|
|
Like this article? PLEASE +1 it! |  |
|
Need for Project Formulation
| Guest post by: Sameer Madaan |
Article Overview: Taking a first look carefully and critically at the project idea. Assessment of the various aspects of an investment proposition.
 |
Free Download - What Is the Importance of Attitudes to Workplace Diversity? By Sameer Madaan |
Need for Project Formulation
The entrepreneur in a developing country has to encounter a number of problems while establishing a new project. These problems cause greater concern to many enthusiastic entrepreneurs. However, they could be saved to a greater extent by undertaking a project formulation exercise at the appropriate time.
1. Selection of appropriate technology: The first problem faced by an entrepreneur is in the matter of selection of appropriate technology for his enterprise. Modern technology developed in the highly industrialised countries may not be suitable for adoption in the developing countries as the conditions prevalent differ from country to country. For example, the optimal size of plants recommended for a highly industrialised country may be too big for acceptance in a developing country owing to the factors such as limited market for the products and limited availability of capital and skilled labour. Hence, the entrepreneur has to examine the project idea thoroughly as regards its design, production, marketing, after sales service, etc.
2. Influence of External Economies: The second problem relates to the absence or non-availability of external economies. No project can function an isolation in any economy. It has to depend on other industries for the supply of raw materials, power, tools, spare parts, etc., or on ancillary enterprises which can provide technical, financial and managerial services or on a complex net-work of communication and transport facilities or an intricate system of business practices. The entrepreneur in developing countries is, therefore, to consider not only the basic costs of the project but also the ancillary costs which in industrially advanced countries would have been contributed by the external economies.
3. Dearth of Technically Qualified Personnel: The third problem is the non-availability of technically qualified and appropriate personnel. Modern technology calls for a certain minimum supply of various skills that are generally lacking in developing countries.
4. Resource mobilisation: The fourth problem is resource mobilisation. In the context of present-day development of the magnitude and size of project it would be very difficult for an entrepreneur to provide the entire development capital that a project may need.
5. Knowledge about Government Regulations: Besides these problems the entrepreneur has to comprehend a number of Government directives, import and export policies, price controls, etc. The difficulty is to be familiar with all these regulations, for they are not available in a consolidated and detailed form in most of the developing countries. However, in India, a compendium entitled ‘Guidelines for Industries' has been published by the Ministry of Industrial Development. II provides information regarding the industrial policy, licensing procedures, guidelines for foreign collaboration, import and export control orders and foreign exchange orders. It also has information regarding the present status of capacities and possibilities of future development in various industrial fields like metallurgical industries, electronics equipment industries, transportation industries and the like.
These problems make the entrepreneur to undergo a lot of harassment, disappointment and despair. However, a project formulation exercise undertaken at the right time mitigates the severity as well as magnitude of these problems.
Financial Analysis
Areas That Benefit From Pharmacogenetics
12 Steps to Implementing Anything in Your Business : Steps Eleven &Twelve: Create and Manage a Final Push Towards the End...
What is Effective Project Management?
What Is Strategic Business Planning?
Article Tags: appropriate technology, business practices, dearth, developing countries, developing country, entrepreneur, external economies, industrialised countries, intricate system, isolation, managerial services, modern technology, optimal size, power tools, project formulation, project idea, raw materials, skilled labour, spare parts, transport facilities
|
About the Author: Sameer Madaan RSS for Sameer's articles - Visit Sameer's website Click here to visit Sameer's website   What Is the Importance of Attitudes to Workplace Diversity Need for Project Formulation Financial Analysis |
Related Forum Posts
Baby Buddy!
- To Whom It May Concern,
Thank you for taking the time to read this post. I am a young inventer. I have partnered with my brother to design a project which will aid everyday people in everyday tasks for everyday life. The problem we are having is exposure. My brother an I have partnered with a firm which is representing our project in efforts to bring it to market. This device allows you to see what your children are doing even if you are not in the room or area at all times. I am not totally certain what it is that I am able to disclose so I cannot go into great detail, but here is the information needed to recieve and review the information, if you have children, or know anyone who does and they are aware of this device they will wonder why it is not on the market already. Please take this opprotunity if nothing more you will be able to see what should soon be available to all before it is released. The firm representing us is Invent-Tech it is required that a standard NDA be signed to protect the integrity of invention. Again thank you so much for your time.
GBU
Contact Invent-Tech
800 940 9020
Ext 2230
Project File 2230
Project: B.B. Baby Buddy.
Best Reguards
Why a project fails?
- The top 10 factors that have driven failed projects are:
1. Project sponsors are often not committed to the objective. They have a lack of understanding of the project and are not actively involved in the project strategy and direction.
2. Some projects do not meet the strategic vision of the company. If business needs are not clearly defined, it will result in a project that does not add value to the bottom line or enhance business processes.
3. Projects are started for the wrong reasons. Some are initiated purely to implement new technology without regard for whether the technology is supportive of the business needs. The converse of this is a project that does not support existing technology, resulting in major scope creep and resultant expenditure.
4. Staffing is a reason for failure, eg not enough dedicated staff (project managers and project team members) allocated to projects. Project team members lack experience and do not have the required qualifications. Line-staff believe that they will be able to manage projects but are only 40% available to do so. Focus in this regard is not on the delivery of the project, but on the comfort zone of the project manager and his own time management.
5. Incomplete project scope. No clear definition of the project's benefits and the deliverables that will produce them.
6. A project plan that is non-existent, out of date, incomplete or poorly constructed and just not enough time and effort spent on project planning.
7. Project value management is not put into practice to evaluate baseline cost agreed during baseline transfer against actual costs spent at any given time. Project costs and financial do not form an integral part the project during execution.
8. Insufficient funding, and incorrect budgeting is still a major reason for projects not delivering their goals and objectives within the quality framework that was required, because projects always need to deliver yesterday within X budget.
9. No formal project management methodologies and best practices aligned to the company's specific needs are used to assist project performance. Companies do not want to invest in best of breed methodologies that will benefit the bottom line over a period, with projects delivered within budget. Companies do not recognise the value of using a methodology to support and enable them to record their own best practice project results for future reference, and to build a knowledge base within the company.
10. Not all project are going through a formal signed off process using a proper post mortem process to determine lessons learned and to build their own reference model for future use. A certificate signed off between sponsors and other third-parties will demonstrate project success but even that is quite seldom.
Re: I want to turn my ebook to video
- [quote="ideasuniversity":uj75u2u1]Please I need someone to turn my ebook on self help to video. Please if you know any expert that is doing this let me know.[/quote:uj75u2u1]
I don't have the expertise, but I suggest you post a Project at Elance (or some similar site where freelancers bid on projects) and get bids on it. You'll get an idea of how expensive it will be, and the types of skills necessary to do it.
Re: Your Big Project This Week: What is it?
- I managed to make progress with both my "Big Project" and the APG competition this weekend... Neither is done and dusted, however!
[quote="GT Bulmer":39lw7zwc]To add additional challenges to my schedule, I've just minutes ago discovered that one of my autoresponder campaigns isn't working and there is no reason why it shouldn't be. I just tested it two weeks ago. So ... instead of catching up on other things, that's what I'll be trying to sort out today.[/quote:39lw7zwc]
Let us know if you'd like us to subscribe to your list to test it out for you and see if it works okay from the subscriber's end...
Re: I want to turn my ebook to video
- [quote="OmnivoreInk":3pst9344][quote="ideasuniversity":3pst9344]Please I need someone to turn my ebook on self help to video. Please if you know any expert that is doing this let me know.[/quote:3pst9344]
I don't have the expertise, but I suggest you post a Project at Elance (or some similar site where freelancers bid on projects) and get bids on it. You'll get an idea of how expensive it will be, and the types of skills necessary to do it.[/quote:3pst9344]
Thanks Omnivoreink, I will post it on elance and see what follows.
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
4 Building Blocks of an Effective Talent Management System
Simon Fuller Quotes
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Using Social Media Marketing
10 Reasons Your SBA Loan May Be Declined
Selling What Sizzles vs. Delivering Real Value
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.