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Facets of project analysis
- 1. Facets of Project Analysis Market Analysis Technical Analysis Financial Analysis Economic Analysis Ecological Analysis
- 2. Market and Demand Analysis Collection of Demand data forecasting Situational Analysis & Characterization Specification of the market of objectives Conduct Market Market planning survey
- 3. Situation analysis and objectives specification A process that studies customer preferences and their purchasing capacity and strategies of competing firms and intermediaries Adequate informations are generated through informal talks and feels adequate present and future demands can be generated, then a formal study can be done. Otherwise the idea can be dropped Before going to formal study the project manager needs to define the objectives of the study.
- 4. Collection of data Data are of two types Primary data Secondary data Primary data is the data collected for a specific purpose and for the first time Primary data can be obtained from both internal and external Internal primary data-past and current sales of the firm, observations of employees etc External primary data is obtained from the opinions of the dealers, feedback of the sales personnel and sales trends etc Secondary data is the data that is already available but might have been collected for some other purpose or by some other institutions Secondary data is considered to be more useful in market analysis as it is easy to obtain and is also economical Some of the secondary data sources are-Census of India, National Sample Survey Reports, Plan reports, Statistical Abstract of the Indian Union, India Year Book, Statistical Year Book etc Evaluation of secondary data is an important task to know its reliability, accuracy and relevance for the purpose under consideration
- 5. Conduct Market Survey Secondary information, though useful, often does not provide a comprehensive basis for market and demand analysis There is a need to be supplemented with the primary information through market survey A market survey is useful in determining the total market demand, demand growth rate in different segments of the market, understanding the inner motives of the customer and measuring the unsatisfied needs of the customers
- 6. Steps involved in market survey Defining the target market Selecting the sample Developing the questionnaire Recruit and train the field investigators/surveyors Recording the information Scrutinize the information gathered Analyze and interpret the information
- 7. Some problems-market survey in India Heterogeneity of the country Multiplicity of Languages Design of questionnaire
- 8. Characterization of market Based on the information obtained from secondary data and market survey, the project manager describes the marketability of the project idea in terms of Effective demand Breakdown of demand Price Consumers interest Methods of distribution and sales promotion Supply and competition Government policy
- 9. Demand Forecasting Using information obtained from secondary data, market survey and market characterization/description Forecasting methods can be divided into 3 categories-Qualitative methods, Time series projection method, and Causal methods
- 10. Qualitative Methods Rely essentially on the judgment of experts to qualitative information into quantitative estimates Important qualitative methods are Jury of executive opinion method, Delphi method etc
- 11. Time series projection methods Generates forecasts on the basis of an analysis of the historical data The important methods are-Trend projection method, Exponential smoothing method, moving average method
- 12. Causal method More analytical than the preceding method Seek to develop forecasts on the basis of cause-effect relationships specified in an explicit, quantitative manner Important methods are-Chain ratio method, Consumption level method, End use method, Leading indication method, Econometric method
- 13. Uncertainties in demand forecasting Data about past and present market Methods of forecasting Environmental change
- 14. Market planning Refers to planning and designing the four P’s of marketing namely, Product, Price, Place, and Promotion Product-product variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns Price-list price, discounts, allowances, payment period, credit terms Place-channels, coverage, assortments, locations, inventory, transport Promotion-sales promotion, advertising, sales force, public relations, direct marketing
- 15. Economic Analysis and Ecological Analysis
- 16. Economic Analysis Also referred to as social-cost- benefit analysis SCBA is a process which is concerned with evaluation of investment projects from the point of view of the society (or economy) as a whole Recently economic analysis has gained significance
- 17. Ecological Analysis Environment has gained a lot of significance-rightly it also deserves Ecological analysis should be done particularly for those projects which have significant ecological implications like power plants and irrigation schemes and environmental-polluting industries Major 2 questions arises-1. what is the likely damage caused? 2. what is the cost of restoration measures required?