Feasibility Study

2012-09-26T03:40:00.001-07:00

2 / marketing feasibility study

2/1 compilation and analysis of data and marketing information

2/2 estimate demand

2 / marketing study of the project:

The main goal of the feasibility study in marketing measure the actual size of the market and is expected to products of the project under consideration.

The study of the demand for products of the project of the most important elements of the study include marketing this study the following aspects:

1. Study the determinants of demand and supply for a commodity that project سينتجه.

2. Identify the structure of the market (Market Structure) and its size, its characteristics and regulatory measures to deal in it.

3. Analysis of the former and the current offer in terms of its origin: imported or domestic production, sales volume, the stability of prices, and the marketing policies of competitors, etc..

4. Estimate the share of the project in the light of market demand and supply conditions of the project in front of his competitors and shaping marketing policy to be adopted.

And include details of marketing study to assess the supply and demand sides:

1 / Data for alternative goods:

ü quantity of production, even comparable to the size of expected consumption, to determine the appropriate production capacity of the project.

ü retail price and the wholesale and used in pricing policy.

2 / data on the degree of commercial activity:

ü the number of establishments that operate in the area of distribution by region.

ü the number of establishments that operate in the area of distribution by type of product.

ü number of establishments engaged in the distribution of divided agents, wholesalers and retailers.

3 / data on transport and communications:

ü various means available in the state and the total goods carried on and kind and transport tariff.

ü possibilities of air transport in and out.

4 / data on foreign trade:

ü export value and quantity, type and main importing countries to get to know over the export potential for part of the production.

ü imports value, quantity and type and the most important exporting countries to get to know the possibilities of substituting local production imports. And also access to sources of raw materials and raw materials needed by the production.

ü trends in global demand and world prices.

5 / consumer behavior:

ü includes information for the consumer and is usually obtained its data through field surveys and newspaper design a questionnaire containing the following information:

· Brand which usually buys.

· Package size preferences.

· What are the motives for the purchase.

· Do you buy from a specific store.

· Daily consumption volume.

· Over his preference for imported on the local production and the reasons for it.

6 / the direction of government policies:

ü include the restrictions on domestic prices and trade policies of import and export quotas, as well as a system of tariffs on imports and exports and other information.

ü (data model facility market study)

7 / marketing information required:

ü that the requested information must be applied to the target markets of the individual, whether local, regional or other global markets (export).

Product

Should describe the product (s) described a comprehensive and clear showing sizes and weights and مقاساته type and form of packaging that is sold consumer as well as for the wholesaler as these products are sold to wholesalers, name and trademark and uses and summary for raw materials involved in its manufacture. But as the project intends to produce more than one class should provide a detailed description and precise product mix and any changes planned to enter it during the life of the project and determine the proposed production program for the first five years of production. How much should be accompanied by this description Bam is available when the project owner of the samples, photographs and booklets, and should also include a detailed statement on the applicable specifications and standards in the manufacturing of the item and determine the specifications that the project intends to rely.

Display

Should statement sources of supply current of the product in the domestic market and any foreign markets project intends to export to, any identifying local producers with said their productive potential, and quantitation importing and exporting countries, and varieties of products and share estimated in the market, as well as the names, addresses and phone numbers, telex or fax for these plants National, agents and distributors in a given country and attach a list including the respect of data derived from the list of projects licensed by the Ministry of Industry. The purpose of this information to draw a comprehensive picture of the current display mode of the goods to be produced, y noted the importance of identifying the sources of the information provided to make sure it is accurate.

Demand

Supposedly pan that demand in any year consists of the sum of the sales of local producers with imports minus exports and re-exports, and should kilometers possible when estimating demand historical product to provide evidence to support from sources recognized Kahsaouat foreign trade issued by Department of Statistics of the Ministry of Planning, The statistics Organization for Economic Cooperation and Development. How the statement should be included sales prior to the project owner that has had a previous activity, and a foreign partner if any, shall ensure that the statement of sales for the domestic market or any plans to overseas markets to export to. In the case of determining demand in other ways must explain these methods adequately explained. The analysis should include the historical demand for the past five years, distributed kilometers possible by regional areas in the state. But as the project intends to exclusively market the product in a particular area should focus on this area, giving an overview of the demand in the country designated pan. Taking products of the project was directed to the markets and various consumer sectors (such as retail or wholesale markets or food catering services or government sectors) should be a detailed statement of income share of each sector as well as the income statement similar to foreign markets that the project intends to export. As for the future demand must estimate the size of that request throughout the period covered by the feasibility study distributor according to each sector or product, to be referred to the methods used to reach these estimates and assumptions that built it knowing that you can use more than one method to estimate the size of future demand.

4 - marketing strategy:

The summary should be included for investors' perception of the project with the identification of markets, which aims to force positions on which it is based, and the main competitive advantages available to him with reference are to experience the project owners in the area in which the project is located in its scope and in any activity that has a connection with him.

Price

Should be included a statement at the prevailing rates of the product in the domestic market and any other markets related to the project and a statement according to regions and major cities in order of importance as well as the sale price of the product from local factories and the price of imported (CIF) comprehensive cost, insurance and transportation, and sale price wholesale and retail. How the sales prices should be included planned project owners to sell their products on the basis of the pricing strategy, which is built upon each product. With determining the sale price of each of the distributor and wholesaler and retailer and the rate of profit available for each of them, as well as prices for project owners already selling this product for them already.

6 - expected sales and market share:

Should statement details quantities expected to sell annually to be reaching full production capacity can be achieved and estimate the quota expected project acquisitions in the market annually based on estimates sales and the expected size of the request to put this estimate according to each product (or products) and the value of each sector consumer and each market or region. How much should the project owners already selling similar products mentioned quota acquired an actual historical sales value and volume for the past years.

Competition

Should be mentioned internal and external competition, which will be exposed to him the project together with the competitive products and prices, trade names and share all of it in the market and how they affect its competitive ability of the project to achieve the quota aims to stating the strengths and weaknesses of each competitor on the unit.

- Distribution:

Should determine how the product will arrive from the factory to the final consumer and distribution channels, which intends to follow and the level of these channels compared with institutions Mthilath have competition. How much should identify the modes of transport and storage that the project intends to use, cost and who bears him.

9 - the administrative structure and distribution:

Should determine the administrative structure to manage the marketing and sales of the proposed project with an indication of the number of individuals and their qualifications and experience and nationalities and the responsibility of each of them and attach a copy of the statement of qualifications and experience of persons who have been appointed or nominated for these positions.

10 - Sales promotion and marketing support:

Should submit detailed plans for advertising and other methods that the project intends to use to promote sales at the level of distributors and the end consumer, with setting the budget allocated to it and to the value of sales per estimated disaggregated way declaration to be used. The foundations built upon these plans and spending estimates. How much should specifically cite any information regarding plans and budgets for the product launch in the market.

11 - marketing agreements:

Should attach copies of any marketing agreements (such as agencies or conventions commercial representation, distribution or brand) mm entered into a final or tentative with either local or foreign companies with interest determine the desired marketing of these agreements.

Marketing budgets and pricing policies: (eg telecommunications company)

The marketing budget is part of the general budget of the company. The marketing budget plans projected revenues and costs and profits, and features a system to control the funds allocated for marketing. And as one of the most important factors in business competition, it must exchange marketing budget so as to increase the volume of work, and increase the awareness of the customer, and announces features of the company. This is a lot, but it explains the need to prepare marketing budget carefully.

To prepare a marketing budget need to gather information and work expectations and calculations. It is rare for providing all the information and numbers required, and therefore must assume some of the numbers and predictable reliance on some of the available information and knowledge and intuition in situations like this. Well be feeling anxious after gaining experience in record-keeping, and analysis of the numbers, and predict the cost and price, in this case will not become a difficult budget preparation work. It is crucial in the preparation of marketing budget to understand the factors related to the cost of products and services, and pricing strategies to cover the cost of providing appropriate profit.

Factors affecting the cost

Can understand the overall cost as the cost of fixed or variable.

Fixed cost: The cost that does not change with the level of sales. And this cost must be paid whether produced one unit or

1000 units. Some examples of this, wages offices and staff salaries.

Variable cost:

They changed the adoption on the quantities sold. Cost of operation depends on the installation site, in the city or the countryside, and the age and quality of the devices, and the types of preventive measurements that are made. Can you think of examples of the changing cost in the telecommunications sector? And there are other important cost must be taken into account in any type of business, such as telecommunications, which is the cost of the establishment of the necessary infrastructure before starting work. This cost is called cost dwindling, he is to recover funds that have been spent in the long run.

v There are many factors that make up the actual cost of the product or service, these factors may vary depend on the situation in the country or in the telecommunications sector. What is your understanding of cost factors in the telecommunications sector? What are the factors that are within the cost of the product or service offered by the institution?

First, you must consider the actual products that offer to subscribers. What are the cost implications of each of these products and where this cost is locked? Of factors that need to be taken into account the price you pay for company products providers. What is the relationship with existing suppliers, and are there other options? Is there a single provider The company is dealing with companies and different countries? Think scales may be useful to provide funds. From ideas to negotiate with the number of applicants for bids or purchase in large quantities. What is the cost of storage devices, as it was economically feasible, and what are the expected duration of the store? It is possible to achieve regional cooperation a better negotiating position and the position of buying a uniform.

When you make a local call, national, and international, and what are the factors that affect this cost? What are the cost implications of the institution to offer its services in terms of employees' salaries are considered advanced communications industry and technical means change products rapidly. What are the effects of advanced technical products on the cost of operating a communications system, in the near term and long term. What are the products that are sold and how to achieve the needs of the customer?

The establishment and maintenance of telecommunications infrastructure is very expensive. What are the cost implications of building and developing the necessary infrastructure? Does the cost change from urban to rural areas? What are the cost implications of the installation of a telephone line and one, or 100 telephone line? Assuming that the Foundation has established the necessary infrastructure, how will Wim recover this cost?

Can now be thinking about the services offered: such installation, and maintenance costs, and use the phone of the factors that must be taken into account. What are the cost implications of the institution, and time, and maintenance, and customer service? What are the various factors relating to the provision of service of civilian areas, or business, or houses, or rural areas?

As is evident, the matters relating to cost varied and complex. And must analyze and understand all of these factors to determine the right price for the service offered. Alin remember that he must cover the cost of providing the service in order to stay in the market. This is the reality of competition. What are the areas that provide more profit, and those that do not provide? The extent to which the Government provides financial returns for a telecommunications company? Does it change over the next five years?

Price points relating to the Status of

The decisions relating to the Status of prices a key issue for any organization. The price is determined the most appropriate is a complex process. One of the important factors to be taken into account the current level of demand, and the price of competitive services, and the characteristics of the market. As an example, the price of the phone call. The price has dropped more than necessary, it will be all existing lines occupancy and thus increasing the errors and the customer is unable to make a connection to the desired mm him feel frustrated. As The price increased too much, you'll feel the customer injustice and having to deal with competitors. Therefore there must be between these two prices over a certain price of products and services so as to allow profit and customer satisfaction.

In general, you should price depends on several factors such as the cost required for the delivery of the product or service to the customer. There are several ways to set prices for services in the field of communications. The basic method is the expense of production plus a percentage of profit, advanced method relies on the customer's perception of the value of the service.

Expense of production plus a percentage of profit

Means add the amount to the cost of production or service in order to earn a profit. It depends on the knowledge of the cost of providing the product or service. The basic elements of this method is the unit cost of the product or service and the amount added. There Alaqtin Raaditin this method:

Unit cost = variable cost + (fixed cost / number of units sold)

The amount added to give the desirable sales ratio:

The additional amount = unit cost / (1 - desired proportion of the sales)

The following example illustrates this method.

Suppose that the following are true figures for production Phone:

Variable cost per unit $ 20

Fixed cost $ 500,000

The number of units expected to sell 50,000 units

Unit cost = variable cost + (fixed cost / number of units sold)

= 20 $ + (500000 $ / 50000)

= $ 30

And therefore the unit cost is equal to $ 30. Now after knowing the cost of producing one phone, what is the sale price of this phone to the customer? What is a reasonable additional amount for each telephone line?

Suppose that the desired increase equal to 25% of sales. The second application of the mathematical relationship we get the following:

Additional amount = unit cost / (1 - desired proportion of sales)

= $ 30 / (1 - 0.25)

= $ 40

This will become price is $ 40 retail price of the phone, which will return a profit of 25% on sales. This is a simple example and can be modified Alalaqtin الرياضيتين as desired. What is the appropriate percentage on sales of the products or services offered by the company? Do you know the unit cost for each type? Difficult to determine the unit cost of services that include the value of staff time. But we must work some thoughtful guesses about the cost of services and the application of mathematical relationships prior to knowledge of the sales price.

Pricing adoption Buyer

Accept the buyer uses to value more than the use of cost as a basis for the decision to place the right price. This means a price that you think that the customer is willing to pay. This is a complex method which relies on detailed information about customers and their needs and acceptance of the telephone service and willingness to pay. And can be a serious way as price was put in a random manner without relying on the ability of customers to pay. What is the extent to which people accept the value of communication in your area? Do you differ in business with him in the houses, and in urban areas than in rural areas?

Marketing budgets

Marketing budgets are typically by administrative levels Ali adoption on the financial resources of the general operating budget of the company. After identifying these budget marketing department is taking a series of important decisions about the distribution. How marketing budget will be spent? Areas that attention must be paid to training and information in the field of customer services, advertising services and products, public relations, and market research. What are other examples you can think of? Most decisions depend on the marketing budget on the institutional goals and the situation in the country. For example, it was one of the goals of the company to increase the level of awareness among the participants about the services and products offered by the company, what is the proposal to implement it? The resolution may be a propaganda campaign for the company. What is the message of the propaganda campaign and where it will focus? Will the daily newspapers The posters or any other option? What about radio and television? And should be considered a cost of each of these media broker.

Wim following several important characteristics of marketing budget:

v plan clear and precise for the distribution of funds.

v control system.

v system for evaluation and feedback.

v close relationship with the company's goals short-term and long-term.

v To prepare marketing budget must first ask and discuss effective suggestions for marketing the company's products and services. Marketing can be used to improve the company's image and the distribution of information to customers about the features of the company. How do you deliver the message to current and prospective customers?

v What are the types of marketing that suit the different sectors of the market? You may need to market your products and services in different ways for each group.

v or second step is to decide on the funds should be allocated for each project. This decision is based on the size and purpose of each project as well as the means to be selected. Must estimate the cost of each step in the project.

v Finally, you must specify the evaluation and control system. Each project must evaluate marketing effectiveness in achieving the goals set for him. For example, with the aim to increase awareness among customers, how this objective will be evaluated Wim as check or not? Think of ways that can be used to evaluate the effectiveness of marketing programs. For example, it was the method used to increase the awareness of customers is effective, it must use marketing funds in other areas.

Example of a plan with the goal of profit

Used circuits marketing plan with the goal of profit to predict sales and estimate the cost of selling products and services. This plan includes market analysis company and its objectives to reach these markets. The table below shows the preliminary outline of the elements of this plan, which will be detailed Wim after. This model can be used for each product or service exposure in the market.

Preliminary outline of the plan with the goal of profit

1 - to predict the size of the overall market

Market size for the current year 'rate of growth in the market

2 - to predict a company's market share

4 - the price of the product or service

6 - Respect the changing cost

Included raw materials and distribution

8 - fixed cost estimate

Fixed price per unit x sales volume

9 - Respect margin to cover the profit-sharing and marketing (7) - (8)]

10 - Respect the desired target profit

11 - available for marketing value [(9) - (10)]

12 - division marketing budget

Announcement

Sales Promotion

Market Research

v will now NYPD detail of these elements, where information comes from and what it means. Some calculations, inside the parentheses, include multiplication or addition or subtraction. And some other information comes from predict or estimate the cost and price. NYPD top.

Predict the size of the overall market:

What was the size of the market this year and is the logical growth of the telecommunications sector? And multiplying these figures give an estimate of the size of the overall market for communications in the next year.

Predict a company's market share:

Typically, companies monopoly owns 100% of the market share, but the increased competition these companies will lose a large part of the market. We must therefore estimate the Company's share of the telecommunications market.

Expectation of sales volume:

This figure comes from multiplying predict the overall market in the Company's share of this market. And the expectation of sales volume gives an idea of the number of products or services that can be sold in the next year, taking into account the challenges and opportunities for the company.

Price:

What is the price of the product or service offered by the company? Communications face competition offers a number of products and services and all of it has a separate nonprofit plan. This process consumes a lot of time but it is very important. Where will provide an opportunity to see the best for the price level, which shall be paid.

The size of the expected return:

The sales volume multiplied by the unit price gives the size of the expected return. This represents the amount of money inside the company of various products and services offered by the company.

Variable cost estimate:

It cost that change with the number of units produced.

Estimate the sidelines of participation to cover fixed cost, profit, and marketing:

And this margin can be derived from the following mathematical relationship: (price - cost variable x sales volume). This gives the amount of money remaining for-profit and other costs. In the next step, we will see how this will decrease the margin due to the fixed cost, marketing, and the planned target profit.

Fixed cost estimate:

It costs that do not change depend on the volume of production or sales. And pay the cost, whether it is the installation of a telephone line and one telephone line or 1000. Examples include, wages offices and staff salaries.

Estimate margin to cover the profit-sharing and marketing:

This step calculated the value of the fixed cost deducted from the proceeds. And easier revenue must cover fixed and variable cost and the cost of marketing and the remainder is the amount of profit.

Desired target profit estimate:

And represents the amount of profit that you want to achieve Telecom. What are the objectives of the company's profitability? It depends on the profit achieved in the past year. Vhasal hit profit last year at a reasonable rate increase gives the company's profit target this year. And must estimate the rate of increase in profit adoption to develop telecommunications in the country and the status of the company.

Available for marketing value:

After deducting the amount of profit and costs of the total revenue, the remainder can be supplied to the marketing budget. This shows that the part of the company's revenues must be directed towards the company's development and marketing of its products and services. This includes research and development, training, advertising and sales promotion and market research.

Division marketing budget:

Marketing budget can be divided - the adoption of the overall objectives of the company - into several parts, such as market research, customer service, and promotion.

And in spite of the fact that some of the concepts raised previously unrelated institution participating in the current time or in communication in general but that it is necessary to understand the difficulty and diversity of this process. It is not an easy task, but ideas such as forecasting and appreciation and certainly necessary budgets to plan for the company's growth in the future.

2/2 estimate the size of the request:

Can split models and methods used to estimate the size of the market and demand is expected to two types are: simple models (based on experience and personal appreciation) and standard statistical models.

First: - simple models:

The distinguishing feature of these models that rely on the experience and personal appreciation for the researcher catalog

And from these models:

1 / historical comparison method Historical Analogy Method

Sales are estimated and agreed to this model estimate sales over a period of time in the past and then added a certain percentage of those sales to meet the changes in the future to reach the sales volume is expected during the life of the project.

And the rate of increase is estimated based on the increase in population or income. And is a simple method and is based on the assumption that sales in the future is an extension of the sales in the past. This model does not fit the course for new products and conditions of rapid technological progress.

2 / opinions and experience of Managers and sales experts:

According to this method, estimating the expected demand is through the assignment of all department managers Home and specialists and experts sales inside or outside the facility to predict the size of the expected demand for products under consideration depending on what is available to their personal experience in this area and are grouped various estimates and analysis causes of differences and reconcile with and adoption as an indicator of the size of the final application.

Second: - Statistical models Quantity:

Exceed quantitative models and statistical that can be counted on to estimate the expected demand for products investment opportunities under study.

Is the use of quantitative models and statistical information through the following steps:

The first step:

Set models Specification of the Model and include this step:

1. Determine the dependent variables and variables utilized

2. Determine the theoretical expectations (tribal) that pre-determined by economic theory

3. Determine the mathematical form

2012-09-26T03:39:00.001-07:00

2 / marketing feasibility study

2/1 compilation and analysis of data and marketing information

2/2 estimate demand

2 / marketing study of the project:

The main goal of the feasibility study in marketing measure the actual size of the market and is expected to products of the project under consideration.

The study of the demand for products of the project of the most important elements of the study include marketing this study the following aspects:

1. Study the determinants of demand and supply for a commodity that project سينتجه.

2. Identify the structure of the market (Market Structure) and its size, its characteristics and regulatory measures to deal in it.

3. Analysis of the former and the current offer in terms of its origin: imported or domestic production, sales volume, the stability of prices, and the marketing policies of competitors, etc..

4. Estimate the share of the project in the light of market demand and supply conditions of the project in front of his competitors and shaping marketing policy to be adopted.

And include details of marketing study to assess the supply and demand sides:

1 / Data for alternative goods:

ü quantity of production, even comparable to the size of expected consumption, to determine the appropriate production capacity of the project.

ü retail price and the wholesale and used in pricing policy.

2 / data on the degree of commercial activity:

ü the number of establishments that operate in the area of distribution by region.

ü the number of establishments that operate in the area of distribution by type of product.

ü number of establishments engaged in the distribution of divided agents, wholesalers and retailers.

3 / data on transport and communications:

ü various means available in the state and the total goods carried on and kind and transport tariff.

ü possibilities of air transport in and out.

4 / data on foreign trade:

ü export value and quantity, type and main importing countries to get to know over the export potential for part of the production.

ü imports value, quantity and type and the most important exporting countries to get to know the possibilities of substituting local production imports. And also access to sources of raw materials and raw materials needed by the production.

ü trends in global demand and world prices.

5 / consumer behavior:

ü includes information for the consumer and is usually obtained its data through field surveys and newspaper design a questionnaire containing the following information:

· Brand which usually buys.

· Package size preferences.

· What are the motives for the purchase.

· Do you buy from a specific store.

· Daily consumption volume.

· Over his preference for imported on the local production and the reasons for it.

6 / the direction of government policies:

ü include the restrictions on domestic prices and trade policies of import and export quotas, as well as a system of tariffs on imports and exports and other information.

ü (data model facility market study)

7 / marketing information required:

ü that the requested information must be applied to the target markets of the individual, whether local, regional or other global markets (export).

Product

Should describe the product (s) described a comprehensive and clear showing sizes and weights and مقاساته type and form of packaging that is sold consumer as well as for the wholesaler as these products are sold to wholesalers, name and trademark and uses and summary for raw materials involved in its manufacture. But as the project intends to produce more than one class should provide a detailed description and precise product mix and any changes planned to enter it during the life of the project and determine the proposed production program for the first five years of production. How much should be accompanied by this description Bam is available when the project owner of the samples, photographs and booklets, and should also include a detailed statement on the applicable specifications and standards in the manufacturing of the item and determine the specifications that the project intends to rely.

Display

Should statement sources of supply current of the product in the domestic market and any foreign markets project intends to export to, any identifying local producers with said their productive potential, and quantitation importing and exporting countries, and varieties of products and share estimated in the market, as well as the names, addresses and phone numbers, telex or fax for these plants National, agents and distributors in a given country and attach a list including the respect of data derived from the list of projects licensed by the Ministry of Industry. The purpose of this information to draw a comprehensive picture of the current display mode of the goods to be produced, y noted the importance of identifying the sources of the information provided to make sure it is accurate.

Demand

Supposedly pan that demand in any year consists of the sum of the sales of local producers with imports minus exports and re-exports, and should kilometers possible when estimating demand historical product to provide evidence to support from sources recognized Kahsaouat foreign trade issued by Department of Statistics of the Ministry of Planning, The statistics Organization for Economic Cooperation and Development. How the statement should be included sales prior to the project owner that has had a previous activity, and a foreign partner if any, shall ensure that the statement of sales for the domestic market or any plans to overseas markets to export to. In the case of determining demand in other ways must explain these methods adequately explained. The analysis should include the historical demand for the past five years, distributed kilometers possible by regional areas in the state. But as the project intends to exclusively market the product in a particular area should focus on this area, giving an overview of the demand in the country designated pan. Taking products of the project was directed to the markets and various consumer sectors (such as retail or wholesale markets or food catering services or government sectors) should be a detailed statement of income share of each sector as well as the income statement similar to foreign markets that the project intends to export. As for the future demand must estimate the size of that request throughout the period covered by the feasibility study distributor according to each sector or product, to be referred to the methods used to reach these estimates and assumptions that built it knowing that you can use more than one method to estimate the size of future demand.

4 - marketing strategy:

The summary should be included for investors' perception of the project with the identification of markets, which aims to force positions on which it is based, and the main competitive advantages available to him with reference are to experience the project owners in the area in which the project is located in its scope and in any activity that has a connection with him.

Price

Should be included a statement at the prevailing rates of the product in the domestic market and any other markets related to the project and a statement according to regions and major cities in order of importance as well as the sale price of the product from local factories and the price of imported (CIF) comprehensive cost, insurance and transportation, and sale price wholesale and retail. How the sales prices should be included planned project owners to sell their products on the basis of the pricing strategy, which is built upon each product. With determining the sale price of each of the distributor and wholesaler and retailer and the rate of profit available for each of them, as well as prices for project owners already selling this product for them already.

6 - expected sales and market share:

Should statement details quantities expected to sell annually to be reaching full production capacity can be achieved and estimate the quota expected project acquisitions in the market annually based on estimates sales and the expected size of the request to put this estimate according to each product (or products) and the value of each sector consumer and each market or region. How much should the project owners already selling similar products mentioned quota acquired an actual historical sales value and volume for the past years.

Competition

Should be mentioned internal and external competition, which will be exposed to him the project together with the competitive products and prices, trade names and share all of it in the market and how they affect its competitive ability of the project to achieve the quota aims to stating the strengths and weaknesses of each competitor on the unit.

- Distribution:

Should determine how the product will arrive from the factory to the final consumer and distribution channels, which intends to follow and the level of these channels compared with institutions Mthilath have competition. How much should identify the modes of transport and storage that the project intends to use, cost and who bears him.

9 - the administrative structure and distribution:

Should determine the administrative structure to manage the marketing and sales of the proposed project with an indication of the number of individuals and their qualifications and experience and nationalities and the responsibility of each of them and attach a copy of the statement of qualifications and experience of persons who have been appointed or nominated for these positions.

10 - Sales promotion and marketing support:

Should submit detailed plans for advertising and other methods that the project intends to use to promote sales at the level of distributors and the end consumer, with setting the budget allocated to it and to the value of sales per estimated disaggregated way declaration to be used. The foundations built upon these plans and spending estimates. How much should specifically cite any information regarding plans and budgets for the product launch in the market.

11 - marketing agreements:

Should attach copies of any marketing agreements (such as agencies or conventions commercial representation, distribution or brand) mm entered into a final or tentative with either local or foreign companies with interest determine the desired marketing of these agreements.

Marketing budgets and pricing policies: (eg telecommunications company)

The marketing budget is part of the general budget of the company. The marketing budget plans projected revenues and costs and profits, and features a system to control the funds allocated for marketing. And as one of the most important factors in business competition, it must exchange marketing budget so as to increase the volume of work, and increase the awareness of the customer, and announces features of the company. This is a lot, but it explains the need to prepare marketing budget carefully.

To prepare a marketing budget need to gather information and work expectations and calculations. It is rare for providing all the information and numbers required, and therefore must assume some of the numbers and predictable reliance on some of the available information and knowledge and intuition in situations like this. Well be feeling anxious after gaining experience in record-keeping, and analysis of the numbers, and predict the cost and price, in this case will not become a difficult budget preparation work. It is crucial in the preparation of marketing budget to understand the factors related to the cost of products and services, and pricing strategies to cover the cost of providing appropriate profit.

Factors affecting the cost

Can understand the overall cost as the cost of fixed or variable.

Fixed cost: The cost that does not change with the level of sales. And this cost must be paid whether produced one unit or

1000 units. Some examples of this, wages offices and staff salaries.

Variable cost:

They changed the adoption on the quantities sold. Cost of operation depends on the installation site, in the city or the countryside, and the age and quality of the devices, and the types of preventive measurements that are made. Can you think of examples of the changing cost in the telecommunications sector? And there are other important cost must be taken into account in any type of business, such as telecommunications, which is the cost of the establishment of the necessary infrastructure before starting work. This cost is called cost dwindling, he is to recover funds that have been spent in the long run.

v There are many factors that make up the actual cost of the product or service, these factors may vary depend on the situation in the country or in the telecommunications sector. What is your understanding of cost factors in the telecommunications sector? What are the factors that are within the cost of the product or service offered by the institution?

First, you must consider the actual products that offer to subscribers. What are the cost implications of each of these products and where this cost is locked? Of factors that need to be taken into account the price you pay for company products providers. What is the relationship with existing suppliers, and are there other options? Is there a single provider The company is dealing with companies and different countries? Think scales may be useful to provide funds. From ideas to negotiate with the number of applicants for bids or purchase in large quantities. What is the cost of storage devices, as it was economically feasible, and what are the expected duration of the store? It is possible to achieve regional cooperation a better negotiating position and the position of buying a uniform.

When you make a local call, national, and international, and what are the factors that affect this cost? What are the cost implications of the institution to offer its services in terms of employees' salaries are considered advanced communications industry and technical means change products rapidly. What are the effects of advanced technical products on the cost of operating a communications system, in the near term and long term. What are the products that are sold and how to achieve the needs of the customer?

The establishment and maintenance of telecommunications infrastructure is very expensive. What are the cost implications of building and developing the necessary infrastructure? Does the cost change from urban to rural areas? What are the cost implications of the installation of a telephone line and one, or 100 telephone line? Assuming that the Foundation has established the necessary infrastructure, how will Wim recover this cost?

Can now be thinking about the services offered: such installation, and maintenance costs, and use the phone of the factors that must be taken into account. What are the cost implications of the institution, and time, and maintenance, and customer service? What are the various factors relating to the provision of service of civilian areas, or business, or houses, or rural areas?

As is evident, the matters relating to cost varied and complex. And must analyze and understand all of these factors to determine the right price for the service offered. Alin remember that he must cover the cost of providing the service in order to stay in the market. This is the reality of competition. What are the areas that provide more profit, and those that do not provide? The extent to which the Government provides financial returns for a telecommunications company? Does it change over the next five years?

Price points relating to the Status of

The decisions relating to the Status of prices a key issue for any organization. The price is determined the most appropriate is a complex process. One of the important factors to be taken into account the current level of demand, and the price of competitive services, and the characteristics of the market. As an example, the price of the phone call. The price has dropped more than necessary, it will be all existing lines occupancy and thus increasing the errors and the customer is unable to make a connection to the desired mm him feel frustrated. As The price increased too much, you'll feel the customer injustice and having to deal with competitors. Therefore there must be between these two prices over a certain price of products and services so as to allow profit and customer satisfaction.

In general, you should price depends on several factors such as the cost required for the delivery of the product or service to the customer. There are several ways to set prices for services in the field of communications. The basic method is the expense of production plus a percentage of profit, advanced method relies on the customer's perception of the value of the service.

Expense of production plus a percentage of profit

Means add the amount to the cost of production or service in order to earn a profit. It depends on the knowledge of the cost of providing the product or service. The basic elements of this method is the unit cost of the product or service and the amount added. There Alaqtin Raaditin this method:

Unit cost = variable cost + (fixed cost / number of units sold)

The amount added to give the desirable sales ratio:

The additional amount = unit cost / (1 - desired proportion of the sales)

The following example illustrates this method.

Suppose that the following are true figures for production Phone:

Variable cost per unit $ 20

Fixed cost $ 500,000

The number of units expected to sell 50,000 units

Unit cost = variable cost + (fixed cost / number of units sold)

= 20 $ + (500000 $ / 50000)

= $ 30

And therefore the unit cost is equal to $ 30. Now after knowing the cost of producing one phone, what is the sale price of this phone to the customer? What is a reasonable additional amount for each telephone line?

Suppose that the desired increase equal to 25% of sales. The second application of the mathematical relationship we get the following:

Additional amount = unit cost / (1 - desired proportion of sales)

= $ 30 / (1 - 0.25)

= $ 40

This will become price is $ 40 retail price of the phone, which will return a profit of 25% on sales. This is a simple example and can be modified Alalaqtin الرياضيتين as desired. What is the appropriate percentage on sales of the products or services offered by the company? Do you know the unit cost for each type? Difficult to determine the unit cost of services that include the value of staff time. But we must work some thoughtful guesses about the cost of services and the application of mathematical relationships prior to knowledge of the sales price.

Pricing adoption Buyer

Accept the buyer uses to value more than the use of cost as a basis for the decision to place the right price. This means a price that you think that the customer is willing to pay. This is a complex method which relies on detailed information about customers and their needs and acceptance of the telephone service and willingness to pay. And can be a serious way as price was put in a random manner without relying on the ability of customers to pay. What is the extent to which people accept the value of communication in your area? Do you differ in business with him in the houses, and in urban areas than in rural areas?

Marketing budgets

Marketing budgets are typically by administrative levels Ali adoption on the financial resources of the general operating budget of the company. After identifying these budget marketing department is taking a series of important decisions about the distribution. How marketing budget will be spent? Areas that attention must be paid to training and information in the field of customer services, advertising services and products, public relations, and market research. What are other examples you can think of? Most decisions depend on the marketing budget on the institutional goals and the situation in the country. For example, it was one of the goals of the company to increase the level of awareness among the participants about the services and products offered by the company, what is the proposal to implement it? The resolution may be a propaganda campaign for the company. What is the message of the propaganda campaign and where it will focus? Will the daily newspapers The posters or any other option? What about radio and television? And should be considered a cost of each of these media broker.

Wim following several important characteristics of marketing budget:

v plan clear and precise for the distribution of funds.

v control system.

v system for evaluation and feedback.

v close relationship with the company's goals short-term and long-term.

v To prepare marketing budget must first ask and discuss effective suggestions for marketing the company's products and services. Marketing can be used to improve the company's image and the distribution of information to customers about the features of the company. How do you deliver the message to current and prospective customers?

v What are the types of marketing that suit the different sectors of the market? You may need to market your products and services in different ways for each group.

v or second step is to decide on the funds should be allocated for each project. This decision is based on the size and purpose of each project as well as the means to be selected. Must estimate the cost of each step in the project.

v Finally, you must specify the evaluation and control system. Each project must evaluate marketing effectiveness in achieving the goals set for him. For example, with the aim to increase awareness among customers, how this objective will be evaluated Wim as check or not? Think of ways that can be used to evaluate the effectiveness of marketing programs. For example, it was the method used to increase the awareness of customers is effective, it must use marketing funds in other areas.

Example of a plan with the goal of profit

Used circuits marketing plan with the goal of profit to predict sales and estimate the cost of selling products and services. This plan includes market analysis company and its objectives to reach these markets. The table below shows the preliminary outline of the elements of this plan, which will be detailed Wim after. This model can be used for each product or service exposure in the market.

Preliminary outline of the plan with the goal of profit

1 - to predict the size of the overall market

Market size for the current year 'rate of growth in the market

2 - to predict a company's market share

4 - the price of the product or service

6 - Respect the changing cost

Included raw materials and distribution

8 - fixed cost estimate

Fixed price per unit x sales volume

9 - Respect margin to cover the profit-sharing and marketing (7) - (8)]

10 - Respect the desired target profit

11 - available for marketing value [(9) - (10)]

12 - division marketing budget

Announcement

Sales Promotion

Market Research

v will now NYPD detail of these elements, where information comes from and what it means. Some calculations, inside the parentheses, include multiplication or addition or subtraction. And some other information comes from predict or estimate the cost and price. NYPD top.

Predict the size of the overall market:

What was the size of the market this year and is the logical growth of the telecommunications sector? And multiplying these figures give an estimate of the size of the overall market for communications in the next year.

Predict a company's market share:

Typically, companies monopoly owns 100% of the market share, but the increased competition these companies will lose a large part of the market. We must therefore estimate the Company's share of the telecommunications market.

Expectation of sales volume:

This figure comes from multiplying predict the overall market in the Company's share of this market. And the expectation of sales volume gives an idea of the number of products or services that can be sold in the next year, taking into account the challenges and opportunities for the company.

Price:

What is the price of the product or service offered by the company? Communications face competition offers a number of products and services and all of it has a separate nonprofit plan. This process consumes a lot of time but it is very important. Where will provide an opportunity to see the best for the price level, which shall be paid.

The size of the expected return:

The sales volume multiplied by the unit price gives the size of the expected return. This represents the amount of money inside the company of various products and services offered by the company.

Variable cost estimate:

It cost that change with the number of units produced.

Estimate the sidelines of participation to cover fixed cost, profit, and marketing:

And this margin can be derived from the following mathematical relationship: (price - cost variable x sales volume). This gives the amount of money remaining for-profit and other costs. In the next step, we will see how this will decrease the margin due to the fixed cost, marketing, and the planned target profit.

Fixed cost estimate:

It costs that do not change depend on the volume of production or sales. And pay the cost, whether it is the installation of a telephone line and one telephone line or 1000. Examples include, wages offices and staff salaries.

Estimate margin to cover the profit-sharing and marketing:

This step calculated the value of the fixed cost deducted from the proceeds. And easier revenue must cover fixed and variable cost and the cost of marketing and the remainder is the amount of profit.

Desired target profit estimate:

And represents the amount of profit that you want to achieve Telecom. What are the objectives of the company's profitability? It depends on the profit achieved in the past year. Vhasal hit profit last year at a reasonable rate increase gives the company's profit target this year. And must estimate the rate of increase in profit adoption to develop telecommunications in the country and the status of the company.

Available for marketing value:

After deducting the amount of profit and costs of the total revenue, the remainder can be supplied to the marketing budget. This shows that the part of the company's revenues must be directed towards the company's development and marketing of its products and services. This includes research and development, training, advertising and sales promotion and market research.

Division marketing budget:

Marketing budget can be divided - the adoption of the overall objectives of the company - into several parts, such as market research, customer service, and promotion.

And in spite of the fact that some of the concepts raised previously unrelated institution participating in the current time or in communication in general but that it is necessary to understand the difficulty and diversity of this process. It is not an easy task, but ideas such as forecasting and appreciation and certainly necessary budgets to plan for the company's growth in the future.

2/2 estimate the size of the request:

Can split models and methods used to estimate the size of the market and demand is expected to two types are: simple models (based on experience and personal appreciation) and standard statistical models.

First: - simple models:

The distinguishing feature of these models that rely on the experience and personal appreciation for the researcher catalog

And from these models:

1 / historical comparison method Historical Analogy Method

Sales are estimated and agreed to this model estimate sales over a period of time in the past and then added a certain percentage of those sales to meet the changes in the future to reach the sales volume is expected during the life of the project.

And the rate of increase is estimated based on the increase in population or income. And is a simple method and is based on the assumption that sales in the future is an extension of the sales in the past. This model does not fit the course for new products and conditions of rapid technological progress.

2 / opinions and experience of Managers and sales experts:

According to this method, estimating the expected demand is through the assignment of all department managers Home and specialists and experts sales inside or outside the facility to predict the size of the expected demand for products under consideration depending on what is available to their personal experience in this area and are grouped various estimates and analysis causes of differences and reconcile with and adoption as an indicator of the size of the final application.

Second: - Statistical models Quantity:

Exceed quantitative models and statistical that can be counted on to estimate the expected demand for products investment opportunities under study.

Is the use of quantitative models and statistical information through the following steps:

The first step:

Set models Specification of the Model and include this step:

1. Determine the dependent variables and variables utilized

2. Determine the theoretical expectations (tribal) that pre-determined by economic theory

3. Determine the mathematical form

Feasibility study funding

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Feasibility study funding

4/1 short-term funding sources

4/2 estimate the average cost of funds

4/3 choose funding structure

Financial information required

Summary of the total cost of the project.

1. Sources of funding for the project from commercial loans and private loans and the project's capital and other sources.

2. Detailed financial estimates for the coming years to include the balance sheets and profit and loss accounts and cash flow accounts (estimated data for profit and loss, budget and cash flow must cover the proposed term of the loan)

3. Financial indicators such as financial ratios and accounts of the break-even point and calculate the internal rate of return and value added .. Etc..

4. When preparing financial projections should be kept in mind the following:

· Loan repayment under the terms of financing bodies.

· Estimates must be based on a current cost basis and must not contain any elements of an increase in costs or prices in the coming years.

· Assumptions must be on the terms of the profit and loss account and balance sheet and clear.

· The project must be economically viable by itself without counting any customs duties or any government subsidy expected for the project.

· Must clarify the accounting method and ratios to be selected to calculate depreciation of fixed assets and amortization expenses of incorporation and maintenance.

· Must clarify any other expenses necessary for the operation of the plant.

Study financing for the project:

If what has been estimated investment costs and operating costs possible for those in charge of the feasibility study proposing appropriate financing structure for the project.

The funding is divided into the following:

· Internal financing (angel funds)

· External financing (credit facilities and loans internal or external).

If the project is capable of financing - in the sense that the required capital can be supplied - begin preparation of financial statements in the following:

· List and capital statement partners.

· The proposed schedule to repay the money.

· The proposed timetable for loans.

· Schedule to repay loans.

· Schedule to repay the investment costs.

· A list of sources and uses of funds.

· Balancing resources and uses foreign currency.

If the project is not available for financing start another study to reduce the gap between the funds required for financing and financing possibilities available, or thinking in the selection of another alternative is subject to financing possibilities available. But if you do not possess the capabilities required to finance the project is inevitable cancellation of the decision-making and stop the study whatever the economic feasibility of the project.

Cash Flows

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Cash Flows

Concept and the components of the net cash flows:

Meant cash flow of the proposed projects under study, the difference between the input and output cash for the proposed project, both during the construction period and processing or during the expected useful life.

And are not required to net cash flow necessarily be equal with the net profit accounting.

Where there is a net cash flows that takes into account and automatically timing of cash inflows and emerging without getting into trouble allocation of financial burdens and income over the past owed them.

The following table presents the components of cash inflows and emerging:

Table statement Net cash flow expected

5/2 ways evaluate investment opportunities in the private sector (financial and economic assessment of the profitability of business)

If passed the study phase of the possibility of funding up to the stage of estimating the economic viability of the project. And begin to prepare a summary of business results which enable the evaluation of the project on the basis of various measures of profitability and this evaluation is limited to measure the ability of the project to generate direct return appropriate.

There are many objective criteria that are used to assess the financial and economic project can on the feasibility study used Among these criteria that we will have:

1. Analysis tie

2. Payback period

3. The average rate of return

4. Net Present Value

5. Manual profitability benefits to costs

6. Internal Rate of Return

Analysis tie equations and see examples of investment]

It is a method to examine the relationship between revenues and costs to report the minimum size required for production equivalent (ie, non-profit or loss). A first indicator helps to clarify the extent of the profitability of the project.

Payback period

, One of the traditional methods that cares invested primarily in terms of the ability to recover his money and be either a desire to reinvest or to lack of confidence in economic conditions.

Recovery period meant that the time period in which it retrieves the project investment costs expended and the basis of trade-offs which is a project that can be invested to recover the money as soon as possible.

The average rate of return

The finding percentage of average net annual accounting profit after depreciation and taxes to the average value of the investment needed for the project.

Net Present Value

Indicates the net present value of the investment project to the difference between the present value of the cash inflows resulting from this project. And the present value of cash outflows for the project. If a positive net present value - any more than the current value of inflows for cash outflows - a profitable investment project, and vice versa. In case there is more of an investment project preferably larger project that gives a net present value.

Manual profitability (ratio of benefits to costs)

It is intended quotient present value of inflows of investment project on the present value of flows emerging for this project. If the directory (ratio) is greater than the right one was a profitable investment project and vice versa. According to the profitability of each guide from competing in the dialogues arranged on the basis of profitability booting to choose the most profitable dialogue.

Internal Rate of Return

The standard internal rate of return of the most important criteria used in the evaluation and comparison between different investment projects. The current used by the World Bank in all kinds of financial and economic analysis of projects. As well as used by most international financial institutions when the acceptance or rejection of the projects submitted to it for the purpose of funding.

This standard is in the rate at which equal the present value of cash inflows with the present value of cash outflows for the investment project. In other words, is the discount rate at which the net present value of the investment project is equal to zero.

Those are the most important criteria used to assess the profitability of the proposed project and that contribute to the decision establishing the project or dismiss him, according to the results of these standards.

5/3 study of the feasibility of the project from a business perspective

Estimating project costs

Project costs are estimated from the data and information that show technical study in addition to that illustrated by the study marketing.

The estimate of those costs should be moving in the direction of the answer to the following questions: What is the cost required to establish and implement the project even showed production and operation? What is the cost of producing the expected volume of sales? The answer to the first question means investment spending estimate for the project while the answer to the second question concerned estimate the operational expenditure of the project, or in other words, estimating both the investment costs (capital) and annual operating costs.

Investment costs

Annual operating costs

Investment costs

Can determine the scope of the investment costs in the feasibility studies to those costs necessary for the construction and equipping of the project until it becomes contagious to start operating. And thus represent the elements of the investment costs in those items that spend during the period from the moment of the emergence of the idea of the project and prepare its own studies even testing it. These costs include the following: the costs of purchasing and access to fixed assets and installed. Exemplified by the costs of the purchase of machinery and equipment, transportation and installation at the site, and buy the project land and construction of buildings and outfitted etc..

Working capital, which includes:

· Inventory of raw materials necessary for the full production cycle. The main raw material stock and assistance, fuel and spare parts and supplies and maintenance materials and packaging materials.

· Liquid enough cash to meet expenses such as wages, salaries and other elements of industrial and marketing expenses and other administrative and financial.

· Establishment expenses include: the cost of company formation and the cost of preliminary studies and detailed legal fees and transition and travel expenses and training personnel who be entrusted to them to run the project after his addition to the experiments under operating expenses ... etc..

Annual operating costs: -

The process of identifying the elements of costs for operation during the first year that the productive activity reaches to the full energy level basis to measure the profitability of the project. The annual operating costs in the cost of industrial production and also marketing and administrative cost. The officials must study and analyze this part to highlight and explain the following types of costs in the context of their analysis:

1. Fixed costs and variable costs that the basis of this distinction that separates the fixed and variable costs is that it has nothing to do with changing the volume of production and the costs that change size.

2. Costs that are fixed as long as the productive activity continuously, but can be avoided if this activity stopped. Such as the salaries of employees who are in the process of supervision.

3. Costs that continue even if production stops, but can be avoided if the liquidation of the project. For example, the salaries of the guards.

4. Costs that can not be avoided even been filtering project has been selling assets - for example, the consumption of machinery and equipment, especially that do not have a market value.

5. Costs that are not owed on production, but are subject to the disposal of the administration. For example, advertising expenses and research and advisory and legal fees.

6. The added costs and the costs dumped and added costs are those costs incurred on a particular decision. Such as the decision to use a number of machine overtime consequent additional costs of fuel needed to manage this machine and Ahlake costs as a result of running this additional number of hours.

7. Cash costs (Out of Pocket Costs) and the carrying costs (Book Costs) and the first are those costs that require spending Gary is such as wages and salaries paid and the second they do not require spending loading such as depreciation.

National feasibility study of the projects

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National feasibility study of the projects

6/1 study the financial and economic feasibility of the project from the perspective of the national economy

Previously focused our analysis of the elements of the feasibility study for the investment project on the side of business profitability which may not give a true indication of the contribution of the investment project to be done in the national economy. In other words, the contribution of the project and its consistency with the directions of the development plans and the expected effects on social welfare. To get to know those things, it prefers to study the feasibility of the project in terms of the overall economy.

And similar feasibility study of the project on the macroeconomic level in terms of form and content with the commercial feasibility study for the project are both seeking to determine the benefits and costs of the then estimate the profitability indicators of the proposed investment project. But that some go on to say that "profitability analysis is only a step on the road to profitability analysis nationalism." In fact, analysis of business profitability and profitability nationalism differ in several things. The goal of business profitability analysis is to estimate the net financial results of the project while the nationalist aims profitability analysis to estimate the contribution of the project in achieving the goals of economic and social development unforeseen. On the other hand, it should be noted that business profitability analysis takes into account only the effects which can be expressed in monetary directly while entering in the profitability analysis of national direct effects and also indirect tradable and non-monetary measure. Therefore, we find that business profitability analysis based on market prices, while the national study, profitability analysis based on the use of shadow prices (Shadow Prices) or an accounting prices, which are almost the social cost borne by the national economy.

Undoubtedly, these differences in concepts reflected in one way or another on the various items of the benefits and costs and evaluate each of them - trade and national security. Some types of payments that appear under the terms of costs when making financial analysis of the project does not represent a burden directly on the resources of the national economy but are merely a transfer or reallocation of available resources from sector to sector, where the benefit or return the use of those resources is higher in the new sector of those in the sector old and therefore there is an improvement in the use of resources reflect negatively or positively on the social benefits and costs.

It is clear from the foregoing that there are significant differences between business profitability analysis and profitability analysis at the level of the national economy. The latter involves more complex processes of the first and requires knowledge and experience in technical methods used to estimate the price (including costs shadow prices) and benefits. It thus also requires providing greater information and thus are usually the cost of making and profitability analysis study on the level of the national economy more than the cost of a study analyzing business profitability. Therefore in cases of feasibility studies for investment projects of small or medium size rarely study includes profitability analysis at the level of the national economy is exposure to some estimates for the expected new jobs that will be created by the project to the national cadres. And it should be emphasized here that, despite the great importance of analyzing business profitability of the investment project and for making investment decisions more effectively and to ensure optimum utilization of available resources, it is inevitable from a profitability analysis study from the perspective of the national economy.

There is no doubt that one of the most important stages of evaluation of investment projects is the stage of determining the price or value of the inputs and outputs of the investment project to be done. This selection is one of the biggest problems faced by researchers, especially when a study profitability analysis at the level of the national economy, because the choice of the basis on which will be followed in pricing will play a major role in the evaluation results that we get. Therefore, we find that the problem of pricing of the most controversial problems in evaluating projects on a methodological level, as well as on the practical level, characterized by a wide variation in views. And we will try to display through the following summary to identify the most important aspects of the evaluation of investment projects at the level of the national economy.

6/2 How to measure the benefits and costs at the national level

Cost of drew the attention of the national economy

To calculate the cost from the point of view of the national economy are modified commercial cost data as follows:

v If the project will depend on the production ore and raw materials or intermediate goods imported from abroad and the state imposes customs duties on imports, the project pays these taxes fall within the commercial cost elements. As for the national economy are not considered taxes customs cost item. And must accordingly be deducted from the cost of business to reach profitability nationalism. As well as the situation with respect to all other taxes that affect business profitability as cost elements. Where the cost is not real from the standpoint of the national economy.

v for resources used by the project should not be costed on the basis of what has been in the account business profitability, but must at the expense of profitability national appreciation based on the real cost that rely on alternative opportunities for uses - for example, if spread disguised unemployment in the community must be at the expense of profitability National the cost to be zero as it is the same cost if the project had not been established.

v If the project benefited from the support policies and incentives offered by the state in order to enable it to compete, it must be at the expense of profitability nationalism add value support and incentives to cost.

v If the cost of the project include part in foreign currency, and the state pursues a fixed exchange rate policy so that the exchange rate between the local currency and foreign unrealistic must modify the cost at the expense of profitability nationalism to reflect the real price of the local currency is denominated in foreign currency.

Similarly data shall be adjusted commercial return so that the expense of profitability and nationalism as follows:

v If project objectives export production or part thereof, or if the goal is to bring local production replace imports, if the consequent savings or proceeds of foreign currency and the exchange rate was not true become to be modified value what is being exported or are reduced from the value of imports of the same product produced by the project to the real rate of the exchange rate between the local currency and foreign currency.

v If production project enjoys the protection of customs by the state, and assuming that the exchange rate prevailing real and the sale price of this production at home was high must reduce yield at the expense of profitability national equivalent difference between sales revenue of the project and the cost of importing the same product without customs taxes.

Example of the amendments to be made to the expense of profitability nationalism:

If I learned:

That the production of this project entirely for export.

The official rate of the local currency is greater than the true value has increased by 40%.

Among the raw materials worth 100 million monetary units to be imported at the official rate.

· This project contributes to the reduction of unemployment in the community by 25%.

And required the expense of profitability of the project by imposing national capital invested in the project is 500 million units in cash.

Statement

Business profitability Million

National profitability Million

Return

500

Operating costs:

Raw materials

150

190

Salaries and wages of workers

100

Selling and distribution expenses

Destruction

Interest

Taxes

Total costs

400

365

Net Profit

100

335

Implementation of the project

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Implementation of the project

After study to demonstrate the feasibility of the project implementation phase begins. This is done preparing papers tender for the project, and is negotiating suppliers of machinery and equipment, and as well as companies that do business construction, that settles it on the most appropriate companies and offers the project is being implemented by the technical specifications previous preparation, and then comes the stage of operation tests where they are make sure that the machinery and equipment have achieved the designed production capacity in the specification of machinery and equipment that is often expressed in unit production during a single pink or production unit during business hours. And after a period of operation tests successfully come the normal operation of the project.

Start and direct implementation of the project:

1. Create project management and organization.

2. Provide the necessary funding from the following sources:

· Self-financing (property).

· Specialized borrowing from banks (banks or lending Development Industrial)

· Borrowing from commercial banks on lending terms and specific guarantees and at varying interest rates on borrowing (see Annex 2-1). In the absence of the Palestinian Monetary and incomplete pillars of the Palestinian Monetary Authority, is borrowing the three currencies traded legally accepted in the West Bank and Gaza Strip: the Jordanian dinar, the New Israeli Shekel, and the U.S. dollar.

· Alternative sources of funding: There are funds and government investment are providing loans to small and medium-sized (see Annex 2-2

· Non-governmental organizations, and these organizations work to promote industrial development in Palestine through the financing of development projects and small projects and income-generating (see Appendix 3 (

3. Tendering and retendered to perform the following actions:

· The purchase of land and configured to the construction of buildings and civil engineering, construction and according to the chart contained in the feasibility study.

· Supplying machinery and equipment productivity energies identified by the feasibility study.

· Supply all modes of transportation and handling.

· Supply all other fixed assets, including spare parts major and minor.

· Supply of raw materials and intermediate materials and assistance and operating requirements of the local market or imported from abroad required to complete the production process or the work of the project to at least one cycle.

· Supply the needs of the project of packaging materials.

4. Former marketing of the products of the project (including advertising and organizing outlets and distribution networks and sales in both domestic and foreign).

· Preparation of administrative and financial management and processing of the administration building furniture and supplies, hardware and office equipment.

· Mobilization and training of engineers and technicians on machinery and equipment used in the project (domestic and foreign).

· Mobilize the workforce (administrators, technicians and production workers and other services).

5. Operating energy production:

After the completion of the implementation of the project and before you start production PCI card full capacity, comes the first operating phase (pilot) to evaluate the investment in terms of implementation and operation card design and maximum for a short period of time varies from one industry to another.

6. Operating energy production:

And are at this stage to verify the feasibility of the project, and the extent of matching results achieved expected results in the feasibility study and operated according to the planned production program and card production and calculating project costs and revenues.

(6 - 1) cost of the project: which is divided into two sections:

1. Constituent cost of the project or investment, and includes all amounts that materialized in the form of assets required to complete the production process or the work of the project for at least one cycle and in turn are divided into three sections:

A. Construction costs:

The price of the land and buildings for the project, the value of machinery and equipment and machinery needed by the office furniture.

B. Working capital and usually consists of: -

All current and current assets minus current liabilities, according to the program useful for the project.

C. Costs pre-investment studies and these costs include: -

The incorporation and licensing fees and expenses of the feasibility study oversight.

2. Project costs, general and administrative and production and operating costs and these include:

A. Direct costs: - (cost of raw materials and the wages of workers) and indirect production costs (such as adjuvants and water, energy and maintenance of machinery and equipment and insurance on the factory facilities and depreciation for plant and other assets). And associated size production costs of direct volume production and is defined as a variable, indirect costs some of which are variable (adjuvants, and eighths water and energy), including what is fixed (depreciation and salaries and wages of technicians and administrators) The maintenance A part of them fixed.

B. Administrative costs and public and include all expenses that are not linked to the process of production directly or indirectly, they result from the performance of the project for functions such as marketing expenses, finance and management, including also the salaries wages administrative staff in the project, depreciation of equipment and office furniture for management, maintenance management facilities, publicity and advertising, hospitality, transportation and communications, written materials and insurance management and other facilities.

3. Depreciation:

It is worth noting that the depreciation of fixed assets is not part of the cash outflow, but costs are counted in the calculation of the tax due on the project, which forms part of the outflow, and cash flow statements for the project to be returned to the cash flow inside. 4. Tax: It is calculated from the net cash flows before adding depreciation rate of 35%, taking into account that the project would give tax exemption if he fulfills the conditions set forth in the Investment Promotion Law.

(6 - 2) revenues of the project: It consists of the value of production sold in the domestic and foreign markets.

4. Obtain a production license:

The investor Once the project begins production application to the Ministry of Industry to get a production license.

4. Get exemptions:

Should the investor relation department Investment in the Ministry of Economy and Trade to complete Public investment, which has the right to evaluate investment in terms of implementation and operation, in order to get the exemptions provided for in the Investment Promotion Law, this being coordination on such exemptions between Investment Department at the Ministry of Trade and Economy and the Ministry of Finance and the Ministry on the investment project.