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Feasibility Study
Dr. Gopal Thapa
Tribhuvan University
Email: thapazee@gmail.com
Feasibility Study
 Feasibility is an analysis of the validity of an idea.
 It examines the validity of new venture through
detailed investigation
 It is the process of determining the implement-
ability of the new venture
07/12/19 Copy right reserved 2
Feasibility Study is Concerned
with:
 Site selection
 Business description
 Macro environment influences
 Marketing analysis
 Financial analysis
 Production analysis
 Management analysis
 Critical risks
07/12/19 Copy right reserved 3
Feasibility Study
 Will the new idea work? Can it be improved?
 Is there a better way? Is it worth it?
07/12/19 Copy right reserved 4
Site Selection
 It is the location of land or place where the new
venture will be housed.
 The selection of site is a strategic decision
 It is an important aspects of feasibility study
07/12/19 Copy right reserved 5
Factors Affecting Site Selection
 Infrastructure
 Raw materials
 Human resources
 Market
 Competition
 Environment
 Government policies
 Suitability and cost site
07/12/19 Copy right reserved 6
Site Selection Process
 Identification of potential sites
 Attractiveness evaluation of each sites
 Selection of suitable sites
07/12/19 Copy right reserved 7
Business Description
 Background of the business
 Purpose and objectives
 Marketing components
 Financial components
07/12/19 Copy right reserved 8
Background of the business
 Name of the purposed venture
 Background of industry, industry trend
 Types and nature of the business
 Current situation of the business
 Types of products
 Purpose of starting new venture
 Objectives of new venture
 Uniqueness
07/12/19 Copy right reserved 9
Purpose and objectives
 Profit
 Sales
 Market share
 Survival
 Quality leadership
 Cost/ loss minimization
 Utilization of resources
07/12/19 Copy right reserved 10
Macro Environment Influences
 Structural changes
 Cyclical changes
07/12/19 Copy right reserved 11
Marketing Components
 Overall market
 Specific market
 Competitive factors
 Market testing
 Marketing strategies
 Sales forecast
07/12/19 Copy right reserved 12
Financial Components
 Start-up costs
 Financial requirements
 Sources of funds
 Projected income statement
 Projected cash flow
 Projected balance sheet
07/12/19 Copy right reserved 13
Development and Production
 Production process and technology
 Resource requirement
 Plant layout
 Technical human resources
 Quality assurance
07/12/19 Copy right reserved 14
Organization and Management
 Key personnel resources
 Human resource management strategy
 Venture management (team members)
 Forms of ownership
07/12/19 Copy right reserved 15
Any Queries?
Thank You
07/12/19 Copy right reserved 16

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Feasibility study

  • 1. Feasibility Study Dr. Gopal Thapa Tribhuvan University Email: thapazee@gmail.com
  • 2. Feasibility Study  Feasibility is an analysis of the validity of an idea.  It examines the validity of new venture through detailed investigation  It is the process of determining the implement- ability of the new venture 07/12/19 Copy right reserved 2
  • 3. Feasibility Study is Concerned with:  Site selection  Business description  Macro environment influences  Marketing analysis  Financial analysis  Production analysis  Management analysis  Critical risks 07/12/19 Copy right reserved 3
  • 4. Feasibility Study  Will the new idea work? Can it be improved?  Is there a better way? Is it worth it? 07/12/19 Copy right reserved 4
  • 5. Site Selection  It is the location of land or place where the new venture will be housed.  The selection of site is a strategic decision  It is an important aspects of feasibility study 07/12/19 Copy right reserved 5
  • 6. Factors Affecting Site Selection  Infrastructure  Raw materials  Human resources  Market  Competition  Environment  Government policies  Suitability and cost site 07/12/19 Copy right reserved 6
  • 7. Site Selection Process  Identification of potential sites  Attractiveness evaluation of each sites  Selection of suitable sites 07/12/19 Copy right reserved 7
  • 8. Business Description  Background of the business  Purpose and objectives  Marketing components  Financial components 07/12/19 Copy right reserved 8
  • 9. Background of the business  Name of the purposed venture  Background of industry, industry trend  Types and nature of the business  Current situation of the business  Types of products  Purpose of starting new venture  Objectives of new venture  Uniqueness 07/12/19 Copy right reserved 9
  • 10. Purpose and objectives  Profit  Sales  Market share  Survival  Quality leadership  Cost/ loss minimization  Utilization of resources 07/12/19 Copy right reserved 10
  • 11. Macro Environment Influences  Structural changes  Cyclical changes 07/12/19 Copy right reserved 11
  • 12. Marketing Components  Overall market  Specific market  Competitive factors  Market testing  Marketing strategies  Sales forecast 07/12/19 Copy right reserved 12
  • 13. Financial Components  Start-up costs  Financial requirements  Sources of funds  Projected income statement  Projected cash flow  Projected balance sheet 07/12/19 Copy right reserved 13
  • 14. Development and Production  Production process and technology  Resource requirement  Plant layout  Technical human resources  Quality assurance 07/12/19 Copy right reserved 14
  • 15. Organization and Management  Key personnel resources  Human resource management strategy  Venture management (team members)  Forms of ownership 07/12/19 Copy right reserved 15
  • 16. Any Queries? Thank You 07/12/19 Copy right reserved 16