FEASIBILITY

STUDY
Reference:

Ditablan, Eustaquio ( 2012). Feasibility Study

Handbook. Mandaluyong City: National Bookstore

Feasibility Study
is

the first stage of the

product or service development
cycle.

Its

aim is to analyse the

viability of a proposed project,
product or service.

What is a feasibility Study ?

An analysis and evaluation of a

proposed project to determine if
it (1) is technically feasible, (2) is
feasible within the estimated
cost, and (3) will be profitable.

Feasibility Study
It

analyses
the
proposed
project, product or service with
respect to the performance
objectives expected by the
organisation, and may include
an evaluation of a current
system.

Feasibility Study
It

is the process of defining exactly what

a project is and what strategic issues
need to be considered to assess its
feasibility, or likelihood of succeeding.

Feasibility

Studies are useful both when

starting a new business, or identifying a
new opportunity for an existing
business, such as a new product,
service or branch.

Objectives of Feasibility
Study
The main objective of a feasibility

study
is to determine whether a certain plan of
action is feasiblethat is, whether or not
it will work, and whether or not it is worth
doing economically. Although the core of
the study is dedicated to showing the
outcomes of specific actions, it should
begin with an evaluation of the entire
operation.

What type of business do

you
have?
1. What type of business do you have?
2. What is the purpose of this
business?
3. What is the key message or phrase
to describe your business in one
sentence?
4. What is your reason for being in this
business?
5. What is your product or service?

What type of business do

you
have?
6. Can you list three unique benefits of

your product or service?

7. Do you have data sheets, brochures,
diagrams, sketches, photographs, related
press releases or other documentation
about your product or service?
8. What is the product application?
9. What led you to develop your product?
10. Is this product or service used in
connection with other products?

What type of business do

you have?
1112. When will your product be
available?
13. Who is your target audience?
14. Who is your competition?
15. How is your product
differentiated from that of your
competition?

What type of business do

you
have?
16. What is the pricing of your
product versus your competition?
17. Are you making any special
offers?
18. What plans do you have for
advertising and promotions?
19. How will you finance company
growth?
20. Do you have the management
team needed to achieve your goals?

Types of Feasibility
Studies

Market and Real Estate

Feasibility
Market Feasibility Study typically

involves
testing
geographic
locations for a real estate
development project, and usually
involves parcels of real estate
land. Developers often conduct
market studies to determine the
best location within a jurisdiction,
and to test alternative land uses
for a given parcels.

Market and Real Estate

Feasibility
Jurisdictions
often
require

developers to complete feasibility

studies before they will approve a
permit application for retail,
commercial,
industrial,
manufacturing, housing, office or
mixed-use
project.
Market
Feasibility take into account the
importance of the business in the
selected area.

Technology and System

Feasibility
It

measure of the availability of technical

resources (hardware components or
technical equipment). It also studies the
availability of the technical manpower
for the project. [ if the work
performances of the technical manpower
are not experienced, the entire system
will be certainly insufficient.]

Resource Feasibility
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.

Operational feasibility'
It

is a measure of how well the solution of

problems or a specific alternative solution will
work in the organization. It is also measure of
how people feel about the system. If the
system is not easy to operate, than operational
process would be difficult. The operator of the
system should be given proper training. The
system should be made such that the user can
interface the system without any problem.

Legal Feasibility
Determines

whether the
proposed system conflicts
with legal requirements

Schedule Feasibility
If

a deadline (time-limit) is
established, it is called schedule
feasibility, i.e the deadline of the
project is studied under the
scheduled
feasibility.
The
scheduled feasibility is also
depends
upon
available
manpower
and
economical
condition as well.

Economic Feasibility
Economical

feasibility
measures whether finances
(investments) are available for
proposed solution, i.e. it looks
at the financial aspects (cost/
effectiveness) of the project.
This is often called a costbenefit analysis.

Parts of a
Feasibility
Study

Five major components of

Feasibility Study
1. Market

Study
2. Technical Study
3. Management Study
4. Financial Study
5. Socio- Economic Study

FEASIBILITY
STUDY
CHAPTER I
Reference:

Ditablan, Eustaquio ( 2012). Feasibility Study

Handbook. Mandaluyong City: National Bookstore

Chapter I
Introduction
The primary goal of the introductory
paragraph is to catch the attention
of the readers and to get them
turned on about the subject. It sets
the stage for the paper and puts
your topic in perspective.

Chapter I
Project

Background
Project Concept
Statement of Objectives
Definition of Terms