2. 1. Project Identification, Definition
and Selection
• PROJECT IDENTIFICATION –
discussions toward the concepts essential for
thorough search process and specially for a
meaningful evaluation of opportunities
3. THE VIEWING PROCESS
(forecasting- an equally important tool in environmental
scanning)
a. whether the viewer perceives an issue to be relevant or not
b. whether more information is needed or not
c. whether the consequences are great or the matter is
current.
4. WAYS OF THE VIEWING
PROCESS
• undirected viewing
• conditioned viewing
• informal search
• formal search
5. KEY ELEMENTS:
1. beneficiary of the viewing process
2. the location and level of the unit or
person performing the viewing function
3. the geographical scope
4. the relative formality of the procedure
5. the opportunity orientation
6. the inherent bias of the viewing process
7. the problems related to the credibility
that arise when viewing the environment
9. 3: Evaluation of Barriers to entry:
* Technology available from
various sources.
* Project cost on the high scale
* Manpower resources
10. 4: Consideration of subjective
preferences
* Addresses appropriate needs
* Based on some key advantage
* Follows thrust consistent with
perceived trends
* Provides desirable side-effects
- within the institution
- for the country
- for the students
11. *The output of the screening process is the
profile of opportunities that the educational
institution can address itself to. It will show
the requirements of success in that particular
opportunity. It will show conditions or factors
which bring about the opportunity and which
if removed will correspondingly make the
option disappear.
12. PROJECT DEFINITION
– (dictionary, CONCEPT is ‘an idea, especially a
generalized idea of a class of objectives; a
thought; general action”.
-ONCE A PROJECT OR PROGRAM HAS
BEEN IDENTIFIED, A PAPER
DESCRIBING THE PROJECT SHOULD BE
MADE. THIS IS THE CONCEPT PAPER
14. ALTERNATIVE SYSTEMS:
INDUSTRY
AND BUSINESS
APPLICATIONS
PROJECT IDENTFICATION
* searching for investment opportunities
* come from customers, distributors,
competitors, sales people
* survey existing industry & sectors
PRODUCT SELECTION CRITERIA
* product serves a presently unmet need
* product serves an existing market
* product can successfully compete-such
as improve design and lower price
VENTURE IDEA GENERATION
* look for a need and then the
product that satisfy that need
* find a product idea and then
determine the extent of the need
LOOKING FOR A NEED
* study existing industries
* examine the inputs and outputs of existing
industries
* analyze population trends and demographic data
*study development plans
* examine economic trends
* analyze social changes
* study effecs of new legislation
FINDING A PRODUCT
* investigate local materials
* examine import substitutes
* study local skills
* study implications of new technology
* use industry list
* visit trade shows and investors expo
* study published sources data
OPPORTUINITY STUDIES
A. General Opportunity Studies
1. Area Studies
2. Subsectoral Studies
3. Resource-Based Studies
B. Specific Opportunity Studies
17. APPLYING TO INDUSTRIES:
1. Study imports
* domestic production
* imports existing market
* suggest opportunities for new projects
2. Investigate Local Materials
* quality or price of raw materials
3. Study Available Skills
* labor and management skills which have already been developed in the area
4. Make Industry Studies
* thorough analysis of existing industries may lead to identifying new project
5.Originate or Apply Technology
re-examining local raw materials and existing products in the light of current
scientific and technical advances
18. 6. Examine Inter-Industry Relationship
* analyzing how the input of industries fit together
7. Evaluate Development Plans
* plans should be studied to discover how they will change the
matter
8. Review Old Projects
* projects previously developed but not implemented often
become feasible as market change
* possible to find opportunities in old ideas
9. Observe Experience Elsewhere
* familiarity with current industrial development in other
countries for suggestion
10. Use Industry List
* are useful for suggesting ideas for making sure nothing is
overlooked
19. 2. Project Feasibility Studies
Project Feasibility Studies, is an integral part of the total
project management cycle
ROLE: to enable top management to make a
decision as to whether or not a project should
be implemented on the basis of the project’s
viability and other factors
20. Inter-locking Task of Project
Feasibility Study
a. begins with Project Plan
b. then into its execution,
c. termination
d. evaluation
e. and recycling
21. USES:
1. For Project Proponent or Sponsors
- basis for selecting a viable venture and
exploiting an opportunity
22. 2. For Creditor and Investors
- basis for deciding whether
or not to grant financing to a
proposed opportunity
23. 3. For Project Manager
- basis for implementing the
project and organizing the
different inputs and
24. 4. For Project Team and Staff
- basis for interrelationship
and coordinating their
different functional activities
25. 5. For the Beneficiaries
- basis for examining the
delivery capability of a
project against other
alternatives
26. 6. For National Economy
- it minimizes risks of failure
as well as eliminates poor
ventures
27. Steps Towards Feasibility Study
1. The Concept Paper– also known as position or
working paper or aide memoire
*The objective is to get top management interest
and support for the idea without diverting
attention on practical points as yet.
28. 2. The Pre-Feasibility Study
– stage wherein it puts together materials or facts
already published or available form various
sources
- reports on the potential project with sufficient
detail to indicate the general promise
- the objective is to get enough facts or data’s that
includes :
29. a. market study on demand and supply
b. estimated market share of the project
c. marketing program
d. production aspects with emphasis on raw
materials
30. 3. Feasibility Study – referred to as the project
development stage
- this point management makes decision to go
or not to go with the project
- tackles details relating to economic, technical,
organizational and personnel, financial, legal,
and socio-economic aspect of the project
31. Sub Details of Feasibility Study:
1. The Market Study
Items covered: annual quantity of the product
the selling price of the product
the marketing program
2. The Technical Study
Items covered: product identification/description
manufacturing process/system
machinery and equipments
facilities requirements and specifications
32. 3. The Organizational, Managerial, and Personal
Studies
Items covered: management control
attraction of financing
alternative organizational forms
internal organizational structure
job design analysis
manpower training and
development
33. 4. The Financial Study
Items covered: preparation of financial analysis/ratios
determination of financing scheme and
effective cost of financing
preparation of financial statements
5. The Socio-Economic Study
Items covered: project’s social contributions
foreign exchange reserves
employment
increased business opportunities
increased satisfaction of convenience
by costumer social rate of return
40. BUDGETING
Purposes:
*to attain certain objectives
*review the institution’s resources or income
*provides analysis for expenditures of the
institution
*limits the program according to its resources
41. STEPS
1. THE PREPARATION OF THE BUDGET
2. ADOPTION OF THE BUDGET
a. BUDGET PRESENTATION
b. APPROVAL
3. EXECUTION AND CONTROL
46. PACKAGING PROPOSALS
there is no single format for wiring
project proposals
SAMPLE PROCEDURES:
1. INTRODUCTION AND SUMMARY
2. THE NEED
3. THE OBJECTIVES
4. THE METHODS
5. THE BUDGET
6. THE ORGANIZATION (QUALIFICATIONS)
7. THE EVALUATION
8. THE ADDENDUM OR EXHIBITS
50. MECHANICS OF CAMPAIGN
1. THE GOAL SET IN THE FUND
CAMPAIGN
2. A CASE STATEMENT
3. THE MASTERPLAN OF THE FUND
CAMPAIGN
4. LEADERSHIP
51. QUALITIES OF A LEADER
• SALESMANSHIP
• COMMUNICATION SKILLS
• INGENUITY AND FLEXIBILITY
• RESEARCH SKILLS
• ADMINISTRATIVE SKILLS
• GOOD HUMAN RELATIONS
• PERSISTENCE AND DEDICATION
