Module 01: Entrepreneurship Building

 Who is an entrepreneur? An individual capable of organizing and

managing a business idea or new enterprise, acknowledging
inherent risks and consequences. They act as leaders, taking
responsibility for success or failure.

 What is entrepreneurship? The process of performing the

activities of an entrepreneur; it involves identifying opportunities,
creating business plans, mobilizing resources, managing risks, and
building a successful venture.

 Relationship between innovation and entrepreneurship:

According to Schumpeter, an entrepreneur is an innovator who
introduces something new, solving problems and driving progress.

 Invention vs. Innovation: Invention is the discovery of new

processes and materials; innovation is the application of these
inventions to create user-friendly solutions and commercialize them.

 Entrepreneurial motivation: Driven by three factors: compelling

(e.g., unemployment), facilitating (e.g., available funds), and
ambition (e.g., making money).

 Need for Achievement: A high-level human need, defined by

McClelland as striving for excellence through competition. A high
need for achievement is strongly correlated with entrepreneurial
success. These individuals are less motivated by purely monetary
rewards.

 Tolerance of ambiguity: Successful entrepreneurs exhibit a high

tolerance for uncertainty and the differing interpretations of
situations.

 Organizational building capabilities: The ability to create

effective organizational structures, define roles and responsibilities,
and manage relationships between roles.

 Manager vs. Leader: Managers have formal authority; leaders

empower others, particularly managers, within the organization.
Leadership and managerial roles are distinct.

Module 02: Analysing Marketing Opportunities – Part A (Macro

Economic Factors)

 Who is an entrepreneur? Someone running or wanting to start a

business (independently or collaboratively).
  Traits of an entrepreneur: Courageous, risk-taking, independent,
ambitious, and outgoing.

 Identifying new business opportunities: Entrepreneurs identify

opportunities by analysing existing and emerging trends in the
external environment.

 Environmental scanning: Continuous and careful study of macro-

environmental factors (both favourable and adverse) that can
influence a business.

 Objective of environmental scanning: To understand the current

state of affairs and changes in the external environment to find
viable business opportunities.

 Demographic variables: Observable characteristics of the

population (age, gender, education, income, etc.).

 Importance of demographic variables: Different demographics

have varying needs and wants, creating diverse marketing
opportunities.

 Importance of technological factors: Technology is constantly

evolving, creating both opportunities and obsolescence.
Entrepreneurs must adapt to technological changes.

 Importance of politico-legal factors: Laws and regulations

created by political entities significantly impact businesses.
Entrepreneurs must stay informed and compliant.

 Impact of socio-cultural changes: Socio-cultural values influence

consumer behavior, providing opportunities for new businesses that
align with evolving preferences and traditions.

Module 04: Analyzing Marketing Opportunities – Part C (Micro

Economic Factors-2)

 Opportunity Matrix: Framework for understanding and assessing

opportunities to prioritize them and strategize.

 Threats Matrix: Framework for assessing potential threats to a

business from the external environment.

 Marketing Opportunity Analysis: Provides a closer look at

potential opportunities, categorizing them by desirability and
feasibility of exploitation.

 Threats Matrix Purpose: Alerts entrepreneurs to potential

challenges to their business.
  Framing Opportunity & Threat Matrices: Classify opportunities
and threats based on attractiveness, success probabilities,
seriousness, and likelihood of occurrence.

 Opportunity-Threat Matrix and SWOT: Opportunities and threats

identified in the Opportunity-Threat Matrix are directly comparable
to those in a SWOT Analysis.

 Speculative business: High-risk, high-reward businesses with both

significant opportunities and challenges.

 SWOT Analysis: Analysing a firm's strengths, weaknesses,

opportunities, and threats using internal and external assessments,
including industry analysis.

 Industry Analysis: Studying the practices of similar businesses to

identify areas for improvement.

 Entrepreneur's vision: Can serve as a starting point for exploring

opportunities; visionary entrepreneurs can foresee future
opportunities.

Module 05: Analysing Marketing Opportunities – Part D (Vision)

 Strategic Intent components order: Vision, Mission, Business

Definition.

 Vision vs. Mission (endurance): Vision is more enduring than

mission.

 Vision vs. Mission (difference): Vision is idealistic and

aspirational, while the mission is detailed and practical, outlining
present and future goals.

 Vision's purpose: Provides an inspirational picture of the future

and keeps various business units aligned with shared values.

 Mission's purpose: Outlines a firm's reason for existence and its

growth ambitions, directing overall planning and strategy.

 Mission's changeability: Missions can change in response to

extraordinary changes in the business environment.

 Who can change a Mission: Primarily the chief executive, but can
evolve over time.

 Business definition's purpose: Defines the firm’s product-market

choice, clarifies opportunities, and identifies competitive threats.

 Problem with product-oriented definitions: Limits opportunities

and overlooks potential competition.
  Utility of market-oriented definitions: Provides a long-term
perspective and identifies new growth avenues.

Module 06: Ansoff's Grid

 Product/Market Expansion Matrix: A simple but effective

framework for classifying growth strategies by identifying
opportunities in organic and inorganic ways.

 Creator of the Matrix: H. Igor Ansoff (1957).

 Basis of the Matrix: Classifies a firm's business based on its

products (existing and new) and markets (existing and new),
resulting in four quadrants.

 Purpose of product/market classification: Each quadrant

represents a specific growth strategy scenario and outlines different
strategic actions.

 Four scenarios: Existing products to existing markets, existing

products to new markets, new products to existing markets, new
products to new markets.

 Growth strategies: Market penetration, market development,

product development, and diversification.

 Thrust areas of strategies: Each strategy has particular focus

areas (e.g., market penetration is about aggressive sales and
distribution).

 Product differentiation vs. new product development:

Differentiation involves modifying existing products; new product
development introduces entirely new products or extends existing
product lines.

 Definition of a new product: Can be entirely new or involve

alterations to existing products.

 Diversification strategy: Unlike market development or product

development, it involves both new products and new markets,
carrying a higher risk but also greater potential reward.

Module 07: Market Survey Techniques

 Market survey: A systematic process of obtaining specific

information from a sample of respondents within a defined
timeframe.

 Market survey process: Defining objectives, creating

questionnaires, sampling, interviewing, and data analysis.
  Indirect methods in interviews: Used to obtain sensitive
information or information respondents may be unwilling to disclose
directly (projective techniques).

 Qualitative data: Information gathered from small samples,

cannot be generalized; often used in focus groups.

 Quantitative data: Information obtained from large, statistically

representative samples; allows numerical analysis and
generalization.

 Reliability of market survey findings: Depends on various

factors including research design, sampling, data quality, execution,
and bias minimization.

 Panel data reliability: Panel size, clarity of instructions, and

maintaining respondent participation all impact reliability.

 Advertising audience panels: Measure media consumption

habits to inform advertising strategy.

 Minimizing bias in survey findings: Use of simple, clear

questions; translation as needed; proper questionnaire design and
testing; careful interviewer selection and training.

 Focus group composition: Should have a homogeneous group to

facilitate open and honest discussion.

Module 08: Project Formulation – I

 Project Formulation: The process of building a project from

scratch, involving land acquisition, technology development, and
detailed planning.

 Feasibility Analysis/Study: In-depth reports assessing the

viability of a project idea, covering technical, economic, legal, and
operational factors.

 Necessity of Project Formulation: Essential for securing financial

assistance from institutions, who require proof of viability and
feasibility.

 Steps in Project Formulation: Feasibility analysis, techno-

economic analysis, project design and network analysis, input
analysis, financial analysis, and social cost-benefit analysis.

 Pre-feasibility analysis: Preliminary assessment of market

potential, investment magnitude, and critical factors before detailed
study.
  Detailed feasibility study: In-depth study providing the basis for
capital estimates, operating costs, and overall economic viability;
used to create the business plan.

 Areas covered under Project Feasibility: Technical, managerial,

economic, financial, cultural, political, and environmental feasibility.

 Techno-economic analysis: Determining the optimal technology

to meet project demand.

 Labor-intensive vs. capital-intensive business: Techno-

economic analysis determines the appropriate balance between
labor and capital investment.

 Project design and network analysis: Detailed planning of

activities and resources using network analysis techniques like
Critical Path Method and Programme Evaluation and Review
Technique.

Module 09: Project Formulation – II

 Financial analysis: Evaluating profitability measures and the

required funding (cost and revenue analysis).

 Social Cost Benefit Analysis (SCBA): Measures a project's

benefits and costs to society.

 Financial Analysis vs. SCBA: Financial analysis focuses on the

business; SCBA encompasses societal impact.

 Project Reporting Stage and Project Report: Feasibility report

(overview) and detailed project report (in-depth analysis)
respectively.

 Feasibility Report: Basis for capital and operating cost estimates,

providing a high-level overview.

 Detailed Project Report: In-depth analysis covering all vital

project aspects.

 Project appraisals: Assessment of a project's financial viability by

the entrepreneur and approving authorities.

 Financial appraisal methods: Payback period, average rate of

return, net present value, benefit-cost ratio, and internal rate of
return.

 Payback period: The time it takes to recover the initial investment.

Module 10: Project Appraisal – I

  Net Present Value (NPV): The difference between the present
value of future cash inflows and the present value of cash outflows.

 Conventional investment: A one-time investment at the

beginning of the project.

 Non-conventional investment: Involves cash flows occurring over

multiple periods.

 NPV in investment decisions: A positive NPV indicates

profitability and suggests acceptance; a negative NPV indicates
losses and rejection.

 Merits of NPV: Accounts for the time value of money, indicates

value added, and aligns with maximizing overall welfare.

 Demerits of NPV: High NPV may not be feasible due to high

upfront investment cost.

 Internal Rate of Return (IRR): The discount rate that equates the
present value of cash inflows with the present value of cash
outflows.

 IRR in decision-making: Accept a project if the IRR exceeds the

pre-defined cut-off rate.

 IRR as an optimal return: IRR helps determine the minimum rate

of return required to make a project viable.

Module 11: Project Appraisal – II

 Most difficult aspect of assessment: Gauging risk and

uncertainty.

 Factors contributing to risk and uncertainty: Macroeconomic,

sociological, technological, and political factors.

 Risk and uncertainty in business: Inherent and unavoidable;

entrepreneurs are risk-takers.

 Calculated risk-taking: Entrepreneurs assess and mitigate risks

whenever possible.

 Examples of business uncertainties: Technological

obsolescence, demand fluctuations, government policy changes.

 Techniques for handling uncertainties: Modern quantitative

techniques, marketing research, operations research, network
analysis, and ratio analysis.
  Risk analysis techniques: Conservative methods (shorter
payback period, risk-adjusted discount rate) and modern methods
(decision tree).

 Shorter payback period rationale: Prioritizes projects with faster

return on investment.

 Risk-adjusted discount rate: Adds a risk premium to the discount

rate.

 Decision-making process: Collect information, generate

scenarios, evaluate probabilities and payoffs, and decide.

Module 12: Project Appraisal – III

 Capital costs: One-time, large-volume expenditures on assets

(e.g., plant and machinery).

 Operating costs: Variable costs incurred to run operations.

 Gross revenue vs. net revenue: Gross revenue is the total

revenue; net revenue subtracts returns, allowances, and discounts.

 Calculating cost of goods sold: Includes raw materials, labor,

energy, supervision, repairs, and other incidental expenses.

 Gross margin: The difference between net revenue and cost of

goods sold.

 EBIT, PBT, PAT: Earnings before interest and tax, profit before tax,
and profit after tax (calculating these values involves subtracting
relevant expenses from gross profit).

 Retained earnings: Profit after tax less dividends.

 Fixed assets: Assets that cannot be quickly converted to cash.

 Liabilities: Amounts the organization owes.

 Balance sheet key principle: Assets must equal liabilities.

Module 13: Financial Management – Part A

 Project finance aspects: Determining the total capital required

and its composition (capitalization and capital structure).

 Fixed capital financing: Funding the purchase of major equipment

and machinery.

 Factors affecting fixed capital needs: Business nature, size,

technology, ancillary units, sub-contracting, economic trends, and
international conditions.
  Sources of fixed capital financing: Borrowing from public,
financial institutions, lease financing, retained earnings, equity
shares, preference shares, debentures, term loans, deferred credit,
and government subsidies.

 Retained earnings: Profits reinvested from prior years, appear in

the balance sheet's liabilities section.

 Deferred credit: Obtaining finance by delaying payments to

suppliers.

 Working capital: Funds needed for day-to-day operations.

Module 14: Financial Management – Part B

 Factors influencing working capital: Operating cycle, sales

volume, seasonality, cyclical factors, organizational policies, and
technology.

 Operating cycle: Time it takes to convert raw materials into cash.

 Impact of seasonality: Fluctuations in demand increase or

decrease the need for working capital.

 Impact of organizational policies: Credit policies and payment

terms impact the working capital required.

 Impact of technology: Advanced technology may increase

working capital needs by accelerating production and requiring
larger raw material inventories.

 Managing working capital: Estimating the requirement and

securing sufficient funds.

 Working capital forecasting factors: Raw material costs,

processing time, production cycle length, credit terms, and wage
payment cycles.

 Sources of working capital: Borrowings (banks and other

financial institutions), short-term finance (trade credit), unsecured
non-bank sources, pledging, factoring, bank credit, unsecured public
deposits, inter-company deposits, and insurance company loans.

 Bill discounting: Selling trade bills to a bank to get immediate

cash.

 Factoring: Selling accounts receivables to a factor who manages

collections.

Module 15: Human Resource Management – Part A

  Classifications of human behavior: Biographical characteristics
and ability criteria.

 Biographical characteristics: Age, gender, etc.

 Ability criteria: Skills and aptitudes, including intelligence.

 Age and productivity: Not directly related; age brings experience

but also potential disadvantages like resistance to technology.

 Positive and negative aspects of age: Experience, commitment,

and judgment versus risk aversion, inflexibility, and resistance to
change.

 Age and turnover: Inversely related; longer tenure decreases the

likelihood of turnover.

 Age and gender impact on absenteeism: Age has an inverse

relationship with avoidable absenteeism and a direct relationship
with unavoidable absenteeism. Gender also impacts absenteeism,
though this is context-dependent.

 Gender and competence: Men and women show equal

competence in most areas, though cultural norms can influence
their employment outcomes.

 Gender and turnover: Little difference between men and women

overall, however, cultural factors might influence this.

 Age and loyalty: Older employees generally show higher loyalty to

the organization.

 Age and job satisfaction: Job design should aim to satisfy

employees of all ages.

Module 16: Human Resource Management – Part B

 Ability: Capacity to perform a task.

 Intellectual abilities: Mental skills such as thinking, reasoning,

and problem-solving.

 Physical abilities: Physical capabilities such as strength and

stamina.

 Dimensions of intellectual ability: Numerical ability, verbal

comprehension, perceptual speed, inductive reasoning, deductive
reasoning, spatial visualization, and memory.
  Inductive vs. deductive reasoning: Inductive reasoning moves
from specific observations to broader generalizations, while
deductive reasoning applies general principles to specific situations.

 Purpose of tests in recruitment: To assess whether candidates

possess the necessary skills for the position.

 Components of intelligence: Cognitive, social, emotional, and

cultural intelligence.

 Cognitive intelligence: Ability to perform mental tasks.

 IQ vs. EQ: IQ measures general intelligence; EQ measures

emotional intelligence.

 Social vs. cultural intelligence: Social intelligence involves

relating to diverse individuals; cultural intelligence involves relating
to individuals from different cultures.

Module 17: Leadership – Part A

 Are leaders born or made? Debate exists, some believe leaders

are innate, while behavioural theories emphasize training and
grooming.

 Characteristics of leaders: Difficult to predict, but some

personality traits and qualities are common among successful
leaders.

 Personality: The sum of psychological characteristics and traits

that make a person unique.

 Traits: Innate psychological characteristics.

 Common leader qualities: Ambition, energy, desire to lead,

honesty, integrity, self-confidence, intelligence, and job knowledge
(these are qualities, not necessarily personality traits).

 Personality traits of leaders (Big Five): Extraversion,

agreeableness, conscientiousness, emotional stability, and
openness to experience.

 Extraversion as a leadership trait: Essential for effective

communication with diverse individuals.

 Conscientiousness: Important but not always present in

successful leaders.

 Emotional stability: Essential for maintaining calm and inspiring

confidence in followers.
Module 18: Leadership – Part B

 Trait vs. behavioural theories: Trait theories emphasize innate

qualities; behavioural theories emphasize learned behaviours.

 Major behavioural theories: Ohio State University studies and

Michigan State University studies.

 Ohio State study’s findings: Leaders can be classified by their

emphasis on initiating structures or consideration (human relations).

 Michigan study’s findings: Leaders can be classified by their

emphasis on production or employee orientation.

 Ohio & Michigan studies comparison: The dimensions of the two

studies are highly correlated.

 Managerial grid: A two-dimensional model that plots concern for

results and concern for people.

 Ideal leadership style (managerial grid): High concern for both

results and people.

 Contingency theories vs. behavioral theories: Contingency

theories consider situational factors that influence leadership
effectiveness.

Module 19: Leadership – Part C

 Situational leadership theories and contingency theories:

Situational theories are part of the contingency approach.

 Examples of situational leadership theories: Hersey &

Blanchard, Leader-Member Exchange (LMX), and Path-Goal Theory.

 Hersey & Blanchard's contribution: Emphasizes that leadership

style should adapt to follower readiness and situational factors.

 Factors determining follower readiness: Ability and willingness

to perform tasks.

 Adaptive leadership style: Leaders should adjust their style

based on follower development.

 Supporting vs. delegating leadership styles: Supporting styles

provide high support and low direction; delegating styles offer
minimal support and direction.

 Leader-Member Exchange (LMX) Theory: Leaders show

differential treatment toward followers (In-Group vs. Out-Group).
  Path-Goal theory's primary contribution: Leaders must provide
followers with the information and resources they need to succeed.

 Achievement-oriented leadership style: Suitable when followers

are motivated and capable.

Module 20: Statutory Provisions – I (Factories Act, 1948)

 Objectives of Factories Act, 1948: Regulating and amending

laws regarding labour in factories, ensuring health, safety, and
welfare.

 Extent of application: Applies to all factories in India (public and

private).

 Definition of a 'factory': Premises with 10 or more workers using

power or 20 or more workers without power.

 Role of the Chief Inspector of Factories: Enforcement of the

Factories Act.

 Health and hygiene provisions: Cleanliness, waste disposal,

ventilation, temperature control, dust control, lighting, drinking
water, and sanitation.

 Age classifications: Adult (18+), adolescent (15-17), and child

(under 15).

 State government's role: Implementation and enforcement of the

Factories Act.

 Ventilation and temperature: Factories must maintain adequate

ventilation and comfortable temperatures.

 Artificial humidification: Rules may be put in place for

maintaining appropriate humidity levels.

 Overcrowding: Factories must provide sufficient space for workers

(cubic meters per worker).

Module 21: Statutory Provisions – II (Factories Act, 1948)

 Fencing of machinery: Required for safety reasons.

 Employment of young persons with dangerous machinery:

Only under specific conditions (training, instruction, supervision).

 Prohibition of women and children's employment: Prohibited

near cotton openers, except under specific conditions.

 Fire safety provisions: Factories must have appropriate fire safety

measures, escape routes, and fire drills.
 Safety officer: Required in factories with 1000+ workers or high-
risk operations.

 Welfare facilities: Washing facilities, clothes storage, seating, first

aid, canteens, rest rooms, creches, and welfare officers (provisions
depend on the number of employees).

 Medical facilities: First aid boxes, and ambulance rooms for larger
factories.

 Canteen provisions: Required for factories with 250+ workers,

with specifications about construction and food standards.

 Creche provisions: Required for factories with 30+ women

workers, with specifications about the size and amenities of the
childcare facility.

 Welfare officers: Required in factories with 500+ workers.