What are Industry Sick factors the following are just some of the common causes for a project to be sick:
(A) Reasons beyond the control of the entrepreneur:
The reasons for which the project may fall sick beyond the control of the entrepreneur are mentioned below:
Lack of raw material/scarcity.
1. Natural disasters and political instability.
2. Lack of demand for manufactured services.
3. Industrial policy, price policy, sales policy, etc.
4. Revolutionary changes in technology.
5. Changes in government policy.
6. Excessive load shedding (electricity).
7. infrastructural difficulties.
8. changes in social and environmental conditions.
9. Excessive and unwanted interference of trade unions etc.
(B) What are Industry Sick factors The reasons under the control of the entrepreneur;
The following are all the factors that are under the control of the entrepreneur for project sickness:
1. Planning stage.
Lack of knowledge about technical knowledge.
Traditional or old production process.
2. Financial acceptability.
High intersection point (BEP).
High cost of raw materials used in the project.
Unlimited project size.
Low assessment of financial necessity.
D Overvaluation of demand.
3, production stage
Inadequate maintenance procedures.
Inadequate quality control process.
Inadequate production system.
High production costs. .
Insufficient production capacity utilization (less than the intersection point
Poor stock management.
4. Personnel management stage)
in additional pay/wage structure.
Poor human resource management.
inability to resolve labor disputes.
5. Marketing stage:
Extreme dependence on uniformly produced products
Weak marketing organization. 0
Faulty pricing method.
Marketing research and not reviewing the overall state of the market.
Contracting for the supply of large-scale products in volatile markets.
6. Economic stage:)
Insufficient funds. )
Weak financial planning.
Poor asset management. )
Misuse of funds. )
Defective production pricing. .
7. Administrative / General Management Level:
Not providing proper information to the management in time. .
Lack of professional skills.
Lack of adequate and proper control.
Lack of proper control at the right time. .
Not being able to collect proper information in time. .
Not doing proper diversification in a timely manner.
(c) What are Industry Sick factors Entrepreneur’s own nefarious motives:
The project may also fall ill due to the entrepreneur’s own nefarious motives. The following are some of the reasons:
. Bad management. .
.Loans are used or removed by the entrepreneur elsewhere.
. Sale of project goods / equipment on the pretext of sale of non-essential goods.
. Withdrawal of money against counterfeit stocks.
Taking advantage of debt repayment by showing good project sick.