4.

0 New venture feasibility

Entrepreneurship and Project
Planning

Manipal College of Health

Professions
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: doc.office@manipal.edu
▪ What is the micro-environment?
▪ The micro-environment is basically the environment that has a direct impact on your business. It is
related to the particular area where your company operates and can directly affect all of your
business processes.
▪ The micro-environment includes customers, suppliers, resellers, competitors, and the general
public.
▪ What is the macro-environment?
▪ The macro-environment is more general - it is the environment in the economy itself. It has an
effect on how all business groups operate, perform, make decisions, and form strategies
simultaneously.
▪ The factors that make up the macro-environment are economic factors, demographic forces,
technological factors, natural and physical forces, political and legal forces, and social and cultural
forces.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Micro-environment factors:

▪ Customers: The kind of customer base that your company attracts, as well as the reasoning behind
purchasing your product, are going to highly affect the way you create marketing campaigns.
▪ Important factors related to customers are: Stability of demand, Prospects of sale growth, Relative
profitability, Intensity of competition
▪ Suppliers: If a supplier of a particular product is the largest, or even the only one, they are
certainly going to have a big influence on how successful your business is.
▪ The suppliers are extremely important factors as:
▪ Key link in the value delivery process
▪ Ensure that your business has the necessary resources
▪ Essential determinants in terms of price increase or decrease

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ Resellers
▪ If you decide to sell your product via a third party reseller, or middlemen such as wholesalers and
retailers, then the success of your marketing is going to be highly dependent on them.
▪ As a link between you and the customer, they are important in terms of these factors: Promotion,
Sale, Distribution, Marketing, Financial mediation
▪ Competitors
▪ Logically, every business that sells the same or a similar kind of product as you do is your
competition on the market. So, their sale and marketing tactics matter to you a lot.
▪ The three factors that matter in this case are: Desire competition, Product form competition, Brand
competition

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ The general public
▪ Of course, every business organization has in its best interest to appease to the general public.
Every step that you take needs to be viewed from their perspective as well.
▪ So, the general public is very important in terms of: Public opinion, Media, Environmental
pollution

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Macro-environment factors

▪ Economic factors: the very environment of the economy can have an effect on two essential
aspects – your company’s levels of production and the decision-making process of your customers.
▪ Some examples of economic factors affecting business: Interest rates, Exchange rates, Recession,
Inflation, Taxes, Demand / Supply
▪ Demographic forces: Each and every chunk of the market is affected by universal demographic
forces. These are age, education level, cultural characteristics, country and region, lifestyle, and so
on.
▪ The crucial variables include: How income variables influence business, Age variables that affect
business, Geographic Region Variables, Education Level as a Variable,

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ Technological factors: These factors are related to skills and ability that are implemented into
production, as well as all the materials and technology that a particular product requires to be
made.
▪ Some of the most common technological factors are: Automation, Internet connectivity, 3D
technology ,Speed/power of computer calculation, Engine performance and efficiency
▪ Natural and physical forces: Every business must also take into account the very planet and its
resources.
▪ Climate change, Pollution, Weather, Availability of both non-renewable and renewable resources,
Laws that regulate the environment

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ Political and legal forces: The market develops according to the political and legal environment
in various areas.
▪ This generally includes legal factors such as: Copyright law, Employment law, Fraud law,
Discrimination law, Health and Safety law, Import/Export law
▪ Social and cultural forces: it is crucial to understand that the product that you bring to the market
can have a strong impact on society.
▪ There is a wide variety of social and cultural factors, some of them being:
▪ Purchasing habits, Level of education, Religion and beliefs, Consciousness about health issues,
Social classes, Structure and size of a family, Growth rate of the population

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 SWOT ANALYSIS

▪ It is one of the most widely used strategic planning tool.

▪ The term SWOT is the acronym made up of 4 words:
▪ 1. Strengths
▪ 2. Weaknesses
▪ 3. Opportunities
▪ 4. Threats
▪ SWOT analysis can be carried out for a company, product, place, industry or person.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 STRENGTHS

▪ The strong points of the organisation are called its strengths.

▪ • The following are some of the parameters of strengths:
▪ 1. Technical expertise
▪ 2. Efficient human resources
▪ 3. Possession of physical assets
▪ 4. Goodwill
▪ 5. Strong research and development department

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 WEAKNESSES

▪ A weakness refers to something which one lacks.

▪ • The following are some of the parameters of weaknesses:
▪ 1. Less competent staff
▪ 2. Lack of infrastructure
▪ 3. Lack of goodwill in the market
▪ 4. Obsolete plant and machinery
▪ 5. Weak research and development department

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 OPPORTUNITIES

▪ Opportunities are entirely external concerning the business environment.

▪ The following is the list of potential opportunities:
▪ 1. To enter the new product lines.
▪ 2. To serve the additional customer groups.
▪ 3. To enter foreign markets.
▪ 4. To acquire the rival firms.
▪ 5. To use the latest technologies.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 THREATS

▪ Threats affect the profitability and competitive capability of an enterprise.

▪ Some of the threats faced by a business are:
▪ 1. New competitors may enter the field.
▪ 2. There may be loss of sales on account of customers buying substitute products.
▪ 3. Threat from companies making sales through e-commerce.
▪ 4. New technology may make the products obsolete.
▪ 5. There may be shift in buyers needs and tastes.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 IMPORTANCE OF SWOT ANALYSIS

▪ Brings to light whether the business is healthy or sick.

▪ An undertaking comes to know both internal as well as external factors affecting it.
▪ Helps on the formation of strategies.
▪ Evaluates the business environment in a detailed manner.

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
SWOT ANALYSIS OF PATANJALI

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Why is market research important for new business ideas?

▪ Market research should never be underestimated. Many successful new businesses enjoy longevity
because their owners conduct regular market research to understand their target market, identify
consumer problems and pinpoint realistic competitors.
▪ Market research can be carried out at various stages of a business life cycle, from pre-launch and
beyond.
▪ Define the objectives of your market research
▪ The objectives will also determine the types of market research that you need to undertake in order
to be successful:

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
▪ Primary market research covers the following:
▪ Monitoring the effectiveness of sales
▪ Ascertaining the quality of services provided by competitors
▪ Understanding the channels of communication used by competitors
▪ Assess the active competition within the market
▪ Secondary market research covers the following:
▪ Published company reports data
▪ Existing surveys and studies
▪ Newspaper reports
▪ Government data

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 The key steps of successful market research

▪ There are four important steps to any successful market research study:
▪ Investigate whether similar research has previously been carried out
▪ If so, analyse the existing relevant data that meets your objectives – providing it meets your budget
▪ How will the existing data be used and by whom?
▪ Do you need to conduct your own primary market research too? If so, with whom?

Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email:
 Need and Importance of Marketing Research
▪ The most important task of a marketer is to get the right product at the right place with the right
price to the right person.
▪ Besides, it was also necessary to go back and find whether consumer is getting optimum
satisfaction, so that consumer remains loyal.
▪ 1. Identifying problem and opportunities in the market:
▪ 2. Formulating market strategies:
▪ 3. Determining consumer needs and wants:
▪ 4. For effective communication mix:
▪ 5. Improving selling activities:
▪ 6. For sales forecasting:
▪ 7. Managerial decision-making:
▪ 8. To facilitate smooth introduction of new products:
Department of Commerce, New Management Block, MAHE, Manipal, 576 104, Karnataka, India, Ph. No: 0820 25342 Email: