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Business Idea Generation in Today’s Economy

The topic has been divided into 3 major parts Impact of Pandemic CORONA on Indian Economy, Business Opportunity Identification, Business Opportunities and need of the hour in todayu2019s Indian Environment.<br>www.acem.edu.in

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Business Idea Generation in Today’s Economy

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  1. Business Idea Generation in Today’s Economy Dr. UrveshChaudhery Professor Aravali College of Engineering and Management Faridabad

  2. The topic has been divided into 3 major parts • Impact of Pandemic CORONA on Indian Economy • Business Opportunity Identification • Business Opportunities and need of the hour in today’s Indian Environment

  3. Impact of Pandemic CORONA on Indian Economy

  4. What is Pandemic Corona • The coronavirus outbreak has been labelled a pandemic by the World Health Organization (WHO). • Coronaviruses are a large family of viruses that are known to cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).

  5. What is the remedy for CORONA To prevent the spread of COVID-19: • Clean your hands often. Use soap and water, or an alcohol-based hand rub. • Maintain a safe distance from anyone who is coughing or sneezing. • Don’t touch your eyes, nose or mouth. • Cover your nose and mouth with your bent elbow or a tissue when you cough or sneeze. • Stay home if you feel unwell. • If you have a fever, a cough, and difficulty breathing, seek medical attention. Call in advance. • Follow the directions of your local health authority.

  6. IMPACT ON INDIAN ECONOMY • In India up to 53% of businesses have specified a certain amount of impact of shutdowns caused due to COVID-19 on operations (FICCI survey). • Various business such as hotels and airlines are cutting salaries and laying off employees. • Live events industry has seen an estimated loss of ₹3,000 crore. • A number of young startups have been impacted as funding has fallen. • A DataLabs report shows a 45% decrease in the total growth. • In Delhi, night light radiance fell 37.2% compared to 1-31 March 2019. This was the biggest fall for any metro in India. Bangalore fell 32% while Mumbai dropped by 29%.

  7. IMPACT ON AGRICULTURE • Due to logistical problems following the lockdown tea estates were unable to harvest the first flush. So, Tea exports could drop up to 8% as a result. • Same happened with the crops of vegetables and fruits. • From 20 April, under the new lockdown guidelines to reopen the economy and relax the lockdown, agricultural businesses such as dairy, tea, coffee and rubber plantations, as well as associated shops and industries, will reopen.

  8. Stock markets • On 23 March 2020, stock markets in India post worst losses in history. SENSEX fell 4000 points (13.15%) and NSE NIFTY fell 1150 points (12.98%). However, on 25 March, one day after a complete 21 day lock-down was announced by the Prime Minister, SENSEX posted its biggest gains in 11 years, adding a value of  ₹4.7 lakh crore (US$66 billion) crore for investors.

  9. Estimate of economic losses • The Indian economy is expected to lose over ₹32,000 crore (US$4.5 billion) every day during. the first 40 days of the lockdown. • The losses have incurred in manufacturing sector, hospitality sector, travel and tourism, e-commerce industry etc.

  10. Business Opportunity Identification

  11. The chain of entrepreneurship Creativity & innovation are the first stages of successful entrepreneurial initiatives Creativity Innovation Entrepreneurship Thinking New Things Doing New Things Creating value in the marketplace

  12. Business is all about selling a product or service • Every time something happens, • positive or negative, I ask myself, • WHERE is the OPPORTUNITY here? • How do you spot an opportunity? • Keep your eyes open all of the time

  13. Business Idea and Opportunity • A business idea starts with an opportunity. • A business opportunity exists when there is demand for goods and services to meet the needs and wants of community. • Changes in the environment create opportunities; cultural, social, legal, economy, political,& technology (C-SLEPT).

  14. Illustrations – Environment changes • Good economic condition • ↑ demand luxury cars, homes • Increase number of working couples • ↑ demand maids, babysitter • Introduction of ICT • ↑ demand computers, repairs, knowledge, spare parts

  15. Step 1 Step 2 Step 3 Step 4 Identifying the needs & wants of customers Scanning the environment & evaluating of self the community Screening of business opportunities Selecting a business opportunity & preparing a business plan Process of Identifying, Evaluating and Selecting Business Opportunity

  16. Step 1: Identification of NEEDS & WANTS of consumers • Need – is something basic in life such as food, drink, clothing and shelter. • Want – is extension of need; craving for better than the basic need. • Need for food: Rice • Want for food: Chicken Rice (Chicken Rice Shop) • Need for shelter: Renting a flat with 10 housemates • Want for shelter: Renting a individual flat • The better the economy of people, the more business opportunities available for the entrepreneurs.

  17. Human NEEDS and WANTS are unlimited. • Next, translate the NEEDS and WANTS into PRODUCTS or SERVICES. • PRODUCTS – are physical forms e.g. car, handphone, books. • SERVICES – non-physical form, intangible product e.g. cab service, telco network, training.

  18. Step 2: Environmental Scanning, Self Analysis & Community Values 3 factors to be considered: • Environmental Scanning - help identify business opportunities. - 2 approaches: i) Macro scanning e.g. population, ethnics, average income, ii) Micro scanning e.g. family size, Malay delicacies, individual income.

  19. Step 2: Environmental Scanning, Self Analysis & Community Values 2) Self Evaluation - to see what is available in oneself: i) Experience - match business with experience e.g. engineer work with Public Work Dept (JKR) will become a Civil Engineer. ii) Knowledge & Skill - do business on what he really knows what to do e.g. Contractor must not only knows how to manage his business but also how to construct the buildings.

  20. Step 2: Environmental Scanning, Self Analysis & Community Values 2) Self Evaluation (cont.) - to see what is available in oneself: iii)Financial situation - business that is planned to be implemented must match with financial ability. E.g. Land owner can do housing business. iv) Interest - select business based on his interest e.g. a person with gardening hobby can open nursery. v) Networking - good networking generate business opportunity e.g. trading

  21. Step 2: Environmental Scanning, Self Analysis & Community Values 3) Values/Norms of the Community - business opportunities need to be coordinated with the religious’ and society’s values or norms. - Values and Norms = what is perceived as useful and beneficial to the community. - E.g. Incinerator in Kuala Langat, Nuclear-powered electricity generator, poultry farm nearby residential areas.

  22. Step 3: Screening of Business Opportunities • Legality: - ensuring the business opportunity is a legal one. - E.g. selling pirate DVD, imitate product e.g. Crocs. • Degree of competition; - choose business that is not monopolized. - E.g. supplying Sugar • Capital requirements: - to identify sufficient funds to finance the business. - E.g. own money, debt financing, FDI. • Risks involved: - expecting the potential uncertainties & considering the percentage of success & failure. - E.g. sell 2nd hand cars

  23. Seeing Opportunities Technology is perhaps the most dramatic force shaping the marketing environment. Here, a herder makes a call on his cell phone • Simply understand that there is little difference between obstacle & opportunity • – able to turn both to their advantage • The opportunities for potential entrepreneurs are unlimited.

  24. Step 4: Selecting a business opportunity and preparing a business plan • After fulfill step 1 to 3, it is time for the entrepreneur to select a business opportunity. • Then to prepare the business plan.

  25. Business Innovation

  26. What is INNOVATION?? “the process by which entrepreneurs convert opportunities into marketable ideas.”

  27. Business Idea • A new product or service • Enhancement of an existing product • A new market for an existing product • A new application for an existing product • A source of grants or awards • Better arrangements with suppliers • Better promotion & advertising • Greater efficiency of ordering • New contact sources

  28. Forms on Innovation • Product Innovation: the changes in the things (product or services) that an organization offers. E.g. new design of car, new generation of aircraft A380. • Process Innovation: the changes in the ways in which product/services are created and delivered. E.g. JIT Manufacturing. • Position Innovation: the changes in context in which products/services are introduced. E.g. Johnson & Johnson product not only for babies, but also for adult. • Paradigm Innovation: the changes in underlying mental models which frame what the organization does. E.g. shift to low-cost- airlines, online insurance.

  29. 3.1 Business Opportunity 3.2 Business idea 3.3 What is Innovation? Strategies to Encourage Creativity & Innovation Are they the same??? Ideas that improve Efficiency/effectiveness of a system Creativity The generation of ideas that result in the improved efficiency or effectiveness of a system. Definition Turning ideas into Marketable Goods / Services Innovation Process by which entrepreneurs convert opportunities into marketable ideas. It is the means by which they become catalysts for change.

  30. Types on Innovation • Invention: the creation of a new product, service, or process, often one that is novel or untried. • Extension: the expansion of a product, service, or process already in existence. • Duplication: the replication of an already existing product, service, or process. • Synthesis: the combination of existing concepts and factors into a new formulation.

  31. Business Opportunities and need of the hour in today’s Indian Environment

  32. Medical & Health Services Marine Engineering Transport & Logistics Automotive Aviation & Aerospace Biotech/ Bioprocess ICT Electrical & Electronics Oil & Gas Building Technology TARGET INDUSTRIES

  33. Conclusion 3.1 Current Economic Situation of India 3.2 Business Opportunity Identification 3.3 What is Innovation? 3.4 Scope of Entrepreneurship

  34. FOR YOUR PRECIOUS ATTENTION

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