![Supplier Sector
Availability and cost of raw materials
Availability and cost of energy
Screening potentially promising project ideas
Once a list of project ideas has been put forward, the first step is select one or more of them as potentially
promising. This calls for quick preliminary screening by experienced professionals who could also modify
some of the proposals. At this stage, the screening criteria are vague and rough, that becomes specific and
refined as project planning advances, during the preliminary screening to eliminate ideas, which are not
promising, and one is required to look into the following aspects
Compatibility with the promoter:
The idea must be compatible with the interest, personality, and resources of the entrepreneur. It means [1] it
should fit to the personality of the entrepreneur; [2] it should be accessible to him and [3] it should offer him
the prospect growth and high return on the invested capital.](https://image.slidesharecdn.com/pm21-211207051705/85/Pm-2-1-5-320.jpg)
Pm 2 (1)
- 1. PROJECT MANAGEMENT I MCOM DR.J. SABITHA
- 2. Project ideas from Entrepreneurs: For commercial and industrial projects, Entrepreneurship is an important source of ideas. Entrepreneurships include the characteristics of preparation of managerial competence and motivation to achieve results. Monitoring the environment Basically a promising investment idea enables a firm to exploit opportunities in the environment by drawing on its competitive strengths.. For purposes of monitoring the business environment may be divided into six broad sectors. They are as follows: Economic Sector State of the economy Overall rate of growth Growth rate of primary, secondary, and territory sectors Cyclical fluctuations Linkage with the world economy Trade surplus/deficits balance of payment situation
- 3. Government Sector Industrial policy Government programs and projects Tax frame work Subsidies, incentives, and concessions Import and export policies Financing norms Lending conditions of financial institutions and commercial banks Technological Sector Emergence of new technologies Access to technical know-how, foreign as well as local Receptiveness on the part of industry
- 4. Socio-demographic Sector Population trends Age shifts in population Income distribution Educational profile Employment of women Attitudes toward consumption and investment Competition Sector Number of firms in the Industry Degree of homogeneity and differentiation among products Entry barriers Comparison with substitutes in terms of quality, price, appeal, and functional performance Marketing policies and practices
- 5. Supplier Sector Availability and cost of raw materials Availability and cost of energy Screening potentially promising project ideas Once a list of project ideas has been put forward, the first step is select one or more of them as potentially promising. This calls for quick preliminary screening by experienced professionals who could also modify some of the proposals. At this stage, the screening criteria are vague and rough, that becomes specific and refined as project planning advances, during the preliminary screening to eliminate ideas, which are not promising, and one is required to look into the following aspects Compatibility with the promoter: The idea must be compatible with the interest, personality, and resources of the entrepreneur. It means [1] it should fit to the personality of the entrepreneur; [2] it should be accessible to him and [3] it should offer him the prospect growth and high return on the invested capital.
- 6. Consistency with government priorities: •The project idea must be feasible given the national goals and governments regularity framework. The questions to be raised in this context are: •Is the project consistent with national goals and priorities? Can the foreign exchange requirements of the project be easily accommodated? Will there be any difficulty in obtaining the license for the project? Availability of inputs: The resources and inputs required for the project must be reasonably assured. To assess this, the following questions need to be answered. Are capital requirements of the project within manageable limits? Can the technical know- how required for the project be obtained? Are the new materials required for the project available domestically
- 7. Adequacy of the market: The size of the present market must offer the prospect of adequate sales volume. Further there should be a potential for growth and reasonable return on investment. To judge the adequacy of the market the following factors have to be examined; Total present domestic market Competitors and their market shares Exports markets Sales and distribution system Projected increase in consumption Barriers to the entry of new units Economic, Social and demographic trends favorable to increased consumption Patent protection
- 8. Reasonableness of cost: The cost structure of the proposed project must enable it to realize an acceptable profit with a price. The following should be examined in this regard: Cost of material inputs Labor costs Factory overheads General administration expenses Selling and distribution cost Service cost Economies of scale
- 9. Acceptability of risk level: The desirability of a project critically dependent on the risk characterizing in the assessment of risk the following factors should be considered: Business cycles Technological changes Competition from substitute Competition from imports Government control over price and distribution Therefore, during the preliminary selection, the analyst should eliminate project proposals that Technically unsound and risky Have no market for the output Have inadequate supply of inputs Are very costly in relation to benefits and
- 10. Environmental Monitoring Definition Environmental monitoring refers to the tools and techniques designed to observe an environment, characterize its quality, and establish environmental parameters, for the purpose of accurately quantifying the impact an activity has on an environment. Results are gathered, analyzed statistically, and then published in a risk assessment and environmental monitoring and impact assessment report.