If the location is in a residential area
then the copy of no objection certificate from the municipal authorities should be attached.

Physical infrastructure: It consists of following items

1. Raw material: Source of raw material, what is the probability of getting it on a

continuous basis at reasonable price etc should be mentioned.
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2. Labour: Whether labour is available in that area? What arrangements have been made to
train the labour in various skills?

C. UTILITIES: Consisting of following items:

a. Power: Project report should mention the information regarding the power requirements
the loan sanctioned, stability of supply of power and price at different consumption levels.

b. Water: Whether it is required or not for particular enterprise. If required, the source and
quality of water should be clearly stated.

d. Pollution Control:- Many industries produce waste material or emissions (Eg: gases,
liquid, solid discharge etc.) That may cause problems. Therefore, scope of dumping wastes,
sewage system, sewage treatment plant etc should be clearly mentioned in the project report.

e. Communication system: Availability of telephone fax, teleconferencing etc should be

stated in the report.

f. Transport facilities: Means of transportation of raw material, finished products etc

should be mentioned.

h. Manufacturing process: A process flow chart should be presented. The details of

production and the process involved should be mentioned.

i. Capacity of the plant: the installed licensed capacity should be stated.

j. Technology selected: Whether it is up to date and appropriate. How is the required know
how proposed to be arranged?

k. Quality control/testing and Inspection: Whether some system has been designed to
check the quality of products on a continuous basis? Obtaining quality marks like ‘ISI’ ‘Q’
or Agmark help in creating confidence among consumers.

l. Research and development: Whether any cell to study improvement of quality is

proposed to be formed in the enterprise.

3) Market Potential: It should cover following aspects in the project report.

a) Demand and Supply position: Gap in demand and supply of products should be
mentioned. How much of this gap will be fulfilled by establishment of enterprise.
 85

b) Marketing strategy: Marketing of products is essential what strategy would be

adopted for selling products.
c) After – sales service: It is very important in some cases. Customers find difficulties
due to occurrence of small problems in machine. It has been found that money spent
on after sales service is repaid many times in the long run due to faith of customer
established in the product/machine.
d) Seasonality factor: It products have seasonal fluctuations in sales, the arrangement
should be made for storage of goods in off-season.
e) Transportation: Products would be transported on own vehicle or public carrier
should be mentioned.
4) Capital costs and source of finance: Capital should cover following items-

 Land and building

 Plant and Machinery
 Installation costs
 Other assets like furniture / fixtures, vehicles etc.
 Pre operative expenses
 Contingency cushion against price rise/unforeseen expenses
 Working capital.
The source of funds for above mentioned items should be mentioned in the project
report. The sources would included the owner’s fund together with loans and funds expected
from financial institutions/banks. This estimation should be realistic and correct.

5) Assessment of Working Capital Requirement: Any enterprise or unit will be able to

function only when adequate working capital funds are available. Entrepreneurs should
present working capital requirement in prescribed format. You will save time and energy of
banker and Entrepreneur both.

6) Other financial aspects: Projected profit and loss account, projected balance sheet, cash
how statements etc, should be prepared. Break-even-analysis should be worked out. Break
even point is the level of production/sales where the industrial enterprise shall make to profit,
no loss. This facilitates knowing the gestation period and likely moratorium required for
repayment of loan.
Fixed costs
Breakeven point: X 100
Sales projected – variable costs
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In addition to this following ration should also be mentioned.

Net profit
a) Profitability ratio: Sales X 100

Net profit
b) Return on investment: X 100
Capital employed

Debt
c) Debt, Equity Ratio: X 100
Equity

7) Economic & Social variables: Whether the enterprise will have some socio-economic
benefits. Following are few examples.

a) Employment generation
b) Import Substitution
c) Exports
d) Local resource utilization
e) Development of the area.
8) Other details

a) Project implementation schedule: Preferably PERT/CPM chart should be appended to

the project report.

b) Plant layouts: If possible, a copy of the plane layout should also be mentioned in the
project report. It will determine sufficient of area for present and future expansion
requirements.

c) Annexures: Following list should be appended along with a project report.

a) Equipment required
b) Details of preliminary expenses
c) Estimate cost of production and profitability
d) Labour and staff requirement
e) Break-even point
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f) Working capital requirement

g) Cash flow statement.
Exercise 1: Collect project report related to agriculture from library or internet and
underline the salient important points/ aspects that highlights the project acceptance
and also write separately the missing information in the project report.

Exercise 2: Identified team members should inform the title of their project report by
next week and consequently should write the project report of the selected topic , give
presentation and submit the hard copy.
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Exercise:

Date : Study of successful entrepreneur – Visit to enterprise- I

Profile of Enterprise

1. Name of the enterprise:

2. Location of the enterprise:

3. Name of the Entrepreneur: Edn. Qualification &

Expertise:

3. Type of enterprise: Small/medium/big

4. Ownership: Individual/ joint/ partnership mode

5. Product description (Briefly of main product & byproduct):

6. Capacity of production (seasonally /annually)

7. Registration details:

8. Physical infrastructure:

a. Raw material: Items , source & availability

b. Labour: Skilled/ Unskilled, availability & requirement

c. Staff requirement:
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d. Utilities: Power and water:

e. Pollution control: wastage disposal

f. Communication system:

g. Transport facilities:

h. Production process in brief:

i. Equipment & machinery: Details with cost:

j. Technology Used:

k. Quality control & inspection:

l. Any research taken up:

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9.Market Information:

a. Demand & supply

b. Technical guidance provided after sale:

c. Market strategy: Publicity & distribution

10.Capital Costs:

Land & building

Equipment & machinery:

Furniture & vehicles:

Others:

11.Working capital:

Financial analysis:

 Cost of cultivation/ production:

 Production/ Yield:

 Sale price:

 Net returns:
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 Breakeven point:

 Profitability ratio:

 Return on investment:

 Debt Equity ratio

12.Economic or social variables:

Employment generation(man days)

Local resource utilization:

Import substitution:

13.Other details:

Lay out of enterprise:

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Any financial assistance availed: Name of the bank:

Amount of loan:

Subsidy availed: Amount source:

Contracts/ license & legal issues:

Promotion plans:

Diversification of enterprise: Brief details:

Characteristics of the entrepreneur identified:

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Exercise:

Date : Study of successful entrepreneur – Visit to enterprise-II

Profile of Enterprise

1. Name of the enterprise:

2. Location of the enterprise:

3. Name of the Entrepreneur: Edn. Qualification &

Expertise:

3. Type of enterprise: Small/medium/big

4. Ownership: Individual/ joint/ partnership mode

5. Product description (Briefly of main product & byproduct):

6. Capacity of production (seasonally /annually)

7. Registration details:

8. Physical infrastructure:

a. Raw material: Items ,source & availability

b. Labour: Skilled/ Unskilled, availability & requirement

c. Staff requirement:
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d. Utilities: Power and water:

e. Pollution control: wastage disposal

f. Communication system:

g. Transport facilities:

h. Production process in brief:

i. Equipment & machinery: Details with cost:

j. Technology Used:

k. Quality control & inspection:

l. Any research taken up:

 95

9.Market Information:

a. Demand & supply

b. Technical guidance provided after sale:

c. Market strategy: Publicity & distribution

10.Capital Costs:

Land & building

Equipment & machinery:

Furniture & vehicles:

Others:

11.Working capital:

Financial analysis:

 Cost of cultivation/ production:

 Production/ Yield:

 Sale price:

 Net returns:
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 Break even point:

 Profitability ratio:

 Return on investment:

 Debt Equity ratio

12.Economic or social variables:

Employment generation(man days)

Local resource utilization:

Import substitution:

13.Other details:

Lay out of enterprise:

 97

Any financial assistance availed: Name of the bank:

Amount of loan:

Subsidy availed: Amount source:

Contracts/ license & legal issues:

Promotion plans:

Diversification of enterprise: Brief details:

Characteristics of the entrepreneur identified:

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Exercise:

Date : PROJECT APPRAISAL

It is a known fact that any project involves risk and requires judicious and National
allocation of resources. Demand for funds and risk necessitates selectivity in financing
projects. Project appraisal is are such means in this direction.

Project appraisal means assessment of the project. It is a costs and benefit analysis of
different aspects of proposed project with an objective to adjudge its viability. While
appraising a project its economic, financial, technical, market, managerial and social aspects
are analyzed. It is essentially done by an entrepreneur while assessing various alternative
projects to select the best among them. When an entrepreneur approaches any financial
institution/government agency for financial assistance as loan or as subsidy, then the
project/Report/proposal submitted will be thoroughly appraised. Hence financial institutions
take up systematic project appraisal to assess its credit worthiness before extending financial
assistance. Hence it is a second look at the project report by a person who is not or no way
involved in its preparation. It is taking an intively independent view of the project in a
comprehensive and systematic manner. Regarding all aspects of project some times scope
and content of project is modified highlighting weak areas and the ways and means to
strengthen them adequately so as to ensure final success of the project.

Project appraisal is done by team of expert officers – are economist, financial analyst
and technical expert. Site inspection is also taken up by the team as a part of project
appraisal.

Different aspects/methods of project appraisal:-

Project appraisal includes following analyses.

1. Economic analysis or economic feasibility

2. Financial analysis
3. Market analysis
4. Technical feasibility
5. Managerial competence or management appraisal
I Economic analysis: Under this aspects like requirement of raw material, level of capacity
utilization, anticipate sales and expenses and probable profits are analyzed. Volume of profit
 99

should be clearly spelt out which will govern the said economic variables. Demand for the
product should be analyzed as it is a deciding of feasibility of project.

Next the location of enterprise is above checked for any government specific
incentives that is whether or not it is located in notified backward areas.

II Financial analysis:

Finance is one of the most important pre-requisite for an entrepreneur as it is finance

only that facilitates in mobilizing all other factors of production. The following two aspects
are to be carefully analyzed.

Assessment of financial requirement. Both fixed capital and working capital

1. Fixed capital or fixed assets are those tangible and material facilities which purchased
once are used again and again Ex: Land and Buildings, plant machinery and equipment.
Requirement of fixed capital depends on type, scale and time of operation. Similarly aspects
like expenses for remodeling of operation. Similarly aspect like expenses for remodeling, of
operation. Similarly aspects like expenses for remodeling of operation. Similarly aspects
like expenses for remodeling of repairs, additions of buildings etc should also be included.

2. WORKING CAPITAL: It means excess of current assets over current liabilities.

Current assets are those which can be converted in to cash within a week current liabilities is
obligations/payable with me week. In short working capital is amount of funds used m day to
day business. It serves as lubricant for any enterprise be it small or large. Inadequacy of it
may not only effect the operations but may bring enterprise to grinding halt.

Next activity level or capacity utilization needs to be analyzed. Sometimes enterprise

may fail to achieve this due to various reasons. The question to be answered is to what extent
production at which neither profit nor loss will be incurred.

III MARKET ANALYSIS: Whether or not market for the product is there, should be
toughly assessed. This is because, the production has no value for the entrepreneur unless it
is sold at reasonable price. In fact the potential of the market constitutes the determinant of
probable rewards from an Entrepreneurial career. Hence knowing the market potential
becomes key element in project appraisal. The various methods follow to know market
potential/demand forecast the following methods are followed.
 100

1. Opinion polling method: Opinions of ultimate users of the product is estimated through
following methods.

a) Complete/enumeration survey: All probable customers are approached and their

probable demand for product is estimated and then summed.
b) Sample survey: Only some number of consumers out of their total population are
approached and demand is estimated and total/demand is projected.
c) Sales experience method: Sample market is surveyed before the new product is
offered for the sale and demand is estimated projecting it to the universe.
d) Vicarious method: Here consumers of the product are approached directly but
through dealers, who have a feel of their customers. Dealers opinion regarding
customers feel/opinion regarding product is elicited.
2. Life cycle segmentation analysis: Like human being product has its own life span
product sells slowly in the beginning. Backed up by publicity and promotion strategies over
a period, sales pick up. During this course of time peak sales is reached, after which sales
start declining and after sometime product looses its demand and dies. Thus every product
has life cycle that is why firms go for new products. One after the other to keep firm alive.
Generally product life cycle has 5 stages viz., Introduction, growth, maturity, saturation and
decline. It follows ‘S’ shaped curve when sales/demand over a period of time are plotted on a
graph.

Considering these five stages the sales at different stages can be anticipated.

IV Technical feasibility: Technical feasibility implies to mean the adequacy of the proposed
plant and equipment to produce the product in prescribed norms. It denotes the availability or
otherwise of a fund of knowledge to man the proposed plant and machinery. It should be
ensured whether know-how is available entrepreneur or it is to be procured. In later case
what are the arrangements made to procure technical know-how whether project requires any
collaboration or not. If required, with whom, how will it be etc should be checked. Suppose
if foreign collabo rations are there then legal provisions in force must be checked or verified
against its terms and conditions.

While assessing technical feasibility the following inputs are required to be

considered in project.

1. Availability of land and site.

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2. Availability of other inputs Ex: Power, transport, water and communication.

3. Availability of servicing facilities Ex: Repairs and maintenance.
4. Coping with anti-pollution law.
5. Availability of work force (skilled)
6. Availability of raw material as per quantity and quality.
V. Management competence / Management appraisal: Managerial ability plays an
important role in making an enterprise a success or failure even a poor project can become a
successful one with good managerial abilities. Hence during project appraisal the managerial
abilities of promoters, entrepreneurs and management team should be considered. Research
studies indicate that most of the enterprises fall sick because of lack of managerial
competence or miss management. This is more so in case of small enterprises, where the
proprietor or owner is all in all. i.e owner and manager are same promoter/entrepreneurs
track record is investigated either through personal discussions or verifying with promoters
banker and other persons connected with enterprise and market. Bio-data of entrepreneur,
promoter and management team is also considered while apprasing managerial abilities.

Economic analysis (contd)

The project appraisal is not complete unless the proposed project is reviewed from the
economy point of view involving three basic questions

 Whether the project is coming up in a priority sector.

 Whether the project is likely to cotribute to the development of region
 Whether the outlay of the project justifies social benefits like employment generation,
output, import substitution and export potential.
Conclusion: Thus project appraisal is a systematic analysis or investigation taken up by
financial institutions while providing financial assistance to entrepreneurs. This project
appraisal is done for proposed projects and executed projects when they seek additional
finances for extending their project. Project appraisal done for proposed projects is called
‘ex-ante analysis’ and for executed projects it is called “post ante analysis”.

Exercise : Appraise the enterprise that you have visited and give details. What would
you decide if he / or she approaches you for loan for expansion or diversification. Give
justification .
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Exercise:

Date : SWOT ANALYSIS

INTRODUCTION AND MEANING

The process of liberalization and economic reforms, while creating tremendous opportunities
for growth of many industries, have thrown up new challenges to the industries. Building
competitive strengths, technology upgradation and quality improvement are the vital issues
that need to be looked into, to build capabilities, to withstand emerging pressures and ensure
sustained growth.

The 21st century, would ensure a bright future for industries only if a conscious and
sincere effort is initiated for overcoming hardships faced. The entrepreneurs have to lay
more emphasis on the quality of their production. The gospel truth is, ‘Better quality and
Better productivity’. Therefore, entrepreneurs have to devote sufficient attention on Research
and Development. Innovation is the real step towards continued progress.

To innovate, an entrepreneur has to make a diagnosis of the current situation. The

diagnosis of the current situation is done by conducting an internal analysis and external
analysis.

Analysis of external and internal environment together is called SWOT Analysis.

SWOT Analysis refers to identifying the strengths, weaknesses, opportunities and threats of
an organization.

SWOT Analysis is a tool, often used by organizations in planning its future. This tool
can be explained in a simplified manner as follows:

S - strengths
of the organisation

W - weakness

O - opportunities of the environment

T - Threats

The internal analysis of the organization will cover the organizational position with
respect to different functional areas like production, finance, marketing, R & D and so on.
 103

More specifically, this may look into a company’s sales volume, market share, profitability
and so on. This will reveal its strength and weakness.

The external analysis will do the necessary scanning of the business environment to
identify any threat and opportunities posed on the company, its products or services. More
specifically, this will include the industry performance, competitive activity and a review of
the growth and decline of the user industries.

STRENGTH AND WEAKNESS

Every business needs to evaluate its strengths and weaknesses periodically. The management
or an outside consultant, reviews the business’s marketing, financial, manufacturing and
organizational competencies. In examining its strengths and weaknesses clearly, the business
does not have to correct all of its weaknesses nor gloat about all of its strengths. They have
to slowly overcome their weakness and convert it into its strength.

Some of the strengths of an organization are:

a) Availability of necessary infrastructure

b) Adequate production capacity
c) Skilled manpower
d) Good manufacturing practices, quality assurance and quality control
e) Low cost of manufacture
f) Appropriate corporate philosophy on R & D
g) Availability of
h) Facilities for product and process development
i) Good location
j) Wide distribution network
k) Motivated staff
l) Liquidity position
m) Adequate Reserve and Surplus
n) Brand image
o) Consistency in earning profits
p) Good corporate image
q) Efficient management
r) Philosophy and human resource development
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s) Flexible/responsible
If an organization lacks any of these, it will obviously result into its weakness.

Let us now look at some of the weaknesses of an orgnisation:-

a) Rising cost of operations

b) Growing union pressures
c) Low level of motivation of staff
d) Non-availability of raw material
e) Scarcity of capital
f) Weak credit worthiness
g) Problem of under utilization of capacity
h) Outdated technology
i) Poor project planning
j) Inadequate infrastructure
k) Shortage of trained technicians
l) Insufficient managerial expertise
m) Unorganised nature of operations
n) Lack of effective co-ordination
o) Inadequate training in skills
p) Feeble structure/poor organization
q) Problems of delegation of authority
OPPORTUNITY AND THREAT

An entrepreneur has to know the parts of the environment to monitor, if the business is to
achieve its goals. A business has to monitor key macro environmental forces like
demographic, economic, technological, political, legal, social and cultural factors, and, also
significant micro environmental forces like customers, competitors, distribution channels,
suppliers, etc. that will affect its ability to earn profits. The business unit should set up a
marketing intelligence system to track trends and important developments. For each trends or
development, management needs to identify the implied opportunities and threats.

An opportunity is an area of need in which a company can perform profitably. Some

of the opportunities of an organization are:

a) Growing population
 105

b) Increase in disposable income

c) Good monsoon
d) Easy availability of money
e) Availability of appropriate technology
f) Favourable government policies
g) Availability of different task environment like market information, distribution outlets
and media.
h) Presence of favourable cultural environment.
Some developments in the external environment represents threats. An environmental
threat is a challenge posed by an unfavourable trend or development that would lead, in
the absence of defensive marketing action, to sales or profit deterioration. Some of the
threats of an organization are:

a) Shortage of power, water, fuel

b) Rejection by the market
c) Recession
d) Tough competition
e) Political instability
f) Fiscal policy resulting into increased taxes, duties, imports reservations, licensing
g) Technological obsolescence
h) Tight money market
i) High cost of raising finance and cost of finance
j) Resource crunch
k) Difficulty in retaining technical experts
l) Climatic changes
m) Changing customer tastes and preferences
n) Prolonged economic depressions
On completion of a SWOT Analysis, an organization can know ‘where it stands’.

Therefore, it can proceed to develop specific objectives and goals for the future.

USEFULNESS OF SWOT ANALYSIS IN INNOVATION/CREATIVE PROCESS

An organization before going in for innovation, has to conduct a SWOT Analysis to know its
own strength and the opportunities available, to know its own weakness and threats, so as to face
them. The advantages for conducting a SWOT Analysis for innovating are –
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1) An entrepreneur can know in which field, there is demand, and, can venture into the
respective field, keeping their strengths in mind.

2) It helps in the development of new technology.

3) An entrepreneur can make an analysis as to develop a completely new product, or to

just change the existing product.

4) There can be improvements brought about in the process of production.

5) On the basis of information collected through SWOT analysis, the goals which the
firm wants to achieve in future can be decided.

6) Short term mission and long term mission of the organizations can be farmed.

7) Alternatives can be selected and decided to exploit opportunities and to face threats in
the environment.

8) Priorities can be given to different goals and the courses of action to achieve the goals
can be timed.

9) Plans can be formalized for effective communication and implementation of plans.

10) Major functions and sub-functions can be determined in achieving the objectives of
the firm.

11) Expansion of the range of services and benefits.

12) The social, political, legal, economic, technological factors can be analysed.

13) An analysis of the competitors strategies can be made, and their policies can be
known.

CASE STUDY

To understand SWOT analysis better, let us look at a case study of SWOT Analysis
conducted in a five star Hotel in Bangalore:

The strengths of this five star Hotel are

1) It has got more than 95 years of experience

2) It has hotels in different places in India
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3) It has many heritage properties which adds to its charm and represents Indian culture
4) It has a few low budgeted hotels, which caters to the needs of middle class tourists
5) It has hotels not only in big cities but also in small cities which are of tourist
importance
The weaknesses are

1) It has tough competition form rivals, and hence their concentration is diverted.
2) It has very few low budget hotels, which are of need today.
3) It has more than one hotel in one city, which is a waste of investment.
Its opportunities are

1) There is availability of government support in the form of land and financing of

projects.
2) There is an increase in the tourist inflow in India, India is expecting to receive 2.4
million tourists, i.e., there will be lot of business.
Its threats are

1) Its competitors are also located near the hotel.

2) It has to face the threats of various resorts, which people are looking for now-a-days.
3) It also has threats from smaller hotels, which tourists prefer, because of cheaper rates
and almost the same kind of hospitality.
Therefore, this hotel has to overcome its threats and weaknesses and concentrate more on
its strengths and opportunities available.

Exercise:

Analyze the Case given to you in terms of its Strengths, Weaknesses, opportunities and
Threats of the Venture / Enterprise / Organisation

TITLE:

Internal environment:
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External environment:

Strengths

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Weaknesses

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Opportunities

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Threats

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Exercise:

Date : Documentation of success stories of entrepreneurs

 Write the name of the entrepreneur & enterprise, location, educational

background, family support, financial support and other details.

 List out what problems that entrepreneurs have faced while starting or running
the enterprise and how they could overcome them.

 What are the suggestions given by entrepreneurs to Govt. agencies , banks and
new perspective entrepreneurs.

 Finally consolidate and write common characteristics of entrepreneurs,

problems and suggestions
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Problems that entrepreneurs have faced while starting or running the enterprise and
how they could overcome them.
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What are the suggestions given by entrepreneurs to Govt. agencies , banks and new
perspective entrepreneurs.

 Finally consolidate and write common characteristics of entrepreneurs,

problems and suggestions
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Exercise:

Date : Project report presentations and submission

of project reports (hard & soft copy)

 Give the presentation

 List out suggestions made.

 List out corrections/ modification suggested and

 Carry out corrections in the project report

 Submit the project report (hard & soft copy)
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