As per PTU Syllabus BBA, Unit No. 4: Entrepreneurial Process: search for best opportunity, Steps of entrepreneurial process: Deciding – Developing – Moving – Managing – Recognizing. Feasibility Analysis: Economic, Managerial competency. Marketing, Financial & Technical, Environmental Scanning and SWOT analysis.

1. Unit No. 2
Entrepreneurial Process: search for best opportunity, Steps of
entrepreneurial process: Deciding –
Developing – Moving – Managing – Recognizing.
Feasibility Analysis: Economic, Managerial competency. Marketing,
Financial & Technical, Environmental Scanning and SWOT analysis.

2. Head start for village India
• Company: Hippocampus Learning
Centres
• Founder: Mr. Mahesh Malhotra
• Inception: 2011
• Area of business: Pre-schools of
rural kids: tries to bridge the urban-
rural gap in kindergarten education
• Funding: $21 mn in 5 rounds
• Investors: Asian Development
Bank, Unitus Seed Fund, Khosla
Impact, Acumen and Lok Capital
2

3. • In rural India, a vast majority of parents are less exposed
to education facilities and demand far less than their
urban counterparts
• While addressing pre-schooling needs, it also generates
employment for women who are trained for 15 days.
Things taught during six months of Montessori training
and two years of experience are condensed into a two-
week curriculum.
3

4. • HLC charges Rs 2,000 per year per child as fees.
• It has reached about 11,000 pre-school students and has a
little over 600 teachers.
• They invested in a business that is highly scalable and
profitable, while serving a dire social need
• Also, unlike these training centres where the pedagogy is
mostly in English, HLC offers bilingual training.
4

5. Entrepreneurship Process
• Deciding
• Developing
• Moving
• Managing
• Recognizing
5

6. Entrepreneurial Process
• Generating Business Idea
• Opportunity recognition
• Environmental Scanning: Internal and External
• Feasibility Analysis
• Business Plan
• Preparing Project Report
6

7. Develop
The stage in which the entrepreneur
generates ideas, recognizes
opportunities, and studies the
market
Idea
OpportunityInnovation

8. What is An Idea, Opportunity and
Innovation?
• An idea is a concept for a product or service that does not
exist or is not currently available in a market niche.
• In contrast, an opportunity is an idea for a new product or
service with a market that is willing to pay for that
product or service so that it can form the basis of a
profitable business.
• Innovation is the process of making changes to
something that adds value to customers.

9. Where do I begin?
Idea Generation
Fun
95% perspiration and 5% inspiration

10. ‘Business is not about
the idea of power, but
the power of ideas’
•IDEA GENERATION is the creative
process of generating, developing, and
communicating new ideas.

11. From Where the Good Idea
came????????
• Customer needs and wants are the logical place to start
the search for ideas.

12. 17-12

13. Generating Ideas
Employees
Competitors
Lead Users

14. 14

15. 15

16. What is an Opportunity?
2-
16
An opportunity has four essential qualities

17. Three Ways to Identify an Opportunity
Online Shopping Apps Electric carsRedbus.in

18. 18

19. “It is useless to tell a river to stop running;
the best thing is to learn how to swim in
the direction it is flowing.”
-Anonymous

25. 25

26. Competitor Analysis
26

27. • Project Management
Feasibility and
Viability analysis –
Technical – Financial –
Network – Appraisal
and Evaluation
27

28. 28

29. 29

31. Essentials for Project Report
• 1. The project report should be sequentially arranged.
• 2. The project report should be covering all the details about the
proposed project.
• 3. The project report should not be very lengthy a subjective.
• 4. The project report should justify the financial needs and
financial projection.
• 5. The project report should also justify market prospects and
demands.
• 6. The project report should be attractive to the financial agencies
and investors. 31

32. 32

33. 33

34. Feasibility study
• Feasibility study is an assessment of the practicality of a
proposed project.
• Preliminary evaluation of idea to determining if it’s
worth pursuing
• Provides more secure notion that a business idea is
viable
34

35. • A feasibility study aims to objectively and rationally
uncover the strengths and weaknesses of an existing
business or proposed venture, opportunities and threats
present in the environment, the resources required to
carry through, and ultimately the prospects for success
• In its simplest terms, the two criteria to judge feasibility
are cost required and value to be attained.
35

36. Why to do feasibility Analysis
• Assess Economic Viability of Project
• Protects from large capital investment
• Outline ideas before implementation
• Presents associated risk and return
• Gives objective evaluation of project to lenders
36

37. Types of feasibility
• Economic
• Financial
• Technical
• Operational
• Managerial
• Marketing
37

38. Economic feasibility
• The purpose of the economic feasibility assessment is to
determine the positive economic benefits to the
organization that the proposed system will provide.
• It includes quantification and identification of all the
benefits expected. This assessment typically involves a
cost/ benefits analysis.
38

39. METHODS
• Economic rate of return (ERR)
• Social rate of return
39

40. Technical feasibility
• This assessment is based on an outline design of system
requirements, to determine whether the company has the technical
expertise to handle completion of the project.
• The technical feasibility assessment is focused on gaining an
understanding of the present technical resources of the organization
and their applicability to the expected needs of the proposed system.
It is an evaluation of the hardware and software and how it meets the
need of the proposed system
40

41. • When writing a feasibility report, the following should be
taken to consideration:
• A brief description of the business to assess more
possible factors which could affect the study
• The part of the business being examined
• The human and economic factor
• The possible solutions to the problem
41

42. Factors
• Material Inputs
• Manufacturing Process and Technology
• Plant Capacity
• Location
• Machinery and Procurement
42

43. Financial Feasibility
• Capital requirements
• Financial rate of return
• Overall attractiveness of the investment
• Sources of Financing the project
43

44. 44

45. Marketing
• Demand
• Supply
• Distribution
• Prices

46. Marketing
• Demand: Bobba estimates the in-home health care sector
to be growing at 25-30 per cent compounded annually. It
will be a $100-billion market in 15-20 years, he says.
• Prices: It provides post-surgery care and senior care using
high-end technology. Among the healthcare packages is a
~9,999 scheme for individuals, including a visits by
doctors and services including blood pressure, sugar
checks and email consultations.

47. • Supply and Distribution: Here, there are no operating
beds and there’s no real estate. It is about last-mile
delivery. It’s about remote patient care
47

48. Factors
• Marketing Potential
• Competitors
• Cost of Project
• Economic Trends

49. Factors
• Marketing Potential: In-home healthcare is estimated to be
a $3-billion opportunity in India.
• Competitors: With the number of old people rising, the
business can only grow and more players are looking
to enter the segment
• Cost of Project
• Economic Trends:

50. Operational feasibility
• Operational feasibility is a measure of how well a proposed system
solves the problems, and takes advantage of the opportunities
identified during scope definition and how it satisfies the
requirements identified in the requirements analysis phase of system
development.
• The operational feasibility assessment focuses on the degree to which
the proposed development projects fits in with the existing business
environment and objectives with regard to development schedule,
delivery date, corporate culture, and existing business processes.

51. Elements
• Process
• Evaluation
• Implementation
• Resistance
• Strategies
• Adapt and Review

52. Managerial Feasibility
• Purpose: determine if business has sufficient skills/resources
to bring product/service to market successfully
• Non-financial factors important to consider here
• 2 primary issues to consider:
1. Management prowess
2. Resource sufficiency

53. Importance of Feasibility Analysis
• Understanding Demand
• Assessing resources
• Marketing feasibility
• Marking a Time line

54. “It is useless to tell a river to stop running;
the best thing is to learn how to swim in
the direction it is flowing.”
-Anonymous

56. • Different environmental variables exist internally and externally to the business
enterprise.
• Environmental variables have a positive or negative influence on the enterprise.
• Business environment consists of two sub-environments:
• Internal environment
External environment – consists of :-
• Micro/Operating environment
• Macro/General environment
• Mutual relationships exist between these environments
Environment Scanning

57. Factors Influencing Business Decision

58. Types of Environment

59. PESTEL Analysis (Macro Environmental Analysis)

60. Economic Environment
• Economic stages that exists at a given time in a country
• Economic system that is adopted by a country for example. Capitalistic,
Socialistic or Mixed Economy
• Economic planning, such as five year plans, budgets, etc.
• Economic policies for example, monetary, industrial and fiscal policies
• Economic Indices such as National Income, Per Capital Income,
Disposable Income, Rate of growth of GNP, Distribution of Income,
Rate of savings, Balance of Payments etc.
• Economic Problems
• Functioning of economy

62. Household savings fell by almost one percentage point from 22.8% of
GDP in 2011-12 to 21.9% in 2012-13
Household savings have averaged around 22% of GDP, but there has
been a major shift in the composition (from financial savings to physical
savings) because of high inflation and lower returns on financial
instruments such as bank deposits, stocks and insurance vis-a-vis physical
investments like gold and real estate
http://archive.financialexpress.com/news/budget-2014-indias-falling-savings-inflation-investm
www.livemint.com/Opinion/ZDgCdU87oxU6cPnClpc2yN/Improving-Indias-savings-rate.ht

64. Non Economic Environment
• Regulatory Environment
• Socio- Cultural Environment
• Demographic Environment
• Technological Environment
• Political Environment

65. Non- Economic Environment
• Cultural Environment
• Social Customs & Rituals and practices
• Lifestyle patterns
• Family structure
• Role & position of men, women, children and aged in family & society

69. Non- Economic Environment
Demographic Environment
 Growth of population
 Age Composition
 Life Expectancy
 Sex Ratio
 Fertility and Mortality rates
 Inter-state migration

70. Age structure:
• India has more than 50% of its population below the age of 25
• More than 65% below the age of 35
• It is expected that, in 2020, the average age of an Indian will be 29
years, compared to 37 for China and 48 for Japan
• The age structure of a population affects a nation's key
socioeconomic issues. Countries with young populations (high
percentage under age 15) need to invest more in schools, while
countries with older populations (high percentage ages 65 and over)
need to invest more in the health sector.

71. Macro Environment
 Technological Environment
 Sources of technology
 Technological development
 Impact of technology
 Political Environment
 Political parties in power
 Political Philosophy

72. Macro Environment
• Regulatory Environment
• Constitutional framework
• Policies relating to pricing and
foreign investment
• Policies related to the public
sector, SSIs, development of
backward areas and control
of environmental pollution

74. • S- Strengths
• W- Weaknesses ------------ INTERNAL
ENVT.
• O- Opportunity
• T- Threats ------------------ EXTERNAL
ENVT.
Environment Analysis
The purpose of Environment Analysis is to identify
the, strengths, Weakness, opportunities and threats in the
organization’s operating environment.

75. SWOT Analysis
S W O T
Technique is credited to Albert
Humphrey who led a research
project at Stanford University in
the 1960s and 1970s

76. STRENGTHSSTRENGTHS
Characteristics of the business or a team
that give it an advantage over others in the
industry.
Positive tangible and intangible
attributes, internal to an organization.
.
Examples - Abundant financial resources,
Well-known brand name, Economies of
scale, Lower costs [raw materials or
processes], Superior management talent,
Better marketing skills, Good distribution
skills, Committed employees.
What is SWOT Analysis?

77. WEAKNESSESWEAKNESSES
Characteristics that place the firm at a
disadvantage relative to others.
Detract the organization from its
ability to attain the core goal and
influence its growth.
Examples - Limited financial resources,
Weak spending on R & D, Very narrow
product line, Limited distribution,
Higher costs, Out-of-date products /
technology, Weak market image, Poor
marketing skills, Limited management
skills, Under-trained employees.
What is SWOT Analysis?

78. OPPORTUNITIESOPPORTUNITIES
What is SWOT Analysis?
Chances to make greater profits in the
environment - External attractive factors
that represent the reason for an
organization to exist & develop.
Arise when an organization can take
benefit of conditions in its
environment to plan and execute
strategies that enable it to become
more profitable.
Organization should be careful and
recognize the opportunities and grasp
them whenever they arise. Opportunities
may arise from market, competition,
industry/government and technology.
Examples - Rapid market growth, Rival
firms are complacent, Changing customer
needs/tastes, New uses for product
discovered, Economic boom, Government
deregulation, Sales decline for a substitute
product .

79. SWOT ANALYSIS - THREAT
!
THREATSTHREATS
What is SWOT Analysis?
External elements in the environment that
could cause trouble for the business -
External factors, beyond an organization’s
control, which could place the
organization’s mission or operation at risk.
Arise when conditions in external
environment jeopardize the reliability
and profitability of the organization’s
business.
Compound the vulnerability when they
relate to the weaknesses. Threats are
uncontrollable. When a threat comes, the
stability and survival can be at stake.
Examples - Entry of foreign competitors,
Introduction of new substitute products,
Product life cycle in decline, Changing
customer needs/tastes, Rival firms adopt
new strategies, Increased government
regulation, Economic downturn.

80. HELPFUL
HARMFUL
S W
TO
To help decision makers
share and compare
ideas.
To bring a clearer
common purpose and
understanding of
factors for success.
To organize the
important factors
linked to success and
failure in the
business world.
To analyze issues
that have led to
failure in the past.
Aim of SWOT Analysis?
To provide linearity to
the decision making
process allowing
complex ideas to be
presented
systematically.

81. Build on your
Strengths
Evaluate your
Opportunities Research your
Threats
Recognise your
Weakness

82. EXAMPLE
Mc Donald’s SWOT Analysis

83. WEAKNESSES
• Failing pizza test market thus limiting the
ability to compete with pizza providers.
• High training costs due to high turnover.
• Minimal concentration on organic foods.
• Not much variation in seasonal products .
• Quality concerns due to franchised operations.
• Focus on burgers / fried foods not on healthier
options for their customers.
• Ranks very high on the Fortune Magazine's most
admired list
• Community oriented
• Global operations all over the world
• Cultural diversity in the foods
• Excellent location
• Assembly line operations.
• Use of top quality products
STRENGTHS
INTERNAL
• Marketing strategies that entice people from
small children to adults.
• Lawsuits for offering unhealthy foods.
• Contamination risks that include the threat of
e-coli containments.
• The vast amount of fast food restaurants that
are open as competition.
• Focus on healthier dieting by consumers.
• Down turn in economy affecting the ability to eat
that much.
THREATS
• Opening more joint ventures.
• Being more responsive to healthier options.
• Advertising wifi services in the branches.
• Expanding on the advertising on being
more socially responsible
• Expansions of business into newly developed
parts of the world.
• Open products up to
allergen free options
such as peanut free.
OPPORTUNITIES
EXTERNAL
Mc Donald’s
SWOT Analysis