entrpreneurship development

7/28/2019 Entrpreneurship Development

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EntrepreneurshipDevelopment

CLASS: MBA

SEMESTER: IV

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EntrepreneurshipDevelopment

UNIT - I Definition of Entrepreneur

Functions of an Entrepreneur

Entrepreneurial motivation and

Barriers Internal and External Factors Classification of

Entrepreneurship Theory of Entrepreneurship Concept of Entrepreneurship Development of

entrepreneurship Culture, stages in

entrepreneurial process. 2


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Lecture

no

Contents (sub topics) Slide no

1 Definition of Entrepreneur 5-14

2 Functions of an Entrepreneur 16-19

3 Entrepreneurial motivation and Barriers 21-24

4 Internal and External Factors 26-305 Concept of Entrepreneurship 32-43

6 Classification of Entrepreneurship 45-46

7 Theory of Entrepreneurship 48-53

8 Theory of Entrepreneurship 55-59

9 Development of entrepreneurship culture 61-62

10 Stages in entrepreneurial process 64-70

FAQS, CASE STUDY & ASSIGNMENTS

72-83

LECTUREPLAN

Unit- I Sub: Entrepreneurship DevelopmentAcademic Consultant: Riju Agarwal


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Lecture 1

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5

Entrepreneur

Origin from French word-

EntreprendreMeaningTo undertake

Founded by a French economist in1725

Richard Cantillon

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6

Definitions of Entrepreneur

1725 Richard Cantillon Risk taker

1800 JB Say Organizer 1934 JA Schumpeter Innovator(developing country)

Manager(developing countries) Peter Drucker Opportunity exploiter 1876 Francis A Walker Pioneer/ Captain of industry 1975 Albert Shapero Takes initiative, organizes &

accepts risks

1983 Gifford Pinchot Intrapreneur 1985 Robert Hisrich Creates something different

& of value, devotes time &effort, assumes risks &receives result

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Richard Cantillon

Risk Taker-Buys at a certain price and sells at anuncertain price

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JB Say

Organiser

The economic agent who unites all means of

Production, the labor force of one, thecapital and land of the other and by sellingthe product, he pay Interest on the Capital,Rent on the land and Wages to the labor and

what remains is his profits.

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Francis A Walker

Pioneer

One who is endowed with more than

average capacities in the task of organizing& coordinating, and receives surplus rewardover and above the managerial wages forthem.

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Joseph A Schumpeter

Innovator in an advanced economy

One who introduces something new in an

economy

Risktaker& Manager in developing economy

One who starts an industry, undertakes risks,bears uncertainties and also perform themanagerial functions of decision-making &coordination

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Peter Drucker

Opportunity Exploiter

One who searches for change, responds to

it and exploits an opportunity.

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Intrapreneur- Gifford Pinchot

An Entrepreneur within an alreadyestablished organisation.

An intrapreneur perceives and exploitsbusiness opportunities within an existingenterprise

He / she generally serves as the chiefexecutive of a semi-autonomous productdivision or subsidiary of a big organisation

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Entrepreneur & Intrapreneur

Entrepreneur

Is an independentbusinessman

Himself / herself raisesthe required funds

Assumes the risks ofthe business enterprise

Intrapreneur

Works under the chiefexecutive

Uses the funds raisedby his company

May not be required tobear full risks of theenterprise

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Entrepreneur and Manager

Entrepreneur

Always attempts tobring change, in other

words called innovation

Establishes newenterprise andundertakes risks

Mobilizes resources toinitiate change inproduction

Manager

Is concerned only withday-to-day affairs of a

going concern

Runs an establishedenterprise andundertakes no big risk

Involves combining andcoordinating resources

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Innovates

Bears Risk

Organization Building

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Innovation - Introduction of a new

product / new quality of an existing

product methods of production / distribution

new market

source of raw materials

form of organization

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Risk taking Assuming the responsibility for loss

that may arise due to unforeseencontingencies

Guaranteeing interest to creditors,wages to labour and rent to the

landlord In the end, whatever left isprofit, reward of taking risk or mighthave nothing left for him / her

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Organization Building Bring together factors of production:

Capital Interest

Land Rent

Labor - Wages

Organize them, performing planning, decisionmaking , coordinating and controlling functionsof manager

Determining the line of business, expansion andgrowth of the enterprise

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Lecture 3

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Key Motivators

Ambition- to make money & live a decentlifestyle

Need for Achievement

Past work experience Entrepreneurial education Economic condition Unemployment/ Dissatisfaction with

present job Independent lifestyles Internal locus of control- control one has

over his life

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Key Motivators

Family background- successful entrepreneurs Compulsion- family business Social status- level at which an individual is

viewed by society Demographic and economic factors

Shift to a service economy

Technological advancements

E-Commerce and the World Wide Web International opportunities

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Key Motivators

Support & assistance available from family,friends, government, financial institutions etc.

Governmental influence by Industrial Policy

creating basic facilities, utilities, services

providing incentives and concessions

Providing conducive Economic environmentavailability of Capital, Labor, Raw materials, Market


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Key Barriers

Lack of Viable concept Lack of Market knowledge Lack of Seed-capital Lack of Business know-how Legal constraints & regulations- protectionism,

patents

Complacency- uncritically satisfied with oneself/ lack ofmotivation

Social Stigma- being unsucessful Insecurityfear of losing their economic assets Lack of technical skills Time presences and distractions

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Lecture 4

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Influence of External Environmental

Factors

1. Economic conditions

Economic environment exercises the mostdirect and immediate influence onentrepreneurship

The main economic factors are:

Capital

Labour

Raw materials

Market


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2. Social factors

Legitimacy of entrepreneurship The social status of entrepreneurs is one of the most

important contents of entrepreneurial legitimacy

Social mobility Social mobility is crucial for entrepreneurial

emergence

Security If individuals are fearful of losing their economic

assets or of being subjected to various negativesanctions, they will not be inclined to increase theirinsecurity by behaving entrepreneurially


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3. Governmental influence Government can promote entrepreneurship in

one way or the other through its clearlyexpressed Industrial Policy

By creating basic facilities, utilities, services and

by providing incentives and concessions,government can provide prospectiveentrepreneurs a facilitative socio-economicsetting


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Influence of Internal Environmental

Factors

1. Psychological factors

Need achievement

If the average level of need achievement in a society is

relatively high, a high level entrepreneurship emerges

Withdrawal of status respect

Technological innovations are caused more by theculturally marginal persons than others

Internal locus of control- control one has over his life

Independent lifestyles


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2. Personal factors Entrepreneurial education & Past

work experience Economic condition Unemployment/ Dissatisfaction with

present job

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Lecture 5

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Concept

Entrepreneur

Person who

Identifyopportunities

& exploit them

To create Value

Entrepreneur-ship

Process

Dynamic &

Continuous

Enterprise

Object

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Who is an Entrepreneur?

A person who

1. Identifies opportunities in the marketplace.

2. Marshalls the resources required to pursue theseopportunities.

3. Employ the resources to Exploit theopportunities for long-term gains.

4. Creates a new business in the face of riskand uncertainty for the purpose of achievingprofit and growth

5. Creates Value for all stakeholders33


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Who is an Entrepreneur ?

An individual: With certain qualities.

Who tries to create something new/Innovate.

Who builds an Organization- organizesfactors of production.

Who undertakes risk (involved in theestablishment and operation of a businessenterprise).

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Characteristics of an Entrepreneur Ambitious Goal-oriented

Imaginative / Creative / Innovative

Visionary- can foresee future

Initiation / Risk taker / accepts challenges

Commitment/ Persistence / Tenacity / Determination /Perseverance / Endurance / Doggedness / Persuasion

Dedication / Hard worker/ Industrious Energetic / Drive

Self confident / Assertive

Flexibile / Adaptable

Skilled at organizing 35


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Contd.

Watchdog for opportunities / Information seeker

Marshalling resources / Efficient monitoring

Intelligent- ability to acquire & apply knowledge & skill

Knowledgeable- information acquired throughexperience & education

Skillful- ability to do something well

Quality conscious / Efficiency lover

Leader

High Integrity

Emotional maturity & stability

Good judge of human nature

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Entrepreneurial Process

1) Identify/Evaluate Opportunity

2) Develop Business Plan

3) Determine & marshal resourcesrequired

4) Manage The Enterprise effectively

5) Means value creation for all

stakeholders esp wealth for himself


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Nature of Entrepreneurship

Economic activity Involves creation and operation of an enterprise

Is concerned with production and distribution of goods

Dynamic process Thrives on changes in environment

Flexibility is the hallmark

Creative activity

A creative response to changes in the environment Involves innovation / introduction of something new &

better- is a change agent

Purposeful activity Seeks to earn profits through satisfaction of needs

A goal-oriented activity 38


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A function of risk-bearing Assumes uncertainty of future

In the pursuit of profits there is every possibility of loss

An organizing function Coordination/control of efforts of all engaged in

enterprise

Is an attempt at organization building

Gap filling function Gap between needs and available products gives birth

to entrepreneurship

Creation of new markets

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Nine Deadly Mistakes of

Entrepreneurship1. Management incompetence

2. Lack of experience

3. Poor financial control

4. Failure to develop a strategic plan

5. Uncontrolled growth


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Nine Deadly Mistakes of

Entrepreneurship(continued)

6. Poor location

7. Improper inventory control

8. Incorrect pricing

9. Inability to make theentrepreneurial transition


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Role of Entrepreneurship in Economic

Development

Entrepreneurs serve as the catalysts in theprocess of industrialization and economic growth

The rate of economic progress depends upon itsrate of innovation which in turn depends upon theentrepreneurial talent in the population

Technical progress alone cannot lead toeconomic development, unless technologicalbreakthroughs are put to economic use byentrepreneurs

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Entrepreneurs initiate and sustain theprocess of economic development by: Creat new enterprises that energize the economy

Rejuvenate established enterprises Capitalformation

Improvement in per capita income

Generation of employment

Balanced regional development Improvement in living standards

Economic independence

Backward and forward linkages

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Lecture 6

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Classification of Entrepreneurship

According to

Stage of economic development

Type of businessbusiness, trading,agricultural

Type of motivation- motivated, induced,spontaneous

Gender men, women

Areaurban, rural

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Classificationaccording to stages of economic development,

by Clarence Danhof Innovating/ Creative Entrepreneurs

One who introduces newness into business Typical of developed countries

Imitative/ Adoptive Entrepreneurs One who adopts successful innovation Typical of under-developed countries

Fabian Entrepreneurs Are risk-averse, cautious & skeptical, adopts if inevitable,

as a last resort

Drone Entrepreneurs Refuses to adopt, One who would take the beaten path, no

matter what

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Lecture 7

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The Development ofEntrepreneurship Theory

18th Century

Richard Cantillon:Coins term

entrepreneur

(go-between orbetween taker)

Entrepreneur bearsrisks and plans,

supervises,organizes, andowns factors of

production


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19th Century

Jean Baptiste Say:

Proposed that profitsfrom entrepreneurship

were separate fromprofits of capital

ownership

Distinction madebetween those whosupplied funds and

earned interest andthose who profited from

managerial abilities


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20th Century

Joseph Schumpeter:

Described theentrepreneur as

someone who is aninnovator and someone

who creativelydestructs

Peter Drucker:

Described theentrepreneur assomeone who

maximizes opportunity


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ECONOMIC VIEW OF

ENTREPRENEUR

To understand why there is a focus onpersonality rather than skills look at history ofentrepreneurship theory

nobody can hope to understand the economicphenomenon of anyepoch who has notadequate command of the historical facts(Schumpeter, 1934: 36)

French tradition - the Physiocrats Cantillon (1755) Foresight to assume uncertainty Reacts to profit opportunities Bears uncertainty

Brings about a balance between supplies &


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ECONOMIC VIEW OF

ENTREPRENEUR

The Modern Austrian Tradition: Mainrepresentative Kirzner (1973)

The entrepreneur as a coordinating agent

who is capable of exploiting unnoticedopportunities due to his/her specialalertness.

Has knowledge not available to everybody

which leads to creative discoveries Facilitates exchange between suppliersand customers

Profit as reward for recognising a marketopportunity & acting as middleman


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ECONOMIC VIEW OF

ENTREPRENEURS

Schumpeter (1934) Entrepreneur as innovator, creator and

catalyst for change

Only certain extraordinary people have theability to be entrepreneurs and they bringabout extraordinary events

Brings about change through introduction

of new technological process/product About dream/vision and impulse to fight Creative destruction of existing

combinations of resources


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Lecture 8

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PSYCHOLOGICAL PROFILING OF

ENTREPRENEUR

THE TRAIT APPROACH Need for Achievement

Locus of Control

Risk-taking Innovation and creativity

General Personality Scales

CONSTRUCTION OF THE TRAITAPPROACH Biased towards Western culture

Gender-biased,

Ethnocentric


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ENTREPRENEUR

PSYCHOANALYTIC APPROACHES Conflicts, difficulties or losses in childhood,

motivates entrepreneurs to succeed

In particular absent father, poverty, illness etc

To think about developing entrepreneurship in thisway brings ethical questions to the fore

Criticised for only describing extremes and notaccounting for the majority of entrepreneurs

Variety of reasons behind set-up e.g. life-stylechoice, fulfilling dream, loss of long-termemployment etc.


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ENTREPRENEUR

COGNITIVE STUDIES

Propose to focus on the behaviours ofentrepreneurs rather than their

personalities Entrepreneurs have certain heuristics,

schemas that allow him/her to examine theenvironment and find existing

opportunities (Mitchell, 2002)

However, now focus on special thinking

Still focuses on entrepreneur as having

special abilities rather than focusing onthe rocess of entre reneurshi


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ENTREPRENEURSHIP AS

ACTION

A DIFFERENT APPROACH Psych studies treat entrepreneur as

disconnected from context

Individuals not distinct from theiractivities - they are part of and create thesystems within which they are situated

Focus on what the entrepreneur does,not who the entrepreneur is (Gartner, 1988)

This view leaves open the possibility ofdeveloping entrepreneurship inindividuals

Entrepreneurs made not born (Chell, 2001)


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ENTREPRENEURSHIP AS

ACTION As a process, not an attribute of a person

(Stevenson and Jarillo, 1990)

An individual is not always

entrepreneurial, may be team-effort Necessity vs. opportunity

entrepreneurship

Innovations as a response to the need for

making un-programmed decisions Transcends the limits imposed by the

owner manager

Possible at any stage of the life cycle of abusiness enter rise Hand 2004


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Lecture 9

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The Cultural Diversity of

Entrepreneurship Young entrepreneurs Women

Minority-owned enterprises

Immigrant entrepreneurs Part-time entrepreneurs

Home-based businesses

Family businesses

Copreneurs

Corporate castoffs

Corporate dropouts


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Cultural Norms/Values

Corporate IntrapreneurialFragmented Whole

Instruction Vision

Controlled In Control

Outer-Directed Inner-Directed

Alienation Responsibility

Chores Enthusiasm/Motivation

Defined Limits Space/Freedom

Interference Trust

Distrust Belief In People

Expendable Expandable

Limiting People Growing People


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Lecture 10

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Major Stages of Entrepreneurship

Converging on the idea

Business Plan

Business Formation

Growth/ exit

Going public


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1. Converging on the idea

In many cases, the decision start abusiness precedes the idea

Many ideas fall by the way side, since theyare eithertechnically not feasible orfinancially not viable or both

So you need to do enough research toconverge on the idea Documentary

Experience


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2.Business Plan Development

Four major elements:

New product/ service development

Business Model

Financial Model

Operating plan


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3.Business Formation

Type of company: legal form,registration

Financing new product development: Family and friends

Govt grants

Non govt grants Angels


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4.Growth/exit

Difference between life style and growthcompanies

Growth will require infusion of capital through internally generated

funds

Sometimes employment of venture capitalists

Passive investors

Growth will also require organization, astaught in business schools (Michael Dellstory)


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Exit

Various reasons

Story ofLands End


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5. Going Public

Initial Public Offering

Probably the point in time the entrepreneur extracts

the value of his/her efforts


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Questions

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7272

FAQs

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1. Who is an Entrepreneur?2. Enumerate & discuss the different theories of

Entrepreneurship.

3. Enumerate types of Entrepreneurship according to type of

business.4. Enumerate types of Entrepreneurs according to type of

motivation.

5. Enumerate types of Entrepreneurship according to stages

of Economic development.

6. Enumerate types of Entrepreneurship according to scale

of Operation.

7. Enumerate the qualities/ characteristics of a successful

Entrepreneur.


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8. Discuss different barriers to entrepreneurship.

9. What do you understand by Intrapreneurship?

How does it differ from Entrepreneurship?

10.Differentiate entrepreneurs from managers.11.Discuss different functions/role of an

entrepreneur.

12.Who is an Adoptive entrepreneur?

13.Distinguish between Drone entrepreneur andFabian entrepreneur.

14.Describe the motivational forces that cause

entrepreneurial growth in a developing country.73


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15. Innovation is the hallmark of Entrepreneurship.

Discuss.

16. Discuss the qualities or traits of a successful

entrepreneur?17. Developing countries need imitative rather than

innovative entrepreneurs. Justify.

18. Discuss the development of concept of

Entrepreneurship?

19. Whose theory of Entrepreneurship is suitable in

todays market Schumpeter or Drucker. Discuss

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C St d M b i'


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Case Study-Mumbai's

Dabbawalas

The Dabbawalas who provide a lunch delivery servicein Mumbai have been in the business for over 100years.

In 1998, Forbes Global magazine conducted ananalysis and gave them a Six Sigma rating ofefficiency.The case examines how the Dabbawalas operate. Itdescribes their delivery process and coding systemand how they work as one team to achieve a commongoal. The case also explores the future of theDabbawalas' service in light of the changingenvironment.

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A Six Sigma Performance

Every day, battling the traffic and crowds of Mumbaicity, the Dabbawalas, also known as Tiffinwallahs,

unfailingly delivered thousands of dabbas to hungrypeople and later returned the empty dabbas towhere they came from. They delivered either home-cooked meals from clients' homes or lunches

ordered for a monthly fee, from women who cook attheir homes according to the clients' specifications.The service was used by both working people andschool children.

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In 1998, Forbes Global magazine, conducted a qualityassurance study on the Dabbawalas' operations andgave it a Six Sigma efficiency rating of 99.999999; the

Dabbawalas made one error in six milliontransactions.

That put them on the list of Six Sigma ratedcompanies, along with multinationals like Motorolaand GE. Achieving this rating was no mean feat,

considering that the Dabbawalas did not use anytechnology or paperwork, and that most of them wereilliterate or semiliterate. Apart from Forbes, theDabbawalas have aroused the interest of many otherinternational organizations, media and academia. 77


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Background Note The origin of the Dabbawalas' lunch delivery service dates

back to the 1890s during the British raj. At that time,

people from various communities migrated to Mumbai for

work. As there were no canteens or fast food centers then,if working people did not bring their lunch from home,

they had to go hungry and invariably, lunch would not be

ready when they left home for work.

Besides, different communities had different tastes andpreferences which could only be satisfied by a home-

cooked meal. Recognizing the need, Mahadeo Havaji

Bacche (Mahadeo), a migrant from North Maharashtra,

started the lunch delivery service.


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For his enterprise, Mahadeo recruited youth

from the villages neighboring Mumbai, who were

involved in agricultural work. They were willing

to come as the income they got from agriculture

was not enough to support their large families,

and they had no education or skills to get work in

the city. The service started with about 100Dabbawalas and cost the client Rs.2 a month.

Gradually, the number of Dabbawalas increased

and the service continued even though the

founder was no more...79


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Delivery System

The Dabbawala service was available wherever

the local trains ran in Mumbai as it was theirprimary mode of transportation. During the

delivery process, the dabbas changed hands at

least four times before they reached their

destination...

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QUESTIONS FOR DISCUSSION

1. Discuss how an entrepreneurial venturestarts.

2. Give the reasons behind the success ofan enterprise. How a traditional businesscan survive threats from the externalenvironment through the years.

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Assignment

Interview 5 entrepreneurs around your neighborhood or

city; At least one of the entrepreneurs should have a

physical shop. For example, they could be:

a. Providing shoe shine service

b. Selling knick-knacks to tourists

c. Selling books to cars waiting at intersections

Ask them the following questions:

a. How did they start this occupation?

b. Why are they doing what they are doing now (How

they identified the opportunity)?

c. Why do their customers buy from them (and not

somebod else ?

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d. Do they have any plans to expand?

Make a report on

a. The different types of businesses you came across.

b. Their experiencewhere did you go, were there any

surprises, what were the stories you heard from these

entrepreneurs.

c. Key learnings from the project.

d. The issues that the entrepreneurs faced - do the you

agree that they are issues and whether you were able to

solve these issues or help the entrepreneurs to solve

them.83


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ENTREPRENEURSHIP DEVELOPMENT

UNIT - II

Idea Generation.

Screening and Project Identification. Creative Performance. Feasibility Analysis: Economic,

Marketing, financial & Technical.

Project Planning. Project Evaluation, Monitoring &

Control.

Project Segmentation.

Creative Problem Solving: Heuristics,Brainstorming, Synectics, Value

Analysis, Innovation.

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LECTUREPLAN

Unit- II Sub: Entrepreneurship DevelopmentAcademic Consultant: Gaurav Agrawal


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Lectureno


1 Idea Generation 87-98

2 Screening and Project Identification 100-123

3 Creative Performance 124-142

4 Feasibility Analysis 144-158

5 Economic Analysis, Marketing Analysis 160-173

6 Financial and Technical Analysis 175-182

7 Project Planning: Evaluation, Monitoring & Control 184-193

8 Project Segmentation 195-2009 Creative Problem Solving 202-216

10 Techniques of Creative Problem Solving 218-233

FAQS, MCQs, CASE STUDY & ASSIGNMENTS 235

Academic Consultant: Gaurav Agrawal

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Lecture 1

IDEA GENERATION

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IDEA GENERATION

Entrepreneurs develop business ideas by:

Developing new products and services

Tapping new markets Formulating new methods of production

Identifying new raw materials

Developing new ways of organizingprocesses


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SOURCES OF IDEAS

A business idea may be discoveredfrom the following sources:

Observing markets Prospective consumers

Developments in other nations.

Study of project profiles

Government organizations

Trade Fairs and Exhibitions

R i i O i i &


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Recognizing Opportunities &

Generating Ideas

Idea is thought, impression, notion

Opportunity: favorable set of circumstances thatcreate need for product or servicee.g. Multiplex/ Amazon/ shopping malls

Opportunity has 4 essential qualities1. Attractive

2. Durable3.Timely4. Creates/adds value for buyer/user

R i i O t iti &


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Generating Ideas

Observing/Study Trends

1. Economic factors

2. Social factors3. Technological Advances

4. Political Action/Regulatory statutes

R i i O t iti &


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Generating Ideas

Economic Forces

Consumers level of disposable income

Interest rate changesMore women in workforce

Social Forces

Both parents working: fast foodPeople too busy: Sony Walkman

Life stress: spas, wellness clinics

R i i O t iti &


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Generating Ideas1. Family & work patterns - dabbawallas

2. Aging of the population yoga n anti aging

3. Increasing diversity in the workplace - tabs

4. Globalization of industries Carre four, walmart5. Increased focus in health care & fitness sona

belts

6. Proliferation of computers & Internet online

shopping, airtel money7. Increase in numbers of cell phone users --

uninor

8. New forms of music & entertainment- ipods


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R i i O t iti &


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Generating Ideas

Solving a Problem

1. Observe people challenges -

datacard , cordless systems2. Look for problems debit cards

3. Listen to people complains cars/

activa4. Think of your own problems - thakur

R i i O t iti &


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Generating Ideas

Personal characteristics foropportunity recognition clg cafe

1. Prior experience in an industry -sales

2. Entrepreneurial alertness/6th sense

3. Social networks -4. Creativity: preparation, incubation,

insight, evaluation, elaboration


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Techniques in Generating Ideas

Brainstorming: generate ideas quickly,no analysis or decision making.

Enthusiasm, originality, lots of ideas Freewheeling, lively

No criticism allowed

Session moves quickly

Leapfrogging encouraged


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Focus groups

1. People selected are familiar with

issues2. Whats on customers mind

3. Conducted by trained moderator

4. Success depends on moderatorsability to ask questions and keep ontrack


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Surveys: gathering info from sampleof individuals

By phone, mail, online, in person Random portions of population

Customer Advisory Boards


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Lecture 2

SCREENING AND PROJECT

IDENTIFICATION

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PRE-IDENTIFICATION

Pre-Identification: Where do projects originate?

The pre-identification phase refersessentially to the less specific researchstudies and surveys that should form partof any system of planning.

It involves synthesizing, from national and

sectoral strategies and policies, projectideas which seem worthy of more in-depthinvestigation.


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PRE-IDENTIFICATION

Pre-identification is thus an on-goingprocess involving reviewing,

inventorying, integrating andanalysis of strategies, policiesnatural resource data and socio-economic information.


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Project Identification

Assuming that there is a reasonabledatabase and development strategies

and policies have been formulated insufficient detail to be operationallyuseful - how do we go aboutidentifying projects?

Two complementary approaches aresuggested:


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Project Identification

(i) Find out what people want andsee how these ideas can be fitted into theschema of available resources, strategies

and policies, taking account of physical,human, institutional and financialconstraints; and

(ii) Examine existing situations inrespect of demand and supply of goodsand services and look at past trends andlikely future trends.

Project Identification: Screening


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Project Identification: Screening

Project Ideas

Reasons for Rejection of a Project:

1) Inappropriate technology in relation to theprojects objectives or to local capabilities

2) Excessive risk3) Inadequate demand for the proposed

output or lack of comparative advantage

4) Inadequate raw materials or skills5) Overambitious design in relation toavailable financial resources


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Project Screening

6)Excessive economic, social, orenvironmental costs relative to the

expected benefits7)Lack of commitment of the intended

beneficiaries or lack of political

support from key authorities


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Project Identification: Pre-feasibility

Before time and resources are spent there is need todevelop some feel for whether a project is likely to befeasible.

A pre-feasibility analysis is necessary to serve as a

screening process This pre-feasibility analysis should result in a Project

Profile

The Project Profile defines:

the objectives of the project, identifies project output, inputs and constraints and makes a rough assessment of project costs and benefits.

The profile facilitates approval in principle by the relevantauthority and serves as a basis for detailed feasibility and projectpreparation.


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Pre-feasibility study

Should be carried out in just enoughdetail to determine the broad

justification of the: Project idea The possible design alternatives to

be considered further

Reasons for the choices made orproposed


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To permit a decision on the merits ofthe project idea, the study should

briefly examine: 1) The size and nature of the demand

for the product or service, and the

intended or expected beneficiarygroups or target areas


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2) The alternative technical solutions orpackage available, with correspondingestimates of outputs, including

identification of technologies alreadylocated in local use and their potential forimprovement

3) The availability of the principal physicaland human resources and skills that willbe required


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4) The magnitude of the costs both for theinitial investment and for continuedoperation

5) The magnitude of the financial andeconomic rates of return (whereapplicable)

6) Any institutional constraints or policyissues likely to have an important impacton the proposed project


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The Project Identification Test

A project may be deemed to be ready fordetailed preparation when:

1) Majoroptions and alternatives havebeen identified and some initial choiceshave been made.

2) The principal institutional and policy

issues affecting project outcome havebeen identified and appear amenable tosolution.


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3) The project options selected arelikelyto be justified, given rough

estimates of the expected costs andbenefits

4) It appears that the project will have

adequate support both from thepolitical authorities and from theintended beneficiaries


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5) The prospects are reasonable thatadequate funding will be available

from domestic and if needed,external sources

6) A specific preparation program

has been established.


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Project Preparation

Purpose and Scope:

The purpose of the feasibility studyis to: 1) provide decision-makerswith the basis for deciding whetherto proceed with theproject, and,

2) forchoosing the most desirable

option or alternative among the fewremaining.


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Project Preparation

Purpose and Scope:

The purpose of the feasibility studyis to: 1) provide decision-makerswith the basis for deciding whetherto proceed with the project, and,

2) for choosing the most desirable

option or alternative among the fewremaining.


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Purpose and Scope: Questions

1) Conform with the organizations objectives and

priorities?

2) Is the project technically sound, and is it the best of

the available technical alternatives? 4) Is the project administratively workable?

5) Is there adequate demand for the projects output?

6) Is the project economically justified and financially

viable?

7) Is the project compatible with the customs and

traditions of the beneficiaries?

8) Is the project environmentally sound?

j i


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Project Preparation

Of primary importance in projectpreparation is a clear definition of projectobjectives.

These objectives must be specific (asopposed to broad statements of intention)if theirachievements are to be measured

at the end of the project and if projectpreparation is to proceed in a logicalfashion.

P j P i Obj i


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Project Preparation: Objectives

Objectives should be SMART:

Specific

Measurable Achievable

Reasonable

Time bound

Obj i


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Objectives

Defining Objectives:

1) An objective is the aim or goal of a

project, and describes the desiredstate which the project is expected toachieve/contribute to.

2) it provides the reason forundertaking the project

P j t P ti


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Project Preparation

Once these objectives are defined, theconstraints to achieving them must beidentified.

Some of these constraints are removableby the project itself while others areexogenous and can only be tackled on a

global or national basis and not throughindividual projects.

Project Preparation: Data


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Project Preparation: Data

Requirements

If a project shows merit, additional datawould be required during projectpreparation:

a) Detailed market studies b) Geological or environmental studies

c) Investigation of local sources of rawmaterial

d) Details of government regulations andpolicies

D t R i t


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Data Requirements

f) Economic, social, or culturalcharacteristics of the people in theproject area

g) Availability of technical andmanagerial skills

h) Existing or potential sources of

local capacity for project preparationand implementation

P j t P ti


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Project Preparation

Project feasibility involves five importantaspects:

Technical

Institutional Financial, Economic Social.

The project preparation process consistsof analyzing these five components anddesigning a feasible project.


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Lecture 3

CREATIVE PERFORMANCE

124

Definition of Creativity


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y

"Creativity is the ability to respond to all thatgoes on around us, to choose from thehundreds of possibilities of thought, feeling,action, and reaction that arise within us, andto put these together in a unique response,

expression, or message that carries moment,passion, and meaning.-Clarissa PinkolaEstes, Woman Who Run With the Wolves

Opening Our Minds: Perception,


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p g p ,

Curiosity and Exploration

Imagine the familiar in a new light

Find links among unrelated phenomena Realize the impact of change

Accept new perspectives

Follow a broad and moving path

Exploring Creative Thinking


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p g g

Techniques

Soft Thinking: metaphor, dream, play,intuition, ambiguous, fantasy,approximate humor

Hard Thinking: logic reason, work

adult, analysis, consistency, realityexact precision



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p g g

Techniques

Visual Thinking Activities: Perceptual, imagery, daydreaming,

metaphoric, synectics, patterns

Idea Listing Activities:Attribute listing, morphological synthesis,

second best answer, checklist, justsuppose

E l i C ti Thi ki T h i


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Exploring Creative Thinking Techniques

Writing Activities: Webbing, mapping, wet inking, reflection

writing, story starters

Group Interaction Activities: Simulation, role play, creative dramatics, six

hats, fish bowl, brainstorming, reversebrainstorming



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p g g

Techniques

Process-Product Activities: Problem finding, problem defining,

problem-based learning

Removing Mental Locks


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Idea Squelchers -Von Oechs Ten Blocks

The Right Answer

Thats Not Logical

Follow The Rules Be Practical

Play Is Frivolous

Dont Be Foolish

Avoid Ambiguity To Err Is Wrong

Im Not Creative Thats Not My Area

Examining Creativity in the Workplace


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Supervisors that have higher creativityexpectations are observed rewardingcreativity, recognizing creative efforts,

allocating more resources, encouragingcollaboration and sharing, applyingcreative goal setting and modelingcreative behavior in their own work



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Employees interpret meaning throughenvironmental cues and supervisors mustcommunicate through behavior.

Self-efficacy levels influence the extent towhich employees entertain creative activities,initiate creative acts, and sustain creativelevels in their work.

Supervisors must be aware of the impact andclearly state expectations to shape creativeeffort and manage the supervisor/employeerelationship.



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Individuals often generalize their

relationships with direct reports tothe entire organization, thisperceived support of creativity has

even greater impact on theindividuals relationship to theorganization as a whole

Measuring Creativity


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Measuring Creativity

Divergent Thinking Tests openended questions

Torrance Tests of Creative Thinking Guilford Tests

Personality & Biographical

Inventories perceptions, attitudes,values, interests, motivations

Personality Traits of the Creative Person


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Self Actualized Creativity (Maslow) Perceive reality more accurately and

objectively; tolerate and even like

ambiguity; are not threatened by theunknown.Accept themselves, others, and human

nature.Are spontaneous, natural, genuine.Are problem-centered, non-egotistical;

have a philosophy of life and probably a

mission in life



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Need some privacy and solitude morethan others do; are able to concentrateintensely.

Are independent, self-sufficient andautonomous; have less need for praiseor popularity.

Have capacity to appreciate again and

again simple and commonplaceexperiences; have zest in living, abilityto handle stress, high humor.



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Have (and are aware of) their rich, alive,fulfilling peak experiences.

Have deep feelings of brotherhood with

all mankind; are benevolent, altruistic. Perceive reality more accurately and

objectively; tolerate and even likeambiguity; are not threatened by the

unknown.



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Accept themselves, others, and humannature.

Are spontaneous, natural, genuine.

Are problem-centered, non-egotistical;have a philosophy of life and probably amission in life

Need some privacy and solitude morethan others do; are able to concentrateintensely.



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Are independent, self-sufficient andautonomous; have less need for praiseor popularity.

Have capacity to appreciate again andagain simple and commonplaceexperiences; have zest in living, abilityto handle stress, high humor.

Have (and are aware of) their rich, alive,fulfilling peak experiences.

Have deep feelings of brotherhood withall mankind; are benevolent, altruistic.



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Form strong friendship ties with relatively fewpeople; are capable of greater love.

Are democratic, unprejudiced in the deepest

possible sense.

Are strongly ethical and moral individual (notnecessarily conventional) ways; enjoy work in

achieving a goal as much as the goal itself;are patient, for the most part.



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Have a more thoughtful, philosophical senseof humor that is constructive, not destructive.

Are creative, original inventive with a fresh,

nave, simple and direct way of looking at life;tend to do most things creatively but do notnecessarily possess great talent.

Are capable of detachment from their culture;can objectively compare cultures; can take orleave conventions.


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Lecture 4

FEASIBILITY ANALYSIS

143

The Feasibility Study


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What is a feasibility study? What to study and conclude?

Types of feasibility Operational Technical Schedule

Economic



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Quantifying benefits and costs

Payback analysis

Net Present Value Analysis Return on Investment Analysis

Comparing alternatives

Why a feasibility study?


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Objectives of a feasibility study:

To find out if an information

system project can be done: ...is it possible?

...is it justified?

To suggest possible alternativesolutions.



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What the alternatives are (so thata selection can be made insubsequent phases)

Whether there is a preferredalternative



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To provide management withenough information to know:

Whether the project can be done

Whether the final product willbenefit its intended users



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After a feasibility study, managementmakes a go/no-go decision.

A feasibility study is amanagement-oriented activity

Content of feasibility study


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Things to be studied in the feasibilitystudy: The present organizational system

users, policies, functions,objectives,...

Problems with the present system

inconsistencies, inadequacies infunctionality, performance,



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Objectives and other requirementsfor the new system Which problems need to be

solved? What needs to change?

Constraints

including nonfunctionalrequirements on the system(preliminary pass)



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Possible alternatives Sticking with the current system should

always be studied as one alternative Different business processes for solving the

problems Different levels/types of computerization for

the solutions Advantages and disadvantages of the

alternatives

Things to conclude: Feasibility of the project The preferred alternative.

Types of feasibility


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Operational feasibility Explores the urgency of the

problem and the acceptability of

any solution: If the system is developed, will it

be used? Includes people-oriented and

social issues



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internal issues: manpower problems labour objections manager resistance organizational conflicts and

policies

external issues: social acceptability legal aspects and government

regulations.



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Technical feasibility Is the project feasibility within the

limits of current technology?

Does the technology exist at all? Is it available within given resource

constraints?

i.e. budget, schedule,



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ypes o eas b ty

Schedule feasibility

Is it possible to build a solution intime to be useful:

What constraints are there onthe project schedule?

Can these constraints be

reasonably met?



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yp y

Economic feasibility (Cost/BenefitsAnalysis) Is the project possible, given

resource constraints? What benefits will result from the

system?



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yp y

Look for both tangible andintangible benefits

Quantify the benefits (e.g. cost

savings) What are the development and

operational costs? Are the benefits that will accrue

worth the costs?


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Lecture 5

ECONOMIC AND MARKETING

ANALYSIS

159

Economic Feasibility


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y

To identify the financial riskassociated with the project

- how much will the system cost?- what benefits will the system

provide?

- is the proposed system cost-effective?



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y

Economic feasibility analysis or cost-benefit analysis

- identify costs and benefits

- assign values to costs and benefits- determine cash flow- assess projects economic value> determine net present value (NPV)> determine return on investment (ROI)> calculate break-even point



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Identify costs and benefits- development costs (these are one-off costs)

> e.g. salaries for project team, hardware and softwareexpenses,

consultant fees, training, office space and equipment- operational costs (these are ongoing costs)

> fixed : at regular intervals, at relatively fixed rates

-- e.g. lease payment, license payments> variable : occur in proportion to some usage factor

-- computer usage, consummable supplies



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Identify costs and benefits- tangible benefits : can be easily quantified

> measured in terms of savings or profits> e.g. increased sales, reductions in staff, reductions in IT

costs- intangibles : difficult or impossible to quantify

> e.g. improved customer service, improved employeemorale

Assign values to costs and benefits- once the type of costs and benefits have been identifiedthey must be

assigned specific values- intangible costs should also be quantified if possible



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Determine cash flow- a formal cost-benefit analysis usually contains costs andbenefitsover a selected number of years (3-5 years) to show cash flowover time

Determine net present value (NPV)- time value of money : one ringgit today is worth more than one

ringgit one year from now- NPV is used to compare the present value (PV) of future cashflowswith the investment outlay required to implement the project

- PV = Amount / (1 + interest rate)n- NPV = PV Benefit PV Costs



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Determine return of investment (ROI)- measure the average rate of return earned on the money

investedin the project

- a high ROI results when benefits for outweigh the costs- ROI = (Total benefit Total costs) / Total costs

Determine break-even point- this is a point in time at which the returns will match theamount

invested in the project

- the greater the time it takes to break-even, the riskier theproject

Measures of economic feasibility


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y

Net present value: A measure over timeof the costs and benefits of the project.Their future values are discounted to

account for the time value of money. Break-even point: The time at which all

the costs of the system will have beenrecovered.

Return on investment: The ratio of thenet present value of the system to thenet present value of the costs.

Measures of economic feasibility


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y

Present Value Formula

PV = FV / (1 + i )n

where

PV is the present value of a cost or benefitfor time period n.

FV is the future value of a cost or benefitin time period n.

i is the interest rate for discounting

future costs or benefits.1 / (1 + i ) n is the discount factor,

dependent only on i and n.


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( 2.18 )

FIGURE 2.18

MARKET ANALYSIS


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Industry Description

Industry Size

Industry status (growing, mature, in decline)

Growth potential Geographic locations

Trends and entry barriers

Profit potential

Sales patterns and gross margins

MARKET ANALYSIS


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Target Market Primary target markets

Secondary markets

Demographics Customer needs analysis

Product/Service Differentiation

Unique features Potential for innovation

MARKET ANALYSIS


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Competitors

Direct and indirect

Market share

Description

Strengths and weaknesses

Emerging

Substitute products

MARKET ANALYSIS


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Competitive Advantage

Proprietary protection

Other competitive advantages

MARKET ANALYSIS


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MARKETING PLAN

Pricing

Venture versus competitors

Value chain

Purpose of Marketing Plan

Target market Unique market niche

Business identity

Marketing Tools

Advertising & promotion

Media Plan

Uses and costs of specific marketing tools

Marketing Budget

Individual costs and total costs as a percentage of sales


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Lecture 6

FINANCIAL AND TECHNICAL

ANALYSIS

174

Financial Feasibility Analysis


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Total start-up cash needed

Financial performance of similar

businesses Overall Financial Attractiveness of

the proposed venture

Financial Feasibility Analysis


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Estimated Total Project Cost

Funding Requirements

Financing Strategy and Structure Project Evaluation

FINANCIAL PLAN


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Simple Profit and Loss Statement

Drive all financial assumptions fromexpected costs, not sales projections.

Try and avoid as many fixed costs aspossible. Outsource

CONTINGENCY PLAN


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Deviations from the Original Plan andSolutions

DEAL STRUCTURE


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Debt and/or Equity Funding Amounts

Projected Return on Investment

Technical Feasibility


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The goal- to assess the extent to which the system can be

successfully designed, developed and installed

Technical risk analysis

- are the users and analysts familiar with the application?- is the organization familiar with the technology?- how large is the projects?- is the new system compatible with the organizationsexisting systems?



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Familiarity with the application- there is a greater risk if

> the analysts are unfamiliar with the application

-- they may misunderstood the users

-- they may miss opportunities for improvement> the users are unfamiliar with the application> the system is new

Familiarity with the technology

- there is a greater chance of risk if> the technology has not been used before> the technology is new



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Project size- the number of people, length of time to

complete, the number of distinct features

- there is a greater chance of risk if> the project is large> the project is highly integrated with other

system

Compatibility- new technology and applications must

integrate with the existing technology


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Lecture 7

PROJECT PLANNING:

EVALUATION, MONITORING &

CONTROL

183

Project Planning


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Guidelines for Project Plans. Use project plans to coordinate rather than to

control. Make use of different personalities within the

project environment. Preschedule frequent revisions to project plans. Empower workers to estimate their own work. Describe value-creating tasks rather than

activities.

Define specific and tangible milestones. Use check lists, matrices, and other supplements

to project plans.

Internal Factors


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Infrastructure Project scope Labor relations

Project location Project leadership Organizational goal Management approach

Technical manpower supply Resource and capital availability

External Factors


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Public needs

Market needs

National goals Industry stability

State of technology

Industrial competitors Government regulations

Components of Project Plan


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Summary of Project Plan Objectives

Approach Policies and Procedures

Contractural Requirements (document problematicareas)

Project Schedule Resource Requirements Performance Measures

Contingency Plans

Tracking, Reporting, and

Project Development Lifecycle


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Planning Phase


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Define problem

Confirmproject feasibility

Produce project schedule

Staff the project

Launch the project

Analysis Phase


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Gather information Problem Domain Application

Define system requirements

Build prototypes for discovery ofrequirements

Prioritize requirements

Generate and evaluate alternatives

Review recommendations with management

Design Phase


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Design and integrate the network

Design the application architecture

Design the user interfaces

Design the system interfaces

Design and integrate the database

Prototype for design details

Design and integrate the system controls

Implementation Phase


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Construct software components

Verify and test

Convert data

Train users and document the system

Install the system

Support Phase


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Maintain the system

Enhance the system

Support the users Help desk


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Lecture 8

PROJECT SEGMENTATION

194

Project Segmentation- Definition


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The process of talking to totalheterogeneous market for productand dividing it into several sub-

markets or segments, each of whichtends to be homogeneous in allsignificant aspects.

W.J. Stanton

BENEFITS/PURPOSE OF MARKET

SEGMENTATION


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to achieve a rapid growth rate.

To do better marketing job and make moreefficient use of marketing resources.

to fulfill the needs of a particular segment in a

better way. To design promotional devices that are

effective and also helps to evaluate theirresults.

To take appropriate decisions relating tointroduction of new products, promotion,distribution, pricing etc

MARKET SEGMENTATION

PROCEDURE


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Step-I: Survey stage

Step-II: Analysis stage

Step-III: profiling stage

BASES FOR CONSUMER MARKET

SEGMENTATION


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Consumer related segmentation

Demographic status

Geographic segmentation Psychographic segmentation


SEGMENTATION


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Product related/Behaviouralsegmentation

Occasion

Benefits

User status

Readiness stage Attitude towards the product


SEGMENTATION


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Loyalty status

Hard core loyals

Soft core loyals Shifting loyals

Switchers


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Lecture 9

CREATIVE PROBLEM SOLVING

201

CREATIVE PROBLEM SOLVING


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Creative problem solving is - lookingat the same thing as everyone elseand thinking something different.

CREATIVE PROBLEM SOLVING-

Process


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Objective finding - define the problem area Fact finding - gather information Problem finding - define the problem

correctly Idea finding - generate solutions to the

problem Solution finding - evaluate and choose

between possible solutions Acceptance finding - implement the

chosen ideas correctly

OBJECTIVE FINDING


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The objective finding stage essentially involvesdivergent thinking to generate a list of problems

Convergence is then used to identify the mostrelevant problem areas for further exploration

'Hits' and 'hotspots' are identified by questioning Ownership - is one motivated to solve it?

Priority - how important is the problem?

Critical nature - how urgent is it to solve this problem?

FACT FINDING


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Next is the fact-finding stage, whereoverall comprehension of the problem isincreased by collection of relevantinformation

This also helps new ideas to be generated

'Hits' and 'hotspots' can assistconvergence

The previously identified problem(s) maynow be seen from a new perspective

PROBLEM FINDING


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Problem-finding essentially uses theprevious stage 'hits' to identify themost productive problem definition

possible.

IDEA FINDING


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Idea-finding helps to structure thesearch for potential solutions

Mainly divergent activity is used togenerate many ideas using a varietyof idea-generation aids

SOLUTION FINDING


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Solution-finding is basically thechoice of ideas that can betransformed into workable solutions.

ACCEPTANCE FINDING


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Acceptance-finding is primarily adivergent activity that helps to implementsolutions successfully, such as

Listing potential implementation obstacles andways to overcome them

Developing both preventive actions andcontingency plans

Generating an action plan to implement a solution

CREATIVE PROBLEM

SOLVING PROCESS


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STEP 1. State what appearsto be the problem.

The real problem may not surface untilfacts have been gathered and analyzed.Therefore, start with what you assume

to be the problem, that can later beconfirmed or corrected.

CREATIVE PROBLEM

SOLVING PROCESS


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STEP 2. Gather facts, feelingsand opinions. What happened? Where, when and how did it occur? What is its size, scope, and severity? Who and what is affected? Likely to happen again? Need to be corrected?

May need to assign priorities to criticalelements.

CREATIVE PROBLEM

SOLVING PROCESS


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STEP 3. Restate the problem. The real facts help make this possible,

and provide supporting data.

The actual problem may, or may not bethe same as stated in Step 1.

CREATIVE PROBLEM SOLVING PROCESS


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STEP 4. Identifyalternative solutions.

Generate ideas. Do noteliminate any possible

solutions until severalhave been discussed.



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STEP 5. Evaluate alternatives.

Which will provide the optimumsolution?

What are the risks?

Are costs in keeping with the

benefits?

Will the solution create newproblems?



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STEP 6. Implement thedecision!

Who must be involved?

To what extent?

How, when and where?

Who will the decision impact?

What might go wrong?

How will the results be reported

and verified?

CREATIVE PROBLEM

SOLVING PROCESS


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STEP 7. Evaluate the results.

Test the solution against the desiredresults.

Make revisions if necessary.


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Lecture 10

TECHNIQUES OF CREATIVE

PROBLEM SOLVING

217

TOOLS & TECHNIQUES


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BRAINSTORMING

Purpose:

To generate a largenumber of ideas in ashort period of time.

BRAINSTORMING


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Rules for Brainstorming:

The more ideas the better!

No discussion

No idea is a bad idea

Build on one anothers ideas

Display all ideas

BRAINSTORMING EXERCISE


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Ideas: Freely record your ideas as they come to your mind.

How Do We Motivate Our LocalOptimist Club Members?

BRAINSTORMING

GUIDELINES


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1. Practice question: How Do WeMotivate Our Local Optimist ClubMembers?

2. Clarify understanding. Once all theideas have been generated (it maytake approximately 5 to 6 minutes),review ideas offered.

RememberCreativeThinking

What did

you mean bythat?!!!

Re-state thequestion to keepthe process going

BRAINSTORMING

GUIDELINES


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3. Combine items thatare similar and/or

eliminate duplicates.

4. Completion.

Letscombineideas!!!

Are wedone yet?

Heuristics In Decision Making


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We all have rules of thumb that we relyon in making decisions. Another term forsuch rules is heuristics.

Heuristic search techniques follow aseries of steps based on rulesdeveloped by experience.

These searches can often providesolutions very close to those found byexhaustive search.

Advantages of Heuristics in Problem

Solving


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Simple to understand

Easy to implement.

Requires less conception time. Requires less cognitive effort.

Can produce multiple solutions.

Appropriate Uses of Heuristics in

Problem Solving


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Input data are inexact or limited.

High computation time for an optimalsolution.

Problems are solved frequently andrepeatedly.

Symbolic processing is involved.

A reliable, exact method is not available. Optimization is not economically feasible.

Traveling


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g

Salesman

Problem

Cities to

Visit

Initial Heuristic SolutionRule: start at home, go to closest city


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Modified Heuristic SolutionRule: no crossing any connection, no

backtracking


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Heuristic Bias


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Sometimes the use of heuristics can hamperfinding a solution. The four majorcategories of bias are:

1. Availability people tend to estimateprobability based on past experience,which may not be representative.

2. Adjustment and anchoring peopleoften pick a starting value and thenadjust up and down from it. They tend tounderestimate the need for adjustments.

Heuristic Bias (cont.)


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Sometimes the use of heuristics can hamperfinding a solution. The four majorcategories of bias are:

3. Representativeness people tend tomisestimate probabilities of belonging toa group.

4. Motivational incentives often leaddecision makers to estimateprobabilities that do not reflect their truebeliefs.

Synectics

The process of generating novel alternatives


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through role playing and fantasizing. Synectics (Gordon, 1961) is an approach to

creative thinking that depends onunderstanding together that which isapparently different. Its main tool is analogy or

metaphor. The approach, which is often usedby groups, can help students develop creativeresponses to problem solving, to retain newinformation, to assist in generating writing,and to explore social and disciplinaryproblems. It helps users break existing mindssets and internalize abstract concepts.Synectics can be used with all ages and workswell with those who withdraw from traditionalmethods (Couch, 1993).

Value Analysis


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A team problem-solving system,developed at the General ElectricCompany in the late 1940s.

Its special power is a techniquecalled Function Analysis whichdramatically shifts the viewpoint of

the problem-solvers.

Key elements to the

Value Analysis process


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FUNCTION ANALYSIS

FUNCTION-COST

FUNCTION-WORTH

CREATE BY FUNCTION

IMPLEMENTATION

THE JOB PLAN

THE TEAM OWNERSHIP

Questions


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234

Questions

1. What do you understand by project? Discuss the elements

of a project.


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2. Discuss in brief all stages in a project establishing

process.

3. Discuss the importance of feasibility study in project

development. Discuss the various types of studies under

feasibility study.

4. Discuss the importance of project evaluation, monitoring

& control in project formulation.

5. Explain the various techniques of creative problem

solving.235

ENTREPRENEURSHIP DEVELOPMENT


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UNIT - III The nature of international

entrepreneurship.

Importance of international business to the

firm.

International versus domestics

entrepreneurship.

Stages of economic development.

Institutional support for new ventures.

Supporting organizations.

Incentives and facilities.

Financial institutions and Small Scale

Industries.

Government policies for SSIs.236

Lectureno


1 The nature of international entrepreneurship. 239-244

LECTUREPLAN Unit- III Sub: ENTREPRENEURSHIP DEVELOPMENTAcademic Consultant: Gaurav Agrawal


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2 Importance of international business to the firm. 246-256

3 International versus domestics entrepreneurship 258-261

4 Stages of economic development 263-275

5 Supporting organizations 277-2826 Incentive and facilities. 284-292

7 Financial institutions and Small Scale Industries. 294-295

8 Financial institutions and Small Scale Industries 297-301

9 Government policies for SSIs. 303-306

10 Government policies for SSIs. 308-314

FAQS, MCQs, CASE STUDY & ASSIGNMENTS 316-320237


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Lecture 1

The nature of international

entrepreneurship

238

Definition:


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International entrepreneurship is theprocess of an entrepreneurconducting business activities

across national boundaries.

Nature of international entrepreneurship


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Complex & diverse

Political

Cultural

Economic

technological



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World wide in scope

Resources

Market

Competition



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Multi displinary

Global challenges

Commercial risks

Political risks

Legal risks

Cargo risks Credit risks

Reasons for international entrepreneurship


243/442

To expand sales

Acquire resources

Diversify sources of sales and

supply Minimize risk

Expansion of technology

Liberalization of Cross-BorderMovements

Routes of international

entrepreneurship


244/442

Direct exporting Licensing Joint ventures Manufacturing Assembly operations Management contract Turn-key operations

Acquisitions & mergers Wholly owned subsidies


245/442

Lecture 2

Importance of international business

to the firm

245


to the firm


246/442

International Entrepreneurship can

Fuel economic growth

Create employment

Generate prosperity for citizens


to the firm


247/442

International business has becomeincreasingly important to firms of allsizes particularly today when every

firm is competing in ahypercompetitive global economy.


to the firm

f


248/442

The successful entrepreneur will besomeone who fully understands howinternational business differs from

purely domestic business.


to the firm

I i i t ti l b i


249/442

Is managing international businessdifferent from managing domesticbusiness?

What are the strategic issues to beresolved in international business

management?


to the firm

Wh t th ti il bl f


250/442

What are the options available forengaging in international business?

How should one assess the decisionto enter into an international market?


to the firm

I t f th N ti


251/442

Importance for the Nation:

Higher economic growth rate.

Reduction in annual rate of inflation.

Relieving the critical balance ofpayments.


to the firm

R b ilt f i h

7/28/20

entrpreneurship development

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