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Project C3

A feasibility study analyzes the viability of a proposed project. It involves planning the study, analyzing stakeholders, defining client needs, evaluating constraints, gathering information, and analyzing major aspects like management, technical, social, marketing, and financial considerations. After conducting research and analysis, a feasibility report is prepared to determine if the project is practical and likely to succeed.

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11 views

Project C3

A feasibility study analyzes the viability of a proposed project. It involves planning the study, analyzing stakeholders, defining client needs, evaluating constraints, gathering information, and analyzing major aspects like management, technical, social, marketing, and financial considerations. After conducting research and analysis, a feasibility report is prepared to determine if the project is practical and likely to succeed.

Uploaded by

bba19047
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Chapter 3

Feasibility Study
❑Feasibility Study
A feasibility study is an assessment of the practicality of
a proposed project. A feasibility study analyzes the
viability of a project to determine whether the project is
likely to be successful or not.
❑ Steps of Feasibility Study
1. Feasibility Study Initiation
The feasibility study should be formalized with the
following requirements, boundaries and expected outcomes:
• Objectives of the project
• Who is responsible
• Who should be involved
• Budget for the feasibility study
• Report submission date
2. Plan the feasibility study: In this stage, the responsible
authority and involved personnel will make a plan to
conduct the feasibility study of the project. They have to
follow the four stages:

• Concept: Outline the purpose of the feasibility study


• Design: Plan how to carry out the study
• Implementation: Perform the study
• Submission: Confirm the study has produced the required
report
3. Stakeholder analysis:
• Stakeholders consists of all individuals and organizations
that are involved in the development process of a society.
• The four major groups of stakeholders are:
(a) Target group
(b) Parent organization
(c) Project team
(d) The public
4. Define the client’s needs:
• The parent organization may start a project to implement
a change, make a product, enter a new market or solve
any other problem.

• However, the other members of the board of directors


may have different needs for the proposed project.

• In this situation, the responsible authority has to reach a


single point by solving the conflicting issues.
5. Evaluate constraints:
• Project constraints can be considered as internal or external
restrictions that may affect the achievable scope of the project.

I) Internal project constraints:


• Can the product be made?
• Does the company have the technology?

ii) External constraints: Imposed by the parties outside the company.


• National and international laws and regulations
• Environmental issues
• Market and competition
• Political and cultural issues etc.
6. Gather information:
• In this stage, the responsible authority collects latest
information on the project’s technical and market issues.
• Information is a prerequisite for effective problem
solving and decision making. Information may be found
in:
• Books and journals
• Reports
• Sales and marketing reports
• Market research
• Internet & stakeholders etc.
7. Analyze the major aspects to be studied:

i) Management aspect: It involves organizational structure, the


approaches to employee management.

ii) Technical aspect: Techniques and technologies used in the project,


their impact on productivity and maintaining the environment.

iii) Social Aspect: The social contribution of the project in terms of:
• employment generation
• encouraging entrepreneurship
• quality and not harmful
• positive impact on economy etc.

iv) Marketing Aspect: How successful would be the product or


service made by the project in terms of its,
• product or service features
• price setting
• promotional effort etc.
• distribution

v) Financial Aspect: The business project’s viability


mostly depends on its financial success. The financial
analysis of a project is usually made by using some
quantitative techniques like: NPV, IRR, BCR, POP etc.
8. Preparing feasibility report:
After gathering and analyzing the major information, a
report has to be prepared to show the feasibility of the
project to the concerned authority or parties. In case of
writing that report some points should keep in mind:

• The report should be as much detailed as to understand


by all the concerned party
• The report should include the major area of feasibility
study
• The report should avoid complexity and conclusion

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