Project Summary Chapter 2 PDF

Project Summary Chapter 2 Learning Objective At the end of the lesson, the students are expected to be able to 1. Discuss the importance of a project summary; 2. Describe the important points in selecting a business trade name; 3. Discuss the mechanics in defi...

Project Summary Chapter 2 Learning Objective At the end of the lesson, the students are expected to be able to 1. Discuss the importance of a project summary; 2. Describe the important points in selecting a business trade name; 3. Discuss the mechanics in defining the industry; 4. Discuss the importance of describing the project; 5. Identify the factors in selecting the location; 6. Describe the significance of an assumption and 7. Discuss how to formulate a conclusion. Nature and Concept PROJECT SUMMARY- Presents the highlights of the study, list its major assumptions and summarizes the major findings and conclusions. Another term of Project Summary are abstract, synopsis or overview The project summary should have the following sections; 1. proposed name of the business 2. description of the industry 3. description of the project 4. location of the project 5. highlights of the major assumptions 6. Summary of finings and conclusion PROPOSED NAME OF THE BUSINESS The selection of a business name is a critical step in the entrepreneurial journey. A well-chosen name can significantly impact a company's brand identity, customer perception, and overall success. Key Considerations for Business Name Selection Reflection of Business Philosophical Values Brand Identity Customer Appeal Identity: and Culture The name should The name should align The name should be The name should be accurately convey the with the company's memorable and evoke appealing to the target nature of the business beliefs, mission, and the desired emotions audience and resonate and its core offerings. values. associated with the with their preferences. brand. Back to Agenda  Government Requirements for Trade Name Approval Choosing the right trade name for your business is a crucial step in establishing a strong brand identity and attracting customers. In the Philippines, the process of securing trade name approval involves various government agencies, depending on your business structure. 1.The Department of Trade and Industry (DTI): The DTI plays a key role in ensuring that trade names are unique and not already registered. This is a crucial first step for all business structures. Sole Proprietorships and Partnerships: For these simpler business structures, the DTI check is often the final step in the trade name approval process. Corporations: While the DTI check is still necessary, corporate entities must also obtain approval from the Securities and Exchange Commission (SEC) for their trade names. Back to Agenda  Government Requirements for Trade Name Approval The Securities and Exchange Commission (SEC): The SEC, responsible for regulating corporations, has specific requirements for trade name approval for corporate entities. The Bangko Sentral ng Pilipinas (BSP): Businesses engaging in banking operations must comply with the regulations set by the BSP, which include specific requirements for trade names. Securing trade name approval in the Philippines involves navigating a series of steps w different government agencies. By understanding the specific requirements for each business structure and adhering to the regulations, entrepreneurs can choose a name that effectively represents their business and resonates with their target market. It is always advisable to consult with legal professionals to ensure compliance and avoid potential legal issues. Back to Agenda DESCRIPTION OF THE INDUSTRY Industry Analysis in Feasibiliy Study Industry analysis- is a group of productive enterprises or organizations that produce or supply goods, services, or sources of income Key areas to consider in an industry analysis Industry Overview Definition: Clearly define the industry and its scope. Trends: Identify emerging trends, technological advancements, and regulatory changes that could impact the industry. Back to Agenda Competitive Landscape Major Players: Identify the key competitors in the industry and their market share. Competitive Advantages: Analyze the strengths and weaknesses of competitors Market Demand Target Market: Identify the specific target market for the proposed business. Customer Needs and Preferences: Understand the needs, preferences, and buying behavior of customers. Back to Agenda Industry Regulations Legal and Regulatory Framework: Identify relevant laws, regulations, and industry standards. Compliance Requirements: Assess the costs and complexities of complying with regulations. Back to Agenda DESCRIPTION OF THE PRODUCT 1. What are the important details of the project? The project feasibility study should start with the basic details of the project and provide a purpose or goal for the project. A project description must include a detailed description of the project scope and what the project will do and how it will do. The description of the project should contain a relatively detailed timeline and task breakdown, including what will be done, when, and by whom. It is also important to detail the end result of the project. What will the project produce or create for the company. Back to Agenda  Market Feasibility 2. Does anyone need this product or service? Does anybody want this product or service? Will anybody use it? Is there a similar product/service currently available that will prevent project success? You must identify a pricing model and ensure similar products/services are not currently available at a lower price. If you continue with the project, investing time, money and resources, and nobody pays for the service, the project will be a failure. Back to Agenda  The Four Pricing Strategies Penetration Pricing – Initially setting a low price for a high-quality product and then increasing it. (Low price now, high price in the future) Price Skimming – Initially setting a high price for a new low-quality product and then reducing it. (High price now, low price in the future) Premium Pricing – Setting a high price for high-quality goods. (High price now, high price in the future) Loss leader - they buy your product based on its low price (Low price now, low price in the future) Back to Agenda LOCATION OF THE PROJECT Oftentimes, we hear the provocative statement that the project should be located in a strategic location. But, what does strategic location mean? - refers to a geographical position that offers advantages for economic, political, or military purposes. It is a place that provides unique opportunities and benefits due to its proximity to important resources, transportation routes, or other significant factors that should provide a competitive advantage and ensure the attainment of maximum efficiency. Competitive advantage means that the business has gained an edge over its competitors that can hardly be copied and which provides higher profitability level. Back to Agenda LOCATION OF THE PROJECT A straightforward reason for the selection of the location should be indicated in this section. It is highly emphasized that all underlying reasons for the project are viewed valuable from the point of view of prospective investors, and not from the side of the proponent. The following questions should be answered in this section: `. What is the prevailing peace and order condition in the proposed location? The proposed location is known for its stable peace and order conditions, with low crime rates and effective law enforcement. The area's safety record provides a secure environment for business operations and minimizes risks related to theft or disruption. 2. Are there primary competitors within the vicinity of the project? There are few direct competitors within the vicinity, offering a strategic advantage by limiting market saturation. This enables the project to capture a significant share of the local market without intense competitive pressure. Back to Agenda LOCATION OF THE PROJECT 3. Where are the sources of raw materials, labor, and utilities? The site is conveniently located near key suppliers of raw materials, ensuring efficient logistics and reduced transportation costs. A skilled labor force is readily available in the surrounding area, and access to utilities such as electricity, water, and telecommunications is reliable and cost-effective. 4. What is the proximity of the location to the market? The project location is close to key markets, allowing for quick distribution and reduced transportation expenses. The proximity to the customer base ensures timely delivery of products, giving the business a competitive edge. 5. Is there available transportation? The location is well-served by major transportation networks, including highways and public transit. This ensures easy access for both the movement of goods and the daily commute of employees, contributing to operational efficiency. Back to Agenda LOCATION OF THE PROJECT 6. How far is the plant from the households? The plant is situated at a reasonable distance from residential areas, minimizing potential disruptions to the local community while ensuring that it can draw labor from the surrounding population. This balance supports a positive relationship with the community and employee accessibility. 7. What is the prevailing climate, temperature or weather condition in the area? The region enjoys a stable climate with moderate temperatures and minimal risk of extreme weather events, reducing the likelihood of operational interruptions due to adverse weather. This makes it suitable for year-round operations. These factors make the proposed location highly advantageous for the project, balancing operational efficiency, market access, and community considerations, while ensuring investor confidence in long-term profitability. Back to Agenda HIGHLIGHTS OF MAJOR ASSUMPTIONS - section of the feasibility study emphasizes the critical role of assumptions in forecasting the viability of a business venture. These assumptions are grounded in: Past experiences of similar businesses, providing historical context. Current market trends, both locally and globally, offering a dynamic perspective. Government programs at regional and national levels, indicating potential support or challenges. Regulations issued by monitoring agencies, which set the legal and operational framework. Back to Agenda HIGHLIGHTS OF MAJOR ASSUMPTIONS Assumptions in studies can be a bottleneck if not reliable. Realistic and measurable assumptions are crucial. Investors are updated on financial data, so unrealistic assumptions may cause doubt and loss of interest. Assumptions are needed to answer the following questions: Project Goals: What are you trying to achieve with this project? Scope: What are the specific tasks or deliverables involved? Timeline: What is the expected duration of the project? Resources: What resources (e.g., people, equipment, materials) will be needed? Constraints: Are there any limitations or restrictions that might impact the project? In the project summary, major assumptions are usually provided with short descriptions. Back to Agenda SUMMARY OF FINDINGS AND CONCLUSIONS The summary of findings and conclusions is a critical section that encapsulates the results and recommendations of the study. Four Critical Questions Market Feasibility: Is the project feasible in terms of the market? Technical Feasibility: Is the project feasible in terms of the technical aspect? Organizational Feasibility: Is the project feasible in terms of the organizational setup? Financial Feasibility: Is the project feasible in terms of its financial operation? Back to Agenda Proponent's Role Responsibilities of the Proponent The proponent is responsible for providing specific conclusions and recommendations for each area of the feasibility study. It's important to note that the proponent does not guarantee the success of the project, but rather presents an evaluation based on the gathered evidence. Positive Feasibility Indicators High Probability of Feasibility If all four critical questions are answered positively, the project is likely to have a high probability of feasibility, indicating a potential for success. Negative Feasibility Indicators Infeasibility Assessment If any of the critical questions receives a negative answer, a definitive conclusion on the feasibility of the project cannot be reached, signaling potential challenges. Back to Agenda Investor's Decision Binary Decision Making The investor's decision is binary: to either implement the project, indicating a commitment of funds, or not implement, leading to the abandonment of the project. Business Plan Development Post-Decision Preparation Upon the investor's commitment of funds, the proponent proceeds to develop a detailed business plan, which includes a thorough evaluation of the business environment and step-by-step implementation procedures. Conclusion and Recommendations Proponent's Evaluation The proponent provides a summary of conclusions and recommendations for each area, culminating in a general conclusion based on the comprehensive study. Final Decision Investor's Autonomy The investor's final decision may differ from the proponent's recommendations, emphasizing the significance of a clear and decisive conclusion for the investor's decision-making process. Back to Agenda  Thanyou for listening! Jy-an G. Gaviola Jhyhan Dayon Krisley O. Flores Eleiza Marie Rosaroso Jezreel Ilustrisimo Back to Agenda