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    Generation and Screening of Project Ideas

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    Bikash Chandra Das
    This document discusses the process of generating and screening project ideas. It involves generating ideas through monitoring the business environment, conducting a corporate appraisal, and using tools like Porter's model. Ideas are then preliminarily screened using a project rating index to assess compatibility, inputs, market size, costs, and risks before potential projects are selected.

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    Generation and Screening of Project Ideas

    Uploaded by

    Bikash Chandra Das
    531 views22 pages
    This document discusses the process of generating and screening project ideas. It involves generating ideas through monitoring the business environment, conducting a corporate appraisal, and using tools like Porter's model. Ideas are then preliminarily screened using a project rating index to assess compatibility, inputs, market size, costs, and risks before potential projects are selected.

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    Generation and Screening of Project Ideas

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    This document discusses the process of generating and screening project ideas. It involves generating ideas through monitoring the business environment, conducting a corporate appraisal, and using tools like Porter's model. Ideas are then preliminarily screened using a project rating index to assess compatibility, inputs, market size, costs, and risks before potential projects are selected.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    531 views22 pages

    Generation and Screening of Project Ideas

    Uploaded by

    Bikash Chandra Das
    This document discusses the process of generating and screening project ideas. It involves generating ideas through monitoring the business environment, conducting a corporate appraisal, and using tools like Porter's model. Ideas are then preliminarily screened using a project rating index to assess compatibility, inputs, market size, costs, and risks before potential projects are selected.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22
    At a glance
    Powered by AI
    The key takeaways are that generating and screening project ideas involves tasks like generating ideas, monitoring the business environment, using tools to identify opportunities, scouting for project ideas, and preliminary screening. The ideas can be based on factors like demand, cost reduction, productivity improvement, and diversification.

    The main steps involved in generating and screening project ideas are generating ideas, monitoring the environment, using tools for identifying opportunities, scouting for project ideas, preliminary screening, and rating projects on various factors.

    The different factors considered when monitoring the business environment are the economic, governmental, technological, socio-demographic, competition, and supplier sectors.

    Generation and Screening of

    Project Ideas
    Generation and screening idea
    involves the following task :
    Generation of ideas
    Monitoring the environment
    Corporate Appraisal
    Tools for identifying investment
    opportunities
    Scouting for project ideas
    Preliminary screening
    Project Rating index
    Generation of Ideas

    The search for project ideas is the first


    step towards establishing a successful
    venture
    Generation of Ideas

    How it generates
    What is the source?

    It is not formal. It may come from any


    level.
    Stimulating the flow of ides
    SWOT Analysis
    Strength, weaknesses, opportunities, and
    threat
    Clear articulation of objectives: The operational
    objectives of a firm may be one or more of the
    following:
    Cost reduction,
    productivity improvement,
    increase in capacity utilization
    improvement in contribution margin,
    expansion into promising fields
    The ideas may be generated based on

    Demand/Needs
    Cost reduction
    Productivity improvement
    Product diversification
    BMRE of Plants
    R&D
    Monitoring The Environment
    The important aspects studied in monitoring
    the key sectors of the environment are as
    follows :
    Economic Sector
    Governmental Sector
    Technological Sector
    Socio-demographic sector
    Competition sector
    Supplier sector
    Economic sector

    State of the economy


    Overall growth rate
    Linkages with the world economy
    Trade surplus/deficit
    Balance of payment situation
    Cyclical fluctuation.
    Governmental Sector

    Industrial Policy
    Government programs and projects
    Tax framework
    Subsidies, incentives and concessions
    Import and export policies
    Lending conditions of financial institutions
    and commercial banks
    Financing norms.
    Technological Sector

    Emergence of new technology


    Access to technical know how,
    Receptiveness on the part of industry
    Availability of technology
    Socio-demographic sector

    Population trends
    Age shifts in population
    Income distribution
    Educational profile
    Employment of women
    Attitudes towards consumption and
    investment.
    Competition sector
    Number of firms in the industry and their
    market share
    Degree of homogeneity and differentiation
    among products
    Entry barriers
    Comparison with substitutes in terms of
    quality, price, appeal and functional
    performance
    Market policies and practices
    Supplier sector

    Availibity and cost of raw materials


    Availability and cost of energy
    Availability and cost of money
    Corporate Appraisal

    Marketing and distribution


    Production and operation
    Research and Development
    Corporate Resources and Personnel
    Financing and accounting
    Tools for identifying investment
    opportunities

    Porter model
    Life cycle approach
    Experience Curve
    Porter model
    Michael Porter has argued that profit potential
    of an industry depends on the combined
    strength of the following five basic
    competitive forces :
    Threat of new entrants
    Rivalry among existing firms
    Pressure from substitute products
    Bargaining power of buyers
    Bargaining power of sellers
    Forces driving Industry Completion

    Potential
    Entrants

    Threat of New
    Entrants

    Bargaining Bargaining
    power of
    The industry Power of
    Rivalry among Buyers
    Supplier suppliers Buyers
    Existing Firm

    Threat of
    substitute
    Products.

    Substitutes
    Life cycle Approach

    Pioneering stage
    Rapid growth stage
    Maturity and stabilization stage
    Decline stage
    Experience curve
    Learning effects
    Technological improvement
    Economies of scale
    Screening of projects
    Compatibility with the promoter
    Consistency with governmental priorities
    Availability of inputs
    Adequacy of market
    Reasonableness of cost
    Acceptability of risk level
    Projects rating index
    Identify factors relevant for project rating
    Assign weights to these factors
    Rate the project proposal on various factors
    For each factor, multiply the factor rating with
    the factor weight to get the factor score
    Add all factor scores to get the project rating
    index

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