Feasibility study and its importance in context of organization
- 1. Feasibility Study & its importance in Context Of Organization Pukar K.C Lalita Shrestha Dilisha Shrestha MBS 3rd Semester
- 2. Introduction 01 02 Areas of Feasibility Study 03 Steps for Feasibility Study 04 Feasibility Report 05 Importance in Context of Organization 06 Feasibility Study Vs. Business Plan
- 3. • An assessment of the practicality of a proposed plan or method. • Is this FEASIBLE ? - Do we have resources ? - Will we get our ROI ? WHAT ? • During a project life-cycle . • After the project case. WHEN ? • Project Scope. • Current Analysis. • Requirements. • The Approach. • Evaluation. • Review. Effective. Introduction
- 4. Areas of Feasibility Study • Group of engineers & technical experts. • Facilitates organizations to properly assess industrial possessions and assembled capability. Technical • Related with price & expenditure. • Helpful for decision- makers to decide whether or not to process the planned scheme depending on financial condition. Economic • Whether the plan is in conflict with national or international legal system. • Used to assess any violation of the legal requirements. Legal • To decide whether the proposed methods fulfill business requirements. • Also forecasts all possible schemes to be recognized & resolve problems. Operational • Plays important role to complete a project on schedule time. • Prediction of time requirement to complete various tasks of a project. Scheduling For every project the feasibility is considered as an important step for the investor or the organization to make sure their mission is officially feasible ,gainful for the organization and beneficial for society.
- 5. Conduct a preliminary analysis. Steps for Feasibility Study I II III IV V VI VII Prepare a projected income statement. Conduct a market survey or perform market research. Plan business organization & operations. Prepare an opening balance sheet. Review & analyze all data. Make a go / no go decision.
- 6. Feasibility Report Executive Summary Description of Product / Services Technology Considerations Financial Projections Product / Service Marketplace Marketing Strategy Organization / Staffing Schedule Findings and Recommendations
- 7. Importance Conducting a feasibility study is a good business practice. If you examine successful businesses, you will find that they did not go into a new business venture without first thoroughly examining all of the issues and assessing the probability of business success. Gives focus to the project and outline alternativesNarrows business alternatives Identifies new opportunities through the investigative process. Identifies reasons not to proceed Enhances the probability of success by addressing and mitigating factors early on that could affect the project Provides quality information for decision making Provides documentation that the business venture was thoroughly investigated. Helps in securing funding from lending institutions and other monetary sources Helps to attract equity investment.
- 8. VS Feasibility Study Business Plan Outlines the actions needed to take the proposal from “idea” to “reality.” Deals with only one alternative or scenario which is concluded as feasible If a business is considered feasible, a business plan is constructed which provides ,how the business will be created and developed Addresses the question of “Is this a viable business venture?” Outlines and analyzes several alternatives or methods to narrow the scope of the project It is conducted before the business plan