Any project is built up with a purpose to fulfill its objectives. The objectives are guided by the necessity of the targeted customer group. Now the decisions to deliver any goods or services are mostly depended upon the efficiency of entrepreneurs and availability of resources.
Our life is full of energy. We should utilize it for some purpose. The ultimate goal of a person is s to perform some role in its normal life span. Those who are enterprising, try to produce or design goods or services for the utilization of some or various customer group.
The aim for the utilization of our energy may be monetary or non-monetary. People in our society are the proposed customer base. For their benefit goods and services are designed. Whether the project will be able to fulfill its objectives or not depend upon various factors like:
1. Availability of Resources and its cost of procurement.
2. Comparative cost of other alternative goods or services.
3. Efficiency of Distribution Channels.
4. The level of satisfaction the product gives in comparison to its cost.
5. The position of the product in the priority list of proposed customer base.
For successful execution of project, factors of both demand side as well as the supply side are equally significant. This is because with passage of time the nature of demand undergoes changes. The producers have to adopt these changes with time and have to be capable enough to supply the modified product in the new situations and scenarios.
Having a large customer base is beneficial for the producers. They can emphasize on the area of their specialization /authority. As we know good quality product demands higher cost. We also know that all the customers may not be equally willing to pay higher cost for higher quality goods. The customer may have alternative options for which he may be interested. To survive in the area of its operation the entrepreneur have to be capable enough to design its model of operation in such a manner that it can deliver its product in competitive ways in a regulatory framework. For this a lot of investment is necessary.
Investment will be available if the project model appears to be profitable to the investors in the long run. To make project profitable in the long run the project execution process need to deliver desired output with competitive cost of its operation. The execution of product delivery should be in line with the promise made. To keep the project running profitably the entrepreneurs with his team has to build up a congenial atmosphere within its team. And communicate to keep the team motivated and flexible for service requirements. Continuous up gradation of technology of operation and service knowledge of its team member is very much essential to survive for long. With passage of time successful project build up their recognition in the market in the form of brand value. This brand value helps to survive in challenging time. The ultimate factors that matter in the long term is continuous evolution in the right direction in right time efficiently.
(Let us welcome Sri S.K.Sarkar as our Guest Blogger for Finance and Economics. He will be contributing some posts on regular basis. )