The document discusses the process of project formulation, which begins with generating and screening project ideas. Ideas are generated through analyzing the economy, conducting surveys and studies, and using tools like SWOT analysis. The environment is also monitored across sectors like economic, governmental, and competition. Corporate strengths and weaknesses are appraised to identify opportunities. Several tools can help identify promising opportunities, such as the life cycle approach and Porter's five forces model. Project ideas are scouted, preliminarily screened based on factors like compatibility and costs, and rated using a project rating index to evaluate their feasibility. Successful entrepreneurs exhibit qualities like leadership, decisiveness, and marketing orientation.

1. PROJECT FORMULATION
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Generation & screening of project
ideas
Presented by : Surya C.D

2. Generation & screening of project ide
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INTRODUCTION
A project is accomplished by performing asset of activities
The project ideas as a process of identification of process begins with an
analytical survey of the economy.
The surveys & studies will give us ideas.

3. Generation & screening of project ideas
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GENERATION OF IDEAS
The project selection starts with generation of project ideas.
The ideas are based on existing field of technology to offer various present
product of syllabus
To stimulate the flow ideas the following are helpful
1) SWOT analysis
Strengths Weakness Opportunities & Threats
2) Clear Articulation of objectives
3) Fostering a conducive climate

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MONITORING THE ENVIRONMENT
Competitive abilities of a firm depends on its environment
The firm must systematically monitor the environment and assess its
competitive abilities
For purpose monitoring divided into six sectors
Economic sector
Governmental sector
Technological sector
Socio-demographic sector
Competition sector
Supplier sector.

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CORPORATE APPRAISEL
Realistic appraisal of corporate strengths & weakness is essential for
identifying investment opportunities
Marketing & distribution
Production & operations
R &D
Corporate resource and personnel
Finance and accounting

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TOOLS FOR IDENTIFYING INVESTMENT OPPORTUNITY
•Several useful tools that are helpful in identifying promising
investment opportunities.
a) Life cycle approach
b) Porter model
c) Experience Curve
a) Life cycle approach
Pioneering stage
Rapid growth stage
Maturity and stabilisation stage
Decline stage

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b) Porter Model
Profit potential of an industry depends on the combined strength of the
following five basic competitive forces:
Threat of new entrants
Rivalry among existing firs
Pressure from substitute products
Bargaining power of buyers
Bargaining power of sellers

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c) The Experience Curve
Accumulated volume of production
Costperunit(presentvalue)
Experience curve is used to find long term investments aimed at
reducing costs
It shows how the cost per unit behaves w.r.t the accumulated volume
of production

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SCOUTING OF PROJECT IDEAS
Analyse the performance of existing industries
Examine the inputs and outputs of various industries
Review imports and exports
Study plan outlays and governmental guidelines

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PRELIMINARY SCREENING
By using the suggestions in the preceding section ,it is possible to
develop a long list of project ideas
Compatibility with the promoter
Consistency with government priorities
Availability of inputs
Adequacy of market
Reasonableness of cost
Acceptability of risk level

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PROJECT RATING INDEX
Preliminary evaluation may be translated into a Project rating index
STEPS
1. Identify factors relevant for project rating
2. Assign weights to these factors
3. Rate the project proposal on various factors
4. For each factor multiply the factor rating with the factor
weight to get the factor score
5. Add all the factor scores to get the overall project rating
index

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SOURCES OF POSITIVE NET PRESENT VALUE (NPV)
There are six main entry barriers that result in positive NPV projects
Economies of scale
Product differentiation
Cost advantage
Marketing reach
Technology edge
Government policy

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BEING AN ENTREPRENEUR
Qualities and traits of a successful entrpreneur
Willingness to make sacrifices
Leadership
Decisiveness
Confidence in the project
Marketing orientation
Strong ego

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CONCLUSION
Thus the main objective of the generation and screening of project
ideas is to identify investment opportunities which are feasible and
promising and which merit further examination and appraisal

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Query

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