Project Identification

1
Project Identification Analysis
2
Scouting for Project Ideas

• Analyse the Performace of Existing Industries
• Examine the Inputs and Outputs of Various
  Industries
• Review Imports and Exports

3

• Generation of Ideas
• Monitoring the environment
• Corporate appraisal
• Scouting for Project Ideas
• Preliminary Screening
• Project rating index
• Sources of positive not present value
• On being an entrepreneur

4

• Availability of Inputs
• Adequacy of Market
• Reasonableness of cost
• Acceptability of risk level
• Compatibility with the Promoter
• Consistency with Government Priorities
• Availability of Inputs
• Adquacy of the Market

5

• Corporate Appraisal
• A realistic appraisal of corporate strengths and
  weakness is essential for identifying investment
  opportunities which can be profitably exploited.
  The broad areas of corporate appraisal and the
  important aspects to be considered under them are
  as follows

6
Marketing Distribution

• a. Market image
• b. Product Line
• c. Market Share
• d. Distribution Network
• e. Customer Loyalty
• f. Marketing Distribution costs

7
Production Operations

• Condition capacity of plant machinery
• Availability of raw materials, sub-assemblies,
  power
• Degree of vertical
• Locational advantage
• Cost structure

8
Production Operations(contd.)

• Availability of Inputs
• Adequacy of Market
• Reasonableness of Cost
• Acceptability of Risk Level

9
Compatibility with the Promoter

• The idea must be compatible with the interest,
  personality, and resources of the enterpreneur.
  According to Murphy, a real opportunity has three
  characteristics
• (i) It fits the personaility of the
  entrepreneurit squares with his abilities,
  training, and proclivities.
• (ii) It is accessible to him.
• (iii) It offers him the prospect of rapid growth
  and high return on invested capital.

10
Consistency with Governmental Priorities

• Is the project consistent with national goals and
  priorities?
• Are there any environmental effects countrary to
  governmental regulations?
• Can the foreign exchange requirements of the
  project be easily accommodated?
• Will there be any difficulty in obtaining the
  license for the project?

11
Availability of Inputs

• Are the capital requirements of the project
  within manageable limits?
• Can the technical know-how required for the
  project be obtained?
• Are the raw materials required for the project
  available domestically at a reasonable cost? If
  the raw materials have to be imported, will there
  be problems?
• Is the power supply for the project reasonably
  obtainable from external sources and captive
  power sources?

12
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 a reasonable
  return on investment. To judge the adequace of
  the market the following factors have to be
  examined.

13
The E N D