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Feasibility study 1 Feasibility study.pptx
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- 3. KEY TAKEAWAYS • Acompany may conduct a feasibility study when it's considering launching a new business, adding a new product line, or acquiring a rival. • A feasibility study examines, isnpects • the potential for success of the proposed plan • project by defining its expected costs and projected benefits in detail. • It's a good idea to have a contingency plan on hand in case the original project is found to be infeasible.
- 4. Understanding a FeasibilityStudy • A feasibility study analyzes the viability of a project to determine whether the project or venture is likely to succeed. • The study is also designed to identify potential issues and problems that could arise while pursuing the project.
- 5. What Is aFeasibility Study? • Success in business may be defined primarily by return on investment, meaning that the project will generate enough profit to justify the investment. • However, many other important factors may be identified on the plus or minus side, such as community reaction and environmental impact. • Although feasibility studies can help project managers determine the risk and return of pursuing a plan of action, several steps should be considered before moving forward.
- 6. What Is Returnon Investment (ROI)? • Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. • ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost.
- 8. Feasibility Study- Ideas •As part of the feasibility study, project managers must determine whether they have enough of the right people, financial resources, and technology. • The study must also determine the return on investment, whether this is measured as a financial gain or a benefit to society, as in the case of a nonprofit project.
- 9. Benefits of aFeasibility Study • There are several benefits to feasibility studies, including helping project managers discern the pros and cons of undertaking a project before investing a significant amount of time and capital into it. • Feasibility studies can also provide a company's management team with crucial information that could prevent them from entering into a risky business venture. • Such studies help companies determine how they will grow. They will know more about how they will operate, what the potential obstacles are, who the competitors are, and what the market is. • Feasibility studies also help convince investors and bankers that investing in a particular project or business is a wise choice.
- 10. Main Objective ofa Feasibility Study • A feasibility study is designed to help decision-makers determine whether or not a proposed project or investment is likely to be successful. • It identifies both the known costs and the expected benefits. • In business, "successful" means that the financial return exceeds the cost. • In a nonprofit, success may be measured in other ways. A project's benefit to the community it serves may be worth the cost.
- 11. Steps in aFeasibility Study • A feasibility study starts with a preliminary analysis • Stakeholders are interviewed, • market research is conducted, • and a business plan is prepared. All of this information is analyzed to make an initial "go" or "no-go" decision. • If it's a go, the real study can begin. This includes • listing the technological considerations, • studying the marketplace, describing the marketing strategy, • and outlining the necessary • human capital, • project schedule, • and financing requirements.
- 12. What Are the4 Types of Feasibility? • Technical: A list of the hardware and software needed, and the skilled labor required to make them work. • Financial: An estimate of the cost of the overall project and its expected return. • Market: An analysis of the market for the product or service, the industry, competition, consumer demand, sales forecasts, and growth projections • Organizational: An outline of the business structure and the management team that will be needed.