Innovation Management

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INNOVATION MANAGEMENT
1.CONCEPT OF INNOVATION MANAGEMENT AND THE DIFFERENCE BETWEEN INNOVATION AND

INVENTION.
Innovation in its modern meaning is "a new idea, creative thoughts, new imaginations in form of device or
method".Innovation is often also viewed as the application of better solutions that meet new requirements,
unarticulated needs, or existing market needs. Such innovation takes place through the provision of
moreeffective products, processes, services, technologies, or business models that are made available
to markets, governments and society. An innovation is something original and more effective and, as a
consequence, new, that "breaks into" the market or society. Innovation is related to, but not the same
as, invention, as innovation is more apt to involve the practical implementation of an invention (ie new /
improved ability) to make a meaningful impact in the market or society and not all innovations require an
invention. Innovation often[ manifests itself via the engineering process, when the problem being solved is of
atechnical or scientific nature.
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Key steps towards business innovation
1. Conduct an analysis of the trends in the market environment, your customers’ wants and needs and your
competitors.
2. Consult with customers and employees for ideas on improving processes, products and services both
internally and externally. Find out more about connecting with customers for ideas.
3. Seek advice. Use available resources such as business advisors, grants and assistance to drive innovation in
your business. This may include seeking Intellectual Property (IP) protection to commercialise your ideas.Learn
more about local collaboration and international collaboration with researchers.
4. Be open to new ideas and adaptive to change.
5. Develop a strategic, responsive plan, which promotes innovation as a key business process across the entire
business. Learn about creating an innovative business culture and developing a strategy for innovation.
6. Train and empower your employees to think innovatively from the top down.
Remember, innovation is the key to competitive advantage for your business.
Why business innovation is important
The purpose of the business innovation process is to create value for the organization. That value can come
from creating new revenue opportunities or driving more revenue through existing channels; from creating
efficiencies that save time, money or both; or from improvements to productivity or performance.
In short, innovation should lead to higher profits. Additionally, the results of an organization's innovation
process should yield a competitive advantage; it should help the organization to grow and reach -- or, better
still, exceed-- strategic objectives.
Innovation vs. invention

Innovation and invention are closely linked, but the two terms are not interchangeable.
An invention is an entirely new creation. The process of business innovation can produce an invention, but the
term is broader in scope and includes the application of an existing concept or practice in a new way, or
applying new technology to an existing product or process to improve upon it.
To better understand the difference, consider this: The telephone is an invention, but the smartphone is an
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innovation.
Models of innovation
Business innovation can be grouped in various categories, or models. Some are self-explanatory, such as
product or process innovations. Other types, and what they mean, include:
Business model innovation: the development and implementation of new, unique concepts supporting
an organization's financial viability, including its mission.
Industry model innovation: the creation of a new industry or an organization's move into a new
industry.
Revenue model innovation: improvements and/or changes to an organization's framework for
generating revenue, a goal also encompassed in the term, business model innovation.
ADVANTAGES
1. Solve Problems Easily

You need to come up with creative answers to solve certain problems in your business. Many times you’ll face
problems that don’t seem to go away. You need to think outside the box to find an answer you’ve never come
up with. This way you can make your product, store your inventory and find a creative solution to make your
business better.
2. Increase Your Productivity
If you ever feel that you are bogged down with work and struggle to get everything done, it’s time that you
should become more productive. To do this, start finding a new process. In order to work smarter, think
creatively. Focus on what things you should streamline and what things you need to cut out. Also, focus on the
programs and workflows that you can use to increase productivity. For example, You can use a homegrown
project tracker system to assign, monitor and prioritize tasks. You may use other methods to do this, but
building one to meet your specific demands is recommended. As your needschanges, you can update the
software anytime to remain productive. In businesses, it is always preferred to test new ideas. You will be
surprised by the combination of ideas that work together to make productivity plans that work for your
company.
3. Market Your Business
You can use various creative ideas and innovation to make your business stand out from the crowd. Here,
small business marketing comes in.
In order to make people remember your business, you need innovative ideas. You can create a new brand,
develop a quirky business or can work with any non- profit organization.
Once you develop a unique character in your business, you should market it. Just innovate a marketing plan
that suits your business’ personality. Stand out from all other businesses and this will help you make a unique
identity among customers.
4. Beat Your Competitors
When you think innovatively, it becomes very easy to beat out your competition. You just need to put in a
little creativity and you can easily come up with better ways to design products and connect with customers.
Along with this, creativity will help you figure out the right marketing techniques that will help your business
grow.
Now that you have read about some various advantages of innovation, you need to add it to your business. It
is not a one-time deal. It must be non-stop so that you have a continuous stream of ways to improve your
business.
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2.EXPLAIN ENTREPRENEURSHIP.
Entrepreneurship is a process of designing, launching, and running a new business venture.
This is a new business, which is often initially a small business. The people who create these businesses are
called entrepreneurs.
Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a
business venture along with any of its risks to make a profit."
A broader definition of the term is sometimes used, especially in the field of economics. In this usage, an
Entrepreneur is an entity which has the ability to find and act upon opportunities to translate inventions or
technologies into products and services: "The entrepreneur is able to recognize the commercial potential of
the invention and organize the capital, talent, and other resources that turn an invention into a commercially
viable innovation." In this sense, the term "Entrepreneurship" also captures innovative activities on the part of
established firms, in addition to similar activities on the part of new businesses.
An entrepreneur accelerates the economic growth of a society - Entrepreneurship is all about wealth creation
for the entrepreneur and for the people that are employed by the venture. As a result, the economy of the
local area where the entrepreneurial venture is based is developed. It, also, creates wealth on a national scale
for the government in the form of taxation which is then redistributed accordingly to the services and
communities in the society that need it the most.
Entrepreneurship fosters creativity – An entrepreneur will always come up with creative ways to better the
existing technologies such that they result in the production of fairly affordable products for all members of
the community.
An entrepreneur is a person who sets up a business with the aim to make a profit as well as for the
society.Entrepreneurs see possibilities and solutions where the average person only sees annoyances and
problems.An Entrepreneur is a person who has a role of an industrialist and forms an organization for the
commercial use. He is a change agent who transforms the demand into supply by forecasting the needs of the
society.
Types of Entrepreneurs
Innovative Entrepreneur: These are the ones who invent the new ideas, new products, new production
methods or processes, discover potential markets and reorganize the company’s structure. These are the
industry leaders and contributes significantly towards the economic development of the country.The
innovative entrepreneurs have an unusual foresight to recognize the demand for goods and services. They are
always ready to take a risk because they enjoy the excitement of a challenge, and every challenge has some
risk associated with it. Ratan Tata is said to be an innovative entrepreneur, who launched the Tata Nano car at
a considerably low cost.
Imitating Entrepreneurs: The imitating entrepreneurs are those who immediately copy the new inventions
made by the innovative entrepreneurs. These do not make any innovations by themselves; they just imitate
the technology, processes, methods pioneered by others.These entrepreneurs are found in the places where
there is a lack of resources or industrial base due to which no new innovations could be made. Thus, they are
suitable for the underdeveloped regions where they can imitate the combinations of inventions already well
established in the developed regions, in order to bring a boom in their industry.
Fabian Entrepreneurs: These types of entrepreneurs are skeptical about the changes to be made in the
organization. They do not initiate any inventions but follow only after they are satisfied with its success
rate.They wait for some time before the innovation becomes well tested by others and do not result in a huge
loss due to its failure.
Drone Entrepreneurs: These entrepreneurs are reluctant to change since they are very conservative and do
not want to make any changes in the organization. They are happy with their present mode of business and do
not want to change even if they are suffering the losses.
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Thus, this classification is done on the basis of the willingness of an entrepreneur to create and accept the
innovative ideas.
Entrepreneurial Process
Discovery: An entrepreneurial process begins with the idea generation, wherein the entrepreneur identifies
and evaluates the business opportunities. The identification and the evaluation of opportunities is a difficult
task; an entrepreneur seeks inputs from all the persons including employees, consumers, channel partners,
technical people, etc. to reach to an optimum business opportunity. Once the opportunity has been decided
upon, the next step is to evaluate it.
An entrepreneur can evaluate the efficiency of an opportunity by continuously asking certain questions to
himself, such as, whether the opportunity is worth investing in, is it sufficiently attractive, are the proposed
solutions feasible, is there any competitive advantage, what are the risk associated with it. Above all, an
entrepreneur must analyze his personal skills and hobbies, whether these coincides with the entrepreneurial
goals or not.
Developing a Business Plan: Once the opportunity is identified, an entrepreneur needs to create a
comprehensive business plan. A business plan is critical to the success of any new venture since it acts as a
benchmark and the evaluation criteria to see if the organization is moving towards its set goals.
An entrepreneur must dedicate his sufficient time towards its creation, the major components of a business
plan are mission and vision statement, goals and objectives, capital requirement, a description of products and
services, etc.
Resourcing: The third step in the entrepreneurial process is resourcing, wherein the entrepreneur identifies
the sources from where the finance and the human resource can be arranged. Here, the entrepreneur finds
the investors for its new venture and the personnel to carry out the business activities.
Managing the company: Once the funds are raised and the employees are hired, the next step is to initiate
the business operations to achieve the set goals. First of all, an entrepreneur must decide the management
structure or the hierarchy that is required to solve the operational problems when they arise.
Harvesting: The final step in the entrepreneurial process is harvesting wherein, an entrepreneur decides on
the future prospects of the business, i.e. its growth and development. Here, the actual growth is compared
against the planned growth and then the decision regarding the stability or the expansion of business
operations is undertaken accordingly, by an entrepreneur.
The entrepreneurial process is to be followed, again and again, whenever any new venture is taken up by an
entrepreneur, therefore, its an ever ending process.
3.COMMON REASONS WHY SMALL BUSINESSES FAIL
It takes a great deal of hard work to set up and run a successful small business. You will not only need to sell
your product or service, but also manage the administrative aspects of the business. In the UK, three out of
four business start ups will not to get off the ground at all, and around half of those businesses that do start
up will cease trading within 12 months. By understanding the issues that can cause a business to fail, you are
more likely to avoid the pitfalls, and this will increase the chances of your business surviving beyond its first
year.
This factsheet looks at some of the common factors that could cause your business to fail and provides some
suggestions on how these factors could be addressed.
Lack of skills and qualifications
Anyone planning to start a new business will benefit from training in general business and enterprise skills, but
many business owners ignore training because they cannot spare the time or the money.
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In some sectors or professions, you must have formal qualifications or certification in order to operate, but
often the business owner and staff are not required to undergo any specific training or have any qualifications.
This does not mean that training should be overlooked. Factors that can cause your business to fail include:
• Not having the right skills, qualifications or experience to run a business.
• Not going on any training courses to help you understand marketing, finance, recruitment,etc.
• Getting out of your depth and not learning any new business skills.
Little or no market research

Many business owners make the mistake of making or selling a product or service for which there is little or no
demand. You will not have all the information you need about potential demand for your product or service if
you don't do sufficient market research before you start your business. Failure to undertake sufficient,
detailed market research can result in poor sales and can cause your business to fail.
It is vital that you research the following, well before you make the decision to start trading:
• Where your customers shop or buy, how often they buy, and how much they spend.
• Your competitors - who they are, who buys from them, and how they are different from you.
• The trends and issues in your business sector or industry - is the market growing or in decline; are there any
external threats to your industry?
You need to be sure that there is a market for your product or service and that there will be sufficient demand
for it. This means finding out who else provides the same or a similar product or service and how you can
meet customers' needs better than your competitors. Is there sufficient demand in the market for another
provider? Are your prices higher than the market can bear?
No clear marketing plan or strategy

New businesses frequently fail due to the lack of a clear marketing plan or strategy, especially if insufficient
customers are aware of, or prepared to buy, the product or service on offer. All businesses need sufficient
customers and sales to enable them to cover their costs and make a profit, but customers won't come to you
unless they know about you, your product or service and
what benefits it will give them.
If you do not have a clear marketing plan, you are at risk of making the following mistakes, which will
ultimately result in the failure of your business:
• Not having enough customers and not knowing how to find any.
• Selling your product or service based on its features rather than on its benefits to your
customers.
• Failing to describe your product or service accurately or legally.
• Pricing your product too high/too low.
Insufficient finance and cash flow

Too many businesses fail due to lack of start up and working capital, or because of cash flow problems that
emerge a few months into trading.
Your business will fail if:
• You don't have enough cash or other working capital at the start up phase.
• You don't understand basic finance principles such as breakeven, profit and loss, and cash flow.
• You keep losing invoices, sales receipts, purchase orders, etc.
• You don't chase late-paying customers fast enough.
It is important to calculate exactly how much finance you will need to meet all of your start up costs (stock,
equipment and so on) and to cover the costs of running your business until it becomes established. If you can't
raise enough finance to cover the costs you have identified, the business will not be viable from the outset.
Business owners who have no business finance skills will not know whether they are making any money or
not. It is vital to learn the basics so that you can prepare a simple profit and loss account and cash flow
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forecast. You should be aware of how much money you have in the bank, what you owe and what is owed to
you, more or less on a daily basis.
A good credit control system is vital even for a small business. You need to have a system for ensuring that you
send out invoices on a regular basis, and you need to know who hasn't paid on time so you can chase them up.
Starting a business can involve navigating a legal minefield of rules, regulations and red tape. Even
experienced business owners can struggle with all the legal requirements of running a business, which can
often prove difficult to understand and manage.
Common issues that can result in legal action being taken against you and/or your business include:
• Illegally using someone else's intellectual property rights, business name or trademark.
• Starting up without the statutory local trading licences.
• Starting up without informing the right people or authorities.
• Failing to comply with health and safety regulations.
In order to ensure you are trading legally from the start, you should familiarise yourself with business
legislation relevant to your business, covering the following key areas:
• Health and safety.
• Planning permission.
• Business rates.
• Fire safety.
• Intellectual property.
• Data protection.
• Trading standards.
There are also a number of organisations you must contact and register with before you start trading. If you
fail to do so, you risk breaking the law and incurring a penalty or closure for trading illegally.
Problems with people Becoming an employer is a big step for any business owner, and you need to make sure
you get itright. As soon as you take on your first employee, you are committed to complying with employment
legislation and you must dedicate sufficient time and resources to make sure that you are able to manage
employees effectively.
Staff can be a great asset to your business, but if you do not manage them properly, they can be a huge drain
on your time and energy.
Common mistakes you must avoid include:

• Not coaching, training or explaining to your staff exactly what is required of them.
• Not paying your staff on time, or not paying the right amount.
• Not providing new staff with their written terms and particulars of employment. This is required by law.
• Failing to build a team around you to complement your own skills.
Not insuring against risks You need all the relevant insurance to be in place as soon as your business is up and
running.
Some insurance policies are essential, while others are optional. It is important to understand the risks to your
business and make sure you insure against them, for example:
• Staff, customers or members of the public getting injured.
• Business interruption following a fire, flood or theft.
• Business interruption due to you being too ill to work.
• Claims of professional negligence or misconduct.
• Accidental damage to premises, equipment and stock.
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• Commercial disputes with customers, suppliers and other third parties.
Poor planning
Whether you are a new or established business, you should have a constantly evolving business plan to help
you define your current objectives and your strategies for achieving them. If you do not stay focused on the
objectives in your plan, you will quickly find that you are starting to lose control of your business.
Common mistakes include:
• Not preparing a business plan.
• Spending too long preparing your business plan.
• Being incapable of communicating your ideas, plans or business proposals to partners or funders.
• Always getting distracted and never managing to address your business' priorities.
Ignoring advice and support

Businesses that seek advice and support, particularly during their start up phase and their first few months of
trading, are far more likely to survive and prosper. The advice and guidance of an experienced business
adviser, coach or mentor can prove crucial. Good business advisers can offer advice, a wealth of business
knowledge and experience, as well as access to the latest business information, management thinking and
government initiatives. They can also act as a sounding board for your ideas, and help you spot the potential
problems and pitfalls before you hit them.
Common failings of business owners include:
• Starting up without professional support or advice when they obviously needed it.
• Failing to go to a local enterprise agency or other business support agency.
• Failing to go to the trade or professional association in their industry to see how they could help.
• Failing to network or seek advice from other business owners.
4.BUSINESS PLAN
A business plan is a formal written document containing business goals, the methods on how these goals can
be attained, and the time frame within which these goals need to be achieved. It also describes the nature of
the business, background information on the organization, the organization's financial projections, and the
strategies it intends to implement to achieve the stated targets. In its entirety, this document serves as a road
map that provides direction to the business.
Business plans are decision-making tools. The content and format of the business plan is determined by the
goals and audience. For example, a business plan for a non-profit might discuss the fit between the business
plan and the organization's mission. Banks are quite concerned about defaults, so a business plan for a bank
loan will build a convincing case for the organization's ability to repay the loan.
Preparing a business plan draws on a wide range of knowledge from many different business disciplines:
finance, human resource management, intellectual property management, supply chain management,
operations management, and marketing, among others.
Need for Business plan

1. To prove that you’re serious about your business. A formal business plan is necessary to show all interested
parties — employees, investors, partners and yourself — that you are committed to building the business.
2. To establish business milestones. The business plan should clearly lay out the long-term milestones that are
most important to the success of your business. To paraphrase Guy Kawasaki, a milestone is something
significant enough to come home and tell your spouse about (without boring him or her to death). Would you
tell your spouse that you tweaked the company brochure? Probably not. But you’d certainly share the news
that you launched your new website or reached $1M in annual revenues.
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3. To better understand your competition. Creating the business plan forces you to analyze the competition.
All companies have competition in the form of either direct or indirect competitors, and it is critical to
understand your company’s competitive advantages.
4. To better understand your customer. Why do they buy when they buy? Why don’t they when they don’t?
An in-depth customer analysis is essential to an effective business plan and to a successful business.
5. To enunciate previously unstated assumptions. The process of actually writing the business plan helps to
bring previously “hidden” assumptions to the foreground. By writing them down and assessing them, you can
test them and analyze their validity.
6. To assess the feasibility of your venture. How good is this opportunity? The business plan process involves
researching your target market, as well as the competitive landscape, and serves as a feasibility study for the
success of your venture.
7. To document your revenue model. How exactly will your business make money? This is a critical question to
answer in writing, for yourself and your investors. Documenting the revenue model helps to address
challenges and assumptions associated with the model.
8. To determine your financial needs. Does your business need to raise capital? How much? The business plan
creation process helps you to determine exactly how much capital you need and what you will use it for. This
process is essential for raising capital for business and for effectively employing the capital.
9. To attract investors. A formal business plan is the basis for financing proposals. The business plan answers
investors’ questions such as: Is there a need for this product/service? What are the financial projections?
What is the company’s exit strategy?
10. To reduce the risk of pursuing the wrong opportunity. The process of creating the business plan helps to
minimize opportunity costs. Writing the business plan helps you assess the attractiveness of this particular
opportunity, versus other opportunities.
11. To force you to research and really know your market. What are the most important trends in your
industry? What are the greatest threats to your industry? Is the market growing or shrinking? What is the size
of the target market for your product/service? Creating the business plan will help you to gain a wider,
deeper, and more nuanced understanding of your marketplace.
12. To attract employees and a management team. To attract and retain top quality talent, a business plan is
necessary. The business plan inspires employees and management that the idea is sound and that the
business is poised to achieve its strategic goals.
13. To plot your course and focus your efforts. The business plan provides a roadmap from which to operate,
and to look to for direction in times of doubt. Without a business plan, you may shift your short-term
strategies constantly without a view to your long-term milestones.
14. To attract partners. Partners also want to see a business plan, in order to determine whether it is worth
partnering with your business. Establishing partnerships often requires time and capital, and companies will
be more likely to partner with your venture if they can read a detailed explanation of your company.
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15. To position your brand. Creating the business plan helps to define your company’s role in the marketplace.
This definition allows you to succinctly describe the business and position the brand to customers, investors,
and partners.
16. To judge the success of your business. A formal business plan allows you to compare actual operational
results versus the business plan itself. In this way, it allows you to clearly see whether you have achieved your
strategic, financing, and operational goals (and why you have or have not).
17. To reposition your business to deal with changing conditions. For example, during difficult economic
conditions, if your current sales and operational models aren’t working, you can rewrite your business plan to
define, try, and validate new ideas and strategies.
18. To document your marketing plan. How are you going to reach your customers? How will you retain them?
What is your advertising budget? What price will you charge? A well-documented marketing plan is essential
to the growth of a business.
19. To understand and forecast your company’s staffing needs. After completing your business plan, you will
not be surprised when you are suddenly short-handed. Rather, your business plan provides a roadmap for
your staffing needs, and thus helps to ensure smoother expansion.
20. To uncover new opportunities. Through the process of brainstorming, white-boarding and creative
interviewing, you will likely see your business in a different light. As a result, you will often come up with new
ideas for marketing your product/service and running your business.
5. MARKETING RESEARCH
Definition: the process of gathering, analyzing & interpreting information about a market, about a product or
service to be offered for sale in that market,and about the past,present & potential customers for the product
or service ; research into the characteristics, spending habits,location and needs of your business's target
market,the industry as a whole & the particular competitors you face.
7 Stages or Steps Involved in Marketing Research Process:

Some of the major steps involved in marketing research process are as follows: 1. Identification and Defining
the Problem 2. Statement of Research Objectives 3. Planning the Research Design or Designing the Research
Study 4. Planning the Sample 5. Data Collection 6. Data Processing and Analysis 7. Formulating Conclusion,
Preparing and Presenting the Report.
Marketing research exercise may take many forms but systematic enquiry is a feature common to all such
forms. Being a systematic enquiry, it requires a careful planning of the orderly investigation process.
Though it is not necessary that all research processes would invariably follow a given sequence, yet marketing
research often follows a generalised pattern which can be broken down and studied as sequential stages.
The various stages or steps in the marketing research process are discussed below:
1. Identification and Defining the Problem:
The market research process begins with the identification “of a problem faced by the company. The clear-cut
statement of problem may not be possible at the very outset of research process because often only the
symptoms of the problems are apparent at that stage. Then, after some explanatory research, clear definition
of the problem is of crucial importance in marketing research because such research is a costly process
involving time, energy and money.
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Clear definition of the problem helps the researcher in all subsequent research efforts including setting of
proper research objectives, the determination of the techniques to be used, and the extent of information to
be collected.
It may be noted that the methods of explanatory research popularly in use are—survey of secondary data,
experience survey, or pilot studies, i.e., studies of a small initial sample. All this is also known as ‘preliminary
investigation’.
2. Statement of Research Objectives:
After identifying and defining the problem with or without explanatory research, the researcher must take a
formal statement of research objectives. Such objectives may be stated in qualitative or quantitative terms
and expressed as research questions, statement or hypothesis. For example, the research objective, “To find
out the extent to which sales promotion schemes affected the sales volume” is a research objective expressed
as a statement.
On the other hand, a hypothesis is a statement that can be refuted or supported by empirical finding. The
same research objective could be stated as, “To test the proposition that sales are positively affected by the
sales promotion schemes undertaken this winter.”
Example of another hypothesis may be: “The new packaging pattern has resulted in increase in sales and
profits.” Once the objectives or the hypotheses are developed, the researcher is ready to choose the research
design.
3. Planning the Research Design or Designing the Research Study:
After defining the research problem and deciding the objectives, the research design must be developed. A
research design is a master plan specifying the procedure for collecting and analysing the needed information.
It represents a framework for the research plan of action.
The objectives of the study are included in the research design to ensure that data collected are relevant to
the objectives. At this stage, the researcher should also determine the type of sources of information needed,
the data collection method (e.g., survey or interview), the sampling, methodology, and the timing and possible
costs of research.
4. Planning the Sample:
Sampling involves procedures that use a small number of items or parts of the ‘population’ (total items) to
make conclusion regarding the ‘population’. Important questions in this regard are— who is to be sampled as
a rightly representative lot? Which is the target ‘population’? What should be the sample size—how large or
how small? How to select the various units to make up the sample?
5. Data Collection:
The collection of data relates to the gathering of facts to be used in solving the problem. Hence, methods of
market research are essentially methods of data collection. Data can be secondary, i.e., collected from
concerned reports, magazines and other periodicals, especially written articles, government publications,
company publications, books, etc.
Data can be primary, i.e., collected from the original base through empirical research by means of various
tools.
There can be broadly two types of sources
(i) Internal sources—existing within the firm itself, such as accounting data, salesmen’s reports, etc.
(ii) External sources—outside the firm.
6. Data Processing and Analysis:
Once data have been collected, these have to be converted into a format that will suggest answers to the
initially identified and defined problem. Data processing begins with the editing of data and its coding. Editing
involves inspecting the data-collection forms for omission, legibility, and consistency in classification. Before
tabulation, responses need to be classified into meaningful categories.
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The rules for categorizing, recording and transferring the data to ‘data storage media’ are called codes. This
coding process facilitates the manual or computer tabulation. If computer analysis is being used, the data can
be key punched and verified.
Analysis of data represents the application of logic to the understanding of data collected about the subject. In
its simplest form analysis may involve determination of consistent patterns and summarising of appropriate
details.
The appropriate analytical techniques chosen would depend upon informational requirements of the problem,
characteristics of the research designs and the nature of the data gathered. The statistical analysis may range
from simple immediate analysis to very complex multivariate analysis.
7. Formulating Conclusion, Preparing and Presenting the Report:
The final stage in the marketing research process is that of interpreting the information and drawing
conclusion for use in managerial decision. The research report should clearly and effectively communicate the
research findings and need not include complicated statement about the technical aspect of the study and
research methods.
Often the management is not interested in details of research design and statistical analysis, but instead, in
the concrete findings of the research. If need be, the researcher may bring out his appropriate
recommendations or suggestions in the matter. Researchers must make the presentation technically accurate,
understandable and useful.
,Need and Importance of Marketing Research
The most important task of a marketer is to get the right product at the right place with the right price to the
right person. Besides, it was also necessary to go back and find whether consumer is getting optimum
satisfaction, so that consumer remains loyal. These aspects made it imperative for the marketers to conduct
marketing research.
The following points explain the need for and importance of marketing research:
1. Identifying problem and opportunities in the market:It helps in identifying new market opportunities for
existing and new products. It provides information on market share, nature of competition, customer
satisfaction levels, sales performances and channel of distribution. This helps the firms is solving problems.
2. Formulating market strategies:
Today, markets are no more local. They have become global. Manufactures find it difficult to contact
customers and control distribution channels. Competition is equally severe. The consumer needs are difficult
to predict. Market segmentation is a complicated task in such wide markets. The marketing intelligence
provided through marketing research not only helps in framing but also in implementing the market
strategies.
3. Determining consumer needs and wants:
Marketing has become customer-centric. However, large-scale production needs intermediaries for mass
distribution. Due to prevalence of multi channels of distribution, there is an information gap. Marketing
research helps in collecting information on consumers from structured distribution research and helps in
making marketing customer oriented.
4. For effective communication mix:
In an era of micro- rather than mass-marketing, communication plays a vital role. Marketing research uses
promotional research to study media mix, advertising effectiveness and integrated communication tools.
Research on such aspects will help in promoting effectively a company’s product in the market.
5. Improving selling activities:
Marketing research is used to analyse and evaluate performances of a company within a market. It also
studies effectiveness of a sales force. It helps in identifying sales territories. Such information helps the
companies in identifying areas of shortcoming in sales. It also examines alternative methods for distribution of
goods.
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6. For sales forecasting:

The most challenging task for any production manager is to keep optimum levels of inventory. However,
production is undertaken in anticipation of demand. Therefore, scientific forecast of sales is required.
Marketing research helps in sales forecasting by using market share method, sales force estimate method and
jury method. This can also help in fixing sales quotas and marketing plans.
7. To revitalize brands:
Marketing research is used to study and find out the existing brand position. It finds out the recall value of
brands. It explores the possibilities of brand extension or prospects of changing existing brand names. The
main purpose of marketing is to create brand loyalty. Marketing research helps in developing techniques to
popularize and retain brand loyalty.
8. To facilitate smooth introduction of new products:
Marketing research helps in testing the new products in one or two markets on a small scale. This helps in
finding out consumer response to new product and develop a suitable marketing mix. It reveals the problems
of the customers regarding new products. Thus, it controls the risk involved in introducing a new product.
9. Determine export potentials:
The development in transport and communication has helped in globalization and digitalization of world
trade. This has helped in boosting the growth of international markets. Marketing research helps in
conducting market survey for export. It. collects information on marketing environment prevailing in a
country. By collecting data on consumers from different countries, it indicates export potentials.
10. Managerial decision-making:
Marketing research plays a vital role in the decision-making processes by supplying relevant, up-to-date and
accurate data to the decision-makers. Managers need up-to-date information to access customer needs and
wants, market situation, technological change and extent of competition.
6.TYPES OF EXPENDITURES
Expenditures in comprise two broad categories: capital expenditures and revenue expenditures
1. Capital Expenditure
A company incurs a capital expenditure (CapEx) when it purchases an asset with a useful life of more than 1
year (a non-current asset).
In many cases, it may be a significant business expansion or an acquisition of a new asset with the hope of
generating more revenues in the long run. Such an asset, therefore, requires a substantial amount of initial
investment and continuous maintenance after that to keep it fully functional. As a result, many companies
often finance the project using either debt financing or equity financing.
Because the investment is a capital expenditure, the benefits to the business will come over several years. As a
consequence, it cannot deduct the full cost of the asset in the same financial year. Therefore, it spreads these
deductions over the useful life of the asset. The value of this asset will be shown on the balance sheet, under
non-current assets, as part of plant, property, and equipment (PP&E).
Example 1
Let’s say Company Y deals with iron sheet manufacturing. Due to the increase in demand for its high profiled
iron sheets, the company executives decide to buy a new minting machine to revamp production. They
estimate the new machine will be able to improve production by 35%, thus closing the gap in the demanding
market. Company Y decides to acquire the equipment at the cost of $100 million. The useful life of the
machine is expected to be 10 years.
In this case, it is evident that the benefit of acquiring the machine will be greater than 1 year, so a capital
expenditure is incurred. Over time, the company will depreciate the machine as an expense (depreciation).
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2. Revenue Expenditure
A revenue expenditure occurs when a company spends money on a short-term benefit (i.e., less than 1 year).
Typically, these expenditures are used to fund ongoing operations – which, when they are expensed, are
known as operating expenses. It is not until the expenditure is recorded as an expense that income is
impacted.
Difference Between Capital Expenditure and Revenue Expenditure

CapEx is related to long-term spending – a major investment – while a revenue expenditure is related to short-
term operating expenses. They are both recorded in the same financial year as they are incurred, and cannot
be forwarded to the next financial year.
Example 2
After the purchase of the minting machine, the company may decide to hire a new lead engineer together
with seven other technicians to run the new machine. A fundamental role of this team will be keeping the
equipment running throughout the production cycle. Other secondary tasks may include installation of new
parts, monitoring production, and continuous maintenance.
The hiring of the engineer and technicians is considered a revenue expenditure.
Deferred Revenue
Deferred revenue expenditure, or deferred expense, refer to an advance payment for goods or services. This is
an advanced form of prepaid expenses. The arrangement is usually an agreement that the company will
receive a service or goods in the future – but it pays for the goods or services in advance. As a result, the
company treats the transaction as an asset until it receives all the benefits of the purchase. In the books of
accounts, the arrangement doesn’t affect the business’s profitability because the company is yet to acquire
the asset and does not yet receive the benefits of the asset. The company charges the outcome of the
transaction to the profit or loss account over a given timeframe.
8.PROCESS OF PROJECT COST ESTIMATION
The process of project cost estimation is central to setting up the foundation for making key decisions, taking
initiatives, budgeting activities and controlling expenditures. Cost forecasts and projections are used to
establish a set of metrics against which project success will be measured, and to communicate work progress
to the stakeholders at any given point in time.
The necessity of calculating expenses consists in maintaining confidence and trust that project activities are
performed properly and as expected throughout the entire project life-cycle. Logical and reasonable cost
estimates will allow the team to make collaborative effort with a reduced probability of risk occurrence and
failure because the estimators use various efficient methodologies to fight uncertainty, prevent performance
bottlenecks, determine budget and control spending..
The Underlying Principles of Cost Estimating

The estimation process complies with a set of principles which act as a foundation for identifying and
calculating right project expenses. Here are the key principles:
Integrity
Any cost estimate should be produced with a high standard of ethical integrity and by following an open and
transparent process. Any uncertainties and vagueness associated with the estimate should be explained in an
easy-to-understand manner and in laymen’s terms. This principle allows avoiding false precision and rash
decisions by integrating all people involved in the process into a team which works as a single mechanism and
uses the same sources of information.
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Information Accuracy and Relevance

The development of cost estimates should be based only on the best information available. When a planner
develops an estimate, engineering judgement and technical advice should be applied to any assumption made
at that estimate. By following this principle, all information used for developing estimates can be thoroughly
considered, filtered and refined in order to get the most accurate and relevant pieces of that information.
Uncertainty and Risk
Any type of project cost should be identified and included in an estimate considering uncertainty and risk. For
this purpose an exhaustive method of assessing and re-assessing project risks and uncertainties should be
employed. A kind of cost estimation software can be used to associate each cost with potential risks or
uncertainties surrounding the project. This software will also allow considering risks by producing accurate
contingencies in cost estimates that may be used later on for developing a risk management plan.
Expert Team
This principle assumes that only a skilled, interdisciplinary team should produce cost predictions and make
calculations. Project cost estimation sheets should be developed utilizing a clearly defined statement of work.
The expert team needs to use methodological tools and approaches to develop their expenditure forecasts.
The team can be composed of project team members, experienced personnel of the performing organization,
as well as experts from outside qualified agencies. Technical, managerial, and communication skills are
required for the candidates. They should also be able to identify and evaluate critical issues and risks.
Validation
The expert and unbiased team should validate cost predictions. First, the project manger develops initial
estimates and submits them to the team for validation. A second independent judgment will help then make
the estimates more correct and capture different perspectives on the estimating process. This principle
becomes more important to complex projects which require producing large estimates.
Release and Use
It assumes that while cost estimates might have been developed for a specific purpose, they can be used
improperly by those people who do not understand the real context. Until the expert team has been
thoroughly reviewed the estimates and validated their content, these estimates shouldn’t be released to the
project team and stakeholders in order to avoid misuse and misunderstanding. This approach allows the
estimates to be consistent with the project scope and accurate indicators of the real expenses.
Project Cost Types

All the costs of a project can be broken down into these three types:
Variable and Fixed
 Fixed Cost refers to as a cost which is not to be changed throughout the project lifecycle. It doesn’t
change an increase or reduction of the work amount. Examples are setup cost, rental cost, cost for hiring
of equipment, etc.
 Variable Cost refers to as any chargeable amount that can be changed with the amount of project work.
An increase or reduction of project scope causes the respective change in variable cost. Examples are
production materials expenses, remuneration of project team, cost of power and water.
Direct and Indirect
 Direct Cost is directly associated with particular tasks or/and activities. Examples are team wages and
expense on materials used.
 Indirect Cost is expenses on overhead items (overheads). It doesn’t refer to as the project value.
Examples are corporate tax, fringe benefit tax.
Opportunity
 Opportunity Cost is associated with an opportunity of a choice. When you select between two different
projects, or activities within one project, you can consider opportunity expense of each project (activity)
and then make your choice.
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Estimate as a Cost Calculation Tool

The major tool of the cost estimation process is estimate which is best developed in a spreadsheet format.
A cost estimate is a calculation of all (monetary, time, labor) resources necessary to perform and deliver a
project. It is used to calculate and compare resources.
Project cost estimates generally show an amount of some currency units (e.g. USD, GBP) as well as an amount
of working hours or total working time required to complete the job.
Sometime, cost estimates include both currency units and working hours and show a comparison between
both measures. Software can be used to create cost spreadsheets and define units per line per column.
Cost spreadsheets are not static but continuously developed and modified throughout the course of the
project in order to help reflect additional details as the project activities are being in progressed. The accuracy
plays the pivotal role in developing and managing cost spreadsheets. While the project activities develop and
change, the estimates should also be respectively changed and supplemented with new details.
The matter of accuracy is defined by estimation standards and requirements, so that each organization can
define the expected degree of accuracy. Software allows creating cost estimate templates and sample
spreadsheets that include specific accuracy degrees and possible deviations.
In a typical cost spreadsheet, all information on the resources that can be changed throughout the project
course is included and used. It includes information from such sources as labor, infrastructure, materials,
financial resources, facilities, services, work time, etc. It may also include special categories, such as
contingency and inflation allowance.
Project Cost Estimation Process

The process of cost estimation determines an amount of resources required to accomplish project activities. It
involves the approximation and development of costing alternatives to plan, perform and deliver the project.
It focuses on finding and allocating optimal expenses for the job.
The process is vital to determining whether the project will be successful, whether the goals and objectives
will be achieved and whether the deliverables will be produced. Considering this statement, the following
definition of a successful project can be made: the project becomes successful if it meets the following success
criteria.
 the scope is developed and on-budget and on-schedule;
 the quality expectation are met; and
 the expected benefits are received by stakeholders
The process involves applying several specific techniques and tools, in combination or separately. Here a list of
the key techniques and tools:
Analogous Review
This technique is also known as “Historical Data Analysis.” It assumes using the actual cost of previous or
analogues projects as the foundation for estimating the cost of the current project. This technique is usually
applied to separate segments of the project and in combination with other methods and tools.
Parametric Model
It allows using historical and statistical data to make a model of activity parameters (like scope, budget and
duration). It may provide a higher degree of accuracy depending on the data included in the parametric
model. The technique can be used separately as well as in combination with other approaches and tools.
Bottom-up Analysis
This analysis supports the idea that the individual cost of each activity or entire work package is of prime
importance. By using the method, individual scheduled activities, or a work package, can be estimated to the
smallest detail. All estimates are grouped and sorted by categories, and then gathered into a summary table
that is used for tracking, control and reporting purposes.
Top-down Analysis
This technique is opposite to Bottom-up Analysis. It assumes that the overall budget is determined at the
project’s beginning and the expert team needs to identify the costs of each work item (task or job). The
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technique allows determining the number of required activities and tasks referring to the WBS (Work
Breakdown Structure) which reflects the necessary work items and work packages. By using the WBS, the
expert team can determine the quantity of the work items that can be delivered within the fixed budget. They
may decide to add or remove certain items in the WBS in order to fit the fixed budget.
Reserve Estimating
Since Quality Assurance and Quality Control are integrated parts of the cost estimation process, this technique
is used to deal with uncertainties (which may overstate or understate project costs) by making reviews. It
assumes that costs may include reserves (or contingency allowances) which can be used for mitigating
uncertainties and responding to threats. Reserves should be estimated and then added to cost estimates in
order to allow applying the critical chain method and risk mitigation strategies
9. "PROFITABLITY IS THE NOTICE OF ANY PROJECT EITHER FINANCIAL OR NON FINANCIAL " EXPLAIN IN THE
CONTEXT OF BUSINESS PLAN?
Profitability is best described as the firm’s ability to earn financial profit/gain from a specific project. It
depends on the cost-income ratio and is a measure of project operational efficiency. The net profit,
technically, is the revenue business ends with after paying all the direct expenses such as production costs,
and other expenses related to the operational and business activities.
Estimation is a major method to determine project profitability. The key project parameters like cost,
performance and time etc. are measured over time to determine the benefits project may incur in future.
Calculating the cost-income ratio provides an understanding that operating expenses shouldn’t exceed
operating incomes of the project to ensure smooth running. The project expenses are required to be kept in
check in order to maintain healthy project profitability.
Also, operational efficiency is closely linked to profitability. More efficient projects generate more profits and
hence operate with higher profitability. An efficient project runs with lower operational expenses and
consumption of resources but produces desired results.
The success of a project is the ultimate goal of any company but more for the ones where the outturn account
depends on projects, For example- Programming, design, construction, and consultancy companies etc. Any
company that undertakes projects for its clients should consider the profitability of each project as the most
significant goal.
The following are the major steps involved in the process of Project Profitability:
Defining the scope
When it comes to scope, there arises this big question about what should be included or excluded. Clients
tend to consider a broader scope than project leaders which often leads to a difference in perception and
conflicts affecting project profitability eventually.Defining the scope of a project should be considered utmost
important as it’s the first ladder and a key factor in project profitability.
Estimation of required resources
This is also a crucial step to ensure a proper planning. It involves breaking down the tasks involved and
producing a bottom-up estimation to confirm that the overall estimation is in line with the plan and action
that is to be put in place. Sometimes, there isn’t sufficient time to decide the commercial offer for the client
which can lead to hurried and incorrect estimations based on past data. To avoid going wrong, the estimate
should include as much detail as possible on the profiles needed for each activity.Also, it should be based on
historical data as well as the current scenario.
Detailed Planning
The break-down of tasks and their estimation should be considered with utmost importance for the careful
planning of the future tasks. It is needed to avoid any additional major project costs which may arise during a
single or multiple stages of project implementation.
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To ensure that a project generate profit the following profitablity activity shld be undertaken in both financial
and non financial sense are the major steps involved in the process of Project Profitability:
Defining the scope
When it comes to scope, there arises this big question about what should be included or excluded. Clients
tend to consider a broader scope than project leaders which often leads to a difference in perception and
conflicts affecting project profitability eventually.Defining the scope of a project should be considered utmost
important as it’s the first ladder and a key factor in project profitability.
Estimation of required resources

This is also a crucial step to ensure a proper planning. It involves breaking down the tasks involved and
producing a bottom-up estimation to confirm that the overall estimation is in line with the plan and action
that is to be put in place. Sometimes, there isn’t sufficient time to decide the commercial offer for the client
which can lead to hurried and incorrect estimations based on past data. To avoid going wrong, the estimate
should include as much detail as possible on the profiles needed for each activity.Also, it should be based on
historical data as well as the current scenario.
Detailed Planning
The break-down of tasks and their estimation should be considered with utmost importance for the careful
planning of the future tasks. It is needed to avoid any additional major project costs which may arise during a
single or multiple stages of project implementation. Focus on keeping a realistic expectation about the
delivery date so that client doesn’t expect anything at an unreasonable level. It will help you save any situation
which may add up to the delivery cost.
Right workforce
The project team is the vital factor in turning project estimates and planning to reality. Maintaining quality and
meeting client expectations should be the goal. Cutting down on labor force can turn out to be more
expensive in the long run. Employing under-talented people with no relevant experience or little motivation
may save you few bucks at the moment but will eventually become a cost for the company since they will
either take too long to complete a task or screw up the quality altogether. It will also impact client credibility
immensely. High-performing teams are capable of significantly increasing project profitability.
Risk Identification
The risk is inevitable. Every project is in risk radar by default which requires analyzing and assessing. Risks with
small or negligible potential impact must be taken with a pinch of salt and not spend a lot of money in
avoiding or mitigating such risks. Those risks with the greatest exposure, i.e. those whose impact and
likelihood are average or high, should be managed and may require specific actions to guarantee project
profitability. It would be wise to establish a safety margin in the cost to be paid by the client depending on the
degree risk posed by the project.
Analyze profitability at the beginning
Project profitability should be analyzed much before the project even begins to ensure proper onboarding of
client and also with the resources and hope and client contracts other services in the future. At any event, this
fact and the level of profitability to be expected from the project should be ascertained.
Foster clear and open communication
Communication plays an important role in project profitability. Open, clear and timely communication within a
team helps in identifying issues and challenges at the right time. Conflicts, misunderstandings and poorly
communicated information could ruin a project altogether and effective communication can avoid that
situation. Effective communication with client enables the right sync of expectations and also helps in
identifying stumbling block that may arise.
Efficient recording and managing Data
We all know how important “Data” is for the project management. Feelings and anecdotes in management
may provide a comfortable progress and advancement, but only objective and recorded data will be able to
provide the accurate information needed for efficient management.
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It is essential for the team to understand the importance of tracking information and undertaking data entry
on a regular basis.
Track profitability at all times
A proper tracking of project profitability is the most important aspect and should not be left until the end,
once the project is executed. Tracking should be undertaken constantly, regularly monitoring project status to
date and taking any necessary steps when unforeseen deviations or circumstances are identified. If deviations
are identified timely and corrective actions are at a place, maximum profitability can be ensured.
Project deviations
Deviations, small or big, are to be considered as a caution of something not going right. Even though small
deviations don’t require a lot of your productive time, they shouldn’t be completely ignored. These deviations
are often the symptom of a larger problem, meaning it is important to project them into the future and gain a
clear picture of the situation. The Earned Value technique is one of the useful tools for making project status
projections.
Taking a lesson from past mistakes
If the relevant information and data regarding the project are recorded properly, it becomes easier to analyze
what went wrong or what factors made certain projects achieve greater profitability than others. One should
learn from both the mistakes and successes since mistakes make you cautious and improve and successes let
you stay motivated and stick to the goal.
Using the right tools and equipment
Any project is futile if the right tools and technologies are not used in the execution. It is important to use the
right tools (without generating a high cost for the project) that ensures swift and efficient project
management, help estimate and plan, record and analyze data and allow the team flexibility to work on
complex situations and from remote locations.
10.CONCEPT OF PROJECT ORGANISATION
When an already existing organisation finds it difficult to cope up with the new situations, it decides to launch
a project organisation. In order to accomplish the project goals, a separate division is created for each project.
Project organisation is created when the project is big in size and subject to high standards of performance. A
project organisation is solely responsive to the planning, design, development, production, evaluation, and
support of a single system or product.
A project organisation is time limited, directly oriented to the life cycle of that system, and the commitment of
the varied skills and resources required is purely for the purpose of accomplish-ing system tasks. A project
team is created consisting of specialists from different departments of the existing organisation. The specialist
of each department gets the services and support of its members as and when required.
The activities of the project team are co-ordinated by the Project Manager. The project team which consists of
the best talent is meant to achieve a specific and complex undertaking within time, cost and/or quality
parameters.
In brief, the project structure is a vehicle for bringing specialised people together in flexible groups for as long
as a particular need exists, but no longer. The project structure reduces the inflexibility and inefficiency of
traditional organisation structures in which permanent departments tend to remain even after they have
outlived their utility.
Need for Project Organisation

Running enterprises go for project organisation if:
(1) The project is a onetime task with well-defined specifications and the firm wants to continue to
concentrate on its regular activities.
(2) The project presents a unique or unfamiliar challenge.
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(3) Successful completion of the project is critical for the enterprise/organisation.

(4) The project is to be completed within the given time limit.
Advantages of Project Organisation:

(i) It does not interfere with the existing organisation.
(ii) It provides concentrated attention that a complex project demands.
(iii) It allows maximum use of specialists available in the enterprise.
11.DEFINITION PMO OR PROJECT DEPARTMENT
The project management office is responsible for the overall project management controlling and for the
maintenance of project management systems for the entire organization. It supports all projects of an
organization and offers tools and other resources, such as project assistance, standards and guidelines, to all
project managers.
The following organization visualizes how the PMO is integrated into the organization as an enterprise-wide
project management centre:
Note that the PMO is not equivalent to the project assistance. The project assistance is only assigned to one
specific project, while the PMO is the central point of contact for all projects.
The 6 most important PMO functions and tasks
PMOs take on various tasks in an organization, but here are the six most important functions of a PMO:
1. Ensure PM standards and quality across the organization
One of the key tasks of the PMO is to manage the project management system of an organization and supplies
all project teams with PM policies and guidelines. Part of a PMO’s job is also to offer training to project team
members or implementing an enterprise-wide project management software. This enables the PMO to ensure
that every department and project team in the organization uses the same methods and tools. In short, the
PMO supports project managers in their operative work. Having consistent standards across all projects of the
organization is the first step towards high project management maturity, which in turn is one of the most
important factors for project success.
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2. Strategic project management

The PMO plays an important role for strategic project management because of its cross-departmental
function. It manages project selection and prioritization processes and also creates the right conditions for
the continuous improvement of the entire project management system.
3. Operative assistance
The PMO offers project support to project managers and teams of the organizations, supporting them in their
operative activities. Operative support includes moderating workshops and meetings, temporary project
controlling, and the documentation of the project progress for senior management. The PMO can also take
the reins of failing projects in order to get them back on track, e.g. by optimizing team communication and
scheduling.
4. Coordination of projects and resources
The PMO is also responsible for coordinating the different projects and their project managers. This includes,
for example, standardized resource management, i.e. managing the availability of people and supplies for
projects.
5. Increasing effectiveness and efficiency
The PMO is responsible for the overall chance and risk management for all projects in an organization, which
means that it plays a big part in optimizing the organization’s project management. It also achieves an
efficiency and effectiveness increase by supplying all project teams with the same PM standards, processes
and guidelines.
6. Project coaching and training
As the hub of PM knowledge, the PMO is also responsible for the continuous training of project teams. It
organizes kick off meetings for new projects, and also offers project management and software training as
necessary.
While these are some of the most common tasks PMOs perform, their area of responsibility varies widely
between different organizations and depends on the requirements of the respective companies.
12. SANCTION LETTER
Definition of Sanction Letter
Loan/Finance Sanction Letter is a letter issued by a bank or financial institution to a borrower/applicant who
has applied for the loan. This letter authorizes the applicant that the applicant is eligible to avail a certain
amount of loan from its lender i.e bank, the financial institution subject to the fulfillment of certain terms and
condition as mentioned by the lender in its Sanction Letter. This letter doesn’t issue to the applicant
immediately.
Compliance for Issuing Finance Sanction Letter
Before issuing a sanction letter, the bank or financial institution asks for a list of required documents to check
the credit history and repayment capacity of the applicant. Here is the list of some quarries that may be raised
by the lender before issuing sanction letter:
The credit history of the applicant

Sources of income of the applicant
Repayment capacity of the applicant
Whether provided documents is authenticate
Legal documents of property which will be mortgaged
The current and anticipated market value of the property which will be mortgaged
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In most cases, the banks charge a processing fee for all the efforts that they put in to get the sanction letter
ready. Note that most often this processing fee is not refunded even if the loan is not approved.
Documents required for issuing Finance Sanction Letter
For Individual:
● Passport size photograph of the applicant

● National ID/ Passport/Driving license
● Residence proof (Telephone bill, other agreement with landlord)
● 3 months salary slips
● 6 months latest bank statement of salary account
● Loan outstanding letter with the track record (If you have any existing loan)
● Processing fees payable to the lender
● Applicant’s contribution details such as FD, PPF, recurring deposits, shares, mutual funds, etc.
● Flat booking allotment letter (if any)
For Company:
● Memorandum & Articles of Association

● Certificate of incorporation
● Certificate of commencement of business
● Land Documents
● Revaluation certificate of fixed assets
● Latest Audited financial statements (Balance sheet, Income Statement, Cash flow Statement etc,)
● Projected financial statement (Projected Balance sheet, Projected Income Statement, Projected Cash
flow Statement)
● Statement of the shareholding position of the company
● Undertakings of the directors
● Business Plan of the company
● Feasibility Study Report (for the new company)
● Other documents are required time to time
Contents of Finance Sanction Letter

The items included in the sanction letter are as follows:
● The total amount of loan sanctioned

● The tenure for repayment of the loan
● Interest rate type i.e fixed or floating rate
● The actual prevailing and applicable interest rate for the disbursed loan
● The base rate at which the interest is being calculated
● EMI amounts
● Sanction letter validity period
● Terms and conditions of the bank regarding the loan
13. EXPLAIN DIFFERENT TYPES OF PROJECTS AND THE ROLE OF CONSULTANT.
A project is always a journey into the unknown, fraught with risk. Projects typically demand the use of
resources that are scarce or expensive, but which have to be deployed over a most complex frame work of
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tasks. The purpose of project management is to minimize, contain or counter the risks, and organize and direct
the resources so that the project is finished in time, within budgeted costs and with the functional or other
design objectives fulfilled.
Types of Projects:
(1)Construction Projects
(2)Research Projects
(3) Reengineering Projects
(4) Procurement Projects
(5) Business Implementation Projects
Construction Projects
The project produces an artefact. The value generated by the project is embedded in the artefact.
The artefact may be a complex system with human and mechanical components.
Examples:
Warship
Jubilee line extension
Millennium dome
Customer call centre
Method guidebook
IT system
Research Projects
The project produces knowledge. The knowledge may be formally represented as models, patterns
or patents. Or the knowledge may be embedded in a working process or artefact.
Examples:
Business modelling
Developing a model of the UK economy
Developing a new species of wheat
Developing novel approaches to project management.
Military intelligence/ codebreaking.
The analysis, testing, QA or evaluation portions of a larger project.
Reengineering Projects
The project produces a desired change in some system or process.
Examples:
Taking sterling into the Euro
Renumbering the UK telephone system
Implementing PRINCE project management practices into a large organization.
Designing and installing an Intranet.
Procurement Projects
The project produces a business relationship contractually based with a selected supplier for a
defined product or service based on a fixed specification and/or a defined specification process
Examples:
Outsourcing a specific construction or research project
Outsourcing a complete business function (such as IT).
Imposing new rules and measures on a regulated industry.
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Business Implementation Projects

The project produces an operationally effective process. The value generated by the project is
embedded in the process.
Examples:
Developing a new business process to repackage and exploit existing assets.
Installing e-commerce
Where do we start? How do we know when to stop? When can (should) we evaluate the results?
Each type of project yields different answers to these questions – and this implies that each type of project
needs a somewhat different process and management style.
start stop evaluate

When the artefact is
With a set of On delivery of the
“complete”.
requirements. artefact.
Construction When the requirements
With a defined Over the lifetime of the
are
solution. artefact.
satisfied.
When the
knowledge is
confirmed or
When the time runs out.
With a disconfirmed
When we detect
Research hypothesis. by later work.
diminishing
With a problem. When the
returns.
knowledge is
used by later
work.
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24
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Role of Project Consultant

Since the role of project consultant is broad, it involves many duties and responsibilities, many of which vary
depending on the industry of employment.
Evaluate Project Parameters
All project consultants, regardless of industry, evaluate the project parameters. This involves interviewing
clients and actively listening to their answers. The better they perform this duty, the easier the following
duties are to complete.
Analyze Project Strengths and Areas Needing Improvement
Project consultants use their understanding of the client’s overall goals to analyze their current progress for
strengths and areas needing improvement. The level of progress varies for each client. Sometimes their job
involves making small tweaks to an existing plan, and other times, it involves creating a whole new plan from
scratch. A variation of the SWOT analysis (strengths, weaknesses, opportunities, and threats) is used by many
project consultants.
Devise a Project Plan Based on Client Needs
Once project consultants understand the client goals and the resources available, they create a project plan
outlining how resources will be used to achieve the project parameters.
Delegate Project Tasks to Employees
Project consultants who work in-house are directly responsible for delegating project tasks to each employee
to get the project done as efficiently as possible. Project consultants who work on their own or for a consulting
firm coach decision makers through this process.
Test and Tweak Project Solutions to Perfection
Project consultants monitor the completion of each stage of the project, making tweaks to the plan based on
feedback. They are also responsible for testing the effectiveness of the project solutions if applicable.
Present Plans and Results to Project Stakeholders
Finally, project consultants spend a fair amount of time presenting both their plans and final results to project
stakeholders. This requires good communication and negotiation skills.
14.EXPLAIN PROCESS OF PROJECT IMPLEMENTATION?
Implementation simply means carrying out the activities described in your work plan. Executing a project in
the water and sanitation sector is a very complex mission, as it requires the coordination of a wide range of
activities, the overseeing of a team, the management of budget, the communication to the public, among
other issues. Independent of whether it is a social project to raise the awareness and promote hygiene or it is
a construction project for service delivery, there is a certain process that has to be followed. The following
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lines will give you an introduction into the implementation of projects in sustainable sanitation and water
management, and highlights key aspects that have to be taken into account for a successful implementation
Project implementation (or project execution) is the phase where visions and plans become reality. This is the
logical conclusion, after evaluating, deciding, visioning, planning, applying for funds and finding the financial
resources of a project.
The implementation of projects in sustainable sanitation and water management is complex. It requires the
coordination of a wide range of activities, diverse institutional arrangements, and different time frames (DFID
1998). There is not one typical project in water and sanitation, as the actions may vary from the construction
of a new infrastructure, to the introduction of new ways of working. Projects in this area cover issues such as:
social development, health, environmental sustainability, institutional strengthening, technical
implementation, pilot plants, service delivery, social marketing, hygiene promotion, sanitation promotion and
capacity building.
It is important to take into account that independently of the nature of the project, implementation takes
time, usually more than it is planned, and that many external constraints can appear, which should be
considered when initiating the implementation step (i.e. seasonality in availability of community
engagement/resources) (NETSSAF 2008).
Advantages
 Implementation gives the opportunity to see the plans become a reality
 Execution of projects allows end-users to have access to better services and living environment
 Success stories and experiences can be shared with specialists from other cities and towns,
encouraging others to adopt similar approaches, which in turn may improve water resources
management in the local area
Disadvantages
 Evidence of corrupt practices in procurement will undermine the entire process and waste precious
resources (PHILIP et al. 2008)
 Poor financial planning can lead to budget constraints in the midst of implementation
 The decision on when a project is complete often causes friction between implementers and the
community. Completion for the implementer is quite straightforward. It is defined by contracts,
drawings, and statutes. Communities have a more practical approach to completion. Once the project
produces the benefits for which they agreed to undertake it they see no reason to spend further time
and money on it (DFID 1998)
Objectives of the Implementation

The objectives of the implementation phase can be summarised as follow:
 Putting the action plan into operation (PHILIP et al. 2008).

 Achieving tangible change and improvements (PHILIP et al. 2008).
 Ensuring that new infrastructure, new institutions and new resources are sustainable in every aspect
(MORIARTY et al. 2007).
 Ensuring that any unforeseen conflicts that might arise during this stage are resolved (MORIARTY et al.
2007).
 Ensuring transparency with regard to finances (MORIARTY et al. 2007).
 Ensuring that potential benefits are not captured by elites at the expenses of poorer social groups
(MORIARTY et al. 2007).
Process of Project Implementation:

There are 8 step in Project implementation as follows,
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 Prepare the infrastructure. Many solutions are implemented into a production environment that is
separate and distinct from where the solution was developed and tested. It is important that the
characteristics of the production environment be accounted for. This strategy includes a review of
hardware, software, communications, etc. In our example above, the potential desktop capacity
problem would have been revealed if we had done an evaluation of the production (or real-world)
environment. When you are ready for implementation, the production infrastructure needs to be in
place.
 Coordinate with the organizations involved in implementation. This may be as simple as
communicating to your client community. However, few solutions today can be implemented without
involving a number of organizations. For IT solutions, there are usually one or more operations and
infrastructure groups that need to be communicated to ahead of time. Many of these groups might
actually have a role in getting the solution successfully deployed. Part of the implementation work is to
coordinate the work of any other groups that have a role to play. In some cases, developers simply
failed to plan ahead and make sure the infrastructure groups were prepared to support the
implementation. As a result, the infrastructure groups were forced to drop everything to make the
implementation a success.
 Implement training. Many solutions require users to attend training or more informal coaching
sessions. This type of training could be completed in advance, but the further out the training is held,
the less information will be retained when implementation rolls around. Training that takes place close
to the time of implementation should be made part of the actual implementation plan.
 Install the production solution. This is the piece everyone remembers. Your solution needs to be
moved from development to test. If the solution is brand new, this might be finished in a leisurely and
thoughtful manner over a period of time. If this project involves a major change to a current solution,
you may have a lot less flexibility in terms of when the new solution moves to production, since the
solution might need to be brought down for a period of time. You have to make sure all of your
production components are implemented successfully, including new hardware, databases, and
program code.
 Convert the data. Data conversion, changing data from one format to another, needs to take place
once the infrastructure and the solution are implemented.
 Perform final verification in production. You should have prepared to test the production solution to
ensure everything is working as you expect. This may involve a combination of development and client
personnel. The first check is just to make sure everything is up and appears okay. The second check is
to actually push data around in the solution, to make sure that the solution is operating as it should.
Depending on the type of solution being implemented, this verification step could be extensive.
 Implement new processes and procedures. Many IT solutions require changes to be made to business
processes as well. These changes should be implemented at the same time that the actual solution is
deployed.
 Monitor the solution. Usually the project team will spend some period of time monitoring the
implemented solution. If there are problems that come up immediately after implementation, the
project team should address and fix them.
15. STEPS IN MONITORING AND CONTROL OF PROJECTS
The project management monitoring and controlling starts as soon as a project begins. Monitoring and
controlling project work is the process of tracking, reviewing, and regulating the progress in order to meet the
performance objectives. It is the fourth process group in Project Management. From the perspective of
Knowledge Management Area, this involves the management tasks, such as tracking, reviewing, and reporting
the progress of a project. Moreover, this process is majorly concerned with:
~ Measuring the actual performance against the planned performance
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~ Assessing performance to determine whether or not any corrective or preventive actions are indicated, the
status is reported and/or appropriate risk response plans are being executed.
~ Maintaining an accurate, timely information base concerned with the project output and its associated
documentation till project completion
~ Providing information to support status reporting, progress measurement and forecasting
~ Providing forecasts to update current cost and current schedule information
~ Monitoring implementation of approved changes as they occur.
Steps for implementing Project Monitoring and Control (PMC) in projects are as follows:
1. Monitor Project Planning Parameters. Project Monitoring and Control involves the monitoring of the project
parameters like schedule, timeline, effort, costing, defects etc. Project Managers are responsible for tracking
these metrics for the project.
2. Monitor Commitments. Project Managers also track commitments of different stakeholders in the projects.
These stakeholders include team members, management, peers, third party vendors and client. Commitment
may involve completing a coding unit, testing, providing some data/information, reviews etc.
3. Monitor Project Risks. Project Managers also keep track of the risks involved with project. There can be risks
for different kinds in a project including process, people (internal, client, vendor), tools, technology. For more
information refer Risk Management as per CMMI.
4. Monitor Data Management. Project Manager or the assigned Configuration Controller in the project keeps
track of all configuration items including software, hardware and documentation of the project. Generally SVN
or VSS is used for managing the configuration management of software and documentation. For other items
manual inventory is updated. For more information refer Configuration Management as per CMMI.
5. Monitor Stakeholder Involvement. Project Managers keep track of involvement of different stakeholders
involved with the project including team members, peers, management, third part vendors and client. This is
done using different types of meetings, status reporting, etc.
6. Conduct Progress Reviews. Project Managers conduct project progress reviews using different techniques
including work progress from team members, client meeting, meeting with management, third party vendor’s
involvement, milestones reviews. Based on these activities, different status reports are prepared shared with
stakeholders.
7. Manage Corrective Action to Closure. Based on the project progress, sometimes it is required to take
corrective actions to control the project progress as per the project plans. Project Managers then track these
corrective actions till the progress is under control or the project closure.
16. NETWORK TECHNIQUE
Network technique is a technique for planning, scheduling (programming) and controlling the progress of
projects. This is very useful for projects which are complex in nature or where activities are subject to
considerable degree of uncertainty in performance time.
This technique provides an effective management, determines the project duration more accurately, identifies
the activities which are critical at different stages of project completion to enable to pay more attention on
these activities, analyze the scheduling at regular interval for taking corrective action well in advance,
facilitates in optimistic resources utilization, helps management for taking timely and better decisions for
effective monitoring and control during execution of the project.
The network analysis technique methods are used in project management where the elements are key
activities of the project in the mutual time relation. Another possibility of their use is in the field of logistics
and transportation, where the elements represent the center and the dependencies are spatial (also
figuratively temporal). The network analysis technique methods focus on calculating or critical path optimizing
between the elements. Among basic network analysis technique methods include:
Method CPM (Critical Path Method)
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CCM (Critical Chain Method)

PERT Method (Program Evaluation and Review Technique)
GERT Method (Graphical Evaluation and Review Technique)
MPM Method Metra Potential Method
PERT and CPM: Techniques of Project Management

PERT and CPM are techniques of project management useful in the basic managerial functions of planning,
scheduling and control. PERT stands for “Programme Evaluation & Review Technique” and CPM are the
abbreviation for “Critical Path Method”. These days the projects undertaken by business houses are very large
and take a number of years before commercial production can start.
 The techniques of PERT and CPM help greatly in completing the various jobs on schedule. They
minimize production delays, interruptions and conflicts. These techniques are very helpful in
coordinating various jobs of the total project and thereby expedite and achieve completion of project
on time.
 PERT is a sophisticated tool used in planning, scheduling and controlling large projects consisting of a
number of activities independent of one another and with uncertain completion times. It is commonly
used in research and development projects.
 PERT is a method of analyzing the tasks involved in completing a given project, especially the time
needed to complete each task, and to identify the minimum time needed to complete the total
project. It incorporates uncertainty by making it possible to schedule a project while not knowing
precisely the details and durations of all the activities. It is more of an event-oriented technique rather
than start- and completion-oriented, and is used more in these projects where time is the major factor
rather than cost. It is applied on very largescale, one-time, complex, non-routine infrastructure and on
Research and Development projects.
 PERT offers a management tool, which relies "on arrow and node diagrams of activities and events:
arrows represent the activities or work necessary to reach the events or nodes that indicate each
completed phase of the total project."
 PERT and CPM are complementary tools, because "CPM employs one time estimation and one cost
estimation for each activity; PERT may utilize three time estimates (optimistic, expected, and
pessimistic) and no costs for each activity. Although these are distinct differences, the term PERT is
applied increasingly to all critical path scheduling
Advantages
• PERT chart explicitly defines and makes visible dependencies (precedence relationships) between
the work breakdown structure (commonly WBS) elements.
• PERT facilitates identification of the critical path and makes this visible.
• PERT facilitates identification of early start, late start, and slack for each activity.
• PERT provides for potentially reduced project duration due to better understanding of
dependencies leading to improved overlapping of activities and tasks where feasible.
• The large amount of project data can be organized and presented in diagram for use in decision
making.
• PERT can provide a probability of completing before a given time
Disadvantages
• There can be potentially hundreds or thousands of activities and individual dependency
relationships.
• PERT is not easily scalable for smaller projects.
• The network charts tend to be large and unwieldy, requiring several pages to print and requiring
specially-sized paper.
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• The lack of a timeframe on most PERT/CPM charts makes it harder to show status, although colors
can help, e.g., specific color for completed nodes.
17. COMPUTER BASED PROJECT MANAGEMENT
Project management refers to the process of planning, systematizing, and administering the scope, budget,
and time for a particular project. It uses the application of project management resources and tools,
techniques, skills and knowledge for facilitating the project-related activities.When working on a project there
are four main elements that must work together seamlessly. These are the:
 Scope. In essence, it refers to the project size, goal, and requirements. It’s the connection between the
goals to be accomplished and the budget allocated to reach those goals. If there are any changes
committed in the scope, it’s imperative to reflect it with other components as well, especially when it
comes to the time, budget, and resources.
 Resources. It has three aspects: people, material, and equipment. First, it’s important to ensure the
right number of people is employed to a project and they carry the appropriate skills and knowledge to
facilitate their assigned tasks. Next, procuring the correct materials and equipment, at the right place
and time, is crucial for your team to operate efficiently.
 Time. When doing a project, time management is a crucial aspect. Each task must be listed (others may
overlap while others must be in chronological order), scheduled with a set duration, and allocated with
the right resources. Managing critical paths (tasks with zero float or no flexibility) is one of the most
challenging aspects of this scope.
 Money. All tasks come with a certain cost which must be estimated and totaled. However, not all
estimates are as accurate as others; that’s why there is “contingency allowance” allocated in case a
task goes over the estimated budget. Another important aspect is the profit or the amount of money
that a company wants the project to earn.
Since this is a complex and time-consuming process, streamlining it using a project management system is a
valuable solution that’s adapted to more and more businesses. The main purpose of project management
software is to assist your team with project planning and monitoring for completion while taking in
consideration its overall resources, components, and stakeholders. This investment is cost-efficient in the long
run when considering the amount your company might lose with poor project management.
Businesses that are not yet utilizing a PM software are likely to do more work while gaining less profit because
of the time wasted on juggling little tasks. If these tasks are taken care of, you and your team will have more
time to focus on core operations to complete your project. There are various types of software packages to
choose from based on your business requirements. For reference, you may take a look at these project
management software rankings. Here are the reasons why project management software is useful for
business of any size:
1. Collaboration
When managing a large project, each member is designated with individual tasks in the team. To make sure
everyone is on the same page, a project management solution helps in simplifying team collaboration. When a
member has inquiries or concerns, he/she can immediately get the right response through communicating
with the team internally—with the right people in the right project—without looking for other sources. This
reduces the time lost in searching for answers. It also optimizes the sharing of documents, timelines, and
status updates to notify everyone of important information such as how much work is done and how much is
left to be finished.
features:
File sharing. Team communication. Some PM tools have a built-in messenger app in the system so members
can communicate with each other easily, allowing for timely responses to urgent inquiries.
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Customer data sharing. Having customer profiles is essential because it lets you easily add their contact
information and link invoices and projects. When you need to organize them, you can easily do so by
categorizing them by, for example, due invoices.
Team dashboard. Functioning as a KPI (key performance indicators) report, dashboards can be used to track
metrics where you can add graphs, visual metrics, and charts. The data provides an overview whether the
team is meeting goals or not.
2. Scheduling and planning

Without a system in place, it can be difficult for your team to stay within schedule because of the lack of a set
guideline on what should be accomplished by who and when. Time is lost when employees report to work
without knowing the tasks they should be doing. This often affects one’s productivity. Utilizing the software
outlines tasks and makes them visible. Setting deadlines and priorities, along with scheduling, avoids
misunderstandings a
overlapping of tasks and schedules.
features:
Task priority. This makes rescheduling easier by using scheduled time slots so priority tasks are accomplished
first without having to reschedule the entire project plan.
Shared team calendar. Choosing one that syncs with other calendars is vital to notify everyone in your team of
assigned tasks, deadlines, and meetings. It also provides an overview of milestones by sending due dates to
your team.
Time slot. An overview of each member’s booked tasks and hours. This helps you quickly see who you should
delegate to the next task which is an essential purpose of project management software to expedite the
process of assigning tasks.
3. Resource management
Resource management is another reason why project management software is useful. Aside from your team,
managing your resources is important to ensure proper operation so as not to waste everyone’s time.
Knowing the materials you’ll have to use in a project lets you work on it without hitches caused by a missing
tool or equipment. It is a feature that outlines the resources that will be used and when they’ll be used. It also
calculates the cost of its usage, accordingly. Why is this helpful? It lets you avoid lacking resources and over-
using them to reduce expenses by ensuring you will only pay for them when you actually use them.
4. Budget management
Each project comes with a cost which is included in a budget along with contingencies and profit. A project
manager’s goal is to keep the actual cost below, or at least at, the estimated cost in order to maximize the
profit earned by the company for the project. To manage expenses efficiently, simply creating an Excel
spreadsheet won’t do the job.
features:
Time tracking. Documenting the time spent on tasks automates the invoicing process. This is also essential for
monitoring billable and non-billable time.
Budget report. It gives you monthly and weekly reports on expenditures, expenses, and totals so you can track
your budget performance and immediately see if you go over the budget.
Budget dashboard. A financial reporting dashboard consists of KPIs, graphs, and charts to display the progress
of your project. This can also be shared with other members by giving them access.
Automated invoicing. Since invoicing is time-consuming, this feature sets up email reminders for due invoices.
This also helps you compile them and forward the bills with a few clicks to save more time.
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5. Documentation
Many business use Excel spreadsheets, while others even still use pen and paper, to keep track of their team
project’s progress. However, having this type of arrangement exposes you to potential errors. In fact, 88% of
spreadsheet data contains errors which are alarming for organizations that use it as a go-to tool for handling
business operations and implementing financial analysis. Using a PM software guarantees accurate data-based
documentation.
features:
Central data storage. It stores all data – including expenses, bills forwarded to clients, project resources,
previous and upcoming calendar events, customer information, and planned and completed tasks – all in one
place for easy retrieval and viewing.
Quick access. This eliminates the need for switching between multiple spreadsheets and you can share it with
the rest of your team with a few clicks.
Reporting. KPI dashboard and insight report is vital to monitor the project’s progress and identify any
problems to immediately find a solution. The data also includes key metrics such as complete task percentage,
schedule variance, and planned versus actual project value.
18. HOW TO PREPARE FOR THE POST-PROJECT EVALUATION
Successful project managers lay the groundwork for repeating on future projects what worked on past ones
(and avoiding what didn’t) by conducting a post-project evaluation. A post-project evaluation (also called a
post-project review or lessons learned) is an assessment of project results, activities, and processes that allows
you to:
 Recognize project achievements and acknowledge people’s work.
 Identify techniques and approaches that worked, and devise steps to ensure they’re used in the future.
 Identify techniques and approaches that didn’t work, and devise steps to ensure they aren’t used again
in the future.
Take steps in each stage of your project’s evolution (starting the project, organizing and preparing, carrying
out the work, and closing the project) to lay the groundwork for your post-project evaluation
1.Starting the project:
Determine the benefits your project’s drivers wanted to realize when they authorized your project.
If your project is designed to change an existing situation, take before measures to describe the existing
situation so that you have something to compare to the after measures you take when the project is
completed.
2.Organizing and preparing:
Identify additional project drivers you may have overlooked in the first stage of your project. Your project
drivers’ expectations serve as the criteria for defining your project’s success, so you want to know who they all
are before you begin your project’s work.
Develop clear and detailed descriptions of all project objectives.
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Include the activity Conduct a post-project evaluation in your Work Breakdown Structure (WBS), and allow
time and resources to perform it.
3.Carrying out the work:
Tell team members that the project will have a post-project evaluation.
Encourage team members to record issues, problems, and successes throughout their project involvement in a
handwritten or computerized project log. Review the log when proposing topics for discussion at the post-
project evaluation meeting.
Maintain files of cost, labor-hour charges, and schedule performance reports throughout the project.
4.Closing the project:
If changing an existing situation was a project objective, take after measures of that situation’s key
characteristics to see whether you successfully met that objective.
Obtain final cost, labor-hour, and schedule performance reports for the project.
Survey key stakeholders to determine how well they feel the project addressed their needs and their
assessments of project team and project manager performance
19. DELAYS ARE THE MAJOR SETBACKS IN A SUCCESSFUL PROJECT COMPLETION;EXPLAIN
Delayed implementation gives a project a difficult start, unduly long time taken for project implementation
results in time-overrun which is invariably followed by cost overrun. Cost overrun has the ill effect of affecting
the financial viability of the project. The problem of cost overrun will get more compounded if the finance
necessary to meet the increased cost cannot be arranged in time.
Any delay in arranging for the finance needed to meet the cost overrun will only further tend to increase the
cost and this may land the project in trouble leading eventually to the death of the project and the project
may not take off the top ten most important factors that contributed to the causes of delays include shortage
of equity contribution , miss utilization of the disbursed fund ,ineffective planning and scheduling of project by
the owners, conditions for effectiveness of the loan are not fulfilled in time to enable disbursement of the
loan, lack of prudent pre- credit risk assessment low capacity of the promoter to cover unforeseen costs while
planning the project, lack of comprehensiveness of feasibility study submitted by the promoter, delays in the
procurement machineries i.e. delay in supply of equipment by suppliers late procurement of machineries and
materials, lack of sufficient knowledge of project management, the occurrence of lots of missed out items
(machineries and equipment) and civil works resulted from absence of securing final plan and design ahead of
processing the loan, and to go by the terminal dates of opening L/Cs and disbursements resulting in frequent
extension of these dates.The factors were grouped into seven groups of causes of delays.
Group of project owner/manager related delays was ranked the most significant groups that cause delays,
followed by Bank related delays, cost escalation & suppliers related delays, and
labour & external factors related delays.
The most effective methods of minimizing delays includes: effective strategic planning, use of adequate
application screening criteria, verifying reliable source of equity contribution, pre-credit risk assessment,
revision of the policy & procedure of the Bank and to make sure that comprehensiveness of feasibility study
and proper emphasis on past experience and providing training with specific sector of project to upgrade
analytical exercise of project appraisal
officers of the Bank locally as well as abroad.
Moreover, regarding the comprehensiveness of feasibility study, it should provide basic information related to
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the main scheme on the basis of various surveys/ researches carried out. It is basically an in-depth "three-in-
one" study consisting of the technical, financial and economic viability of a project. The study arrives at a
definite conclusion about the feasibility of a project after considering the various options. A feasibility study is,
therefore, a pre-requisite
for preparation of a major development project on sound lines, and is not ruled
out even for a minor one.
There are many causes for delays in projects. They may be related to the
following:
1. inadequate estimations (budgets, timeframes, human resources)
2. task complexity
3. unexpected events
4. organisational strategy prioritising some projects over other due to strategic
objectives
5. inadequate coordination
There may be other causes as well as the ones cited here. But one should not forget that in a project,
everything is related to everything else. Therefore, certain causes may be due to an interaction of other
causes.
Ultimately, the ideal way to handle project delays is to foresee them happening and countering whatever may
be the cause, avoiding any interruption altogether. Unless you have a crystal ball, though, chances are you will
not know about a delay until it actually occurs. Remaining constantly aware of the project schedule and
keeping in close contact with your team will enable you to notice a delay as soon as it happens. Your quick
attention and prompt action will get the project back on track as close the original deadline as possible.
Hold a Team Meeting

Once you realize that there is a delay, organize a team meeting. Inform everyone working on the project about
the delay, including details such as factors contributing to the holdup and how far it has set the project back.
Ask for input and ideas on how to get back on schedule, and plan a course of action moving forward. If you will
require additional work from team members or
supplementary resources, make this known as well. Asking for volunteers who are willing to take on extra
tasks as needed is advisable, as well.
PrioritizeManager
Review tasks assigned to team members. Prioritize project assignments, moving any that are especially time
sensitive to the top of the list. For example, if publications must be sent to the printer by a specific date, move
completing artwork and reviewing text ahead of less pressing tasks, such as creating form letters that do not
need to be mailed out until later in the project's lifespan.
Cut Any Fat
Along with prioritizing which tasks must be completed soonest, determine whether there are any assignments
that can be trimmed down or done away with completely. Scaling back on unnecessary tasks will not only get
you closer to your schedule but also ensure that your team has the time needed to produce quality work.
Bring in Help
Determine whether recruiting additional assistance will allow you to overcome project delays and get back on
track. Hiring temporary administrative support through an employment agency can help you get caught up on
the paperwork and data entry side of the project, while engaging contract workers for other jobs may lighten
the load of overextended staff and give your team the shot in the arm that they need to complete the project.
While working to recover from project delays, keep a close eye on upcoming deadlines and priority
assignments. If you notice that a certain department seems to be falling behind or a specific task is not as
close to completion as it could be, ascertain what is causing the holdup and resolve it quickly to avoid any
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further setbacks. Your tracking methods may take on many forms, from time management software to more
frequent team meetings.
Record Changes
Any time that you make major changes to your initial project plan, whether the modifications are caused by
project delays or not, recording the variances is crucial. The best way to do so is by creating a change control
plan that outlines the proposed changes, review, approval and implementation. Creating a record of changes
shows that you were aware of the setback and took steps to correct it promptly. Such documents can be
useful tools for future projects, as well.
Notify Stakeholders
keeping project stakeholders in the loop when there is a delay is a good practice. If there is a holdup, it is
better for them to hear it from you than to get wind of it through the rumor mill. Your transparency will
reassure them that you are well aware of the causes of any project delays and that you have everything under
control. Updating stakeholders on end date changes allows them to plan accordingly, as well.
Touch Base with Contractors

Getting in touch with contractors is also important. You may need to let some of them know that you will not
need their services until a later date, if their role in the project has been moved back due to the delays. On the
other hand, you might need to ask a contractor if they can have their part of the project completed even
earlier in order to put other tasks on hold. Either way, keeping the lines of communication open can eliminate
potential problems that would
only cause more delays.
Focus
Finally, step away from the project briefly. Give yourself time to catch a breath and process all of the
readjustments. Then you can head back to the tasks at hand with renewed perspective and focus on what is
yet to be completed. Doing so ensures that you are able to give the project your full attention without risking
the quality on which you have built your reputation.
20. EIA
Definitions of EIA:
Environmental Impact Assessment is defined as an activity designed to identify the impact on the
biogeophysical environment, on man and well-being of legislative proposals, projects, policies, operational
procedures and to interpret and communicate information.
EIA is a systematic process of identifying future consequences of a current or proposed action.
Objective of EIA:
The objective of EIA is (i) to identify, predict and evaluate the economic, environmental and social impact of
development activities (ii) to provide information on the environmental consequences for decision making and
(iii) to promote environmentally sound and sustainable development through the identification of appropriate
alternatives and mitigation measures.
EIA is widely accepted as a tool to ensure sustained development with minimum environmental degradation.
First Environmental Legislation:

The first comprehensive environmental legislation (Section 102) in United States came into force on 1st
January 1970 in the form of National Environmental Policy Act (NEPA). In India, the Central Ministry of
Environment and Forests issued a Notification on 27th January, 1994 making EIA statutory for 29 specified
activities falling under sectors such as industries, mining, irrigation, power and transport etc.
35
This Notification was amended on 4th May, 1994 and the amended version includes a self-explanatory note
detailing the procedure for obtaining environmental clearance, technical information, documents required to
be submitted for getting environmental clearance from the Ministry of Environment and Forests.
EIA Methodology:
Whenever a new development project is planned which is likely to affect environmental quality, it is necessary
to carry out EIA.
1. The first step in EIA method is to determine whether the project under consideration follows the jurisdiction
of the relevant acts and regulations and if so, whether it is likely to create a significant environmental
disruption.
2. If so, an EIA is undertaken and the environmental impact statement (EIS) is prepared.
3. In many countries, EIS is open to public scrutiny and is reviewed at public hearings.
4. Finally, a political decision is taken. The development project may be (i) accepted or (ii) accepted with
amendments or (iii) an alternative proposal is accepted or (iv) rejected.
Environment Impact Assessment Process:

In EIA system, there are sequence of activities implemented in a project in logical manner termed as EIA
process.
Guiding Principles
The entire process of EIA is governed by eight guiding principles.
1. Participation:
An appropriate and timely access to the process for all interested parties.
2. Transparency
All assessment decisions and their basis should be open and accessible.
3. Certainty:
The process and timing of the assessment should be agreed by all participants in advance.
4. Accountability:
The decision makers of all parties are responsible for their action and decisions under the assessment process.
5. Credibility:
Assessment is undertaken with professionalism and objectivity.
6. Cost effectiveness:
The assessment process and its outcomes will ensure environmental protection at the least cost to the society.
7. Flexibility:
The assessment process should be able to deal efficiently with any proposal and decision making situation.
8. Practicality:
The information and outputs provided by the assessment process are readily usable in decision making and
planning.
Participants in EIA Process:

1. Proponent:
Government or Private Agency which initiates the project.
2. Decision maker:
Designated individual or group.
3. Assessor:
Agency responsible for the preparation of EIS.
36
4. Reviewer:
Individual/Agency/Board.
5. Expert advisers, Media and Public, Environmental organisations etc.
EIA Process in Sequence of Application:

1. Stakeholder’s Involvement:
Stakeholders’ involvement occurs in various stages of EIA to ensure quality, efficiency and effectiveness.
2. Project Screening and Scoping:

(i) Determine necessity for EIA requirement.
(ii) Describe various screening criteria.
(iii) Scoping determines coverage or scope of EIA.
3. Project Design and Construction:

(i) Type of project under consideration.
(ii) Physical dimensions of the area being considered.
(iii) Whether the resources will be used optically?
(iv) Whether there is an irretrievable commitment of land?
(v) Whether the project is a critical phase of a larger development?
(vi) Whether there will be serious environmental disruptions during construction?
(vii) What are the long-term plans of the proponent?
4. Project Operation:
(i) What provisions have been made to check the safety equipment regularly?
(ii) How will the hazardous waste products be handled?
(iii) What are the contingency plans developed to cope up with the possible accidents?
(iv) What provisions have been made for training the employees for environmental protection?
(v) What plans have been made for environmental monitoring?
5. Site Characteristics:
(i) Whether the site is susceptible to floods, earth quakes and other natural disasters?
(ii) Whether the terrain is creating problems in predicting ground water characteristics and air pollution etc.?
(iii) Whether the local environment is conductive for the success of the project?
(iv) How many people are likely to be displaced because of the project?
(v) What are the main attributes (e.g., protein content, calorie content, weed or pest status, carnivorousness,
rarity of species, etc.) of the local fauna and flora?
(vi) Whether the project will interfere with the movements of fish population and important migratory
animals?
(vii) Whether historic sites are likely to be endangered because of the project?
6. Possible Environmental Impacts:

(i) What are the possible short-term and long-term environmental impacts from the projects during
construction and after construction?
(ii) Who would be effected because of these impacts?
7. Mitigation Measures:
(i) Design system to avoid, reduce and minimize adverse impacts.
(ii) Enhance beneficial outcomes.
37
8. Monitoring and auditing measures:

(i) Identify impacts that require monitoring and auditing.
9. Socio-Economic Factors:
(i) Who are the expected gainers and losers by the projects?
(ii) Where are the expected trade-offs?
(iii) Will the project interfere (blend, increase or reduce) with the existing inequalities between occupational,
ethnic and age groups?
(iv) Will it effect the patterns of local/regional/national culture?
10. Availability of Information and Resources:

(i) Whether local and outside experts are available to consult specific impacts of the project?
(ii) Whether the relevant guidelines, technical information and other publications are available to identify the
possible impacts of similar projects?
(iii) Whether relevant environmental standards, by-laws etc. are considered?
(iv) Whether the sources of relevant environmental data are identified and whether they are accessible?
(v) Whether the views of the specialist groups and general public regarding the project have been considered?
(vi) Whether the competent technical manpower is available to handle the project?
11. EIA Report and Review:

Complete information in report including non-technical summary, methodologies used, results, interpretation
and conclusions. Review assesses adequacy of issues and facilitate decision making process.
12. Decision Making:

The project may be accepted, accepted with alterations or rejected.
Importance of EIA:
1. EIA is potentially a useful component of good environmental management.
2. It is the Government policy that any industrial project has to obtain EIA clearance from the Ministry of
Environment before approval by the planning commission.
21. EXPLAIN ENVIRONMENTAL IMPACT STATEMENT (EIS)
An EIS is a document that describes the impacts on the environment as a result of a proposed action.
Purpose of an EIS
An Environmental Impact Statement (EIS) is a document prepared to describe the effects for proposed
activities on the environment. "Environment," in this case, is defined as the natural and physical environment
and the relationship of people with that environment. This means that the "environment" considered in an EIS
includes land, water, air, structures, living organisms, environmental values at the site, and the social, cultural,
and economic aspects. An "impact" is a change in consequence that resultsfrom an activity. Impacts can be
positive or negative or both. An EIS describes impacts, as well as ways to "mitigate" impacts. To "mitigate"
means to lessen or remove negative impacts.
Therefore, an Environmental Impact Statement, or EIS, is a document that describes the impacts on the
environment as a result of a proposed action. It also describes impacts of alternatives as well as plans to
mitigate the impacts.
EIS Requirements
Federal laws and regulations require the federal government to evaluate the effects of its actions on the
environment and to consider alternative courses of action. The National Environmental Policy Act of 1969
38
(NEPA) specifies when an environmental impact statement (EIS) must be prepared. NEPA regulations require,
among other things, federal agencies to include discussion of a proposed action and the range of reasonable
alternatives in an EIS. Sufficient information must be included in the EIS for reviewers to evaluate the relative
merits of each alternative. Council for Environmental Quality (CEQ) regulations provide the recommended
format and content of Environmental Impact Statements.
Purpose of the EISs

The two site-specific EISs will assess the potential environmental impacts of constructing, operating,
maintaining, and decontaminating and decommissioning DUF6 conversion facilities at the Portsmouth and
Paducah sites, as well as a "no action" alternative.
The EISs will aid decision making on DUF6 conversion by evaluating the environmental impacts of the
alternatives, as well as providing a means for public input into the decision making process. DOE is committed
to ensuring that the public has ample opportunity to participate in this review. NEPA and Environmental
Impact Statement In the 1960s, there was a growing concern among U.S. citizens over damage to the
environment caused by increases in industrial and manufacturing activities, as well as increased building of
infrastructure, such as roads, bridges and power plants. These concerns culminated into an environmental law
called the National Environmental Policy Act, or NEPA.
The NEPA is the U.S. environmental law that established a nationwide policy promoting the protection of the
environment. The National Environmental Policy Act ensures that concerns about environmental issues, such
as water or air pollution, soil erosion and loss of natural habitats, are thoroughly considered in any decision-
making processes. To meet NEPA requirements, federal agencies prepare an Environmental Impact Statement,
or EIS, which is a document required for any action that may significantly impact the environment.
An EIS provides a detailed statement outlining any potential environmental impact, whether it be positive or
negative, for a proposed action, such as the building of an airport, the expansion of a mining operation or
drilling for natural gas. In other words, before any federally controlled project is given the right to start
construction or operation, a detailed EIS must be completed that not only takes into consideration the
environmental impact of the proposed action but also presents any alternatives to those actions.
The EIS is submitted to the Environmental Protection Agency, or EPA, which is an independent federal agency
that works to reduce pollution and protect the environment. The EPA reviews and comments on the EIS,
ensuring that the goals of the National Environmental Policy Act (NEPA) are met. A database of all filed EISs is
maintained by the EPA.
What is the Environmental Impact Statement (EIS) Process?
Scoping is the process used to determine the appropriate contents of an Environmental Impact Statement
(EIS). Public participation is an integral part of scoping. The first scoping step is to announce to the public, by a
Federal Register notice and press releases, that an EIS will be prepared and to ask for comments about what
should be included. We may also hold one or more public meetings in communities that might be affected if
leasing, exploration, or development were to occur. The purpose of soliciting input is to identify relevant
issues, alternatives, mitigation measures, and analytical tools so that they can be incorporated into the
EIS.Getting input from as many affected and interested parties as possible is an important part of preparing an
EIS.
These usually include:
*Citizens who live, work, or play in the area where OCS-related activity may occur.
*Public interest groups and Native communities that have concerns about possible impacts to environmental,
social, or economic resources.
*Federal, State, and local government agencies that have responsibilities for managing public resources or
services.
39
*Oil industry and oil industry support businesses that might conduct oil and gas development activities.
*Scientists and other technical experts with knowledge of the area's natural resources and the possible
impacts of oil and gas development.
An important objective of scoping is to identify specific elements of the environment that might be affected if
the proposal is carried out. If we determine that there might be significant impacts associated with a concern
that is raised during scoping, it is analyzed in detail in the EIS. For OCS activities, environmental concerns that
commonly arise include:
*Ecological concerns such as the possible impacts of oil and gas development on marine mammals, birds, fish
and shellfish, and the natural habitats that support these resources.
*Sociological concerns such as development-related changes in population or demands for public
transportation, education, or health care services. Other social factors involved may include possible changes
in the cultural, religious, or recreational traditions of affected communities.
*Economic concerns often center on marine-related employment, like commercial fishing and tourism. Based
on the information received during the scoping effort and other information, such as the location of sensitive
natural resources, estimates of oil and gas resources, or projected oil and gas activity, we identify alternatives
to the proposal that might reduce possible impacts. In addition, any reasonable measures suggested to
mitigate possible impacts are considered for analysis in the EIS.
Analytical Scenarios
After the alternatives to the proposal are determined, we develop scenarios for the proposal and each
alternative. Those are the bases for the analyses of possible impacts. The scenarios for the 5-year
program and lease sales are largely hypothetical because it is not known at the time what operations
will actually take place. The scenarios for these EISs include information about:
*Numbers of wells that might be drilled and the discharges that might result from drilling the wells.
*Numbers of production platforms that might be installed and the types and amounts of activity needed
to support platform operations.
*Methods that might be used to transport the oil and gas that are produced.
*Oil spills.
The EIS scenarios for proposed development projects are more site-specific than for proposed lease
sales and are based on the actual plan submitted by a company for a particular development project.
Impact Analysis
The EIS analyzes the particular environmental concerns that were identified. A separate analysis is
prepared for the proposal and each alternative. The objective of the analysis is to estimate the nature,
severity, and duration of impacts that might occur and to compare the impacts of the proposal and
alternatives. Numerous technical aids are used in making the assessment, including ecological and
socioeconomic studies sponsored by BOEM and others, and computer models that simulate the
movements of accidental oil spills or air emissions from operations.
Draft EIS and Public Review

The impact analysis is first documented in a draft EIS. When the Associate Director for Offshore Energy
and Minerals Management, or a higher authority, approves an EIS, BOEM headquarters staff review a
pre-publication version of the draft. If approval authority for the EIS is above the BOEM Director, the
Department's Office of Environmental Policy and Compliance and the Solicitor's Office also review the
draft. The purpose of the review is to ensure the technical accuracy of all aspects of the document.
The draft EIS is made available to the public for a minimum of 45 days for review and comment. The
availability of the draft EIS is announced in a Federal Register notice and in press releases. Copies of the
document are made available to the public through our web pages, individual mailings, and repositories
such as public libraries. The public may either comment to us in writing or by making oral comments at
40
one of the public hearings that we hold in the areas most likely to be affected.
Final EIS
The principal concern in developing the final EIS is to address public comments on the draft EIS in a
responsive and responsible fashion. The final EIS includes a summary of all comments and our responses.
The office preparing the EIS is responsible for drafting responses. For appropriate EISs, the Department
and BOEM headquarters review them for technical accuracy and adherence to policy.
After the comments on the draft EIS are reviewed, we revise the document to correct technical errors
and add any relevant new information that became available since the draft EIS was published. On
occasion, a new alternative or mitigation measure will be added and evaluated. A summary of the
comments received on the draft EIS and our responses to those comments are also put into the
document. Normally, a final EIS is made available to the public within 6 months after the comment
period on the draft EIS ends. Once again, the availability of the final EIS is announced in a Federal
Register notice and press releases.
22. EXPLAIN ENVIRONMENT IMPACT ASSESSMENT METHODOLOGIES
EIA methodology is an approach developed to identify, predict and value changes of an action. Changes are
reflected in the sequence of activities, steps, as well on the range of environmental issues considered
(physical, chemical, biological, socioeconomic, cultural, landscape values and processes). Uses methods and
techniques to quantify or to qualify those changes. All aspects and variables can be measured, problem is to
value them.
The most common formal methods used for impact identification are
 checklist:
 matrices
 networks
 overlays and geographic information systems (GIS);
 expert systems, and
 professional judgement
Checklist
Checklists annotate the environmental features or factors that need to be addressed when identifying the
impacts of projects and activities. They can vary in complexity and purpose, from a simple checklist to a
structured methodology or system that also assigns significance by scaling and weighting the impacts (such as
the Battelle Environmental Evaluation System). Both simple and descriptive checklists can be improved and
adapted to suit local conditions as experience with their use is gained. Checklist provide a systematized means
of identifying impacts. They also have been developed for application to particular types of projects and
categories of impacts (such as dams or road building). Sectural checklists often are useful when proponents
specialise in one particular area of development. However, checklists are not as effective in identifying higher
order impacts or the inter-relationships between impacts, and therefore when using them, consider whether
impacts other than those listed may be Important.
Matrices
A matrix is a grid like table that is used to identify the interaction between project activities, which are
displayed along one axis, and environmental characteristics, which are displayed along the other axis. Using
the table environment activity interactions can be noted in the appropriate cells or intersecting points in the
grid. 'Entries are made in the cells to highlight impact severity or other features related to the nature of the
impact, for instance:
 ticks or symbols can identify impact type (such as direct, indirect cumulative) pictorially,
 numbers or a range of dot sizes can indicate scale; or
 descriptive comments can be made
41
An early, well-known example is the Leopold interaction matrix. This is a comprehensive matrix, which has 88
environmental characteristics along the top axis and 100 project actions in the left hand column. Potential
impacts are marked with a diagonal line in the appropriate cell and a numerical value can be assigned to
indicate their magnitude and importance. Use of the Leopold matrix is less common than its adaptation to
develop other, less complex matrices.
Networks
Networks illustrate the cause effect relationship of project activities and environmental characteristics. They
are, therefore, particularly useful in identifying and depicting secondary impacts (indirect, cumulative, ete).
Simplified networks, used in conjunction with other methods, help to ensure that important second-order
impacts are not omitted from the investigation. More detailed networks are visually complicated, time-
consuming and difficult to produce unless a computer programme is used for the task However, they can be a
useful aid for establishing impact hypotheses' and other structured science-based approaches to EIA.
Overlays and geographic information systems
Overlays can be used to map impacts spatially and display them pictorially The original overlay technique,
popularised by McHarg, is an environmental suitability analysis in which data un topographic features,
ecological values and resource constraints are mapped into individual transparencies and then aggregated into
a composite representation of potential impacts. This approach is useful for comparing site and planning
alternatives, for routing linear developments to avoid environmentally sensitive areas and for landscape and
habitat zoning at the regional level. Disadvantages of this approach relate to the lack of precision in
differentiating the likelihood and magnitude of impacts and relating them to project actions. Also, the overlay
process can become cumbersome in its original form. A modern version of the overlay method is the
computer-based geographical information system (GIS). In simple terms, a GIS stores retrieves, manipulates
and displays environmental data in a spatial format. A set of maps or overlays of a given area provide different
types of information and scales of resolution. The use of GIS for FIA purposes is not as widespread as
commonly imagined. The main drawbacks are the lack of appropriate data and the expense of creating a
usable system. However, the potential application of GIS to EIA is widely acknowledged and its use is expected
to increase in the future, particularly to address cumulative effects
Expert systems
Expert or knowledge-based systems are used to assist diagnosis, problem solving and decision-making. A
number of such computerised systems have been developed for use in EIA, primarily at the early stages of the
process. For example, screening and scoping procedures have been automated using a number of rules and a
data system, which encodes expert knowledge and judgement. The user has to answer a series of questions
that have been systematically developed to identity impacts and determine their mitigability and significance.
Based on the answer given to cach question, the expert system moves to the next appropriate question Like
GIS systems, expert systems are an information intensive, high investment method of analysis. As such, they
are limited in their current use and application, especially by many developing countries. However, they also
have the potential to be a powerful aid to systematic EIA in the future, not least because they can provide an
efficient means of impact identification. Expert systems also can be updated by building in experiencegained
over time
Professional judgement
Although not strictly a formal method, professional judgement or expert opinion is widely used in EIA.
Knowledge and expertise gained in EIA work can be used to systematically develop data banks, technical
manuals and expert systems, thereby assisting in future projects. The successful application of the formal
methods of impact identification described above rests upon professional experience and judgement. Expert
opinion and professional judgement can be focused by the use of interactive methods, such as Delphi
techniques and science workshops, to identify impacts, model cause effect relationships and establish impact
hypothesis.
42
No single impact identification methodology is suited to use on all occasions nor is it necessary to use only one
method at a time. Combining the useful aspects of two different techniques may be the best approach to take.
As noted above, EIA checklists, matrices and networks can have added value when applied by experts in an
interactive process. Note, also that some of the methods perform other functions that may be useful to the
FIA team (cg the Battelle checklist can be used to determine significance)
The choice of methodology can depend upon a number of factors including:
 the type and size of the proposal
 the type of alternatives being considered;
 the nature of the likely impact
 the availability of impact identification methods;
 the experience of the EIA team with their use; and
 the resources available -cost, information, time personnel.
23. EXPLAIN THE TRAITS OF AN ENTREPRENEUR?
1. Vision and Passion

An entrepreneur must have a very clear vision of his business. So he must have the ability to plan out his long
term and short term goals and objectives. He has to be able to map out his future plans in an articulate and
efficient manner. Another very important trait necessary in an entrepreneur is that he must be passionate
about his work. Entrepreneurship is hard work and long hours, so he must be passionate about what he is
doing. Such passion can translate into hard work and success.
2. Innovative
One of the main characteristics of entrepreneurship is innovation. The entrepreneur looks for the opportunity
in the market and capitalizes on it. He is the one who introduces new products and services in the market
trying to fulfil customer needs. The innovation can also be in a production process, new marketing strategy,
innovative advertising etc.
3. Risk Taker
A risk is an integral part of any new business. But it is an especially important factor in entrepreneurship
because
here the entrepreneur bears the entire risk of the business. So it is necessary that the entrepreneur has an
adventurous and risk-taking personality.
4. Leader
One of the other important qualities of a successful entrepreneur is leadership. All good entrepreneur are
good leaders. They have the ability to motivate and lead their employees to success. They also have the
tenacity, knowledge, and skill to pull their businesses from a tight corner like good leaders.
5. Persistent
A good entrepreneur is always persistent by nature. A business is never an overnight success. It takes
immense
hard work and also a little bit of luck. But a persistent entrepreneur makes his own luck. He can create
opportunities if they are not presented to him. So a persistent entrepreneur that works tirelessly always has
a greater chance of success.
6. Ethical
Ethics and integrity are the cornerstones of any successful business in the long term. A sustainable
business cannot be run by someone with compromised morals. So any credible business must have at its head
an ethical entrepreneur who upholds the letter of the law and the integrity of the business.
7. Competitive Spirit
The business world is a very cut-throat space. Thousands of new businesses born and die every day. So the
competition is always going to be fierce and intense. Such an environment is better suited to someone who is
43
already competitive by nature and thrives in such situations of pressure.

8. Resilient
One of the most important traits in a successful entrepreneur is resilience. There is no smooth
straightforward path to success. There will always be some failures and roadblocks in the way. So the
entrepreneur has to be resilient and steadfast in his pursuit of success.
9 Strong people skills:
A successful entrepreneur is someone who has excellent communication skills for selling the products to
customers and motivating the employees. Yes, most entrepreneurs who have the power to motivate their
employees can see their business grow within no time. These entrepreneurs are also great at instructing
others to be successful and highlighting the advantages of any situation.
10 ) Confidence:
A successful entrepreneur never asks the question or keeps doubts in their mind about if they can succeed or
if they are even worthy of success. They are normally confident enough that their knowledge and their
knowhow will help them make their business idea a success. And they radiate this confidence in everything
that they do for the business.
11)lKnowledge-seeker.
Those who succeed are always seeking relevant knowledge that will help their business.
12)Promoter.
Nobody promotes the business better than its owner. This person is able to clearly convey what the business
is about and convince others of its value.
24. EXPLAIN THE CONCEPT OF INNOVATION MANAGEMENT IN CONTEXT OF GLOBALISATION.
Global innovation is a term that combines two of the broadest concepts in business. A familiar concept,
innovation will be treated to include management innovation, technological innovation, market innovation,
organizational innovation, and business model innovation in the passages that follow. Numerous researchers
have defined innovation as it occurs at every step along the value chain, from innovation that emerges from
the R&D process to those that are developed in the commercialization of products and services.
But what is meant by global innovation; otherwise understood as the deployment of innovation activities
globally? We will find that to define this activity is an undertaking of extreme challenge.
Part of this challenge stems from the nature of innovation as being related to a core and intellectual human
activity; one that is exceedingly worldly, as well as tacit in its close application of knowledge to context. It is
natural for humans to engage one another in a local context, create knowledge and develop a product to be
spread by means of commerce. When we look at innovation theory to date, the source of innovation has
been the sharing of places, engagements, and tacit knowledge. Though, in the global nature of business
today, innovation cannot consist in these alone. Acknowledging a globalized society while keeping innovation
local will not suffice. Without a conscious effort, numerous cases show innovation that is confined to the local
area. On the other hand, the few companies that expand globally are those that have developed competitive
advantages.
Increasing competition due to the liberalization of world trade has led to the production of goods and services
according to new needs arising in the global market. Obtaining an advantageous position in the global
competitive environment depends on determining right strategies and creating different values. Dynamic
market structure, differing market conditions and the existence of innovative competitors make competition
even more intense. Nowadays, objectives such as increasing productivity and profitability, gaining new
markets and improving existing market shares are reached through innovation activities. Therefore,
companies exert themselves to develop innovative skills, gain sustainable abilities and upgrade their
performances. In this context, innovation has been one of the essential elements of competitive advantage.
New goods and services must be produced in new ways and by adapting the inside and outside applications to
44
the new developed methods, the organizational processes must be restructured. Not only to produce new
goods and services, it is also important to manage it as a process. For determination of innovation
performance, it is very significant to address all the factors affecting the innovation management process with
a holistic approach. While rightly determining needed technology and management stands out as an
important element of innovation management, the human and structural adjustment of the organization is
also gaining importance in innovation performance. In the global competitive environment, organizational and
managerial innovations are the keys to success for companies. While technology and research and
development activities significantly influenced the organizational structure and culture, right innovation
management provides a competitive advantage. This study aims to evaluate the impact on the competitive
advantage of innovation management by putting out the importance of innovation management.
Globalization brings opportunities and pressures for domestic firms in emerging market economies to
innovate and improve their competitive position. Using recent data on firms in 27 transition economies, we
test for the effects of globalization through the impact of increased competition and foreign direct investment
on domestic firms’ efforts to raise their capability (innovate) by upgrading their technology or their
product/service (improving quality or developing a new one), taking into account firm heterogeneity. We find
support for the prediction that competition has a negative effect on innovation, especially for firms further
from the frontier, and that the supply chain of multinational enterprises and international trade are important
channels for domestic firm innovation. We do not find support for the inverted U effect of competition on
innovation. There is partial support for the hypothesis that firms in a more pro-business environment invest
more in innovation and are more likely to display the inverted U relationship between competition and
innovation.

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1.CONCEPT OF INNOVATION MANAGEMENT AND THE DIFFERENCE BETWEEN INNOVATION AND

Why business innovation is important

Innovation vs. invention

1. Solve Problems Easily

3.COMMON REASONS WHY SMALL BUSINESSES FAIL

Little or no market research

No clear marketing plan or strategy

Insufficient finance and cash flow

Common mistakes you must avoid include:

• Commercial disputes with customers, suppliers and other third parties.

Ignoring advice and support

Need for Business plan

7 Stages or Steps Involved in Marketing Research Process:

,Need and Importance of Marketing Research

6. For sales forecasting:

Difference Between Capital Expenditure and Revenue Expenditure

8.PROCESS OF PROJECT COST ESTIMATION

The Underlying Principles of Cost Estimating

Information Accuracy and Relevance

Project Cost Types

Estimate as a Cost Calculation Tool

Project Cost Estimation Process

Estimation of required resources

10.CONCEPT OF PROJECT ORGANISATION

Need for Project Organisation

(3) Successful completion of the project is critical for the enterprise/organisation.

Advantages of Project Organisation:

11.DEFINITION PMO OR PROJECT DEPARTMENT

The 6 most important PMO functions and tasks

2. Strategic project management

12. SANCTION LETTER

Definition of Sanction Letter

The credit history of the applicant

Documents required for issuing Finance Sanction Letter

● Passport size photograph of the applicant

● Memorandum & Articles of Association

Contents of Finance Sanction Letter

● The total amount of loan sanctioned

13. EXPLAIN DIFFERENT TYPES OF PROJECTS AND THE ROLE OF CONSULTANT.

Business Implementation Projects

start stop evaluate

Role of Project Consultant

14.EXPLAIN PROCESS OF PROJECT IMPLEMENTATION?

Objectives of the Implementation

 Putting the action plan into operation (PHILIP et al. 2008).

Process of Project Implementation:

15. STEPS IN MONITORING AND CONTROL OF PROJECTS

16. NETWORK TECHNIQUE

CCM (Critical Chain Method)

PERT and CPM: Techniques of Project Management

17. COMPUTER BASED PROJECT MANAGEMENT

2. Scheduling and planning

18. HOW TO PREPARE FOR THE POST-PROJECT EVALUATION

1.Starting the project:

2.Organizing and preparing:

Develop clear and detailed descriptions of all project objectives.

3.Carrying out the work:

4.Closing the project:

19. DELAYS ARE THE MAJOR SETBACKS IN A SUCCESSFUL PROJECT COMPLETION;EXPLAIN

Hold a Team Meeting

Touch Base with Contractors

First Environmental Legislation:

Environment Impact Assessment Process: