Page 108 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 7: Building the Business Plan

Notes
2. Promoters home town
3. Raw material is easily available

4. Readymade existing factory can be made available for manufacturing the new
product.
Cons

1. Frequent power cuts
2. Rising competition
3. No tax subsidies
4. The present factory does not have scope for expansion.

Alternative Location 1
Pros
1. Power is available in abundance
2. Land is available in abundance at a much cheaper rate

3. Tax subsidies are available
4. Competition is less.
Cons
1. Labour is not easily available

2. Market is far-flung
3. Raw material is costlier than the present location.
Alternative Location 2
Pros

1. Power is adequately available
2. Labour is slightly costlier than the present location yet it is available
3. Market is available.
Cons

1. Relocation cost is high
2. Raw material is costlier than the present location.
Questions
1. Sketch a SWOT analysis of the case.

2. What suggestions do you give to Pramod to bring a turn around in the business?
3. If you were Vaibhav what would be your line of action?
Source: Lall Madhurima (2009), Entrepreneurship and Business Plan, Excel Books Pvt. Ltd.

7.4 Summary

Virtually every business needs a business plan. Lack of proper planning is one of the most
often cited reasons for business failures.

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