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Project Management

The document outlines the key factors to consider in analyzing the viability of a new project. It discusses conducting a market analysis to determine aggregate demand and potential market share, including analyzing consumption trends, supply levels, production constraints, and consumer behavior. A technical analysis should ensure the appropriate technology, equipment, and layout is selected. The financial analysis covers investment costs, financing options, profitability projections, and risk assessment. The economic analysis measures direct benefits and costs in efficiency prices and considers impacts on income distribution, savings, and social goals. An ecological analysis determines potential environmental damage and required restoration costs.

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94 views2 pages

Project Management

The document outlines the key factors to consider in analyzing the viability of a new project. It discusses conducting a market analysis to determine aggregate demand and potential market share, including analyzing consumption trends, supply levels, production constraints, and consumer behavior. A technical analysis should ensure the appropriate technology, equipment, and layout is selected. The financial analysis covers investment costs, financing options, profitability projections, and risk assessment. The economic analysis measures direct benefits and costs in efficiency prices and considers impacts on income distribution, savings, and social goals. An ecological analysis determines potential environmental damage and required restoration costs.

Uploaded by

satishkumar86
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Market analysis:-

preliminarily two questions


what would be the aggregate demand of the proposed product/service in the future
what would e the market share of the project under appraisal
to answer the above questions the market analysis required
1. consumption trends in the past and present consumption level
2. past and present supply position
3. production possibilities and constraints
4. imports and exports
5. structure of competitions
6. cost of competition cost structure
7. elasticity of demand
8. consumer behaviour, intentions, motivations , attitudes, preference, and requirements
technical analysis

1 whether the preliminary tests and studies have been done or provided for?
2. whether the availability of raw materials, power and other inputs has been established
3. whether the selected scale of operation is optimal ?
4. Whether the equipment and machines chosen are appropriate
5. whether the auxiliary equipments and supplementary engineering works have been provided for
6. whether provision has been made for the treatment of effluents?
7. Whether the proposed layout of the site buildings and plant is sound.
8. Whether eork schedules have been realistically drawn up?
9. Whether the technology proposed to be employed is appropriate from the social point of view.

Financila analysis
1. Investment outlay and cost of project
2. means of financing
3. cost of capital
4. projected profitability
5. break even point
6. cashflow of the project
7. investment worthwhileness judge in terms of various criteria of merit
8. projected financial position
9. level of risk
Economic analysis
1. what are the direct economic benefits and cost of the project measured in the terms of
shadow (efficiency) prices and not in terms of market prices?
2. What would be the impact of the project on the distribution of income in the society
3. what would be the impact of the project on the level of savings and investment in the
society.
4. What would be the contribution of the project towards the fullfillment of certain merit
wants like self sufficiency, employment and social order.
Ecological analysis
1. What is the likely damaged caused by the project to the environment.
2. What is the cost of Restoration measures required to ensure that the damage to the
environment is contain within acceptable limites.
PROJECTS BY PRASANA CHANDRA
Key issues in project analysis

Market analysis:-
a) potential market
b) market share

Technical analysis:-
a) technical viability
b) sensible choices

Financial analysis
a)risk
b) return

Economics analysis
a) benefits and costs in shadow prices
b) other impacts

Ecological analysis:-
a) environment damage
b) Restoration measures

Government sector
1. industrial policy
2. government programs and projects
3. tax framework
4. subsidies, incentives and concessions
5. import and export policies
6. financing norms
7. lending conditions of financial institutions and commerce banks

Competition
1. no of firms in the industry and the market share of top few
2. degree of homogeneity and differentiation among products
3. entry barriers
4. comparison with substitutes in terms of quality, price, appeal and functional performance
5. marketing policies and practices
Socio demographic sector
1. population trends
2. age shifting population
3. income distribution
4. educational profile
5. employment of women
6. attitudes towards consumtion and investment

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