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18ES51 Module 4

This document summarizes the key components of a feasibility analysis for starting a family business in India. It covers analyzing the market opportunity, financials, operations, management team, and ensuring the business idea is socially and legally compliant. The analysis also considers factors specific to family businesses in India such as board composition, cultural norms, and common business types. Conducting a thorough feasibility study of these elements can help determine if a family business concept is viable and set up for optimal success.

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268 views19 pages

18ES51 Module 4

This document summarizes the key components of a feasibility analysis for starting a family business in India. It covers analyzing the market opportunity, financials, operations, management team, and ensuring the business idea is socially and legally compliant. The analysis also considers factors specific to family businesses in India such as board composition, cultural norms, and common business types. Conducting a thorough feasibility study of these elements can help determine if a family business concept is viable and set up for optimal success.

Uploaded by

satishs
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SUBJECT: MANAGEMENT & ENTREPRENEURSHIP DEVELOPMENT

SUBJECT CODE: 18ES51

MODULE – 4
Family Business: Role and Importance of Family Business,
Contributions of Family Business in India, Stages of Development
of a Family Business, Characteristics of a Family-owned Business
in India, Various types of family businesses
Idea Generation and Feasibility Analysis- Idea Generation;
Creativity and Innovation; Identification of Business Opportunities;
Market Entry Strategies; Marketing Feasibility; Financial
Feasibilities; Political Feasibilities; Economic Feasibility; Social
and Legal Feasibilities; Technical Feasibilities; Managerial
Feasibility, Location and Other Utilities Feasibilities
Family Business: Role of Family
Business
Characteristics of Family Business
Characteristics of Family Business
Importance of Family Business
Importance of Family Business
Contributions of Family Business in India

• India has a rich history of family owned


enterprises
• Overtime family businesses have done more
than simply pay taxes and employ people
• During the last one hundred years or so, Indian
family business
• Numerous small and medium family
enterprises have also actively supported
foundations engaged in charitable work
Stages of Development of a Family
Business
• Entrepreneurial

• Functionally specialized

• Process driven

• Market driven
Characteristics of a Family-owned
Business in India
• Importance of family relationship
• Composition of the board of Directors
• Loyalty
• Dedication of family members
• Male dominated
• Dominance of certain trading communities
Various types of family businesses

• Family owned business

• A family owned and managed business

• A Family owned and led business


Idea Generation and Feasibility
Analysis- Idea Generation
• Idea generation is a creative process businesses use to
generate new ideas, whether they're tangible or intangible.
It involves gathering ideas, research, testing, editing or
revising, and ultimately implementing the plan.
• Feasibility analysis is the process of confirming that a
strategy, plan or design is possible and makes sense. This
can be used to validate assumptions, constraints, decisions,
approaches and business cases.
Creativity and Innovation
• Creativity is the novel step of being the first to identify that
something might be possible in the first place.

• Innovation is the action of putting things into practical reality,


despite challenges and resistance, rather than just contemplating

• The key factor is that creativity remains an idea alone, not reality
yet. Interestingly, creativity is very specific to people; animals
have no way to communicate ideas, and much of what they do
transfer is assumed by instinct or by example
Identification of Business
Opportunities
• The three key approaches to identify the best
business opportunities are:

1. Observing Trends. Study how customers interact with


products. ...

2. Solving a Problem. Recognize problems and develop


innovative ways to solve them. ...

3. Gaps in the Marketplace


Market Entry Strategies
• There are a variety of ways in which a company can enter a
foreign market. No one market entry strategy works for all
international markets. The following strategies are the main
entry options open to you.

• Direct Exporting,

• Licensing

• Franchising

• Partnering

• Joint Ventures

• Buying a Company
Marketing Feasibility
• The purpose of the Marketing Feasibility Study is to
determine the suitability of this property for profitable
development, and to define optimal products and. amenities
in accordance with projected market demand, and to
project sales absorption and annual revenues from
development of this property.
Financial Feasibilities
• Financial feasibility focuses specifically on
the financial aspects of the study. It assesses the
economical viability of a proposed venture by evaluating
the startup costs, operating expenses, cash flow and making
a forecast of future performance.
Political Feasibilities and Economic
Feasibility
• Political feasibility is a measure of how well a solution to a
policy problem, will be accepted by a set of decision makers and
the general public. For a policy to be enacted and implemented, it
must be politically acceptable, or feasible.
• The economic feasibility step of business development is that
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.
Social and Legal Feasibilities
• Social impact analysis is an exercise aimed at identifying and
analyzing such impacts in order to understand the scale and reach
of the project's social impacts. It also ensures that these impacts
are mitigated, to the extent possible, and fully considered in the
green light decision.
• It determines whether the proposed system conflicts
with legal requirements, e.g., a data processing system must
comply with the local data protection regulations and if the
proposed venture is acceptable in accordance to the laws of the
land.
Technical and Managerial Feasibilities
• A technical feasibility study assesses the details of how you
intend to deliver a product or service to customers. ... It's the
logistical or tactical plan of how your business will produce,
store, deliver, and track its products or services.

• Managerial Feasibility studies is the objectively and rationally


uncover the strengths and weaknesses of an existing business
or proposed venture, opportunities and threats which are
presented by the environment, the resources required to carry
through, and ultimately the prospects for success.

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