Evaluation of industrial projects by investment agencies : incorporation of technology and industrial structure assessments | |
| Author | Vedavyas, V. |
| Call Number | AIT RSPR no.SM-94-43 |
| Subject(s) | Technology assessment Industrial project management |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | With a rising international trend towards free market economies and liberalization, technology based competition is becoming the order of the day. Under the current trend of deregulation there is considerable entrepreneurial activity in India. Investment banks in India carry out assessment using the conventional methods leading to selection of projects based on financial considerations. Reliance on pure financial considerations for selection of projects may not be adequate in today's liberalized and competitive environment. The study has as its main objective, the presentation of a framework which can supplement the existing method of analysis used by the investment banks. In order to cope up with the competitive environment, the framework seeks to examine the competitive and technological aspects explicitly. The framework is divided into two parts. The first part examines the project's viability in the industry. The second part takes up the examination of the technology assessment. Technology assessment and choice, though an important aspect competitive advantage, cannot be sustained without adequate technological capability of the firm. Competitive advantage is the key to a firm's success and it must be emphasized that it evolves over time through a planned effort. In general, project selection and evaluation involves decisions that are critical to the profitability, growth, and survival of organizations in the increasingly competitive global scenario. The financial institutions do not normally consider technology issues explicitly during project evaluation. Technological capability comprises of a broad spectrum of activity and needs measurement by the investment agencies in order to assess its investment in reliable projects. It is important from the point of view of both financing agencies and the industries to use their resources efficiently and effectively. Project evaluation systems are narrowly focused, and the technology and the firm's technological capabilities are still abstract concepts as a tool for analysis. The framework is built to analyze the project for its completeness. The case analysis of a project in the Indian Chlor-Alkali industry is taken up to illustrate the framework. Based on the findings some conclusions and recommendations are presented for the consideration of financing agencies. |
| Year | 1994 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Ramanathan, K.; |
| Examination Committee(s) | Sharif, Nawaz;Gupta, Jyoti P.; |
| Scholarship Donor(s) | Government of France; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1994 |