6. FACTORS TO BE CONSIDERED IN PLANT LOCATION
Law and order situation
• Plant location must be at that place where law and order
situation is in control. If a state has bad law and order
situation, then the business must not be located within that
state, unless it has other important factors such as availability
of heavy or bulky raw materials.
Government Policy
• Poverty anywhere is dangerous for prosperity everywhere
• Government offers several incentives, concessions, tax
holidays for number of years, cheaper power supply, factory
shed, etc., to attract the entrepreneurs to set up industries in
less developed and backward areas.
7. Module: 1
Entrepreneurship; Definition and Types
Entrepreneurship as a career
Competencies and qualities of an entrepreneur
Opportunity Identification and Trend Identification
Factors affecting entrepreneurship
Forms of business organization- Advantages and disadvantages
Factors to be considered in plant location
Steps involved in business establishment
8. Module: 2
Feasibility analysis and Sales & Marketing
Product/service feasibility
Market feasibility
Organizational feasibility
Financial feasibility
Technical feasibility
Market Survey and Market research
Channels of distribution
Pricing methods - full cost, target pricing, marginal cost, go rate etc.
9. • Feasibility analysis is the process of determining
whether a business idea is viable.
• Feasibility analysis also identifies the important
risks associated with the project that must be
managed if the project is approved
• It must be conducted with an objective, unbiased
approach to provide information upon which
decisions can be based.
Feasibility analysis
11. Product or Service Feasibility
• Assessment of overall appeal of proposed product/service
– Main idea: before rushing to development, be sure product/service
is what prospective customers want
Two components of product/service feasibility analysis:
1. Concept testing
• Purpose: Gauge customer interest, desirability, purchase
intentions
• Showing a representation of product/service to prospective users
• – Occurs before the prototype stage
• – Websites and graphic designs are taking this to a new level
11
Feasibility analysis
12. Product or Service Feasibility
2. Usability testing
Also called: user tests, beta tests, or field trials
• Purpose: determine ease-of-use and user’s
perceptions of using product
• Iterative process that involves creating a physical
prototype (basic, elaborate, or hybrid prototypes)
and giving it to users, measuring usage results, and
making modifications as necessary 12
Feasibility analysis