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Table of Contents

1. Executive Summery ................................................................................ 3

2. Introduction ............................................................................................ 4

3. Entrepreneur ............................................................................................. 5

3.1 Interpretation of Entrepreneur ............................................................ 5

4. Main Managerial Competencies ................................................................ 7

4.1 Planning Skills ...................................................................................... 7

4.2 Organizing Skills ................................................................................... 8

4.3 Leading Skills ........................................................................................ 9

4.4 Controlling Skills ................................................................................... 9

4.5 Communication Skill ......................................................................... 10

4.6 Social Skill .......................................................................................... 10

4.7 Creativity............................................................................................ 10

4.8 Innovation .......................................................................................... 10

4.9 Sees and Acting on Opportunities ...................................................... 10

4.10 Information Seeking ......................................................................... 11

4.11 Problem Solving ............................................................................... 11

4.12 Persuasion ....................................................................................... 11

4.13 Perseverance ................................................................................... 11

4.14 Technical knowledge ........................................................................ 11

4.15 Persistence and Assertiveness ......................................................... 12

4.16 Need for Achievement ..................................................................... 12

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4.17 Need for Autonomy ......................................................................... 12

4.18 Drive and Energy .............................................................................. 12

5. Opportunity Identify .............................................................................. 13

5.1 Opportunity Identification ................................................................. 13

5.2 Principles of Opportunities. ............................................................... 13

5.2.1 Window principle of opportunities ............................................... 14

5.2.2 Corridor principle of opportunities ............................................... 14

5.3 sources of opportunity ....................................................................... 14

6. Screening Process for a New Venture or New Product ............................ 17

Main dimensions for new venture ...................................................................... 17

6.1 Screening process .............................................................................. 18

6.2 Dimensions of screening process ....................................................... 19

The Dimensions in idea screening are, ..................................................... 19

6.2. 2 Screening factors ......................................................................... 21

7. Findings and Conclusion....................................................................... 25

8. Recommendation .................................................................................. 26

9. References ............................................................................................ 26

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1. Executive Summery

This report provides how to create and manage a new venture and its risks. The

report include who is called an entrepreneur and what are the characteristics of the

entrepreneur and entrepreneur requires to understanding how to create and manage a new

venture and its risks. main managerial competencies that entrepreneurs should develop to

operate a successful business, opportunity identification, principles of opportunities,

sources of opportunities and the main Dimensions of screening process.

The report finds the prospects of the criteria to determine the success of the new

business. Hence the main criteria to determine the success of the new business is

opportunity identification. If not focus the proper opportunity identification that cause to

failure of the new venture. Many entrepreneurs that start businesses, especially the first

time, run out of cash faster than they bring in customers and profitable sales. While there

could be many reasons for this, it is more than often because they have not focused on

opportunities. And also sometimes the individuals (entrepreneurs) who initiate businesses

fail due to lacking in essential managerial competencies. This leads to giving up certain

opportunities even though there is actual growth potential in them. Therefore you have to

more focus on the opportunity identification and skills of the entrepreneurs.

However, screening process also most important step in the new product development.

The aim in idea screening is to retain the successful ideas and eliminate the ideas which

could be failures - much easier to write than to carry out in practice! If in doubt, keep the

idea until more information is obtained. Idea screening can be based on tacit knowledge

of the individual and of the company, with little new explicit information sought in or

outside the company.

According to above consideration you have to more attention on good opportunity

identification and main Dimensions of screening process. This report also has limitations.

For example, this report focus on only screening process. It is not focus further steps of

the new product development.

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2. Introduction

An 'entrepreneur' is a person who is in control of a commercial undertaking. The word

has also come to mean a person who is 'enterprising', who is ready to engage in a bold or

difficult activity. Starting and operating one‘s own business has been becoming an

interest area for individuals from different standard of life. In growing a new business,

any individual, who is called an entrepreneur, requires to understanding how to create and

manage a new venture and its risks.

This proposal will focus what are the main managerial competencies that entrepreneurs

should develop to operate a successful business and the main Dimensions of screening

process. This process includes several steps but this report mainly contrasts the screening

process and opportunity identification.

The objective of the screening stage is to eliminate unsound concepts prior to devoting

resources to them. Idea screening can be based on tacit knowledge of the individual and

of the company, with little new explicit information sought in or outside the company.

But the aim in successive screenings is to build up the necessary information for the

decisions to be made in a quantitative, objective way. Screening is both a reiterative and a

progressive process, so there is a need to relate to the first screening even in the last

screening in case the product description has changed and it no longer fits the screening

criteria first set out.

The paper will review the analysis conducted upon the sources of opportunity and

principles of the opportunity. That will help to succeed your new venture.

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3. Entrepreneur

The word entrepreneur is derived from the word ―entreprendre‖ of French language in

17thcentury. It was referred to the persons who undertook the risk of new ventures. The

entrepreneur is one who undertakes to organize, manage and assume the risk of a

business.

3.1 Interpretation of Entrepreneur

‡ Entrepreneur is a person who possess certain arts and skills of creating new

economic enterprises, yet a person who has exceptional insight in to society‘s

needs and wants and is able to fulfill them (J.B.Say,1803).

‡ Entrepreneur is a person who pays a certain price for a product to resell it at an

uncertain price, thereby making decisions about obtaining and using resources

while consequently assuming the risk of enterprise. (Richard Cantillon, 1755)

‡ Entrepreneur is an Individual Who Undertook The formation of an organization

for commercial purposes. He is an economic agent who transforms the demand

in to supply. (AdamSmith,1776)

‡ Entrepreneur is a change agent who transform the resources into useful goods

and services, often creating the circumstances that lead to industrial growth

(CarlMenger,1871)

‡ An 'entrepreneur' is a person who is in control of a commercial undertaking.

The word has also come to mean a person who is 'enterprising', who is ready to

engage in a bold or difficult activity.

‡ An individual who, rather than working as an employee, runs a small business

and assumes all the risk and reward of a given business venture, idea, or good

or service offered for sale. The entrepreneur is commonly seen as a business

leader and innovator of new ideas and business processes.

Entrepreneurs play a key role in any economy. These are the people who have the skills

and initiative necessary to take good new ideas to market and make the right decisions to

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make the idea profitable. The reward for the risks taken is the potential economic profits

the entrepreneur could earn.

All in all, an entrepreneur is an innovator or developer who

recognizes and seizes opportunities

converts those opportunities into workable /marketable ideas

adds value through time, effort, money or skills

assumes the risk of the competitive market place to implement the ideas and

realizes rewards from those efforts [R.C.Ronstandt(1984), H.H.Stevenson(1985),

J.B.Cunnighamand J Lischeron(1991)]

Research findings of H.H.Stevenson and Jeffry Timmons (1983) confirm that the

followings are essential characteristics of entrepreneurs.

Resilience, responsiveness and adaptiveness in seeing new opportunities.

to activate the vision, willingness to learn, invest in new techniques, to have a

professional attitude and patience.

Entrepreneurs should,

Self confidence

Have Tolerance for ambiguity

Have Internal locus of control

High energy level

Possess drive to achieve

Awareness of passing time

Have commitment, determination and perseverance

Be Opportunity oriented

Be Initiative and responsibility seeking

Have persistent problem solving ability

Be seeking for feedback

Calculated risk taking

Integrity and reliability

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Tolerance for failure

Creativity and innovativeness

Visionary

optimism

Independence

Team building

4. Main Managerial Competencies

Managerial Competency of an entrepreneur is the ability to direct his staff and define

the expected outcomes clearly and finally to get the things done at the best and cheapest

ways and means. Managerial competency is an approach to managing others and to

ensure optimal use of available resources in meeting organizational objectives on a

sustained basis. the main managerial competencies:-

4.1 Planning Skills

Establishing goals and ways of achieving them.

Establishing goals — determining the organization‘s broad strategy, translating this

into specific objectives, and ascertaining ways of achieving these. resources, viz,

manpower, machinery, money, materials for the fulfillment of organizational goals.

planning which will help him to prepare an action plan for every area of operation in

order to achieve the pre-determined goals.

Allocating resources — acquiring and applying resources, viz, manpower,

machinery, money, materials for the fulfillment of organizational goals.

Making decisions — formulating the direction in which the company, division or

department is to go, by allocating the necessary resources, i.e. the ability to make

good, non-routine decisions. A manager is imposed by the demands of today to make

right and quick decisions.

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The manager of a company should be a person who has the ability:

to generate new ideas

to work out plans and business strategies to achieve goals

to identify and use available resources to implement a plan

to find information, analysis situation, make decisions and resolve problems

to put up structures

to have determinacies

to take risks

The manager should take notice of immediate needs of the market, while he

materializing all the above actions.

Developing alternatives — providing various routes according to different

circumstances prevailing, so that alternative choices may be made as a situation

develops.

4.2 Organizing Skills

Arranging people and work to accomplish objectives.

Designing structure — fashioning the arrangement of people and work to achieve the

organization‘s goals in situations of both stability and change.

Co-coordinating parts — integrating the activities of separate units in an

organization, to provide unity of action in pursuit of common purpose.

Arranging delegation — assigning authority and responsibility to other people or

groups, to do specific tasks.

Managing conflict and change — stimulating a desired amount of controlled conflict

and managing its resolutions, to bring about necessary change for improved

organizational performance.

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4.3 Leading Skills

Encouraging the human factor in performance.

Implementing decisions — having the confidence to oversee the carrying out of

decisions and the ability to enact them in humane fashion.

Providing climate — creating and maintaining a good organizational climate, in

which individual members can be motivated to achieve necessary objectives.

Forming communications — encouraging two-way transmission between people

and between groups, so that they take part jointly in the organization‘s activities.

Developing personnel — enabling personnel consciously to carry out appropriate

career development through self-assessment and opportunity seeking.

4.4 Controlling Skills

Making sure performance conforms to plan.

Establishing standards — specifying performance standards in key areas for

individuals and groups and having them accepted through participation of those

concerned.

Measuring performance — making measurements of actual performance in key

areas at agreed frequencies, and comparing them with the standards set, in time

for action to be taken.

Taking action — seeing the control process through to its conclusion by action, in

changing operations or standards where necessary, or exploiting opportunities

where indicated.

Instigating self-control — instituting the means by which organizational members

can control their performances against objectives and ensuring that a proper

balance is achieved in the amount of control exerted.

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4.5 Communication Skill

Communication skill refers to the ability of an entrepreneur to transfer ideas, plans,

policies and programs to employees, debtors, creditors, customers and everyone who is

connected with the business in order to inform, influence and to express his feelings.

4.6 Social Skill

Social skill of entrepreneurs include social perception (the ability to perceive others

accurately), expressiveness (the ability to express feelings and reactions clearly and

openly), impression management (skill in making favorable first impressions on others),

and social adaptability (proficiency in adapting one‘s actions to current social contexts) in

the process of managing his business.

4.7 Creativity

An entrepreneur is said to be creative when he is able to identify a gap in the market

and think up a product or service to meet that gap. Creativity of an entrepreneur also

implies the ability to do old thinks in a new way or able to give new solutions.

4.8 Innovation

Innovation refers to the behavior pattern of an individual who has interest and desire to

seek changes in techniques and ready to introduce such changes into his operations When

practical and feasible.

4.9 Sees and Acting on Opportunities

Sees and acting on opportunities refers to the unique entrepreneurial behavior which

helps him to be alert to information and ability to process it in order to identify and

recognize the potential business opportunities even before his competitor.

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4.10 Information Seeking

An entrepreneur has an urge to look for the required information in order to make an

informed decision, for example, selecting, starting and successfully managing the desired

business. This calls for the entrepreneurs to personally seek and obtain information that is

required to enable him make decisions and improve knowledge on his/her business.

4.11 Problem Solving

Problem solving refers to the application of appropriate knowledge and skills in order

to solve a problem arising while carrying on the business. It requires an entrepreneur to

have creative thinking in order to understand the various techniques involved in resolving

different problematic issues of a business.

4.12 Persuasion

Persuasion in entrepreneurship refers to the ability of entrepreneurs to link, convince

and influence other individuals, groups, agencies, creditors, debtors, customers and even

competitors in order to create a contact and maintain good rapport.

4.13 Perseverance

Need to have perseverance which implies commitment, hard work, and patience,

endurance apart from being able to bear difficulties calmly and without complaint.

4.14 Technical knowledge

An entrepreneur needs to address the rapid technical changes in the industry. Higher

levels of technology must be introduced in the production methods in order to achieve

productivity demands. Therefore he must update his technical knowledge in order to

serve customers quickly and more effectively.

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4.15 Persistence and Assertiveness

Persistence of an entrepreneur denotes the ability which keeps him constantly

motivated even when he is confronted by obstacles that seem insurmountable and willing

to keep trying when things go wrong, and accepts that, ultimately, it is he who has to

make his dream come true. Entrepreneurs seldom give up when things are not going well.

Assertiveness of an entrepreneur is about his behavioral aspect that affirms his rights or

point of view without either aggressively threatening the rights of others (assuming a

position of dominance) or submissively permitting others to ignore. Successful

entrepreneurs for the most part are assertive.

4.16 Need for Achievement

Successful entrepreneurs are characterized by a need for achievement which motivates

them to take up responsibilities for finding solutions to problems. Further this quality

helps them to set challenging goals for themselves, assume personal responsibility for the

goal accomplishment and they are highly persistent in the pursuit of these goals.

4.17 Need for Autonomy

The need for autonomy of an entrepreneur is characterized by a drive to control and

influence others, a need to win arguments, a need to persuade and prevail. Research

studies had asserted that strong need for autonomy/ power/ control/ influence usually will

let the enterprises in to trouble because doctorial, adversarial, and domineering styles

make it very difficult to attract and keep people who thrived on achievement,

responsibility and results. Therefore successful entrepreneurs have high need for

achievement while low need for power.

4.18 Drive and Energy

Entrepreneurs are driven to succeed and expand their business. They are always on the

move, full of energy and highly motivated. They are driven to succeed and have an

abundance of self-motivation.

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5. Opportunity Identify

Many entrepreneurs that start businesses, especially the first time, run out of cash faster

than they bring in customers and profitable sales. While there could be many reasons for

this, it is more than often because they have not focused on opportunities. So carefully

identify the opportunities that is help to growing a new venture.

5.1 Opportunity Identification

Opportunity identification is the very critical and Initial task in every new starting

businesses. So be care to identify the opportunity that is help to achieve our new business

success.

5.2 Principles of Opportunities.

Opportunity is a favorable chance or a circumstance for a business person to start a

venture. Important to note that every business idea will not be a viable idea unless it is an

entrepreneurial business idea. Business idea becomes entrepreneurial business idea once

it possesses the innovativeness of it. Opportunity identification process mainly consist

two principles of opportunities:-

Initial step

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5.2.1 Window principle of opportunities

A widow is a time horizon during which opportunities exist before something else

happens to eliminate them. If an opportunity is attractive to competitors, easy to enter the

market/free of barriers, then the market will quickly be saturated. Hence, entrepreneurs

should be good enough not only to recognize the opportunity but also take advantage of it

while window exists to be successful. Example – Wahaha Nutritional products, China

During 1989, Chinese government was worried about the nutritional aspects of children

and by that time Wahaha had started Nutrition Food Factory and invested to produce Oral

liquid nutrition products. Wahaha used this window of opportunity and achieve the

success by being the first mover.

5.2.2 Corridor principle of opportunities

This suggests that opportunities evolve from entrepreneurs being positioned in similar

work or having had experience with related ventures. This helps the entrepreneur to enter

in to the venture soon after the arise of the window. "with every venture launched, new

and unintended opportunities often arise."Example –3M Post-It-Notes 3M Corp tried to

invent a glue but scrapped the project when it was not strong enough for its intended use.

An enterprising engineer saw the opportunity to use the glue on small pieces of paper for

bookmarks in his church choir. He made some pads of paper and distributed them to

fellow choir members and secretaries at work. Thus, the sticky note was invented.

5.3 sources of opportunity

In accordance with Peter Drucker, there are seven (07) sources of opportunity.

The unexpected

The incongruity

The inadequacy in underlying processes

The changes in the industry or market structure

Demographic changes

Changes in perception, mood and meaning

New knowledge

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The Unexpected

According to Peter Drucker, this is the best source of opportunity.

In order to identify these opportunities, we have to have deep analysis on them.

The both unexpected success and unexpected failure give business opportunities.

Example No; 1 -Marriot

o Airline catering business of Marriott with the support of Eastern airlines.

o This lead them to develop the business into a chain of hotels and to offer

diversified services.

Example No; 2 –Ford‘s Edsel

o In 1957, Ford Motors came up with Edsel based on the results of a huge market

research.

o However that was a total failure and stayed in the market only for 2 years.

o This gave rise to identify a special market segment and develop ―Thunderbird‖

Example No; 3 -Post-It-Notes

o This was originally to be used in an industrial application but failed.

o After that 3M‘s Scientists identified that you can use them for another purpose.

Incongruity –

Example; The Sony Walkman

o Incongruities are the gaps between expectations and realities

o Moreover, this means that you will recognize a mismatch between what you really

need and what is available to you in the market.

o Later on based on Akio Morita's observation of teenager slugging their radio swith

them on vacation sand came equipped with two headphone jack sanda recording

facility.

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Innovation based on process needs –

Example; Lubricating cup

o Resulted from identifying a "weak" or "missing" link in an existing process.

Opportunities for innovation exist if there is a recognized need to complete the

process.

Changes in industry and market straucture

o Changes in industry and market structures usually take place as a result of

changing customer preferences, tastes and new values and technological

advancements.

o For instance home health care and preventive medicine have replaced

hospitalization and surgery.

Demographics (Population Changes)

o Drucker has identified that this population changes are the reliable predictors of

future opportunities and innovations

o Changes in the demography means changes in age, gender, education levels of the

population, geographic locations etc

o These changes will give rise to business ideas based on retirees, land

developments, recreational and health care industries.

Changes and meaning and perception

o Actually unexpected successes and unexpected failures are often an indication of a

change in perception and meaning

o Identifying opportunities for innovation in this category requires timing and

judgment

o Example: change from Ford‘s Edsel to Thunderbird is a change in perception

o Example: Growing concern for fitness give rise to new business ideas to start new

ventures such as fitness centers

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New knowledge

o There is a long time span between the emergence of new knowledge and it

becoming applicable to technology

o And also another length of time before the new technology turns into products in

the marketplace.

o They are almost never based on one factor but on the convergence of several

different kinds of knowledge

o Example; Boeing 707

6. Screening Process for a New Venture or New Product

In business new product development (NPD) is the complete process of bringing a

new product to market. A product is a set of benefits offered for exchange and can be

tangible (that is, something physical you can touch) or intangible (like a service,

experience, or belief). There are two parallel paths involved in the NPD process: one

involves the idea generation, product design and detail engineering; the other involves

market research and marketing analysis. Companies typically see new product

development as the first stage in generating and commercializing new product within the

overall strategic process of product life cycle management used to maintain or grow their

market share.

Main dimensions for new venture

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Once you identify the good opportunity you have to generate the ideas. That is help to

achieve the success of the new venture. So you have to analyse and generate the business

ideas. Below sources are help to generate the ideas:-

Market Research

Employees

Consultants

Competitors

Customers

Distributors and Suppliers

After generate the business idea you have to screen an identified opportunity with

proper approach and pay attention before converting the opportunity to a business

concept.

6.1 Screening process

This process involves shifting through the ideas generated above and selecting ones

which are feasible and workable to develop. Pursing non feasible ideas can clearly be

costly for the company. Screening for picture:-

Example

- This

figure illustrates the long process it takes for a drug to enter the market.

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During screening, the company evaluates whether to devote further resources to the

development of a product at various stage gates.

The company must ask itself a number of questions, such as whether there is a potential

market for the product, whether the product will meet the demands of the consumer

base, and whether the product can be profitable.

Two major risks arise during screening: an unviable product may be admitted to the

next stage, and a potentially successful product may be rejected.

Products are often rated on a scale from poor to good on a variety of different criteria

in order to determine their viability. This process is taken a step further by assigning

weights to the criteria, so as to give more importance to factors considered crucial for a

product's success.

The aim in idea screening is to retain the successful ideas and eliminate the ideas

which could be failures - much easier to write than to carry out in practice! If in doubt,

keep the idea until more information is obtained. Idea screening can be based on tacit

knowledge of the individual and of the company, with little new explicit information

sought in or outside the company.

But the aim in successive screenings is to build up the necessary information for the

decisions to be made in a quantitative, objective way. Screening is both a reiterative and

a progressive process, so there is a need to relate to the first screening even in the last

screening in case the product description has changed and it no longer fits the screening

criteria first set out.

6.2 Dimensions of screening process

The Dimensions in idea screening are,

product idea descriptions or concepts,

screening factors and

Screening techniques.

There is a need to have product idea descriptions that everyone involved in screening

understands and is evaluating in the same way. The choice of screening factors is of

course fundamental - obviously the direction of choice is strongly influenced by the

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criteria. Lastly the people who do the screening, and the techniques they use, affect the

screening results.

6.2.1 Product Idea Descriptions

These must be clear and concise. They include:

a clear description of the product;

the use of the product;

the target market segment;

the relationship to the company's present products;

the relationship to competing products.

For example, the new product idea in an ice-cream company could be a range of

liqueur ice-creams. What is meant by a liqueur ice-cream - is it a liqueur flavor, or does

it have drops of liqueur embedded in it? Is it targeted at sophisticated diners at home or

in restaurants? Is it to be the top of the company's ice-cream range? Is the nearest

competitor the specialty ice-creams made in high-class restaurants? Should problems be

anticipated from sections of the community such as teetotallers or religious groups or

will there be legal difficulties with excise duties?

The initial description is usually kept broad so that ideas on the product, the market

and the technology can be continually studied, but there is a need to focus the idea in a

certain direction so that the people involved are not taking off in too many directions at

once. As the product idea builds from a product idea description, to a brief product idea

concept, to the final product concept, to the product design specifications and to the

product specifications, the focus is being narrowed all the time.

One product idea description for the liqueur ice-cream was: ‗a line of plain based

ice-creams with little jellies containing concentrated liqueurs, aimed as a gift to be taken

to dinner parties, sold through higher-class supermarkets‘

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Marketing factors:

Potential market size

Compatibility of market image with company's product lines

Relationship to competing products

Compatibility with existing or specified market channels

Access to suitable physical distribution systems

Fits into an acceptable pricing structure

Relationship to promotional methods and resources

Marketing resources needed to produce success

6.2. 2 Screening factors

The strong screening factors, with which the product idea must agree, arise from the

project aim and the project constraints.

The overall aims of the company always take precedence over other factors. No

matter how brilliant a product idea is in isolation, it is rejected if it does not fit with

the company's business strategy, in particular the product strategy. There may be an

outstanding product idea which may change the direction of the company's business

strategy, but it has to be taken from the project ideas and directed back into the top

management area. This product idea has to be viewed in its scale and suitability for

the company, and decisions within the company must be taken at top management

level.

The constraints identified at the beginning of the project are also important screening

factors. A product may be dropped for many reasons: it does not meet the food

regulations; there is not sufficient money to develop or to produce it; the managing

director does not like it! The factors used in screening should be as objective as possible,

but sometimes subjective decisions are made.

Factors for product screening:-

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Production factors:

Compatibility with existing product lines

Availability of processing equipment

Availability of raw materials and ingredients

Availability of technical skills to produce the product

Availability of production time

Agreement with any legal requirements

Cost and availability of new resources required

Development factors:

Knowledge needed for development

Available knowledge and skills

Available time and human resources

Development funds needed and available

Compatibility with existing strengths

Development difficulties and risks of failure

Financial factors:

Compatibility of development costs with financial resources

Capital investment resources needed and available

Finance needed and available for market launch and on-going product support

Profits or returns on investment required

Significant factors are many and these are just a few that often occur. The choice of

screening factors depends on the type of ideas, the company and its resources, the

company's environment and the level of innovation. There could be many factors but it is

not humanly possible to use them all, so that the factors are ranked in importance and

only the most critical chosen in the first screening, although others may be checked later.

Factors can be rated as crucial, most important, important and minor.

Hence, below questions are help to understand the screening process clearly,

The screeners should ask several questions:

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Will the customer in the target market benefit from the product?

What is the size and growth forecasts of the market segment / target

market?

What is the current or expected competitive pressure for the product idea?

What are the industry sales and market trends the product idea is based

on?

Is it technically feasible to manufacture the product?

Will the product be profitable when manufactured and delivered to the

customer at the target price?

After the screening process there are several steps in new product development or new

venture. That will help to achieve successful business. Below some additional steps for

starting a new business. After screening process.

‡ Concept Development and Testing

Investigate intellectual property issues and search patent databases

Who is the target market and who is the decision maker in the purchasing

process?

What product features must the product incorporate?

What benefits will the product provide?

How will consumers react to the product?

How will the product be produced most cost effectively?

Prove feasibility through virtual computer aided rendering and rapid

prototyping

What will it cost to produce it?

Testing the Concept by asking a number of prospective customers what they think of

the idea – usually via Choice Modelling.

‡ Business Analysis

Estimate likely selling price based upon competition and customer feedback

Estimate sales volume based upon size of market and such tools as the Fourt-

Wood lock equation

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Estimate profitability and break-even point

‡ Beta Testing and Market Testing

Produce a physical prototype or mock-up

Test the product (and its packaging) in typical usage situations

Conduct focus group customer interviews or introduce at trade show

Make adjustments where necessary

Produce an initial run of the product and sell it in a test market area to

determine customer acceptance

‡ Technical Implementation

New program initiation

Finalize Quality management system

Resource estimation

Requirement publication

Publish technical communications such as data sheets

Engineering operations planning

Department scheduling

Supplier collaboration

Logistics plan

Resource plan publication

Program review and monitoring

Contingencies - what-if planning

‡ Commercialization (often considered post-NPD)

Launch the product

Produce and place advertisements and other promotions

Fill the distribution pipeline with product

Critical path analysis is most useful at this stage

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‡ New Product Pricing

Impact of new product on the entire product portfolio

Value Analysis (internal & external)

Competition and alternative competitive technologies

Differing value segments (price, value and need)

Product Costs (fixed & variable)

Forecast of unit volumes, revenue, and profit

7. Findings and Conclusion

This study reports finds a person who possess certain arts and skills of creating new

economic enterprises, yet a person who has exceptional insight in to society‘s needs and

wants and is able to fulfill them. This person called as an entrepreneur. And the main

managerial competencies. Hence this report explains two major principles of opportunity

and seven sources of opportunity. Finally this report analyzes the new product

development processes and main dimensions of screening process.

This report explain opportunity identification and main Dimensions of screening

process. This report also has limitations. For example, this report focus on only screening

process. It is not focus further steps of the new product development. Hence screening

factors and techniques are more important of a screening process. And The eight stages of

new product development may seem like a long process but they are designed to save

wasted time and resources.

New product development ideas and prototypes are tested to ensure that the new

product will meet target market needs and wants. There is a test launch during the test

marketing stage as a full market launch is expensive. Finally the commercialization stage

involves careful planning to maximize product success, a poor launch will affect product

sales and could even affect the reputation and image of the new product.

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8. Recommendation

Have to more attention on good opportunity identification. Because the first

time, run out of cash faster than they bring in customers and profitable

sales. While there could be many reasons for this, it is more than often

because they have not focused on opportunities. Therefore have to more

focus on it.

Have to get a good knowledge and skills about new business. Because some

new ventures fail due to lacking in essential managerial competencies. This

leads to giving up certain opportunities even though there is actual growth

potential in them.

An Entrepreneur should follow some main managerial competencies. This

leads to giving up certain opportunities and business success.

9. References

Daft, L.R. (2009) Principles of Management. India Edition: Cengage Learning

Smith,Preston G., Reinertsen Donald G.(1991) Developing products in half the time,

Van Nostrand Reinhold,New York

http://shodhganga.inflibnet.ac.in/bitstream/10603/5303/9/10_chapter%202.pdf

http://www.du.ac.in/fileadmin/DU/Academics/course_material/EP_03.pdf

https://www.boundless.com/marketing/products/new-product-development--

2/screening--2/

http://www.business.qld.gov.au/business/business-improvement/new-product-

development/generating-screening-ideas-products

http://www.employeedevelopmentsystems.com/media/pdfs/SkillsforManagers.pdf

http://www.cjournal.cz/files/90.pdf

http://www.nzifst.org.nz/creatingnewfoods/idea_generation6.htm

http://www.learnmarketing.net/npd.htm

http://en.wikipedia.org/wiki/New_product_development