The document outlines the key components of a feasibility study, including technical, financial, marketing, and organizational analyses. A feasibility study assesses whether an idea is viable and should proceed by identifying potential issues and answering questions like costs, market demand, and available resources. It provides critical information for decision making and developing a successful business plan to move an idea forward. The document discusses the importance of feasibility studies and describes the various sections that should be included to comprehensively evaluate a proposed project or business venture.

1. POWER POINT MATERIAL
PREPARED BY LECTURER:
AHMED EL RAWAS
Lecturer.Ahmed El Rawas
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Feasibility study

2. Grading system
Lecturer.Ahmed El Rawas
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 30% for 7th week exam
 40 % for final exam
 20% for the project
 10% for attendance and participation

3. success
Lecturer.Ahmed El Rawas
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 Any successful project, company, factory, individual
based on three main factors
 Technicality ( the main factor, the knowhow, talent)
 Finance
 marketing

4. What is project cycle
Lecturer. Ahmed El Rawas
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 The planning process of developing a new product, idea
or service has been described in many ways. Here we
look at the project cycle through these five phases:
Identification: Preliminary idea creation,
, pre-feasibility studies, ( identify the phenomena ).
 Deliberation: conducting feasibility studies, decision to
proceed with the project.
 Implementation: business plan. Securing capital,
construction, obtaining permits, hiring management.
 Operation: Mobilization of manpower, equipment and
materials to carry out the plan.
 Evaluation: Determining what worked and did not
work (in preparation to plan again).

5. I N T R O D U C T I O N
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Chapter (1)
Lecturer. Ahmed El Rawas

6. chapter content
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1. Overview and definition of the feasibility study
2. What is executive summary?
3. Why Are Feasibility Studies so Important?
4. The Components of a Feasibility Study
5. Feasibility study main points
Lecturer.Ahmed El Rawas

7. Feasibility study overview
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 FEASIBILITY STUDIES
 A feasibility study is the process that every person or
company should do before starting any project. A
well prepared and researched study could save
hundreds of thousands of dollars further down the
road.
 A successful feasibility study may be accepted or
rejected.
Lecturer. Ahmed El Rawas

8. Feasibility study overview
 It helps avoid risk and answers questions, like:
 Will it work ?
How will it work ?
What is needed ?
When is the best time ?
How much investment is needed ?
What will the return be ?
Lecturer.Ahmed El Rawas
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9. Definition of Feasibility Studies
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 A feasibility study is a study looks at the viability of
an idea with an emphasis on identifying potential
problems and attempts to answer one main question:
Will the idea work and should you proceed with it?
 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
Lecturer.Ahmed El Rawas

10. Feasibility Study vs. Business Plan
 A feasibility study is not a business plan. The
separate roles of the feasibility study and the
business plan are frequently misunderstood. The
feasibility study provides an investigating function. It
addresses the question of “Is this a viable business
venture?”
The business plan provides a planning function. The
business plan outlines the actions needed to take the
proposal from “idea” to “reality.”
Lecturer.Ahmed El Rawas
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11. (2)Executive summary
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 Is a term used in business for a short document that
summarizes a longer report, proposal or group of
related reports in such a way that readers can rapidly
become acquainted with a large body of material
without having to read it all. It will usually contain a
brief statement of the problem or proposal covered
in the major document(s), background information,
concise analysis and main conclusions. It is intended
as an aid to decision making by business managers.
Lecturer.Ahmed El Rawas

12. Difference between Executive summary and
Abstract
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 An executive summary differs from an abstract in
that an abstract will usually be shorter and is
intended to provide a neutral overview or orientation
rather than being a condensed version of the full
document.
 Abstracts are extensively used in academic research
where the concept of the executive summary would
be meaningless.
Lecturer.Ahmed El Rawas

13. (3) why is feasibility study so important?
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The information you gather and present in your feasibility
study will help you:
 List in detail all the things you need to make the business
work.
 Identify business-related problems and solutions.
 Develop marketing strategies to convince a bank or
investor that your business is worth considering as an
investment.
 Serve as a solid foundation for developing your business
plan.
 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.
Lecturer.Ahmed El Rawas

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 Market Feasibility: Includes a description of the
industry, current market, anticipated future market
potential, competition, sales projections, potential
buyers, etc.
 Financial Feasibility: Projects how much start-up
capital is needed, sources of capital, returns on
investment, etc.
Lecturer.Ahmed El Rawas
(4)The Components of a Feasibility Study

15. The Components of a Feasibility Study
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 Organizational Feasibility: Defines the legal and
corporate structure of the business (may also include
professional background information about the
founders and what skills they can contribute to the
business).
 Technical Feasibility: Details how you will deliver
a product or service (i.e., materials, labor,
transportation, where your business will be located,
technology needed, etc.). Production process
includes input, processing and output.
Lecturer.Ahmed El Rawas

16. Technical study includes
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1-Technology and operational
 This involves questions such as whether the
technology needed for the system exists, how
difficult it will be to build, and whether the firm has
enough experience using that technology. The
assessment is based on an outline design of system
requirements in terms of Input, Processes, Output,
Fields, Programs, and Procedures. This can be
quantified in terms of volumes of data, trends,
frequency of updating, etc in order to estimate if the
new system will perform adequately or not.
Lecturer.Ahmed El Rawas

17. Technical study
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2- location analysis.
 Location analysis typically involves testing
geographic locations for a real estate development
project, and usually involves real estate land. Market
Feasibility take into account the importance of the
business in the selected area.
Lecturer.Ahmed El Rawas

18. Technical study includes
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3-Resource availability
 This involves questions such as how much time is
available to build the new system, when it can be
built, whether it interferes with normal business
operations, type and amount of resources required,
dependencies, etc.
4-Culture
 In this stage, the project's alternatives are evaluated
for their impact on the local and general. an
enterprise's own culture can clash with the results of
the project.
Lecturer.Ahmed El Rawas

19. Financial study includes
1-Financial statements includes balance sheet,
income statement and cash flow statement.
2-Financial ratios. Includes liquidity, profitability,
efficiency and capitalization ratios
3-Source of finance ( loans or equity )
4-Appraisal methods. ( Pay back period, IRR, NPV)
Lecturer.Ahmed El Rawas
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20. Marketing study includes
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1. What is marketing study?
2. What is marketing Mix?
3. What is market structure?
4. What is the Product-Market Growth Matrix?
5. What is SWOT analysis?
6. What is competitive profile?
7. What is market segmentation?
8. What is customer analysis?
Lecturer.Ahmed El Rawas

21. Organizational study includes
1-Describe basic organizational design and organization chart
2-Describe the human resources availability, recruitment and
training needs, and the reasons for the
employment of foreign experts, to the extent required for the
project
3-Indicate key persons (skills required) and total employment
(numbers and costs)
4-include professional background information about the
founders and what skills they can contribute to the business
5-manning table
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22. Introduction of the project includes
 Title/ name of the project
 Vision and mission statement
 Project objectives
 Estimated budget
 Country review
 Project background/ industry outlook
 Source of information
 table of references
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