3. STAGES IN NEW PRODUCT DEVELOPMENT
IDEA GENERATION
SCREENING
CONCEPT DEVELOPMENT
BUSINESS ANALYSIS
PRODUCT DEVELOPMENT AND EVALUATION
DEVELOPMENT AND EVALUTION OF MARKETING
MIX
TEST MARKETING
COMMERCIALISATION OF THE PRODUCT
4.
5. COST OF PRODUCTION AND MARKETING
BREAK EVEN ANALYSIS
FIXED AND WORKING CAPITAL
CAPITALISATION
OVER CAPITALISATION
UNDER CAPITALISATION
SOURCES OF FINANCE
COST OF CAPITAL
6. HIGHLY LABOUR INTENSIVE
A FINE BALANCE OF LABOUR AND CAPITAL
HIGHLY CAPITAL INTENSIVE
BREAK EVEN ANALYSIS
RAW MATERIAL ANALYSIS
MAKE OR BUY DECISION
COST BENEFIT ANALYSIS
7. The project team have to make a thorough
analysis of the legal issues surrounding the
project, across several dimensions. A detailed
legal due diligence should be done to ensure
that all foreseeable legal requirements, which
have not or will not be dealt with in other
appraisal exercises, are met for the
development of the project.
8. The main objectives of the legal feasibility
analysis are as follows.
To ensure that the project is legally doable;
To facilitate risk management, indicating the
risks and obstacles that need to be addressed
within the technical analyses, the financial
model and/or the Value for Money analysis;
and
To avoid, to the extent possible, major
problems in the project’s development and
implementation, specifying the requirements
that need to be considered at subsequent
stages of the PPP process.