Entrepreneurship and its theories , types

this presentation is on entrepreneruship and varoius models of entrepreneurship

1. Entrepreneurship Development

2. The word ‘Entrepreneur’ is derived from the French word ‘ Entreprendre ’ which means ‘to undertake’. An entrepreneur is one who performs the task of bringing labour and material at certain price and selling the resultant product at a contracted price. The entrepreneur is an economic man, who tries to maximise his profits by innovations. Innovations involve problem solving and entrepreneur gets satisfaction from using capabilities in attacking problems.

3. According to F.A. Walker : “Entrepreneur is one who is endowed with more than average capacities in the task of organizing and coordinating the factors of production, i.e. land, labour capital and enterprises”. Marx regarded entrepreneur as social parasite. According to Gilbraith : “An entrepreneur must accept the challenge and should be willing hard to achieve something”. Peter F. Drucker defines an entrepreneur as one who always searches for change, responds to it and exploits it as an opportunity. Innovation is the basic tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or service. According to E.E. Hagen : “An entrepreneur is an economic man who tries to maximize his profits by innovation, involve problem solving and gets satisfaction from using his capabilities on attacking problems”. According to Mark Casson : “An entrepreneur is a person who specializes in taking judgement decision about the coordination of scarce resources”.

4. 8. Frank Young defined entrepreneur as a change agent. 9. According to Max Weber : “Entrepreneurs are a product of particular social condition in which they are brought up and it is the society which shapes individuals as entrepreneurs”. 10. International Labour Organization (ILO) defines “entrepreneurs as those people who have the ability to see and evaluate business opportunities, together with the necessary resources to take advantage of them and to initiate appropriate action to ensure success”. 11 Akhouri describes “entrepreneur as a character who combines innovativess , readiness to take risk, sensing opportunities, identifying and mobilizing potential resources, concern for excellence and who is persistent in achieving the goal”.

5. Entrepreneurs vs. Managers Entrepreneurs Independent personnel. Entrepreneurs are visionary and risk bearer. Focuses on starting and expanding the business ideas. Rewarded by business growth and all the profits generated. Managers Works for some organization. Works for salary and bears lot lesser risk. Focuses on daily smooth functioning of their responsibilities. Remuneration is he salary and incentives drawn from the company.

6. FUNCTIONS OF AN ENTREPRENEUR Innovation Decision Maker Risk–taking Organisation and Management Source: https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.123rf.com

7. Types of entrepreneurs: Innovative entrepreneurs Imitating entrepreneurs Fabian entrepreneurs Drone entrepreneurs Social Entrepreneur Pure Entrepreneur Induced Entrepreneur Source: https://www.dqindia.com/u-s-india-business-council-launches

8. Innovative Entrepreneur These entrepreneurs have the ability to think newer, better and more economical ideas of business organization and management. They are the business leaders and contributors to the economic development of a country. E.g.; Tata Nano (Ratan Tata), Reliance Jio .

9. Imitating entrepreneurs These entrepreneurs imitate innovative entrepreneurs because the environment in which they operate is such that it does not permit them to have creative and innovative ideas on their own. Such entrepreneurs are found in countries and situations marked with weak industrial and institutional base which creates difficulties in initiating innovative ideas.

10. Fabian Entrepreneurs Fabian entrepreneurs are characterized by great caution and skepticism , in experimenting any change in their enterprise. They imitate only when it becomes perfectly clear that failure to do so would result in a loss of the relative position in the enterprises.

11. Drone Entrepreneurs Such entrepreneurs are conservative or orthodox in outlook. They always feel comfortable with their old fashioned technology of production even though technologies have changed. They never like to get rid of their traditional business, traditional machineries and traditional system of business even at the cost of reduced returns.

12. Social Entrepreneur Social entrepreneurs drive social innovation and transformation in various fields including education, health, human rights, workers’ rights, environment and enterprise development. They undertake poverty alleviation objectives with the zeal of an entrepreneur, business practices and dare to overcome traditional practices and to innovate. Dr Mohammed Yunus of Bangladesh who started Gramin Bank is a case of social entrepreneur.

13. Pure Entrepreneur He is one who may or may not possess an aptitude for entrepreneurship but is tempted by the monetary rewards or profits to be earned from business venture. A pure entrepreneur is an individual who is motivated by psychological and economic rewards. He undertakes an entrepreneurial activity for his personal satisfaction in work, ego, and status.

14. Induced Entrepreneur He is the person who is induced to take up an entrepreneurial task due to the policy measures of the government that provides assistance, incentives, concessions, and necessary overhead facilities to start the venture. Most of the induced entrepreneurs enter entrepreneurship due to financial, technical and several other facilities provided to them by the state agencies to promote entrepreneurship.

15. Importance of Entrepreneurship Development of managerial capabilities: assemble and coordinate physical, human and financial resources also. Creation of organizations : Entrepreneurship direct all resources towards achievement of objectives through managerial skills. Improving standards of living

16. Importance of Entrepreneurship (cont.) Generation of employment : for themselves and others. Helpful in capital formation: Entrepreneurs employ their own financial resources and mobilise idle savings of the general public. Means of economic development: Entrepreneurship involves creation and use of innovative ideas, maximization of output from given resources, development of managerial skills, etc.

17. The concept of Entrepreneurship The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. Entrepreneurship is a process of actions of an entrepreneur who is a person always in search of something new and exploits such ideas into gainful opportunities by accepting the risk and uncertainty with the enterprise.

18. Source: Michael H. Morris, P. Lewis, Donald L. Sexton, “ Re-conceptualizing entrepreneurship : An input-output perspective.” , SAM advanced management journal 59

19. Theories of Entrepreneurship

20. Economic Theory Richard Cantillon was the first person to recognise the role of entrepreneurs in economic theory. He described an entrepreneur as a person bearing risk who makes profit by buying goods at a known price and by selling at an increased higher price but there is always an element of uncertainty in market. This theory asserts that the economy and entrepreneurship are closely linked together.

21. Economic Theory (Cont.) This theory further states that entrepreneurs find motivation in the presence of economic incentives which include industrial policy, policies of taxation, financial and resource sources, availability of infrastructure, investment opportunities, marketing opportunities, availability of information regarding the conditions of the market and technology among others . An entrepreneur is therefore a risk taker because he can never fully predict about the favorability of the economic conditions in future.

22. Sociological theory Entrepreneurship is likely to get a boost in a particular social culture . Society’s values, religious beliefs, customs, influence the behavior of individuals in a society. Among the social aspects that affect an entrepreneur include the social values, customs, taboos, religious beliefs and other cultural activities. The entrepreneur is a role performer according to the role expectations by the society

23. Psychological Theory According to this theory, an entrepreneur experiences growth when the society has several individuals with the necessary psychological characteristics. These characteristics include having a vision, being able to face opposition and having the need to achieve highly. These characteristics are formed during the individual’s upbringing which stress on standards of excellence, self reliance.

24. Innovation Theory Theory by Joseph Schumpeter who believes that entrepreneur helps the process of development in an economy. Schumpeter, argued that an entrepreneur grows by being creative and having a foresight. According to him, innovation occurs when the entrepreneur Introduces a new product Introduces a new production method Opens up a new market Finds out a new source of raw material supply Introduces new organization in any industry 

25. Innovation Theory (Cont.) These activities of an entrepreneur lead to the creation of jobs and accessibility of commodities, thus improving the economy. Schumpeter’s entrepreneur is a large scale businessman, who is rarely found in developing countries, where entrepreneurs are small scale businessmen who need to imitate rather than innovate

26. Theory of high achievement/Theory of achievement David McClelland argued that people who aim to become entrepreneurs must have a need for achievement , a need for affiliation and a need for power. McClelland identified 2 characteristics of entrepreneurship   Doing things in a new and better way  Decision making under uncertainty He stressed that people with high achievement orientation ( need to succeed ) were more likely to become entrepreneurs.

27. Theory of high achievement/Theory of achievement Achievement motivation has a lot of significance in entrepreneurship because it is the one that leads to economic and social development. Entrepreneurs always want to achieve success in their endeavors. The need for power comes from the urge to gain dominance in a certain field and thus cause influence among other people. The need for affiliation comes from the urge to motive of maintain friendships with other people.

28. Anthropological Theory Fredrik Barth developed this theory. According to this theory, entrepreneurship has essentially to do with connecting two spheres in the society, between which there exists a difference in value. It states that entrepreneurship behaviour means to connect two different spheres in the society, between which there is a huge discrepancy in value.

29. Characteristics Of An Entrepreneur Calculated Risk- Taker Innovator Organiser Achievement Motivated Self – confident Socially Responsible Communication Ability Decision Making Ability to Spot and Exploit Difficulties Leadership- An essential trait of the entrepreneur Technically Competent

30. Leadership According to Peter Drucker, “ Leadership is shifting of own vision to higher sights, the raising of man’s performance to higher standards, the building of man’s personality beyond its normal limitations.” Source: https://howtos.ng/tag/improve-leadership-skills-at-work/

31. Leadership is the process of influencing and supporting others to work enthusiastically towards achieving objectives. Without leadership, an organization would be only a confusion of people and machines. Leadership is a catalyst that transforms potential into reality. Thus, leadership is the ability to convince people to follow a path they have never taken before to a place they have never been and upon finding it to be successful, to do it over and over again.

32. Who is a Leader......? One that leads or guides.   One who is in charge or in command of others.   One who heads a political party or organization.   One who has influence or power, especially of a political nature.

33. Leadership Traits PHYSICAL TRAITS : height, personal attractiveness, etc. INTELLECTUAL TRAITS : intelligence, knowledge, skills, charisma, ability , desire to lead, adaption, honesty, etc. PERSONALITY TRAITS : bravery, boldness, confidence, decisiveness, etc. DRIVE : high effort level, high desire for achievement, energetic, initiative. DRIVE TO LEAD : desire to lead – convincing and influencing others, willingness to take responsibility. SELF-CONFIDENT : absence of self doubt, strong feeling of rightness. INTELLIGENCE : intelligent to collect and analyse information. KNOWLEDGE : in-depth knowledge about job, industry, technical matters.

34. MANAGER Oversees the current processes. They manages A manager is appointed Must achieve balance Executes efficiently Comfortable with control and reduces risk Problems are taken as it is and need resolution ASAP Managers focuses on doing things right Management comes before leadership Impersonal LEADER Wants to create the future. They innovate Leader may be appointed or emerge from within a group Needs to make change Thinks ideal Welcomes risks Sees problems as opportunities and be patient Leaders deals with vision Leadership comes before management High EI

35. Importance of Leadership Initiates action Motivation Providing guidance Creating confidence Co-ordination Effective planning Inspiration & motivation Source: https://quotesgram.com/being-a-good-leader-quotes/

36. TYPES OF LEADERS Autocratic Leadership Autocratic leadership style is centered on the boss. In this leadership the leader holds all authority and responsibility. In this leadership, leaders make decisions on their own without consulting subordinates. Source: https://slidemodel.com/leadership-styles/01-autocratic-leadership-style/

37. Democratic Leadership In this leadership style, subordinates are involved in making decisions. The democratic leader holds final responsibility, but he or she is known to delegate authority to other people, who determine work projects. Communication is active upward and downward. Source: https://www.upshotly.com/blog/what-is-democratic-leadership-really

38. Laissez-faire Leadership Laissez-faire leadership gives authority to employees. According to this, departments or subordinates are allowed to work as they choose with minimal or no interference. According to research, this kind of leadership has been consistently found to be the least satisfying and least effective management style. Source: https://fisher.osu.edu/blogs/leadreadtoday

39. Transformational Leadership Unlike other leadership styles, transformational leadership is all about initiating change in organizations, groups, oneself and others. These leaders motivate others to do more than they originally intended and often even more than they thought possible. They set more challenging expectations and typically achieve higher performance. Source: https://leadershipforhighered.wordpress.com/

40. Transactional Leadership It is the leadership that involves an exchange process: whereby followers get immediate, tangible rewards for carrying out the leader’s orders.  Source: https://expertprogrammanagement.com/2020/03/transactional-leadership/

41. Source: https://upload.wikimedia.org/wikipedia/commons/8/83/Hou710_LeadershipStyles.svg

42. Visionary Leadership This form of leadership involves leaders who recognize that the methods, steps and processes of leadership are all obtained with and through people. Most great and successful leaders have the aspects of vision in them. However, those who are highly visionary are the ones considered to be exhibiting visionary leadership. Outstanding leaders will always transform their visions into realities. Source: https://executiveeducation.wharton.upenn.edu/

43. CHARISMATIC LEADERSHIP: Charismatic leadership is leadership based on the leader's ability to communicate and behave in ways that reach followers on a basic, emotional way, to inspire and motivate. He is a leader who has great charm or personal power that can attract, influence and inspire people. Source: https://michaelahmed.net/2015/11/04/charismatic-leadership-a-simplified-walkthrough/

44. POSITIVE AND NEGATIVE LEADERSHIP: A leader striving to give reward to employees, motivating them, giving them incentives etc, is more depending on positive leadership. Where as if emphasis is placed on penalties, then the leader is applying negative leadership. Source: https://www.portfoliopartnership.com

45. What is Risk? “Risk is possibility of suffering loss.” Risk can be defined as the probability that a particular outcome will result from a given decision. A probability or threat of damage, injury, liability, loss, or any other negative. Source: https://www.helpnetsecurity.com/2020/03/12/coronavirus-risk-management/

46. TYPES OF RISK RISK RELATED TO BANKING COMPANIES Liquidity Risk B) Commercial risk C) Operating risk D) Human risk

47. 2. RISKS RELATED TO INFORMATION TECHNOLOGY A) Computer-related risks : In the era of information technology, computers are needed by every organizations. General threats to computer include: Hardware and software failure Malware   Viruses   Spam, scams and phishing   Human error  

48. Specific or targeted criminal threats to IT systems and data include: Hackers  - people who illegally break into computer systems. Fraud  - using a computer to alter data for illegal benefit. Passwords theft  - often a target for malicious hackers. Denial-of-service  - online attacks that prevent website access for authorized users. Security breaches  - includes physical break-ins as well as online intrusion. Staff dishonesty  - theft of data or sensitive information, such as customer details.

49. B) Plastic Card risk : With the introduction of plastic cards like credit, debit cards etc have increased the risk of fraud also, customer and account information can be stolen if card issuing processes are not secure. Source: https://equilibrium-security.co.uk/2020/01/15/how-to-stay-safe-from-cloud-security-threats/

50. 3. RISKS RELATED TO PROJECT FINANCING BORROWERS AND LENDERS Development Risk : An entrepreneur has to encounter this risk at the time of conceptualization of the proposed project. B) Construction and start up Risk : To get project up and run it with support from equipment vendors. C) Operational Risk : faulty engineering and design, unexpectedly high maintenance cost, increase in price of raw materials, quality of labor, instability of labors causing high labor turnover etc. D) Market Risk : It relates to the future demand for the product or service.

51. E) Natural risks : An entrepreneur faces a certain acts of GOD as risks like earthquakes, floods, uncontrollable events leading to the failure of his project. F) Political risks : An entrepreneur may find significant change in political scenario between the selection of the project and its implementation. Source: https://blog.unitee.eu/business/migrant-entrepreneurship

52. 4. RISKS WITHIN FIRMS Financial Risks : Financial strength or risk of a unit can be assessed from final accounts. Financial indicators like liquidity, profitability, turnover ratios, working capital ratios etc help appraise the financial strength of the business. B) Sales Risks : It arise out of uncertainty of sales in projected sales. It is the irregularity of the sales pattern that creates sales risk.

53. ENTERPRISE RISK MANAGEMENT Enterprise risk management  (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effects of  risk  on an organization's capital and earnings. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for their stakeholders, including owners, employees, customers, regulators, and society overall.

54. ERM

55. What is Risk Management? It is a process to: Identify all relevant risks Assess / rank those risks Address the risks in order of priority Monitor risks & report on their management

56. Decision making The process of examining your possibilities options, comparing them, and choosing a course of action. We have to first decide that a decision has to be made and then secondly identify a set of feasible alternatives before we select one. Source: https://www.socoselling.com/understanding-the-decision-making-process/istock-653794834 /

57. Decision-Making Process Decision-Making Process includes: Recognizing and defining the nature of a decision situation Identifying alternatives Choosing the ‘best’ [most effective] alternative Putting it into practice Source: https://www.gov.gg/CHttpHandler.ashx?id=109112&p=0

58. Decision making process:

59. Types of decisions

60. Programmed Decisions Programmed decisions are made using standard operating procedures. Deals with frequently occurring situations. (Such as requests for leaves of absence by employees) Much more appropriate for managers to use programmed decisions for similar and frequent situations. This leads to the formulation of rules, procedures, and policies.

61. Non Programmed Decisions Non-programmed decision features  are; Situations for Non-programmed decisions are unique, ill-structured. Non-programmed decisions are one-shot decisions. Handled by techniques such as judgment, intuition, and creativity. A logical approach to deal with extraordinary, unexpected, and unique problems. Managers take heuristic problem-solving approaches in which logic; common sense and trial and error are used.

62. Source: https://www.studocu.com/en-us/document/university-of-missouri-kansas-city/understanding-the-individual-in-the-organization/lecture-notes/management-11th-edition-richard-daft-chapter-9-notes/3176779/view

63. Programmed Decision Non-Programmed Decision Used for frequent situations of the organization; both internal and external. Used for unique and ill-structured situations of the organization; both internal and external. Mostly Lower level managers are making these decisions. Mostly Upper-level managers are making these decisions. Follows structured and non-creative patterns. Takes an outside of the box unstructured, logical and creative approach.

64. Business plan A business plan is a plan for the business, clarifying why it exists, who it exists for, what products and services it provides these client groups, how it intends to develop and deliver these products and services, and where it is headed. A business plan is a roadmap for the organization

65. Business planning A company's business plan is one of its most important documents. It can be used by managers and executives for internal planning . It can be used as the basis for loan applications from banks and other lenders. It can be used to persuade investors that a company is a good investment. For start-up ventures, the process of preparing a business plan serves as a road map to the future.

66. Lack of proper planning is one of the most often cited reasons for business failures. Business plans help companies identify their goals and objectives and provide them with tactics and strategies to reach those goals. They are not historical documents; rather, they embody a set of management decisions about necessary steps for the business to reach its objectives and perform in accordance with its capabilities.

67. A BUSINESS PLAN INCLUDES THE FOLLOWING: Goals for the enterprise, both short term and long term. A description of the products or services on offer. The market opportunities anticipated for them. An expansion of resources and means to be employed to achieve goals in the face of likely competition.

68. NEED/IMPORTANCE/ADVANTAGES To map the future A business plan can detail alternative future scenarios and set specific objectives and goals along with the resources required to achieve these goals. Planning and performance The construction of a business plan is the direct outcome of planning. Researches show that there is a positive relationship between performance and planning.

69.  To develop and communicate a course of action A business plan helps a company assess future opportunities and commit to a particular course of action. By committing the plan to paper, all other options are effectively marginalized and the company is aligned to focus on key activities. A guide to decision making A well drafted and readily available written plan shall foster cohesiveness because everyone can see the firm’s desired objectives and goals.

70. Having a Business Plan Is the Key to Success The business plan is the blueprint for your business. We often make the mistake of thinking of a business plan as a single document that you just put together when you're first starting out and then set aside. Something to check off the to-do list and be done with.  To attract investors Whether you want to shop your business to venture capitalists or attract angel investors, you need to have a solid business plan. Be prepared for your business plan to be scrutinized; both venture capitalists and angel investors will want to conduct extensive background checks and competitive analysis.

71. A Good Business Plan Requires objective analysis and critical thinking Serves as a guide to operations  Communicates the company's purpose and vision, Creates the foundation of a financing proposal 

72. Elements/Components Of A Business Plan Executive Summary: An executive summary of your business plan provides the reader with a snapshot of your company profile and goals. It's often the most neglected element of the business plan. It should include a mission statement, a brief history of your business, and the highlights of your company's growth, your product or service and a summary of future plans

73. Elements/Components Of A Business Plan Market Analysis Market analysis describes your industry, gives information about the target market for your product or service and describes how your product or service will meet the needs of the target market. This section also discusses the barriers to your entry into the market.

74. Elements/Components Of A Business Plan 3. Company Information This section on your company should describe what you do and what needs your company can fulfill within the marketplace. It should include a list of your customers and explain why your business will be a product or service will be successful

75. Elements/Components Of A Business Plan 4. Company Organization The organization of your company is critical to investors who will want to know if they are lending to a corporation, a partnership or a sole proprietors. The names of the members of the Board of Directors along with their position on the board, the extent of their involvement with your company, their general background, and any contribution to the company's success should be discussed.

76. Elements/Components Of A Business Plan 5. Marketing and Sales Thus element of the business plan should discuss your business's marketing penetration strategy, further growth, the subsequent channels of distribution and a communications strategy suitable for reaching your customers. 6. Product Description The description of your product or service begins with the way your product or service affects your customers, the product life cycle, any intellectual property issues etc.

77. Elements/Components Of A Business Plan 7. Financials This is particularly important if you are making a request for funding. The financial data will include both historical information that is company income statements balance sheets and cash flows for the last three to five years. This section also will include financial projections on the impact of the new product the new service or the cash infusion.

78. Opportunity Analysis It is the process of identifying new arenas and exploring revenue enhancement or expense reduction situations to better evolve and position the organization to realize increased profitability, efficiencies, market potential or other desirable objectives.

79. How to Analyze a Business Opportunity Identify your Core Competency. Develop a Concept Test. Conduct Market and Industry Research. Conduct an Organizational Feasibility Analysis. Identify the Strengths, Weaknesses, Opportunities, and Threats  (SWOT Analysis) of your idea. Then, and only then, is it time to move forward!

80. According to Drucker, opportunities are of three types: ADDITIVE OPPORTUNITIES COMPLEMENTARY OPPORTUNITIES BREAK THROUGH OPPORTUNITIES

81. Environment scanning “A term coined in the mid-1960’s by Francis Aguilar, a Harvard Business School professor, to describe the action of watching and collecting information on a company’s rivals and the overall market.” Sources: https://freebcomnotes.blogspot.com/

82. Careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans Environmental scanning is the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action. Scanning aims at analysing the opportunities and threats in the environment and includes collection and analysis of information. Hence, Environmental scanning  is a process that systematically surveys and interprets relevant data to identify external opportunities and threats. An organization gathers information about the external world, its competitors and itself.

83. Why to Scan? Detecting scientific, technical, economic, social, and political trends and events important to the institution, Defining the potential threats, opportunities, or changes for the institution implied by those trends and events, Promoting a future orientation in the thinking of management and staff, and Alerting management and staff to trends that are converging, diverging, speeding up, slowing down, or interacting.

84. Sources of Information

85. What scanning can accomplish? Capitalize on early opportunities Early signal of impending problems Sensitizes an organization Objective qualitative information Intellectual stimulation to strategists Improves the image of the organization with its market Broad-based education for executives, especially for strategy.

86. Techniques Of Environmental Scanning and Forecasting Executive opinion method: Under this environment is forecasted on the basis of opinion and views of top executives. Expert opinion method:  Under this environment forecasting is based an opinion of outside experts or specialist. Delphi method: This method is extension of expert opinion method.

87. Techniques Of Environmental Scanning and Forecasting Spying: Expert persons are engaged for getting trade secrets or clues about strengths of suppliers, customers or competitors. Forecasting: It is the technique of estimating those events that may occur in future.

88. Techniques Of Environmental Scanning Extrapolating method: Under this method, the past information is used to predict the future. Intuitive reasoning: Under this, rational and unbiased intuition is used for environmental scanning.

89. Environmental scanning in strategy planning and implementation process

90. TYPES OF ENVIRONMENT:

91. INTERNAL ENVIRONMENT SWOT Analysis STRENGTHS THREATS WEAKNESS OPPORTUNITIES EXTERNAL ENVIRONMENT

92. Strengths 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. Beneficial aspects of the organization or the capabilities of 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.

93. Weakness 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. Weaknesses are the factors which do not meet the standards we feel they should meet. However, weaknesses are controllable. They must be minimized and eliminated. 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. 

94. Opportunities 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. 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.

95. Threats External elements in the environment that could cause trouble for the business - External factors, beyond an organization’s control. 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.

96. EXTENSION OF SWOT ANALYSIS OPPORTUNITIES (external, positive) THREATS (external , negative) STRENGTHS (internal, positive) Strength-Opportunity strategies Strength- Threats strategies WEAKNESSES (internal, positive) Weakness-Opportunity strategies Weakness- Threats strategies

97. SWOT Analysis for NESTLE:

98. What is PESTLE Analysis? PESTLE analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. PESTLE Environmental Legal Political Economic Social Technological

99. What is PESTLE Analysis? The 6 factors make up the acronym PESTEL. Each letter represents one factor. It is often called PESTLE, PESTEL. You may these factors using other tests too. PEST, STEEP, and STEEPLE are similar analyses. Some other variations are STEPJE, STEP, and LEPEST. Managers can choose any based on the nature of the firm and the factors they wish to study. PESTLE Environmental Legal Political Economic Social Technological

100. Aim of PEST analysis PEST analysis describes a framework of macro- environmental factors used in the environmental scanning component of strategic management. It is part of an external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro- environmental factors to be taken into consideration. It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations.

101. Micro and Macro Environment Source: https://www.businessmanagementideas.com/

102. POLITICAL The political factors account for all the political activities that go on within a country and if any external force might tip the scales in a certain way. Trading policies Government changes Funding Foreign pressures Conflicts in the political area Shareholder and their demands Source: https://arkvalleyvoice.com/

103. ECONOMIC The economic factors take into view the economic condition prevalent in the country and if the global economic scenarios might make it shift or not. Disposable income Unemployment level Foreign Exchange rates Interest rates Trade tariffs Inflation rate Source: https://www.financialexpress.com/

104. SOCIAL Social factors are your consumers. You need to look at buying habits, emotional needs, and consumer behavior in this section. Because these are the people who directly influence your sales. Ethnic/religious factors Major world events Demographics Consumer opinions and attitudes Trends Education Brand preferences Source: https://www.disruptiveadvertising.com/google-ads/custom-intent-audiences/

105. TECHNOLOGICAL Technology can be directly involved with company products, like manufacturing technologies. Technological development Research and development Associated Technologies Patents Licensing Information technology Communication Source: http://smarterware.org/2016/09/5-reasons-midst-technological-golden-age/

106. ENVIRONMENTAL Environmental factors have to do with geographical locations and other related environmental factors that may influence upon the nature of the trade you’re in. For example, agri-businesses hugely depend on this form of analysis. Ecological Environmental issues Staff attitudes Management style Environmental regulations Consumer values Sources: https://www.thedailystar.net/law-our-rights/news/childrens-right-environmental-protection-1911397

107. LEGAL Legal factors have to do with all the legislative and procedural components in an economy. Also, this takes into account certain standards that your business might have to meet in order to start production/promotion. Employment law Consumer protection Industry-specific regulations Competitive regulations Future legislation Environmental regulations Source: https://www.herzing.ca/blog/law-and-legal/

108. Politically Coca Cola products are at the mercy of the FDA. They must meet regulations, given by the government, to put products on store shelves.  Coca Cola products are distributed to hundreds of countries. And their income (roughly 70%) is from countries outside the United States.  In Japan, they created 30 alternative flavors to appeal to Japanese consumers. In India, they are making similar efforts by owning thumps up. Machinery have helped Coca Cola manufacture products in better and higher quantities. Coca Cola has factories in Britain with top of the name machinery to ensure fast delivery times and quality product development.  Coca Cola retains all rights related to their business, including past and future products developed with a patented process. Coca Cola is affected by water accessibility. Water is necessary for soft drink development. But should something happen, like climate change, the company may be under fire. PESTLE for

109. IDEA  “Idea is Before any copy is written or artwork began”. • This process is called conceptualization. • According to Bernbach, “The idea often emerges from the intangible , indefinable intuition that reaches out towards what is new”. Source: https://tusbuenasnoticias.com/economia/emprendedor-averigualo-recursos-proyecto/

110. Process of new product/service development NEW PRODUCT IDEAS IDEA SCREENING CONCEPT DEVELOPMENT AND TESTING BUSINESS POTENTIAL ANALYSIS PRODUCT DEVELOPMENT TEST MARKETING COMMERCIALISATION REVIEW OF MARKET PERFORMANCE

111. Idea Generation Idea generation is described as the process of creating, developing and communicating abstract, concrete or visual ideas. Idea Challenge SCAMPER Technique (substitute, combine, adapt, modify, put to another use, eliminate and reverse) Reverse thinking Brainstorm Cards Analogy Thinking Source: https://www.fodafrica.org/11-easy-idea-generation-techniques/

112. IDEA SCREENING Idea screening means nothing else than filtering the ideas to pick out good ones. In other words, all ideas generated are screened to spot good ones and drop poor ones as soon as possible. Dropping the poor ideas as soon as possible is, consequently, of crucial importance. Source: https://www.google.com/url?sa=i&url=https%3A%2F%2Fbloncampus.thehindubusinessline.com

113. CONCEPT DEVELOPMENT Imagine a car manufacturer that has developed an all-electric car. The idea has passed the idea screening and must now be developed into a concept. Concept 1: an affordably priced mid-size car designed as a second family car to be used around town for visiting friends and doing shopping. Concept 2: a mid-priced sporty compact car appealing to young singles and couples. Concept 3: a high-end midsize utility vehicle appealing to those who like the space SUVs provide but also want an economical car. As you can see, these concepts need to be quite precise in order to be meaningful. In the next sub-stage, each concept is tested. Source: http://www.thefood.biz/concept-development.html

114. CONCEPT TESTING New product concepts, such as those given above, need to be tested with groups of target consumers. The concepts can be presented to consumers either symbolically or physically. After exposing the concept to the group of target consumers, they will be asked to answer questions in order to find out the consumer appeal and customer value of each concept. Source: https://w5insight.com/beyond-a-gut-check-concept-testing/

115. BUSINESS POTENTIAL ANALYSIS The next step in the new product development process involves a review of the sales, costs and profit projections for the new product to find out whether these factors satisfy the company’s objectives. All the sales and costs figures together can eventually be used to analyze the new product’s financial attractiveness. Source: https://entrearchitect.com/2017/11/28/key-financial-performance-indicators/

116. PRODUCT DEVELOPMENT Up to this point, for many new product concepts, there may exist only a word description, a drawing or perhaps a rough prototype. But if the product concept passes the business test, it must be developed into a physical product. The R&D department will develop and test one or more physical versions of the product concept. Source: https://uxdesign.cc/software-product-development-d4fbcc7dc67b?gi=c7ad2cd2060c

117. TEST MARKETING The last stage before commercialization in the new product development process is test marketing. In this stage of the new product development process, the product and its proposed marketing programs are tested in realistic market settings. Therefore, test marketing gives the marketer experience with marketing the product before going to the great expense of full introduction. Source: https://marketing.com.au/how-to-use-online-surveys-to-test-marketing-messages/

118. COMMERCIALISATION It is the actual introduction of the product into the market place with all the related decisions and resource commitments. Under this step raw materials and component contracts are to be made with the suppliers, channels of distribution are to be selected, sales people are hired and trained, advertising and other sales plan are initiated. With commercialisation a product starts its introductory stage of product life cycle. Source: https://innovation.unh.edu/commercialization-process

119. REVIEW OF MARKET PERFORMANCE The importance of NPD process and the failure experience have prompted a great effort of research on how to improve the process.  Source: https://good2bsocial.com/marketing-analytic-metrics-for-law-firms/

120. Techno economic feasibility study Feasibility Study is an assessment of the practicality of a proposed project or system.  In feasibility analysis, the project idea is examined from the point of view whether to go in for making a detailed investment proposal or not. Source: https://www.fiverr.com/fahadshaheryar/do-ratio-analysis-of-you-company

121. 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. The issues involved in the assessment of technical analysis of the proposed project may be classified into those pertaining to Inputs analysis Throughputs analysis Outputs analysis

122. Economic feasibility Economic feasibility  is a kind of cost-benefit analysis of the examined project, which assesses whether it is possible to implement it. This term means the assessment and analysis of a project's potential to support the decision-making process by objectively and rationally identifying its strengths, weaknesses, opportunities and risks associated with it, the resources that will be needed to implement the project, and an assessment of its chances of success. 

123. Feasibility Analysis Feasibility analysis is the process of determining whether a business idea is viable. It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing. Feasibility analysis takes the guesswork (to a certain degree) out of a business launch, and provides an entrepreneur with a more secure notion that a business idea is feasible or viable.

124. Contents of TEFR Objective and scope of the report. Product characteristics. Market position and trends. Raw material requirement, prices, sources and properties of raw materials. Manufacturing processes, selection of process, production schedule and techniques. Plant and machinery. Requirement of land area, building, construction schedule. Financial implications. Marketing channels, their trending practices and marketing strategies. Requirement o personnel, labor and expenses on wage system

125. Advantages of TEFR A record to verify that the running facets of the project are analyzed just before implementation. To make sure the suggested project/business is a effective venture. Provide guideline which will help the management in easy monitoring and controlling project implementation and production activity. Helps you to convince bankers, partners, government to avail necessary help. 

126. Technology enables to perform everyday tasks faster enables to process information, manage and keep records better helps people gather information, learn, enjoy entertainment and communicate Source: https://www.jagranjosh.com/articles/time-management-hacks-to-submit-mba-assignment-within-deadline-1495108383-1

127. Drawbacks Of Technology Health & development may be adversely affected Damage to the environment Too easy to spend via instant access to cash and credit and to online purchasing Personal privacy may be threatened Family time is replaced with individual time spent with tech