ITM KHARGHAR

PGDM TRIMESTER V
ENTREPRENEURSHIP
NOV 09
 IT IS THE PRACTICE OF STARTING NEW
ORGANIZATIONS OR REVITALIZING
MATURE ORGANIZATIONS, PARTICULARLY
NEW BUSINESSES IN RESPONSE TO
IDENTIFIED OPPORTUNITIES.

WHAT IS ENTREPRENEURSHIP?
 SCALE
 FUNDING-VENTURE CAPITAL OR ANGEL
FUNDING
 SUPPORT FROM BUSINESS INCUBATORS,
SCIENCE PARKS, NGOS AND
EDUCATIONAL INSTITUTIONS
 RISK AND AMBIGUITY

SOME ASPECTS-----
 AN ENTREPRENEUR IS ONE WHO
CREATES NEW BUSINESSES IN THE
FACE OF RISK AND UNCERTAINTY
FOR THE PURPOSE OF ACHIEVING
PROFIT AND GROWTH BY
IDENTIFYING SIGNIFICANT
OPPORTUNITIES AND ASSEMBLING
THE NECESSARY RESOURCES TO
CAPITALIZE ON THEM.

WHO IS AN ENTREPRENEUR
THE ENTREPRENEUR IN AN ADVANCED
ECONOMY IS AN INDIVIDUAL WHO
INTRODUCES SOMETHING NEW IN THE
ECONOMY- A METHOD OF PRODUCTION NOT
YET TESTED BY EXPERIENCE IN THE BRANCH
OF MANUFACTURE CONCERNED, A PRODUCT
WITH WHICH CONSUMERS ARE NOT YET
FAMILIAR, A NEW SOURCE OF RAW MATERIAL
OR OF NEW MARKETS AND THE LIKE
JOSEPH SCHUMPETER
 BUSINESS ENTREPRENEUR
 TRADING ENTREPRENEUR
 CORPORATE ENTREPRENEUR
 AGRICULTURAL ENTREPRENEUR
 TECHNICAL ENTREPRENEUR
 PROFESSIONAL ENTREPRENEUR
 INNOVATIVE ENTREPRENEUR
 IMITATIVE ENTREPRENEURS

TYPES
 NEED FOR ACHIEVEMENT-STRONG DESIRE TO BUILD
 NEED TO WORK INDEPENDENTLY
 INGENUITY AND RESOURCEFULNESS
 ABILITY TO EXPLOIT OPPORTUNITIES
 OPTIMISM IN DECISION MAKING PROCESSES
 VISION AND DRIVING FORCE
 PRUDENT RISK TAKING
 HIGH DEGREE OF MOTIVATION
 FUTURE ORIENTATION
 TOLERANCE FOR AMBIGUITY
 ORGANIZING SKILLS

CHARACTERISTICS
 MANAGERS MUST BE ABLE TO TRANSLATE THEIR
CAREER AMBITIONS INTO SPECIFIC BUSINESS
GOALS
 MUST UTILIZE PEOPLES MANAGEMENT TO
MOTIVATE AND INSPIRE THEIR EMPLOYEES
 MUST CAPITALIZE ON THEIR SKILLS TOMANAGE
FINANCIAL ASPECTS PERSONALLY
 MUST CONVERT AGGRESSION IN THE WORK
PLACE INTO A RISK TAKING APPROACH
 MUST LEVERAGE THEIR FUNCTIONAL EXPERTISE
IN CHOOSING THEIR LINE OF BUSINESS
 MUST DEVELOP LEADERSHIP QUALITIES ON THE
JOB BEFORE VENTURING OUT ON THEIR OWN.

To morph into an entrepreneur---

 OPPORTUNITY TO CREATE OWN
DESTINY
 OPPORTUNITY TO MAKE A
DIFFERENCE
 OPPORTUNITY TO REACH YOUR OWN
POTENTIAL
 ENORMOUS PERSONAL AND
FINANCIAL GAINS
 OPPORTUNITY TO DO WHAT YOU
ENJOY.

BENEFITS
DRAWBACKS
 UNCERTAINTY OF INCOME
 RISK OF LOSING ENTIRE
INVESTMENT
 LONG HOURS OF HARD WORK
 LOWER QUALITY OF LIFE
 DISCOURAGEMENT
 COMPLETE RESPONSIBILITY
NO OF HRS PER WEEK

MORE THAN 60
HRS-17% LESS THAN
30 HRS-11%

51-60 30-40 HRS-

HRS-20% 24%

41-50 HRS-
28%
 PATRICIA NOERTZ-ARCHER DANIELS MIDLANDS-
$36 BN
 INDIRA NOOYI-PEPSI CO-$32 BN
 BRENDA BARNES-SARA LEE-$19.7 BN
 MARY SAMMONS-RITE AID-$16.8 BN
 PATRICIA RUSSO- LUCENT TECH- $9.4 BN
 SUSAN IVEY- REYNOLDS AMERICAN-$8.3 BN
 ANDREA JUNG-AVON PRODUCTS-$8.1 BN
 PAULA REYNOLDS-SAFE CO-$6.4 BN
 MEG WHITMAN-e BAY- $4.6 BN

TOP NOTCH WOMEN

ENTREPREPRENEURS(ET-06)
 BILL GATES-56BN
 WARREN BUFFET-$52BN
 CARLOS SLIM-49BN
 LAXMI MITTAL-32BN
 LI KA SHENG-23BN
 ANIL AND MUKESH AMBANI-$70 BN plus

TOP NOTCH ENTREPRENEURS

 SELF CONFIDENCE- THE #1 ATTITUDE
 VALUE THEIR SENSE OF FREEDOM
 DISCIPLINE
 HARDWORKING
 GOAL ORIENTED
 FLEXIBLE, OPPORTUNISTIC, RECOGNIZE
THE POWER OF EMERGENCE
 EGOLESNESS
 LOVE MONEY

PROFILE
 Do you back yourself to succeed every
time
 Do you take important decisions or does
someone else take them for you?
 Do you enjoy the process irrespective of
the outcome
 How well do you handle small adversities
 Did you ever feel helpless- how well did
you handle the situation at that time?

ASK YOURSELF---
 Do you know your physical and mental
limitations?
 Do you make friends with a stranger
 Do you feel comfortable in talking about
yourself
 Do you have a sense of
discipline/systematization in your life?
 Does the act of buying and selling excite
you

Keep asking----
 ENTREPRENEURIAL
CULTURE
INCREASED
PRODUCTIVITY

COMPETITIVE EDGE IMPROVED

QUALITY
INNOVATION

•SOCIETAL CULTURE UNDERSTANDING

•PRODUCTIVITY CUSTOMER
CULTURE NEEDS

•TQC
WORLD CLASS
•ORGANIZATIONAL SERVICE
CULTURE
•CORPORATE VALUES
THE SUPPLY OF ENTREPRENEURSHIP IS
LIMITED BY THE SCARCITY OF THE
REQUISITE PERSONAL QUALITIES AND
SECONDLY, BY THE DIFFICULTY OF
IDENTIFYING THEM WHEN THEY ARE
AVAILABLE----------
EXCHANGE RELATIONSHIP
 PERCEIVING OPPORTUNITIES
 GAINING COMMAND OVER SCARCE RESOURCES
 PURCHASING INPUTS
 MARKETING OF PRODUCTS IN RESPONSE TO
COMPETITION
PRACTICAL ADMINISTRATION
 DEALING WITH PUBLIC BUREAUCRACY
 MGT OF HUMAN RELATIONS
 MGT OF CUSTOMER AND SUPPLIER RELATIONS

TASKS OF AN ENTREPRENEUR
 JOB CREATION
 ECONOMIC GROWTH
 NEW TECHNOLOGY
 SERVING SMALL MARKETS

CONTRIBUTION TO THE ECONOMY

 BASED ON TIMING OF VENTURE CREATION
EARLY STARTERS
EXPERIENCED
MATURE
 CLASSIFICATION BASED ON ENTREPRENEURIAL ACTIVITY
NOVICE
SERIAL ENTREPRENEUR
PORTFOLIO ENTREPRENEUR
 CLASSIFICATION BASED ON SOCIO-CULTURAL VARIABLES
FIRST GENERATION
FROM BUSINESS FAMILIES
MINORITY
WOMEN

TYPES OF ENTREPRENEURS
MGT CONTROL
FINANCIAL MGT
PRODUCTION MGT
TECHNOLOGY
ACQUIRING AND OVERSEEING
ASSEMBLING OF THE FACTORY
UPGRADING PROCESS AND PRODUCT
QUALITY

INTRODUCTION OF NEW PRODUCTION

TECHNIQUES,PRODUCTS
 When asked the secret of his success,
Richard Branson who founded the
multinational Virgin Group said ”Knowing
what exactly gets me up every morning”
he responded” that I am ruthless, that I
am not out to win but to beat others to
pulp”

RICHARD BRANSON SAYS---

 AVAILABILITY OF CAPITAL
 SUPPORTIVE GOVERNMENTAL
PROGRAMMES
 AVAILABILITY OF REQUIRED TRAINING
AND INPUTS
 COLLABORATIVE RELATIONSHIP
BETWEEN BUSINESS AND RESEARCH.
 CREATION OF AN ENVIRONMENT
CONDUCIVE TO INNOVATION

STIMULANTS
 EDP AS A MEANSTO DEAL WITH A VARIETY OF PROBLEMS
 IDENTIFICATION OF OPPORTUNITIES THROUGH
ACCESSIBILITY TO INFORMATION
 STRENGTHENING OF ENTREPRENEURIAL QUALITIES
 DEVELOPING PEOPLES SKILLS
 BUSINESS EDUCATION
 LEGAL ASPECTS
 PROJECT FORMULATION AND IMPLEMENTATION
 DEVELOPMENT OF MULTI- SKILLS

ENTREPRENEURSHIP
DEVELOPMENT
 ON THE JOB TRAINING
 PARTICIPATION IN QUALITY CIRCLES
 INPUTS FROM SUCCESSFUL ENTREPRENEURS

 MODULAR TRAINING
 MODULES IN FINANCE
 GROUP TRAINING ON TECHNICAL SUBJECTS
 GROUP TRAINING ON MANAGERIAL SUBJECTS

TRAINING TOOLS AVAILABLE

 MDI GURGAON
 IITS/IIMS
 NIESBUD
 STEPS
 ENTREPRENEURSHIP MOTIVATION CENTRE
 XISS
 COMMERCIAL BANKS
 MCED
 NAYE

INSTITUTIONS IN AID OF
ENTREPRENEURS
 ESTABLISHING YOURSELF AS A SUCCESSFUL
ENTREPRENEUR DEPENDS IN PART UPON
CHOOSING A GOOD IDEA.AN IDEA MUST NOT
ONLY BE GOOD FOR THE MARKET BUT ALSO
GOOD FOR THE PROJECT, GOOD FOR THE
ENTREPRENEURS. IT SHOULD BE MANAGEABLE
WITHOUT MUCH DEPENDENCE ON OTHERS.

THE BUSINESS IDEA

 SELECTION OF THE PRODUCT
 EVELUATION OF THE PRODUCT
 LABORATORY DEVELOPMENT
 PILOT PRODUCTION RUN
 SEMI- COMMERCIAL PLAN TRIALS
 COMMERCIAL STAGE

STAGES
 AWARENESS
 INTEREST
 EVALUATION
 TRIAL
 ADOPTION

ADOPTION PROCESS
 NEW PRODUCT IDEAS
 IDEA SCREENING
 CONCEPT DEVELOPMENT AND TESTING
 BUSINESS ANALYSIS
 PRODUCT DEVELOPMENT PROGRAMME
 TEST MARKETING
 COMMERCIALIZATION

PPD
 A BUSINESS PLAN IS A WRITTEN DOCUMENT PREPARED
BY THE ENTREPRENEUR THAT DESCRIBES ALL THE
RELEVENT EXTERNAL AND INTERNAL ELEMENTS INVOLVED
IN STARTING A NEW VENTURE. IT IS AN INTEGRATON OF
FUNCTIONING OF FUNCTIONAL PLANS SUCH AS
MANUFACTURING, FINANCE, MARKETING, AND HUMAN
RESOURCES.

BUSINESS PLAN
 MAY BE PREPARED BY THE ENTREPRENEUR
 CONSULTATION REQUIRED
 INTERNET
 SKILL ASSESSMENT

SCOPE AND VALUE

 EMPLOYEES
 INVESTORS
 VENTURE CAPITALISTS
 CUSTOMERS
 ADVISORS
 CONSULTANTS

WHO SHOULD WRITE THE

PLAN
 RESOURCES REQD IN TERMS OF PLANT EQUIPMENT AND
MATERIALS
 SCHEDULE OF AVAILABLE RESOURCES
 PREMISES REQUIREMENT AND AVAILABILITY
 TRANSPORT REQUIREMENTS
 PERSONNEL REQUIRED
 INSURANCE REQUIREMENTS
 GOODWILL BASE

RESOURCES REQD-----------
THE BUSINESS IDEA
o TYPE OF BUSINESS PROPOSED AND SERVICES TO BE OFFERED
o METHOD OF OPERATION
o LOCATION AND OPERATIONAL AREA
o OUTLINE OF MARKET AND CUSTOMERS
o STATEMENT OF VIABILITY
PROPRIETORS OF THE BUSINESS
o DETAILS OF KEY PERSONNEL
o REASONS FOR CHOICE OF THE BUSINESS
o APPRAISAL OF AVAILABLE SKILLS AND IDENTIFIED
DEVELOPMENT NEEDS

STRUCTURE OF A BUSINESS PLAN

“A BUSINESS PLAN HELPS YOU TO ESTABLISH
WHERE YOU ARE,WHERE YOU INTEND TO GO AND
HOW YOU INTEND TO GET THERE”
 BUDGETARY PLANS AND CASH FLOW FORECASTS
 EXPLANATION OF THE BASIS FOR PLANNED BUDGETS
 BREAK EVEN ANALYSIS AND PROFIT FORECASTS
 VALUE OF AVAILABLE CAPITAL AND RESOURCES
 FURTHER FINANCE REQUIRED
 POTENTIAL SOURCES OF FUNDS
 CHOSEN SOURCES OF FINANCE AND REASONS FOR
CHOICE

FINANCIAL PLANS
 HELPS DETERMINE THE VIABILITY OF THE VENTURE IN A
DESIGNATED MARKET
 PROVIDES GUIDANCE TO THE ENTREPRENEUR IN
ORGANIZING HIS OR HER PLANNING ACTIVITIES
 IT SERVES AS AN IMPORTANT TOOL IN OBTAINING
FINANCE
 USEFUL FOR START UP ENTERPRISES
 MODEL OF GOOD PRACTICES
 MONITORING PROGRESS AND ACHIEVEMENTS AGAINST
TARGETS LAID DOWN

BUSINESS PLAN IMPORTANT

BECAUSE-----
 CUSTOMER FEEDBACK
 QUALITY OF GOODS AND SERVICES
 MEASUREMENT OF GROWTH OF BUSINESS IN
COMPARISON TO PREVIOUS YEARS
 COMPARING ACTUAL/PLANNED INCOME AND
EXPENDITURE
 PROFITMARGINS
 ANALYSIS OF DEBTORS AND CREDITORS,
PAYMENT TERMS ETC TO ENSURE LIQUIDITY.

MEASUREMENT OF SUCCESS
 GOALS SET BY ENTREPRENEURS
UNREASONABLE
 GOALS NOT SMART
 TOTAL COMMITMENT TO BUSINESS
LACKING
 NO EXPERIENCE IN PLANNED BUSINESS
 NO SWOT ANALYSIS CARRIED OUT
 NO CUSTOMER NEEDS ESTABLISHED.

WHY BUSINESS PLANS FAIL

 KNOWING YOURSELF AND OTHERS
 PEOPLE SKILLS
 EFFECTIVE COMMUNICATION
 PROBLEM SOLVING SKILLS
 CREATING CUSTOMERS
 MARKETING AND PR
 EFFECTIVE SELLING- CRM
 QUALITY MANAGEMENT
 MANAGING USP

IMPORTANCE OF MARKET FOCUS

oIMPORTANCE OF SPOTTING TRENDS
oANTICIPATION
oFAST DECISION MAKING
oCONSTANT RE-ASSESSMENT
oSTAY CLOSE TO THE CUSTOMER
oINNOVATE CONSTANTLY
oCONCENTRATION ON NARROW TARGETS
 INTELLECTUAL PROPERTY- COPYRIGHTS, PATENTS,
TRADEMARKS, TRADE SECRETS
 PATENTS- DISCLOSURE, PATENT APPLICATION, PATENT
INFRINGMANTS
 TRADEMARKS
COINED MARKS
ARBITRARY MARKS
SUGGESTIVE MARKS
DESCRIPTIVE MARKS

LEGAL ISSUES
 FILLING FORM
 DRAWING THE MARK
 FIVE SPECIMENS SHOWING ACTUAL USE
OF THE MARK
 FEE

PROCESS---
 INITIAL 20 YRS REGN WITH 20 YRS RENEWABLE TERMS
 PROVIDES NOTICE TO EVERYONE THAT ONE HAS
EXCLUSIVE RIGHTS FOR THE USE OF THE MARK
 ENTITLEMENT TO SUE IN A COURT OF LAW
 INCONTESTABLE COMMERCIAL RIGHTS FOR USE OF THE
MARKS
 PROVIDES A BASIS FOR FILLING TRADEMARK
APPLICATIONS IN FOREIGN COUNTRIES

TRADEMARKS
 PROTECTION OF ORIGINAL WORK OF
AUTHORSHIP
 PROTECTION OF MATERIAL ON THE INTERNET

COPYRIGHTS
 PROTECTION AGAINST OTHERS REVEALING OR
DISCLOSING INFORMATION THAT COULD BE
DAMAGING TO THE BUSINESS
 OFFICE SECURITY
 INFO ON NEED TO KNOW BASIS
 SCREENING OF EMPLOYEES
 FAXING OF SENSITIVE INFO

TRADE SECRETS
 LEGALLY BINDING AGREEMENT BETWEEN TWO
PARTIES
 SPECIFIC ROLE OF PARTIES IN THE
TRANSACTION IMPORTANT
 VOLUNTARY ACCEPTANCE IMPORTANT
 TRANSACTION SHOULD BE DESCRIBED IN
DETAIL.

CONTRACT
 FACTORIES ACT 1961
 INDUSTRIAL DISPUTES ACT 1947
 OFFICES, SHOPS AND RAILWAY PREMISES ACT 1956
 OSHA
 FIRE REGULATIONS
 ENVIRONMENTAL HEALTH ACT
 CONTROL OF POLLUTION ACT 1974
 SALE OF GOODS ACT 1979
 CONSUMER PROTECTION ACT 1987
 ADVT STANDARDS
 DATA PROTECTION ACT 1984
 MINIMUM WAGES ACT
 PARTNERSHIP ACT 1896

GOVT REGULATIONS TO BE
COMPLIED WITH
 BUSINESS NAMES ACT 1985
 COPYRIGHT, DESIGNS AND PATENT ACT 1988
 CONSUMER CREDIT ACT 1974
 INSOLVENCY ACT 1986
 TRADE UNION ACT 1926(AMENDED 47, 60,62,64
AND 82)

CONTD-----
 PROPRIETORSHIP
 PARTNERSHIP
 PVT LTD COMPANY
 PUBLIC LTD COMPANY
 COOP SOCIETY

TYPES OF FIRMS
STGS OF BUSINESS
DEVELOPMENT FUNDING
 EARLY STG FINANCING
 SEED CAPITAL-SMALL AMOUNTS TO PROVE CONCEPTS,AND
FINANCIAL FEASIBILITY STUDIES
 START UP- FUNDING TO GET THE OPERATIONS OF THE
COMPANY ACTUALLY STARTED
 EXPANSION OR DEVELOPMENT FINANCING
 SECOND STAGE-WORKING CAPITAL FOR INITIAL
GROWTH PHASE
 THIRD STAGE- MAJOR EXPANSION AND GROWTH
 BRIDGE FINANCING

 FINANCING FOR ACQUISITION AND LBO

 MANAGEMENT CONSULTANCY
 PROFESIONAL ADVICE AND SERVICES FOR RAISING
RESOURCES FROM THE MARKET
 TECHNICAL CONSULTANCY ORGANIZATIONS FOR SMALL
AND MEDIUM INDUSTRIES
 INTERFACE BETWEEN SCIENCE AND TECHNOLOGY AND
THE INDUSTRY
 ENTREPRENEURSHIP DEVELOPMENT AND RESEARCH
 FINANCIAL ASSISTANCE IN TERMS OF SOFT LOANS,100%
FINANCE FOR DISABLED ENTREPRENEURS, ASSISTANCE
TO EX- SERVICEMEN EQUIPMENT FINANCE AND THE LIKE
 ASSISTANCE FROM STATE GOVERNMENTS

FORMS OF ASSISTANCE TO
ENTREPRENEURS
 IDBI
 IFCI
 ICICI
 NABARD
 SFC
 SIDBI
 IFCI

FINANCIAL INSTITUTIONS IN AID

OF ENTREPRENEURS
 IFCI
 GRANTING LOANS ON SUBSCRIBING TO DEBENTURES
REPAYABLE WITHIN A PERIOD NOT EXCEEDING 25 YEARS
 GUARANTEEING LOANS RAISED BY INDUSTRIAL CONCERNS
WHICH ARE REPAYABLE WITHIN A PERIOD NOT EXCEEDING 25
YRS
 GUARANTEEING DEFERRED LOANS DUE FROM ANY INDUSTRIAL
CONCERN(IMPORT/PURCHASE OF CAPITAL GOODS)
 FINANCING PUBLIC SECTOR PROJECTS
 SETTING UP OF NEW INDUSTRIAL PROJECTS
 EXPANSION,DIVERSIFICATION, MODERNIZATION, RENOVATION
 MODERNIZATION ASSISTANCE SCHEMES
 TECHNICAL DEVELOPMENT FUND SCHEME
 VENTURE CAPITAL FUND SCHEME
 EQUIPMENT FINANCE SCHEMES
 FOREIGN CURRENCY ASSISTANCE SCHEMES
 EQUIPMENT RE-FINANCE SCHEMES
 SEED CAPITAL SCHEME
 MODERNIZATION AND REHAB OF SMALL AND MEDIUM
INDUSTRIES

IDBI
 INTEGRATED RURAL DEVELOPMENT
 PROOTION OF COTTAGE ANDVILLAGE INDUSTRIES AS
WELL AS HANDICRAFTS
 SHORT- TERM RE-FINANCE ASSISTANCE
 MEDIUM AND LONG TERM LOANS
 LINKS WITH RBI

NABARD
 SUPPORT SERVICES
 ENVIRONMENT MANAGEMENT
 COLLABORATION WITH NGOS,
CONSULTANCY AND VOLUNTARY
ORGANIZATIONS

SIDBI
 ASSIST IN CREATION , EXPANSION AND
MODERNIZATION OF PRIVATE ENTERPRISE
 ENCOURAGING/PROMOTING PARTICIPATION OF
PVT CAPITAL
 RUPEE AND FOREIGN CURRENCY LOANS
 SOFT LOANS
 GUARANTEES
 CREDIT FACILITIES TO MANUFACTURERS

ICICI
 EQUITY PARTICIPATION
 FINANCIAL ASSISTANCE
 DEVELOPING INDUSTRIAL AREAS
 INCENTIVES
 PROMOTIONAL SERVICES

SIDCS
 GOODS
 SERVICES
 EXPERIENCES
 EVENTS
 PERSONS
 PLACES
 PROPERTIES
 ORGANIZATIONS
 INFORMATION
 IDEAS

SCOPE/ENTITIES OF
MARKETING
 TGT MKT AND SEGMENTATION
 NEEDS,WANTS AND DEMANDS
 PRODUCT OFFERING AND BRAND
 VALUE AND SATISFACTION
 RELATIONSHIPS AND NETWORKS
 MARKETING CHANNELS
 COMPETITION
 MARKETING ENVIRONMENT
 IDENTIFICATION OF ANY SPECIAL MARKETING
INFLUENCES

CORE MARKETING CONCEPTS

 CHOSEN MEANS OF OPERATIONS WITH JUSTIFICATION OF
CHOICE
 RELEVANT LEGISLATION
 TIME TABLE AND PHASING OF BUSINESS START UP
 KEY STAGES OF IMPLEMENTATION
 MONITORING AND CONTROL SYSTEMS
 CUSTOMER RECORD AND FEEDBACK

IMPLEMENTATION OF
PROPOSALS
 GATHERING OF MARKET INTELLIGENCE
 TARGETING CUSTOMERS
LOCATING AND ATTRACTING NEW CUSTOMERS
IDENTIFYING CUSTOMER PREFERENCES
REVIEWING DFECTION PERCENTAGE
RETAIN CUSTOMER LOYALTY
 MANAGING FOR PROFITABILITY
 INTEGRATION OF MARKETING FUNCTIONS

MARKETING INVOLVES-----
 PRODUCER--- CONSUMER
 PRODUCER-----WHOLESALER----CONSUMER
 PRODUCER----WHOLESALER---RETAILER---
CONSUMER
 PRODUCER---AGENT---WHOLESALER----
RETAILER---CONSUMER
 PRODUCER---WHOLESALER---CONSUMER.

MARKETING CHANNELS
FUNCTIONS OF MARKETING
CHANNELS
 ROUTE TO LINK PRODUCERS AND USERS
 STORAGE OF GOODS
 INTRODUCTION OF NEW PRODUCTS/MERCHANDISING
EASIER
 GIVE ADVICE REGARDING PRICE ACCEPTABLE TO
PRODUCER AND CONSUMER
 BULK BREAKING
 MARKET INFORMATION TO BUYERS
 BRING PRODUCT NEARER TO CONSUMER.
 MARKET SEGMENTATION
 ASSESS STRENGTHS AND WEAKNESSES
 PRODUCT OR SERVICE-
BRANDNAME,PRICE,WARRANTY,IMAGE,SERVICE,DELIVERY
TIME
 CUSTOMER SERVICE-FOLLOW UP,EMPLOYEE
REWARDS,REGULAR CONTACT WITH THE CUSTOMERS
 COORDINATION OF THE PLANNING PROCESS
 RESPONSIBILITY FOR IMPLEMENTATION
 BUDGETING

OPPORTUNITIES AND THREATS-TGT MKT

 IMPORTANCE OF CONVERTING PURCHASING POWER INTO
EFFECTIVE DEMAND FOR A PRODUCT /SERVICE
 PRODUCT SHOULD BE DIFFERENT/SPECIFIC-WHETHER
REAL OR IMAGINARY
 EMPHASIS ON WHAT THE CUSTOMER/BORROWER WANTS
 EMPHASIS ON SOCIAL GOOD
 EMPHASIS ON MARKETING FUNCTIONS LIKE MKT
INFORMATION AND RESEARCH,PRODUCT PLANNING,
WAREHOUSING,SALES AND DISTRIBUTION.

METHODS OF MARKETING
 PLAN MEASURE AND EVALUATE MARKETING EFFORT
 OFFERS RT PRODUCT,RT PACKAGE,RT DEMAND ETC
 COVERS MKT AND SALES RESEARCH,PRODUCT
RESEARCH,ADVT AND PROMOTION,SALES METHODS AND
POLICIES,DISTRIBUTION RESEARCH
 FOCUS ON BUSINESS DECISIONS
 IDENTIFICATION OF VIABLE OPPORTUNITIES
 TESTING FEASIBILITY OF A PARTICULAR COURSE OF
ACTION

MARKETING RESEARCH
 ELEMENTS OF
MARKETING MIX

PRICING MIX
PRODN MIX-
BRAND,STYLE,COLOR PRICING
,DESIGN,PRODUCT STRAT,POLICY,BASIC
LINE,PACKAGE,WARR PRICE,TERMS OF
ANTY,SERVICE CREDIT,DISCOUNTS

MKT STRAT-
MARKETING MIX
FOCUSED ON
PRODUCT MKT
PROMOTION MIX- PLACE MIX
PERSONAL
SELLING,ADVT,PUBLI
DISTR
CITY,SALES
CHANNELS
PROMOTION
PHYSICAL
DISTR
 OBJECTIVES
 ENTREPRENEURSHIP DEVELOPMENT
 REGIONAL DEVELOPMENT
 PROVIDE COMPETITIVE STRENGTH
 MOTIVATE PEOPLE FOR NEW VENTURES
 GIVE STIMULUS FOR INDUSTRY AND
BUSINESS

INCENTIVES
 TECHNICAL
 FINANCIAL
 SUBSIDIES
 TAX
ADVANTAGES
 UNIFORM DEVELOPMENT IN ALL REGIONS
 REDUCE OVERALL PROBLEMS OF SMALL SCALE
ENTREPRENEURS

TYPES
 CORRUPTION
 MISUSE
 ETHICS
 FINANCIAL DRAIN FOR THE EXCHEQUER

PROBLEMS
 IMPORTANCE OF WELL DEFINED ROLES
 EFFECTIVE INTERVIEWING AND HIRING PROCEDURES
 IDENTIFICATION OF MAJOR ACTIVITIES REQUIRED TO
OPERATE ORGANIZATION EFFECTIVELY
 ORGANIZATIONAL STRUCTURE
 PLANNING,MEASUREMENT AND EVALUATION SCHEMES
 REWARDS AND INCENTIVES
 SELECTION CRITERIA

THE ORGANIZATIONAL
PLAN
 JOB ANALYSIS,DESCRIPTIONS AND
SPECIFICATIONS
 POSITIONS NECESSARY TO ACCOMPLISH
TASKS/JOBS TO BE PERFORMED
 DECISION FOR TRAINING/EVALUATION OF
EMPLOYEES
 SEARCH FOR TALENT

BUILDING A SUCCESSFUL
ORGANIZATION
 INVESTMENT SIZE
 LOCATION
 TECHNOLOGY
 EQUIPMENT
 MARKETING
 DEMAND AND SUPPLY OF PRODUCTS
 MOTIVATION, ATTITUDE AND SKILLS OF
ENTREPRENEUR

CRITERIA FOR SELECTING

PROJECTS
 CATALYTIC AGENTS FOR ECONOMIC DEVELOPMENT
 LONG TERM COSEQUENCES
 PROVIDE FRAMEWORK FOR FUTUREACTIVITIES OF
ENTERPRISES
 SUBSTANTIAL FINANCIAL OUTLAYS
 INITIATE DEVELOPMENT OF BASIC INFRASTRUCTURE AND
ENVIRONMENT
 CANNOT BE EASILY REVERSED
 BRINGS NECESSARY CHANGES IN SOCIETY IN COURSE OF
TIME.

DIMENSIONS OF A PROJECT
 PROJECT---FEASIBILITY---
TECHNOECONOMIC STUDY---DESIGN---
NETWORK---- INPUT---FINANCE---
SOCIAL---COST BENEFIT-----PRE-
INVESTMENT

SEQUENTIAL STGS OF
PROJECT FORMULATION
 CHOICE OF APPROPRIATE TECHNOLOGY
 TECHNICAL COLLABORATION ARRANGEMENTS IF ANY
 SIZE AND SCALE OF OPERATIONS
 LOCATIONAL ASPECTS-AVAILABILITY OF INFRA
 SELECTION OF PLANT, MACHINERY AND EQUIPMENT
 PLANT LAYOUT AND FACTORY BUILDINGS
 TECHNICAL ENGG SERVICE
 PROJECT DESIGN AND NETWORK ANALYSIS
 MANAGEMENT OF BY-PRODUCTS
 PROJECT COST
 ESTIMATES AND PROFITABILITY PROJECTIONS

SCOPE OFPROJECT APPRAISAL

 OBJECTIVE AND SCOPE OF THE REPORT
 PRODUCT CHARACTERISTICS
 MARKET POSITION AND TRENDS
 RAW MATERIALS
 MANUFACTURE
 PLANT AND MACHINERY
 LAND AND BUILDING
 FINANCIAL IMPLICATIONS
 MARKETING CHANNELS
 PERSONNEL

CONTENTS OF A PROJECT
REPORT
 RECORD KEEPING
 MONITORINGINCOMING/OUTGOING REVENUE
 TRACKING CUSTOMERS
 RECRUITING AND HIRING EMPLOYEES
 MOTIVATION AND DIVERSITY MANAGEMENT
 COMMUNICATION WITH MANAGERS AND EMPLOYEES
 MANAGING CASH FLOW-BUDGETED VS ACTUAL
 MANAGING SHORT TERM VS LONG TERM DEBT
 CREATING AWARENESS OF NEW VENTURES
 TIME MANAGEMENT
 NEGOTIATION SKILLS

MANAGING A NEW VENTURE

 IT IS A FORM OF DISTRIBUTION IN WHICH
SEMI-INDEPENDENT BUSINESS
OWNERS(FRANCHISEES) PAY FEES TO A
PARENT COMPANY (FRANCHISOR) IN RETURN
FOR THE RIGHT TO BECOME IDENTIFIED WITH
ITS TRADEMARK, TO SELL ITS PRODUCTS OR
SERVICES, AND OFTEN USE ITS BUSINESS
FORMAT AND SYSTEM

FRANCHISING
 PRODUCT DISTRIBUTION FRANCHISING
 PURE FRANCHISING

TYPES
 SMALL BUSINESS RELATIVELY QUICKLY
 BENEFIT FROM BUSINESS EXPERIENCE
 MANAGEMENT TRAINING AND SUPPORT
 BRAND NAME APPEAL
 STANDARDIZATION
 ADVT SUPPORT
 PROVEN PRODUCTS
 CENTRALIZED BUYING POWER
 TERRITORIAL PROTECTION
 GREATER CHANCES OF SUCCESS

BENEFITS
 FRANCHISE FEE AND PROFIT SHARING
 STRICT ADHERENCE TO STANDARDIZED
OPERATIONS
 RESTRICTIONS IN PURCHASING
 LESS FREEDOM
 NO GUARANTEES
 MAX INVOLVEMENT
 ORAL PROMISES
 GET RICH QUICK SCHEMES

DRAWBACKS
 EVALUATE YOURSELF
 RESEARCH YOUR MARKET
 CONSIDER FRANCHISE OPTIONS
 TALK TO EXISTING FRANCHISEES
 ASK THE FRANCHISOR SOME TOUGH
QUESTIONS
 LOCATION
 PIGGY BACKING
 DEDICATED MGT TEAM
 BE THOROUGH

BUYING A FRANCHISE
 INFORMATION ABOUT EXPERIENCE,
FRANCHISES BEING SOLD ETC
 BUSINESS EXPERIENCE
 LAWSUITS IF ANY
 CONTINUING PAYMENTS AFTER START UPS
 QUALITY RESTRICTIONS
 FRANCHISEE OBLIGATIONS
 TERRITORIAL PROTECTION
 TRADEMARKS TRADE NAMES ETC
 FINANCIAL STATEMENTS

FRANCHISE DISCLOSURES
 APPARELS
 BEAUTY SALONS
 COURIER SERVICES
 CONSULTANCY
 CYBER CAFES
 DESIGNER WEAR
 EDUCATION
 ENTERTAINMENT
 FOOD AND BEVERAGES
 GIFTS AND GREETINGS
 HOME PRODUCTS
 HOTELS AND MOTELS
 EMIGRATION
 RETAIL
 SCHOOLS

AREAS OF FRANCHISING
 FRANCHISOR

KNOWHOW
ETC PAYS
ROYALTY
APPTS

MASTER
FRANCHISOR

PAYS
APPTS
ROYALTY

FRANCHISEE

CONTRIBUTION, INVESTMENT,
SITE, INFRA
 KNOW YOUR PARTNERS
 KNOW YOUR WEAKNESSES
 KNOW YOUR MARKET
 KNOW YOUR VALUE
 KNOW YOUR TRADEMARK
 KNOW YOUR PRODUCT AND SERVICE
 KNOW YOUR RESOURCES

BASICS OF INTERNATIONAL
FRANCHISING