ITFT - Business Opportunity

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Business Opportunity, Industrial Policy, Business Environment, Market Survey, Market Assessment

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  • 1. Business Opportunity ITFT College, Chandigarh 1 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 2. Business Opportunity When there is a possibility of offering a new product or service in a particular market. ITFT College, Chandigarh 2 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 3. Need to offer new product and service Due to change in Environmental Factor Political and Legal Economic Economic Social Technological ITFT College, Chandigarh 3 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 4. Process of Business Opportunity identification and evaluation Identify the needs and wants of customers. Scanning (examining) the environment and evaluating of self (entrepreneur) and theevaluating of self (entrepreneur) and the community. Screening (Process of evaluating) of business opportunities. Selecting a business opportunity Preparing a Business Plan. ITFT College, Chandigarh 4 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 5. Identify the needs and wants of customers ITFT College, Chandigarh 5 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 6. Scanning the environment and evaluating of self and the community. ITFT College, Chandigarh 6 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 7. Two Approaches Micro perspective For example in the case of forestry an entrepreneur can be involved in: Logging Manufacturing of veneer plywood Processing of sawn timber Manufacturing of furniture. Making wooden doors and frames.doors and frames. Macro perspective for example the agricultural sector can offer business opportunity in forestry, fishing, plantation, and livestock breeding. ITFT College, Chandigarh 7 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 8. Screening of business opportunities ITFT College, Chandigarh 8 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 9. Screening should be based on following factors Legal within the law of the country. Monopolistic Power and Level of Competition. Capital Requirements must be adequate to business undertaking Risk factor Risk factor Liquidity Level Loans Credit facilities for customers. Foreign Exchange Rate volatile or stable currency rate. Business Opportunities ITFT College, Chandigarh 9 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 10. Selecting a business opportunity Preparing a Business Plan ITFT College, Chandigarh 10 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 11. 5 Steps to Business OpportunityOpportunity ITFT College, Chandigarh 11 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 12. Self Analysis ITFT College, Chandigarh 12 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 13. Financial Components ITFT College, Chandigarh 13 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 14. Market Research ITFT College, Chandigarh 14 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 15. Risk Assessment ITFT College, Chandigarh 15 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 16. Support ITFT College, Chandigarh 16 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 17. Industrial PolicyIndustrial Policy ITFT College, Chandigarh 17 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 18. MSME ITFT College, Chandigarh 18 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 19. Major issues related to MSMEs: Lack of availability of adequate and timely credit ITFT College, Chandigarh 19 4/26/2014 High cost of credit PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 20. Limited access to equity capital Lack of access to global market ITFT College, Chandigarh 20 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 21. Low technology levels and lack of access to modern technology; Lack of skilled manpower for manufacturing, Lack of skilled manpower for manufacturing, services, marketing, etc.; Issues relating to taxation, both direct and indirect, and procedures thereof. ITFT College, Chandigarh 21 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 22. Policies and Programmes for promoting SSI: Governments price preference policy for marketing SSI products; Technical assistance; Technical assistance; Financial assistance. ITFT College, Chandigarh 22 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 23. Financial Institutes in India: Industrial finance corporation of India (IFCI) Industrial credit and investment corporation of India (ICICI) Industrial development bank of India (IDBI)Industrial development bank of India (IDBI) Small industries development bank of India (SIDBI) Industrial investment bank of India. National Bank of Agricultural and Rural Development of India (NABARD) State industrial development corporations. ITFT College, Chandigarh 23 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 24. Industrial policy 2010-2015 Investment limit of mega projects from Rs.100 to Rs.250crore The policy provides a 25 percent VAT reimbursement The policy provides a 25 percent VAT reimbursement for five years for large and medium enterprises, 50 percent for small enterprises. ITFT College, Chandigarh 24 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 25. For micro and small industries the investment subsidy has been increased from Rs.15lakhs to Rs.20lakhs. In case of women entrepreneurs, not only ten percent In case of women entrepreneurs, not only ten percent of the plots in an industrial area but also offering 5 percent additional subsidy subject to a maximum of Rs.5lakhs. ITFT College, Chandigarh 25 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 26. Attract investments in the industry and service sector by developing quality infrastructure. Maximize employment opportunities, Implement self- employment schemes effectively, and provides jobs Maximize employment opportunities, Implement self- employment schemes effectively, and provides jobs to local people in the upcoming industrial units in the states.(Pradhan mantri employment generation programme launched by the government of India.) ITFT College, Chandigarh 26 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 27. Promote agro-based and food processing industry to make agriculture a most profitable proposition. In order to ensure productive uses of land, multi- stored complexes for micro and small enterprises/industries will be constructed either through departments corporations or through or private sector participation at potential sites. through departments corporations or through or private sector participation at potential sites. Trade Related Intellectual Property Rights (TRIPR) under WTO will be widely publicized so that these could be used to generate more employment and trade opportunities. ITFT College, Chandigarh 27 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 28. Business Environment ITFT College, Chandigarh 28 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 29. Features of Business Environment Totality of external forces Specific and general forces Dynamic natureDynamic nature Uncertainty Relativity Multi-faceted ITFT College, Chandigarh 29 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 30. Types of Business Environment Internal External ITFT College, Chandigarh 30 4/26/2014 Micro- environment Macro- environment PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 31. Internal Environment: 6 Ms6 Ms ITFT College, Chandigarh 31 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 32. Man (Human Resources) ITFT College, Chandigarh 32 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 33. Money (Financial Factors) ITFT College, Chandigarh 33 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 34. Marketing Resources ITFT College, Chandigarh 34 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 35. Machinery (Physical Assets and Facilities ITFT College, Chandigarh 35 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 36. Management Structure and Nature ITFT College, Chandigarh 36 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 37. Internal Environment Micro-environment Macro-environment ITFT College, Chandigarh 37 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 38. Micro-environment Customer Employees ITFT College, Chandigarh 38 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 39. Suppliers Shareholders ITFT College, Chandigarh 39 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 40. Media Competitors ITFT College, Chandigarh 40 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 41. Macro-environment Socio-cultural and Demographic ITFT College, Chandigarh 41 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 42. Technology ITFT College, Chandigarh 42 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 43. Economic Conditions ITFT College, Chandigarh 43 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 44. Ecology and Physical Environment ITFT College, Chandigarh 44 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 45. Political and Legal ITFT College, Chandigarh 45 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 46. Market SurveyMarket Survey ITFT College, Chandigarh 46 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 47. Market Survey Through a market survey we can obtain information in the following areas: size of market pattern of demand buying habits and motives past and present trends for this or other products ITFT College, Chandigarh 47 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 48. Process of Market Survey ITFT College, Chandigarh 48 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 49. Step1: Define objectives and specify information to be collected Identifying sources of information Assessing time and costs required for the survey Selecting methodology Selecting methodology Preparing an action plan ITFT College, Chandigarh 49 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 50. Step 2: Select a sample Determining where to conduct the survey Determining when to conduct the survey ITFT College, Chandigarh 50 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 51. Prepare a questionnaire for the survey ITFT College, Chandigarh 51 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 52. Collect data and analyze the information obtained ITFT College, Chandigarh 52 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 53. Step 5: Prepare a report based on data analyzed Following ten broad areas are discussed: Market Buyers/ customers Raw materials Machinery, equipment Machinery, equipment Competitors Furniture Manpower Capital and risks Rules and regulations Marketing ITFT College, Chandigarh 53 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 54. Market Assessment ITFT College, Chandigarh 54 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 55. Study of feasibility and viability of a project Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats as presented by the opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the prospects for success. ITFT College, Chandigarh 55 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 56. Market Analysis Consumption trend Past and present supply Position Production possibilities and ITFT College, Chandigarh 56 4/26/2014 Production possibilities and constraints Imports and Export Competition Cost structure PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 57. Financial Analysis Investment outlay and cost of project Means of financing Projected profitability Break- even point Break- even point Cash flows of the project Investment worthiness judged in terms of various criteria of merit Projected financial position ITFT College, Chandigarh 57 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 58. Technical Analysis Input Analysis Output Analysis Output Analysis Throughput Analysis ITFT College, Chandigarh 58 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 59. Economic Analysis ITFT College, Chandigarh 59 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 60. Ecological Analysis ITFT College, Chandigarh 60 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 61. Risk Assessment Identify the hazards Decide who might be harmed and how Evaluate the risks and decide on precautionprecaution Record your findings and implement them Review your assessment and update if necessary ITFT College, Chandigarh 61 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 62. Questions Q 1 What is the process of business opportunity identification and evaluation? Q 2 What are the various industrial policies related to enterprise?related to enterprise? Q 3 Explain the detail the internal and external environment of business. Q 4 What is market survey? Explain the process of market survey. ITFT College, Chandigarh 62 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com
  • 63. ITFT College, Chandigarh 63 4/26/2014 PDF created with pdfFactory Pro trial version www.pdffactory.com