This document discusses factors to consider for plant location and modules on entrepreneurship and feasibility analysis. It outlines key factors like law and order situation, government policy, availability of resources and incentives. It also lists the common types of feasibility analysis including technical, market and financial feasibility. The document emphasizes conducting a feasibility analysis with an objective approach to identify risks and determine if a business idea is viable.

1. New Venture Planning and Management
MEE1017
Dr. Atul Kumar
Assistant Professor (Sr)
School of Mechanical Engineering

2. FACTORS TO BE CONSIDERED IN
PLANT LOCATION
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3. FACTORS TO BE CONSIDERED IN PLANT LOCATION

4. FACTORS TO BE CONSIDERED IN PLANT LOCATION

5. FACTORS TO BE CONSIDERED IN PLANT LOCATION

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

10. Common Types of Feasibility
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Technical feasibility

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
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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