Ge ne ra tion a nd S cre e ning

of P roje ct Ide a s

DR M.SHAHZAD ANJUM

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Ge ne ra tion a nd S cre e ning of
P roje ct Ide a s
1. Ge ne ra tion of Ide a s
2. Monitoring the Environme nt
3. Corpora te Appra is a l
4. P rofit pote ntia l of Indus trie s : P orte r’s Mode l
5. S couting for proje ct ide a s
6. P re limina ry s cre e ning
7. P roje ct ra ting inde x
8. S ource s of pos itive ne t pre s e nt va lue
9. On be ing a n e ntre pre ne ur 2
 1. Ge ne ra tion of Ide a s
• S timula ting the flow of ide a s
– S WOT a na lys is
– Cle a r a rticula tion of obje ctive s
• Cos t re duction
• P roductivity improve me nt
• Incre a s e in ca pa city utiliza tion
• Improve in contribution ma rgin
• Expa ns ion into promis ing fie lds
– Fos te ring a conducive work e nvironme nt
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2. Monitoring the Environme nt

1. Economic S e ctor
2. Gove rnme nt S e ctor
3. Te chnologica l S e ctor
4. S ocio-de mogra phic S e ctor
5. Compe tition S e ctor
6. S upplie r S e ctor
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 2. Monitoring the Environme nt

1. Economic S e ctor
• S ta te of the e conomy
• Ove ra ll ra te of growth
• Growth ra te s of prima ry/s e conda ry/te rtia ry
s e ctors
• Cyclica l fluctua tions
• Linka ge with the world e conomy
• Tra de s urplus /de ficits
• Ba la nce of pa yme nt s itua tion
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 2. Monitoring the Environme nt

2. Gove rnme nt S e ctor

• Indus tria l policy
• Gove rnme nt progra mme s a nd policie s
• Ta x fra me work
• S ubs idie s , ince ntive s a nd conce s s ions
• Import a nd e xport policie s
• Fina ncing norms
• Le nding conditions (FIs a nd CBs )

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2. Monitoring the Environme nt

3. Te chnologica l S e ctor
• Eme rge nce of ne w te chnologie s
• Acce s s to te chnica l know-how
• Re ce ptive ne s s on the pa rt of indus try

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 2. Monitoring the Environme nt

4. S ocio-de mogra phic S e ctor

• P opula tion tre nds
• Age dis tribution a nd s hifts
• Income dis tribution
• Educa tiona l profile
• Employme nt of wome n
• Attitude s towa rds cons umption a nd inve s tme nt

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 2. Monitoring the Environme nt

5. Compe tition S e ctor

• Numbe r of firms in the indus try a nd the ir ma rke t
s ha re s
• De gre e of homoge ne ity a nd diffe re ntia tion
a mong products
• Entry ba rrie rs
• Compa ris on with s ubs titute s
• Ma rke ting policie s a nd pra ctice s

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 2. Monitoring the Environme nt

6. S upplie r S e ctor
• Ava ila bility a nd cos t of ra w ma te ria ls a nd s ub-
a s s e mblie s
• Ava ila bility a nd cos t of e ne rgy
• Ava ila bility a nd cos t of mone y/ca pita l

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 3. Corpora te Appra is a l

• Ma rke ting a nd dis tribution

• P roduction a nd Ope ra tions
• Re s e a rch a nd de ve lopme nt
• Corpora te re s ource s a nd pe rs onne l
• Fina ncing a nd a ccounting

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 4. P rofit pote ntia l of Indus trie s :
P orte r’s Mode l

• Five ba s ic compe titive force s

– Thre a t of ne w e ntra nts
– Riva lry a mong e xis ting firms
– P re s s ure from s ubs titute products
– Ba rga ining powe r of buye rs
– Ba rga ining powe r of s e lle rs

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 Force s Driving Indus try
Compe tition
Potential Entrants

The Industry Buyers

Suppliers
Rivalry among
existing firms

Substitutes

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5. S couting for proje ct ide a s

• Ana lys e the pe rforma nce of e xis ting indus trie s

• Exa mine the inputs a nd outputs of va rious indus trie s
• Re vie w imports a nd e xports
• S tudy pla n outla ys a nd gove rnme nt guide line s
• Look a t s ugge s tions of fina ncia l ins titutions a nd
de ve lopme nt a ge ncie s
• Inve s tiga te loca l ma te ria ls a nd re s ource s
• Ana lys e e conomic a nd s ocia l tre nds

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5. S couting for proje ct ide a s
cont’d

• S tudy ne w te chnologica l de ve lopme nts

• Dra w clue s from cons umption/tre nds a broa d
• Explore the pos s ibility of re viving s ick units
• Ide ntify unfulfille d ps ychologica l ne e ds
• Atte nd tra de fa irs
• S timula te cre a tivity for ge ne ra ting ne w product ide a s
• Hope tha t the cha nce fa ctor will fa vour you

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 6. P re limina ry s cre e ning

• Compa tibility with the promote r

• Cons is te ncy with gove rnme nt prioritie s
• Ava ila bility of inputs
• Ade qua cy of ma rke t
• Re a s ona ble ne s s of cos t
• Acce pta bility of ris k le ve l
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 7. P roje ct ra ting inde x
Cons truction of a Ra ting Inde x

• Ide ntify fa ctors re le va nt for proje ct ra ting

• As s ign we ights to the s e fa ctors
• Ra te the proje ct propos a l on va rious fa ctors (us ing a
ra ting s ca le )
• For e a ch fa ctor, multiply the fa ctor ra ting with the
fa ctor we ight to ge t the fa ctor s core
• Add a ll the fa ctor s core s to ge t the ove ra ll proje ct
ra ting inde x
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8. S ource s of pos itive
ne t pre s e nt va lue

• Economie s of s ca le
• P roduct diffe re ntia tion
• Cos t a dva nta ge
• Ma rke ting re a ch
• Te chnologica l Edge
• Gove rnme nt policy
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 9. Be ing a n Entre pre ne ur
Que s tions tha t e ve ry e ntre pre ne ur mus t a ns we r
1. Are my goa ls we ll de fine d?
• P e rs ona l a s pira tions
• Bus ine s s s us ta ina bility a nd s ize
• Tole ra nce for ris k
1. Do I ha ve the right s tra te gy?
• Cle a r de finition
• P rofita bility a nd pote ntia l for growth
• Dura bility
• Ra te of growth
1. Ca n I e xe cute the s tra te gy?
• Re s ource s
• Orga niza tiona l infra s tructure 19

• The founde r’s role

Qua litie s a nd Tra its of a
S ucce s s ful Entre pre ne ur
• Willingne s s to ma ke s a crifice s
• Le a de rs hip
• De cis ive ne s s
• Confide nce in the proje ct
• Ma rke ting orie nta tion
• S trong e go
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How to be a Good Le a de r J a ck
We lch

1. Le a de rs re le ntle s s ly upgra de the ir te a m,

us ing e ve ry e ncounte r a s a n opportunity to
e v a lua te , c o a c h a nd build s e lf-c o nfid e nc e
2. Le a de rs ma ke s ure pe ople not only s e e
the vis ion, the y live a nd bre a the it
3. Le a de rs ge t into e ve ryone ’s s kin, e xuding
pos itive e ne rgy a nd optimis m
4. Le a de rs e s ta blis h trus t with ca ndor,
tra ns pa re ncy a nd cre dit
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How to be a Good Le a de r cont’d…
5. Le a de rs ha ve the coura ge to ma ke
unpopula r de cis ions a nd gut ca lls
6. Le a de rs probe a nd pus h with a curios ity
tha t borde rs on s ke pticis m, ma king s ure
the ir que s tions a re a ns we re d with a ction
7. Le a de rs ins pire ris k-ta king a nd le a rning
by s e tting the e xa mple
8. Le a de rs ce le bra te
“Think o f y o urs e lf a s a g a rd e ne r, a wa te ring c a n
in o ne ha nd a nd fe rtiliz e r in the o the r”, J a ck
We lch 22