BE_Mech_EDP

SMSMPITR, Akluj Prof. Mujawar A.I.

Prof. Mujawar A.I.

Sources of Idea Generation

Every remarkable INTERNAL SOURCES

Analysis of existing problems to get solution

thing in this world Memory search for similarities

Recombining available elements in new way

started with an
Personal Hobbies & Interests
Thinking of novel use of existing products

idea
Examining possibilities of ancillarisation
Knowledge of customer needs
Examining possibilities of outsourcing / franchising

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 . .
IDEATION TECHNIQUES
Sources of Idea Generation FOCUS GROUPS
EXTERNAL SOURCES BRAINSTORMING
CREATIVE WRITING
List of items reserved by Government for SSI
WISH LISTS
Professional journals, trade journals, magazines, etc.
IDEAL SCENARIO / TIME MACHINE
Success stories of friends, relatives or individuals CAMPAIGNS
Trade fares & exhibitions INTROSPECTION
Market survey CATCH BALL
Technical & management consultants SCIENTIFIC INVESTIGATION
Project profiles of industries SCAMPER
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SMSMPITR, Akluj Prof. Mujawar A.I.

Prof. Mujawar A.I.

CLASSIFICATION OF IDEAS
s don’t change the world. 1. Conceptual Replications6. Integration

he implementation that makes the difference. 2. Redefinitions 7. Disruption

3. Forward Incrementation8. Process Innovation

4. Re-direction 9. Service Innovation

5. Re-initiation 10. Experience Innovation

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 Prof. Mujawar A.I.

Environmental Scanning S.W.O.T. ANALYSIS

Prof. Mujawar A.I.

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Ascertaining extent of resources & planning

Internal
Studying & scanning product area for recent times
Analysing changes in technology & customer income (for area, region, state, country or globe)
Scanning of raw material procurement
Competition analysis
Analysis of Government policies
SW
StrengthWeakness
Scanning present demand & market dynamics

External
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O
Opportunities
T
Threats

Favourable Non-favourabl e 1 0

SMSMPITR, Akluj Prof. Mujawar A.I.

Prof. Mujawar A.I.

. . Strength Analysis Weakne

What are your strengths? What are your

thers ? What unique capabilities do You have ? What are the best
Whatresources
others can
youdo
have?
better
What
thanothers
You? What
see good
can /remain
best inun-addressed
You ? by You ? What others see as a weak
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 Prof. Mujawar A.I.

. . Opportunity Analysis
What trends & conditions favour You ? What opportunities are available to You ? What way you can penetrate market ?
What others expect from You ?

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Threat Analysis
What trends & conditions don’t favor You ? What are possible entrants or competitors ? Do you have a rigid financial support ?
What is impact of your weakness on threats ?

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SMSMPITR, Akluj Prof. Mujawar A.I.

Scale of Operations Market Share Visionary Leader

STRENGTHS WEAKNESS
Good Relations with Partners Too Many Sellers Awesome Interfaces Powerful Brand ImageUsers
Highlywith Specific
refined Needs
Supply Eating up Own Old Products
Chain

S Very High Discounts Sellers Billions in Cash Reserv High Price

WO e

Experience in China
T
Rising Investments Demand of E-commerce Sites
Aggregator Based Model
Growing Demand Use by Corporates
CheapStrategic
Integration with i-cloud Offers from Samsung User Friendly Android Slowdown possibilities
Alliances
Flipkart & Amazon in India OPPORTUNITIES THREATS
Overall Rising Competition Stability of the Economy Dropping Profitability

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 STRENGTHS WEAKNESS
Expertise Exchange 3rd and 4th generation
Strategy for Expansion Less Success in luxury car
Building New Leaders Tat means ‘rubbish’ which
Brand Recognition affects British Buyers

Land Rover and Jaguar 40-50 yrs old competitors

New Global Track Platform from DAEWOO Plant
Sustainability will cost
Use of Sustainable & Creative Technology Entry of Global Players
OPPORTUNITIES Rise in the Fuel & material cost
THREATS

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. Prof.
A.I.
Mujawar

STRENGTHS WEAKNESS
Technological Patents Large Size Enormous Operating Costs Transferring Jobs Overseas
95 % share in IT Business of 1000 Most Profit Companies
Retraining in
of U.S.
Outsourced Employees
4th Most Recognized Brand in World
First Company to Establish Innovation Labs (1945)

Increased globalizationDependency
Key of Innovation
on Microsoft Firewalls and Protective Software Few Suppliers in Supply Chain
Open Source Operating Systems Small-Medium Smaller
BusinessCompanies
(SMB) Shift Attention to HP & Sun Microsystems
THREATS
OPPORTUNITIES

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SMSMPITR, Akluj Prof. Mujawar A.I.

If your
. analysis does not support PROJECT REPORT / BUSINESS PLAN
Points to be considered...
your initial assumption, go back
 and refine your idea.
Prof. Mujawar A.I.
General Information Raw Material
Manpower
Executive Summary Description of Business Idea Products
Location Market
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Working Capital
ProcessRequirement
Utilities (Power, Water, etc.) Fund Requirement Cost of Production Break Even & Profit
Transport & Communication Sequence of Implementation
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. Components of a Business Plan Marketing

. Plan
Plan to reach out the potential customers with realistic & price conscious way
Marketing Plan

Prof. Mujawar A.I.

Financial Plan

Operations & Planning

HR Plan
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SMSMPITR, Akluj Prof. Mujawar A.I.

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4 Ps of Marketing Some Questions to be Asked & Answers be Written in the Plan…
Are your customers aware of value you are providing?
PRODUCT How much customer sensitization is required?
 What is the impact on customer perception about product?
What are the ways to give the message?
Can customers afford the channel of messaging?
How & where actual sale will be done?

. . Financial Plan
SWOT
Financials are integral part of business

REFINE IDENTIFY 23 Understanding of financial statements

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MARKETING PLAN Every decision is related to finance

Business plan should include financial projections

USP TARGET
Professional help from experts is appreciated

INTER- SECTION Investors try to grade the financial positivity of business

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SMSMPITR, Akluj Prof. Mujawar A.I.

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Some important inclusions in the financial plan Some important inclusions in the financial plan
BALANCE SHEET BALANCE SHEET
 Some important inclusions in the financial plan
. .
SOURCES OF FUNDS

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PROFIT
& LOSS
STATEMENTS

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SMSMPITR, Akluj Prof. Mujawar A.I.

. Some important inclusions in the financial plan .

Some important inclusions in the financial plan
CASH FLOW PROJECTIONS CASH FLOW PROJECTIONS
 . Some important inclusions in the financial plan . Some important inclusions in the financial plan
BREAK EVEN ANALYSIS BREAK EVEN ANALYSIS

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SMSMPITR, Akluj Prof. Mujawar A.I.

Operations Plan Operations Plan . .

Theory is splendid but until put into practice, it is valueless. Details of day to day operations
Assessing & developing the underlying mechanisms
Overview of planning:
 Facilities Management
Production Line
Stores & Inventory Control
Supply chain Management
Logistics
Customer Relation Management
. . Administration
Finance Planning

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SMSMPITR, Akluj Prof. Mujawar A.I.

H.R. Plan
. H.R. Plan .
Strength of the People in the Firm Policies for Employees (Recruitment, Training, Portfolios)
Ways of Communication
Experience, Skill & Personalities of Management Team Employee Recognition
 Prior Experience or Association with a Premier Firm has a Significant Impact Different Facilities for Employees
Brief Description of: Leave Formats
Key Employees Salary Structures
Board of Directors Appraisal Formats
Advisory Committee Incentives & Compensations to retain the Employees
Consultants
. . Significance of Project Report / Business Plan

A Project Report or Business Plan is the most essential document for a

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Prospective Entrepreneur!

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Serves as a Master Plan

Indicates Objectives & Goals of the Business
Describes Direction (Roadmap)
Foresees Requirements (Finance, Man-power, etc.)
Grades the Feasibility
Indicates Profitability
Helps in Decision Making
Paves Way for Financial Assistance
Ensures Survival
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SMSMPITR, Akluj Prof. Mujawar A.I.

. .
PROJECT APPRAISAL HIGHLIGHTS
hat refers to the process of assessing, in a structured way, the case for proceeding with a project or proposal.
 Important decision making tool.
Laying of foundations for delivery.
Getting the system right in different situations.
Risk and uncertainty calculus.
Sustainability check
In short, project appraisal is the effort of calculating a project's viability.
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Market Appraisal
Technical Appraisal
Economic Appraisal
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Ecological Appraisal
Financial Appraisal
Managerial Competency Appraisal

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Aggregate Demand of the Product

Market Share & Elasticity in Demand
Past & Current Demand Trends
Past & Current Supply Position
Imports & Exports
Nature of Competition
Cost Structure
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SMSMPITR, Akluj Prof. Mujawar A.I.

. PRODUCT LIFE CYCLE .

Consumer Behaviour
(Motivations, attitudes, preferences, requirements)
 Distribution Channels

Marketing Policies

Administrative, Technical & Legal Constraints

. .Consumer Classifications
(Gender, Class, Age, Demography, Physically Challenged)
Consideration of Pre-requisites
Choice of Proper Location
Choice of Proper Process
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Choice of Proper Machinery

Preliminary Tests & Studies
Availability of Raw Materials, Power & Inputs
Optimal Scale of Operation
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Effluents & Waste Disposal

Proper Layout of Plant
Proper Layout of Buildings
Realistic Work Schedules
Socially Acceptable Technology

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SMSMPITR, Akluj Prof. Mujawar A.I.

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Social Cost-Benefit Analysis Impact of Project on:

Direct Economic Benefits Air
 Impact on Level of Savings & Investments Noise
Impact on Fulfillment of National Goals Vegetation
Self Sufficiency Human Life
Employment
Eco-system
Social Order
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Some Projects Subjected to Stringent Analysis:

Power Plants
Irrigation Schemes 51 52
Pharmaceuticals
Chemical Plants
Refineries
Leather Processing
Plastic Industries

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Financial Viability of Project

Servicing Debt
Meeting the Return on Investments
Means of Financing
Profitability
Break-Even-Point
Cash Flows
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SMSMPITR, Akluj Prof. Mujawar A.I.

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Investment Worth
Net Present Value Managerial Competency