Podcast
Questions and Answers
What is a key purpose of financial projections in a project summary?
What is a key purpose of financial projections in a project summary?
- To present a concise overview of the project (correct)
- To outline employee training programs
- To list all project expenses in detail
- To provide a detailed marketing plan
Which of the following are considered areas of focus in the provided project summary?
Which of the following are considered areas of focus in the provided project summary?
- Operations and Sales
- Marketing and Operations
- Finance and Human Resources
- Marketing and Finance (correct)
What section of the project summary describes how the project intends to achieve its goals?
What section of the project summary describes how the project intends to achieve its goals?
- Long-Range Objectives (correct)
- Feasibility Criteria
- Highlights of the Project
- Description Definition of the Project
What does the project summary NOT typically include?
What does the project summary NOT typically include?
Which component provides an overview of the project's expected outcomes?
Which component provides an overview of the project's expected outcomes?
What is meant by 'low-hanging fruit' in the context of project strategy?
What is meant by 'low-hanging fruit' in the context of project strategy?
Which aspect is not commonly summarized in a project's highlights?
Which aspect is not commonly summarized in a project's highlights?
What important information is usually included in the project's description definition?
What important information is usually included in the project's description definition?
What type of data is derived from direct surveys, expert opinions, and trend or correlation analysis?
What type of data is derived from direct surveys, expert opinions, and trend or correlation analysis?
Which of the following is NOT mentioned as a method of gathering primary data?
Which of the following is NOT mentioned as a method of gathering primary data?
What is a key difficulty associated with benefits and costs evaluation in financing arrangements?
What is a key difficulty associated with benefits and costs evaluation in financing arrangements?
What should managers ensure in terms of operational feasibility?
What should managers ensure in terms of operational feasibility?
Which of the following is a component of the projected income statement?
Which of the following is a component of the projected income statement?
What is a potential consideration for the projected income statement?
What is a potential consideration for the projected income statement?
What must be assessed regarding governmental regulations during a feasibility study?
What must be assessed regarding governmental regulations during a feasibility study?
Which of the following questions is relevant to assessing organizational feasibility?
Which of the following questions is relevant to assessing organizational feasibility?
What aspect does the long-range objectives section of a project typically address?
What aspect does the long-range objectives section of a project typically address?
Which criterion is evaluated under technical feasibility?
Which criterion is evaluated under technical feasibility?
Why is financial feasibility important in project evaluation?
Why is financial feasibility important in project evaluation?
What element is part of socio-economic feasibility assessment?
What element is part of socio-economic feasibility assessment?
What does the management feasibility assessment evaluate?
What does the management feasibility assessment evaluate?
Which of the following is a key focus when discussing the history of a project?
Which of the following is a key focus when discussing the history of a project?
What information is likely included in the project timetable and status section?
What information is likely included in the project timetable and status section?
How is the nature of the industry explored in a feasibility study?
How is the nature of the industry explored in a feasibility study?
What should be included in a financial plan concerning personnel?
What should be included in a financial plan concerning personnel?
Which of the following is NOT part of the projected financial statements?
Which of the following is NOT part of the projected financial statements?
What should a management proposal include?
What should a management proposal include?
Which element is essential in projecting cash flow?
Which element is essential in projecting cash flow?
In job analysis, what is primarily studied?
In job analysis, what is primarily studied?
What should be included in the breakdown of projected production costs?
What should be included in the breakdown of projected production costs?
Which policy is crucial for personnel development?
Which policy is crucial for personnel development?
What aspect should a financial plan detail concerning working capital?
What aspect should a financial plan detail concerning working capital?
What should be included in the supply situation of intended products?
What should be included in the supply situation of intended products?
What aspect should be addressed when discussing raw materials requirements?
What aspect should be addressed when discussing raw materials requirements?
Why are product substitutes important to consider in a feasibility study?
Why are product substitutes important to consider in a feasibility study?
When assessing local production capacities, what should be estimated?
When assessing local production capacities, what should be estimated?
What is a critical component of the project's utilities requirement?
What is a critical component of the project's utilities requirement?
What should be described regarding waste and waste disposal methods?
What should be described regarding waste and waste disposal methods?
What is an important aspect when presenting quality control measures?
What is an important aspect when presenting quality control measures?
What is meant by 'Job classification' in a feasibility study?
What is meant by 'Job classification' in a feasibility study?
Study Notes
Feasibility Study: Primary Data Sources
- Market surveys, expert opinions (Delphi method), trend and correlation analyses, and fad analysis are key primary data sources.
- Difficulties in assessing financing arrangements (rent, lease, purchase) stem from intangible benefits and costs.
- Multi-criteria alternatives must be ranked when evaluating financing.
Feasibility Study: Secondary Data Sources
- Trade associations, research companies, industry experts, government/non-government agencies, digital intelligence platforms, company reports, academic journals, public libraries, and competitor websites offer valuable secondary data.
Feasibility Study: Operational Feasibility
- Assesses the current operational mode's capacity to handle increased workload and information flow.
- Evaluates benefits, cost reductions, system utilization post-development, and potential manpower issues.
- Considers labor objections, organizational policies, conflicts, governmental regulations, legal risks (fraud, data breaches), and existing fraud/data breach safeguards.
Projected Income Statement
- Project spending and sales (salaries, rent, materials, marketing) are projected.
- Financial projections (cash flow) are created using expenses and revenues.
Project Summary Content
- Highlights project details (definition, objectives, feasibility, history, conclusions).
- Provides a concise overview for analysts and financiers.
- Includes: enterprise name, location, project description, long-range objectives, feasibility criteria, project highlights, major assumptions, findings, and conclusions.
- Explains the choice of enterprise name.
Long-Range Objectives and Feasibility Criteria
- Define ten-year goals (size, capacity, volume, worth, industry role, economic impact).
- Detail guidelines used to assess project feasibility (profitability, socio-economic impact).
Feasibility Study Areas of Focus
- Marketing: Develop strategies to maintain competitiveness and capitalize on opportunities.
- Finance: Secure funding and commence operations. A timeline is given with key milestones.
Project Timeline
- October 2024: Apply for permits and order equipment/licenses.
- November 2024: Assemble teams.
- December 2024: Commence operations.
Feasibility Study: Technical Feasibility
- Describes the product line, required technology, its availability, resource mix, and optimum production volume.
Feasibility Study: Financial Feasibility
- Presents an overall financial view, covering operating cash requirements, profitability, and cash flow.
Feasibility Study: Socio-Economic Feasibility
- Assesses the project's societal, regional, and national economic impacts.
- Determines its overall societal benefit and alignment with economic development programs.
- Describes the industry, its product lines, demand-supply situation, history, growth, challenges, potential, and economic role.
Feasibility Study: Management Feasibility
- Defines the management structure, its suitability, salary scales, and compatibility with industry standards.
Project Development and Management
- Supply situation of products is presented, with projections for the next five months.
- Local production capacities and competitor capacities are considered to estimate total supply.
- Importations by other companies are also a supply source.
- Cheaper product substitutes are discussed and their impact on consumer choices is analyzed.
Production Process, Location, and Resources
- Includes proposed product drawing(s).
- Production process diagrams or workflows are key.
- Quality control and inventory control measures are presented.
- The proposed location is described in detail with scaled layout drawings.
- A detailed list of equipment and tools is required.
- A breakdown of required utilities is presented.
- A detailed breakdown of raw materials requirements is needed.
Waste and Waste Disposal
- All project waste, its effects, disposal methods, and associated costs are described.
Organization and Management Plan
- Number of personnel, organizational chart, job requirements, specifications, responsibilities, functions, salary, and benefits are detailed.
- Management style, general policies, and staff development programs are defined.
- Job analysis and job classification are integral elements.
Financial Plan
- Major financial assumptions (sales, collections, depreciation, taxes, inventories, profit division) are stated.
- Shows sources of financing.
- Includes projected financial statements (project costs, property & equipment, working capital, contingency).
- Includes projected cash flow statement.
- Includes projected income statement and balance sheet.
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Description
This quiz covers the essential components of a feasibility study, including primary and secondary data sources, operational feasibility, and financial assessments. Test your understanding of how various data sources contribute to making informed business decisions.
