Agroindustrial project analysi

68 AGROINDUSTRIAL PROJECT ANALYSISAre the forecasting methods appropriate?* Source of judgmental estimates?* Basis of source's expertise?* Other opinions possible?* Time-series data representative?* Consideration of seasonal, secular, cyclical, and random variations?* Regression technique?* Estimates of price and income elasticity?* Variables used in econometric model?* Causal relations assumed in model?* Rationale for variable selection and causal assumptions?* Acceptable level of accuracy?* Cost and value of increasing accuracy?* Applicability of previous forecasting methods?* Data and skill requirements of methods?* Speed of conducting forecast?SummaryConsideration of the marketing factor is vital to project analysisbecause it provides the market information to assess a project'sviability. Too frequently, a firm's substantial efforts and investmentsare put into mounting procurement and processing operations-theother two of agroindustry's three main areas of activity-only to have the expected benefits never materialize because ofan inadequate marketing analysis. Systems analysis views thesemain activities of an agroindustrial project as closely interdependent.This method identifies similar, closely related components inmarketing analysis.Because projects enter preexisting markets, it is essential thatfirms know the market environments. Accordingly, marketinganalysis should examine consumers and competitors. A consumeranalysis should identify consumer needs, potential market segments,and the buying process. For this analysis, the firm mustconduct market research. A concomitant analysis of the competitiveenvironment should describe the market structure, the basis of competition,and the institutional constraints affecting competition.From analyses of the consumer and competition, a firm formulatesits project's marketing plan. The plan should enumerate the proj-