Q1. What do you understand by the following concepts in context of feasibility? a. Economic feasibility b. Commercial feasibility c.

Managerial feasibility Ans. Feasibility study is an evaluation and analysis of the potential of the proposed project which is based on extensive investigation and research to give full comfort to the decision. It is the preliminary evaluation of a business idea conducted for the purpose of determining whether the idea is worth pursuing. Feasibility study aims to uncover the strengths and weaknesses of an existing or proposed business, opportunities and threats as presented by environment. a. Economic Feasibility- The economic feasibility step of business development is the period during which a break even financial model of the business venture is developed based on all costs associated with taking the product from idea to market and achieving sales sufficient to satisfy debt or investment requirements. The business activities common to this step are those necessary to develop a conceptual plan for a business venture based upon one or more financial scenarios. During the economic feasibility step the following activities must be completed. 1. Develop a financial analysis that identifies break even scenarios based upon unit prices, volume of sales and costs. 2. Determine whether the business opportunity presents sufficient profit margins to justify business venture. 3. Assess the merits of licensing the opportunity compared to venturing. b. Commercial Feasibility- The real test for whether your innovation will be successful in assessing its commercial feasibility. The purpose of this exercise is to determine whether the idea should be developed further. Determining the commercial feasibility essentially means considering the various factors and elements that are commonly required for a business to profitability sell the innovation to group of a customer over a reasonable timeframe to justify the venture. If a business can not achieve a sustainable profitable outcome from realizing the intended competitive advantage from the new idea implementation or selling the innovation to customers then it is unlikely to be a commercial feasible idea. The commercial feasibility analysis must include the target customers, competition, SWOT analysis, Financial and market objectives, cost and pricing, Migration plan, partnerships.

c. Managerial Feasibility- Management is undoubtedly the most important pillar of a project. Managerial feasibility involves the capability of the infrastructure of a process to achieve and sustain process improvement. Management support, employee involvement are key element required to ascertain managerial feasibility. Even if the project is found to be technically, economically, financially be feasible it can still fail if the people who implement or manage it are not capable it is important that all ingredients of efficient management are taken into consideration in the proposed project. The organization structure must be good for production, sales and administration. The main power must have the required skills and trained. The success and the profitability of the project are partly depending on managerial competence.

Q2. What criteria would you adopt for entrepreneurial identification and product selection strategy in industrial sector? Ans. It is very important to manufacture and sell the right product for every entrepreneur to fulfill the business objectives. There are various factors to be considered while selection of the product some out of them are. 1. Profitability- It is very important factor because the survival of business only depends upon the profits. The cost of production must be less than the selling price. The cost of production and selling must be identified and the total price of selling must be calculated. 2. Demand of product- Before manufacture and sell any item it is most important to know is there demand exists in the market for that product. Is there sufficient demand in the market? Then only the firm moves to the next step. 3. Purpose of product- Every product plays different role in the market some products have low margins but high sales on other hand some products are have high margins but there sales is low. 4. Raw material availability- The raw material required for the production of the product must be easily available in the market. It helps to maintain the cost of production low and low selling price which results in high sales and more profits. 5. Healthy- The product must be healthy to use. It must not have any bad impacts on the users and the environment. It must pass the health and safety measures of the government. 6. Subsidies and rebates- The product must be selected on which the different rebates and subsidies are provided by the government. 7. Manufacturing- The product should be such in which the manufacturing cost can be keep minimum and easy to manufacture. The equipments used in manufacturing must be easily available and are economical for the firm. 8. Labor force- The product should be select for which the experienced labor force must be easily available for the production. 9. Demographic factor- The demographic factor is very important to study before manufacture and sell the product. The demographic factor includes the size of population, age distribution, educational group, occupations, and geographical distribution. 10. Political and legal rules Political and legal rules are different in every country. The political and legal rules influence the business. Changing in the government can bring

change in the organization. An entrepreneur must be aware about the consumer protection laws.

Q3. What are the suitable techniques to observe markets and identify prospective consumer in developing countries? Ans. The market observation can provide the critical information about the buying habits, needs, preferences, and opinions and current and prospective customers. There are many ways to observe markets. Most businesses use one of the following methods. 1. Surveys- The concise and straightforward questionnaires a sample group can be analyzed that represents the target market. The large the sample, the more reliable the results. A. In person survey there is one on one interview. They allow you to present people with sample of products, packaging are advertising and gather the feedbacks. B. telephone surveys are less expensive than in person surveys, but costlier then the mail. However due to consumers resistance to telemarketing the participation is less. C. Mail surveys are relatively inexpensive way to reach broad audience. They are much cheaper then in person and phone surveys, however they generate responsive rate of 3 % to 15%. Despite the low return mail surveys are still cost effective choice. D. Online surveys usually generate unpredictable responsive rates and unreliable data because there is no choice on pool of respondents. It is less expensive. 2. Focus group-In focus group a moderator or the facilitator uses the discussion guideline to lead a discussion among a group of people. These techniques are usually conducted at neutral location, using videotape techniques or tape recorder to record the discussion session. A focus group is last for one to two hours and it requires three groups for effective result. 3. Observation- Individual responses to surveys and focus groups are sometimes at odds with peoples actual behavior. By observing consumer in action by videotaping them in stores, at work at home, you can observe their actual buying behavior. This helps in knowing customers shopping pattern. .4. Field Trails- Placed a new product in the stores to test customers response under real life selling conditions can help with information regarding product modification, price adjustments and package improvements. .5. Personal interviews- personal interview include unstructured, open ended question. They usually last for above hour and are typically recorded. The result usually does not represent the large segment of population; nevertheless provide valuable insights into customers attitude and excellent ways to uncover issues related to product.

The selling process begins when products and services are introduced to potential buyers called prospects. Prospects buyers will hear a presentation, test a product or learn about services from an informed salesperson. Without prospects the selling process is stuck. The techniques used to identify prospective customers are. 1. Identify problems and desires- It is very important for every business firm to know the needs and desires of the customers. Are the needs of customer matches with the products of the business firm? The firm can manufacture the products as per the customers needs. 2. Understanding the competition- A customer will seldom buy the product without considering the several choices. The consumer wants to buy most appropriate product and the best value. The consumer may face difficulty to find the best product. So, the product best matches the customer demand can sell to the customer. 3. Demographic factor- The customer demographics help to know the target market. A firm must know the communities purchasing power, residencies, age groups, family status, education level, and employment status. To make the marketing strategies and estimate the prospective customers. 4. Target marketing- A target market is a group of customers that the business has decided to aim its marketing efforts. A well defined target market is the first element to a marketing strategy. Target markets can be separated on the basis of aspects those are geographical segmentation, demographical segmentation, psychographic segmentation, behavioral segmentation, and product related segmentation. 5. Market segmentation- It is a marketing strategy involves dividing a broad target market into subset of customers who have common needs. And then designed and implemented to target these specific customer segments using media used by the market segment. 6. Talk directly to ideal prospects- The promotional pieces such as broachers, flyers can be send to the prospective customers to inform them about new products, schemes launched by the company. 7. Offers for prospective customers- Come up with the discounted products and services that have a high perceivable value for the consumer with a low cost for you.