Feasibility Study & Analysis

1. Feasibility Study & Analysis Prepared by : Genoveva Email : genoveva.claudia@gmail.com

2. SESSION OUTLINE www.themegallery.com

3. SESSION OUTLINE www.themegallery.com

4. THE ASSESMENT • Presentation (group & individual score): 30% • Mid Term (individual score) : 20% • Peer assesment (individual score) : 10% • Final Report (Group score) : 40% • No additional assignment to increase your score • Assignment should be submitted on time

5. Learning objectives : • Determine the economical meaning of feasibility study • Important of Feasibility Studies • The Components of a Feasibility Study • Reasons to Do a Feasibility Study

6. Definition of Feasibility Studies: • a feasibility study is an analysis of the viability of an idea. • The feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea?” • All activities of the study are directed toward helping answer this question.

7. Definition of Feasibility Studies: • Before you begin writing your business plan you need to identify how, where, and to whom you intend to sell a service or product. • You also need to assess your competition and figure out how much money you need to start your business and keep it running until it is established.

8. Definition of Feasibility Studies: • Feasibility studies address things like where and how the business will operate. • They provide in-depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plan. www.themegallery.com

9. Important of Feasibility Studies • List in detail all the things you need to make the business work; • Identify logistical and other business-related problems and solutions; • Develop marketing strategies to convince a bank or investor that your business is worth considering as an investment; and • Serve as a solid foundation for developing your business plan.

10. Important of Feasibility Studies • Even if you have a great business idea you still have to find a cost-effective way to market and sell your products and services. • This is especially important for store-front retail businesses where location could make or break your business.

11. Important of Feasibility Studies • For example, most commercial space leases place restrictions on businesses that can have a dramatic impact on income. A lease may limit business hours/days, parking spaces, restrict the product or service you can offer, and in some cases, even limit the number of customers a business can receive each day.

12. Important of Feasibility Studies • If the results show that the project is not a sound business idea, then the project should not be pursued. • Although it is difficult to accept a feasibility study that shows these results, it is much better to find this out sooner rather than later, when more time and money would have been invested and lost.

13. Who should Prepared The Feasibility ? 1) Professional consultant or 2) Entrepreneur or 3) Project Manager, with: • Lawyer • Accountant • Marketing consultant • Engineer • Source of information: • Gov. Agency • University • Association • Internet • Etc www.themegallery.com

14. The Components of a Feasibility Study • Market Feasibility • Technical Feasibility • Financial Feasibility • Organizational Feasibility • Product Feasibility

15. Assignment • Discuss the manufacturing plant that you are going to build ! • Find out the detailed process (machining process) including machine types and its capacity! www.themegallery.com