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MARKET

ATTRACTIVENESS

1.Penetration&per capita consumption


Broadband connectivity
India-0.02 per 100 persons
China-1.40 per 100 persons
Korea-25 per 100 persons

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2.Critical Success Factors
Corporate Farming
- land
- water
- climate
- farm management practices

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3. Business Model Assessment
- stability
- scalability
- clarity
- commitment
- resource position

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Prose Statements
1. Only 5% through organised retailing
2. Brands have grown/ Retail space not
3. Per capita consumption is very low
4. National Brands/ Store Brands
5. Population profile
6. Savings/ Spending
7. More women working/ Food habits

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8. No FDI
9. Fragmented structure
10. Complicated Tax/ Legal System
11. Lack of cold storage/ Processing
12. Inefficient supply chain

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PIMS
1960 GE
To explain the variations in ROI
1972 GE, HBS, UNI OF MACHU
GE, OTHER CORPORATES
1975 SPI Was started

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PIMS ADDRESSES
1.What factors explain differences in ROI
and cash flow?
2.What rate of ROI and of cash flow is
normal or ‘PAR’ in a given type of
business, under given market condition,
and using a given strategy.

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PIMS addresses

3.How will ROI and other measures of


performance, in a given business, be
affected by a change in the strategy
employed.
4.What are the promising directions to
explore, to improve the performance of
the given business.

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BUSINESS:
1) Sells a distinct set of products/
services
2) to an identifiable group of
customers
3) in competition with a well-defined
set of competitors

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REPORTS
1. Par Reports
2. Strategy Sensitivity Reports
3. Optimum Strategy Reports
4. Limited Information Model

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TYPICAL STATEMENTS
1. Capacity utilisation is vital when fixed
capital intensity is high
2. High capital Intensity & small Market s
share equales disaster
3. High share and Low investment
intensity produce cash; Low share and
High Investment Intensity result in a
cash drain.

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MODEL VALIDATION
- Empirical
- cross sectional and Longitudinal
- statistically significant at the 95%
level, confirm to the best available
theory of the case, and makes sense
to key businessmen who have direct
experience.
- same set of variables keep
reappearing.

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