Podcast
Questions and Answers
Which phase of the project cycle involves a thorough examination of the project's technical, market, financial, managerial, and economic aspects to confirm its viability?
Which phase of the project cycle involves a thorough examination of the project's technical, market, financial, managerial, and economic aspects to confirm its viability?
- Project Preparation
- Project Appraisal (correct)
- Project Identification
- Project Supervision
Project identification primarily focuses on detailed engineering designs and financial modeling.
Project identification primarily focuses on detailed engineering designs and financial modeling.
False (B)
What is the main goal of project supervision within the project cycle?
What is the main goal of project supervision within the project cycle?
To ensure execution as planned
The process of identifying possible investment projects is known as Project ________.
The process of identifying possible investment projects is known as Project ________.
Which of the following is a key reason for defining a project?
Which of the following is a key reason for defining a project?
Which aspect is NOT typically considered under the 'scope' of a project?
Which aspect is NOT typically considered under the 'scope' of a project?
Project cost estimates should disregard future inflationary trends to maintain accuracy.
Project cost estimates should disregard future inflationary trends to maintain accuracy.
Match the phase of the project cycle with its primary function:
Match the phase of the project cycle with its primary function:
Which of the following is the most fundamental issue to consider in a project feasibility study, without which discussions of profitability are irrelevant?
Which of the following is the most fundamental issue to consider in a project feasibility study, without which discussions of profitability are irrelevant?
Marketing feasibility primarily focuses on production efficiency rather than understanding customer needs and market demand.
Marketing feasibility primarily focuses on production efficiency rather than understanding customer needs and market demand.
What are the four key elements included in the marketing mix?
What are the four key elements included in the marketing mix?
The marketing feasibility survey is conducted to understand client _____ and _____.
The marketing feasibility survey is conducted to understand client _____ and _____.
Match the elements of the Marketing Feasibility with their corresponding description:
Match the elements of the Marketing Feasibility with their corresponding description:
Which of the following factors influencing pricing strategy directly relates to governmental regulations?
Which of the following factors influencing pricing strategy directly relates to governmental regulations?
A marketing plan primarily serves as a historical record of past marketing successes and failures.
A marketing plan primarily serves as a historical record of past marketing successes and failures.
Which part of the marketing mix involves decisions related to channels, coverage, assortments, locations, inventory, and transportation?
Which part of the marketing mix involves decisions related to channels, coverage, assortments, locations, inventory, and transportation?
List three elements included in a comprehensive marketing plan.
List three elements included in a comprehensive marketing plan.
The marketing program primarily revolves around cost reduction strategies, with minimal focus of customer relationship management.
The marketing program primarily revolves around cost reduction strategies, with minimal focus of customer relationship management.
List three factors that should be considered when conducting an industry competitiveness analysis as part of marketing feasibility.
List three factors that should be considered when conducting an industry competitiveness analysis as part of marketing feasibility.
The 4Ps of marketing, used in competitor analysis, are Product, Price, Place, and ______.
The 4Ps of marketing, used in competitor analysis, are Product, Price, Place, and ______.
Match the distribution channel with the correct level of distribution:
Match the distribution channel with the correct level of distribution:
Which of the following costs is typically included under Pre-Operating and Organizational Expenses in a feasibility study?
Which of the following costs is typically included under Pre-Operating and Organizational Expenses in a feasibility study?
Financial institutions generally require feasibility studies for small loan applications primarily focused on short-term operational costs.
Financial institutions generally require feasibility studies for small loan applications primarily focused on short-term operational costs.
What section of the feasibility study outline includes an analysis of potential customers and their needs?
What section of the feasibility study outline includes an analysis of potential customers and their needs?
The cost of land, as included in a feasibility study, incorporates both the market rate and any associated ______ fees.
The cost of land, as included in a feasibility study, incorporates both the market rate and any associated ______ fees.
Match each feasibility study element with its corresponding description:
Match each feasibility study element with its corresponding description:
What is the primary reason investors use feasibility studies?
What is the primary reason investors use feasibility studies?
Which of the following activities falls under 'Site Preparation and Improvements'?
Which of the following activities falls under 'Site Preparation and Improvements'?
Technical assistance costs in a feasibility study may include the travel expenses of experts providing on-site support.
Technical assistance costs in a feasibility study may include the travel expenses of experts providing on-site support.
What are the five phases of a project cycle?
What are the five phases of a project cycle?
Which of the following is a critical aspect of conducting feasibility studies?
Which of the following is a critical aspect of conducting feasibility studies?
Feasibility studies are primarily used to sell a business idea to potential investors.
Feasibility studies are primarily used to sell a business idea to potential investors.
A good basis for selecting a project idea for a business endeavor involves considerations of market needs, feasibility of implementation, and potential for ______.
A good basis for selecting a project idea for a business endeavor involves considerations of market needs, feasibility of implementation, and potential for ______.
How do you grow the organization for long-term sustainability?
How do you grow the organization for long-term sustainability?
Selecting and describing target markets and developing a marketing mix to create satisfying exchanges, it will:
Selecting and describing target markets and developing a marketing mix to create satisfying exchanges, it will:
Match the 4 Ps of Marketing with their descriptions:
Match the 4 Ps of Marketing with their descriptions:
List the three basic questions for marketing planning.
List the three basic questions for marketing planning.
Which of the following factors primarily affect project feasibility?
Which of the following factors primarily affect project feasibility?
Scarcity of resources is not a reason to identify a project.
Scarcity of resources is not a reason to identify a project.
List three guides to identifying project opportunities.
List three guides to identifying project opportunities.
The project cycle is a series of activities from ________ to operation.
The project cycle is a series of activities from ________ to operation.
Which of these is NOT typically included in a project cost estimate?
Which of these is NOT typically included in a project cost estimate?
Marine insurance and freight costs are part of the project cost estimate.
Marine insurance and freight costs are part of the project cost estimate.
What are the two main areas of project benefits that should be analyzed?
What are the two main areas of project benefits that should be analyzed?
Economic analysis of a project involves comparing:
Economic analysis of a project involves comparing:
Optimization of resource use is based on ________ objectives.
Optimization of resource use is based on ________ objectives.
Monitoring economic indicators is not a method to identify project opportunities.
Monitoring economic indicators is not a method to identify project opportunities.
Which aspect of project feasibility is most closely related to understanding the target consumer?
Which aspect of project feasibility is most closely related to understanding the target consumer?
Name three items included in the project cost estimate regarding physical structures.
Name three items included in the project cost estimate regarding physical structures.
___________ is the stage in the project cycle when the basic concept is formed.
___________ is the stage in the project cycle when the basic concept is formed.
Match the following project aspects with their corresponding areas of focus:
Match the following project aspects with their corresponding areas of focus:
Why is it important to conduct a financial analysis for a project?
Why is it important to conduct a financial analysis for a project?
Flashcards
Project Definition
Project Definition
A scheme using resources that can be evaluated independently.
Reasons for Defining a Project
Reasons for Defining a Project
To delineate project scope and investment needs for merit analysis.
Project Identification
Project Identification
Seeking potential investment projects.
Project Preparation
Project Preparation
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Project Appraisal
Project Appraisal
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Documentation
Documentation
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Project Supervision
Project Supervision
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Project Cost
Project Cost
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Legal Pricing Laws
Legal Pricing Laws
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Consumer Behavior (Pricing)
Consumer Behavior (Pricing)
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Competitor Pricing Policies
Competitor Pricing Policies
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Distribution System
Distribution System
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Promotions
Promotions
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Feasibility Study
Feasibility Study
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Working Capital
Working Capital
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Provision for Contingencies
Provision for Contingencies
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Pre-Operating Expenses
Pre-Operating Expenses
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Process Acquisition Costs
Process Acquisition Costs
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Market Feasibility
Market Feasibility
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Technical Feasibility
Technical Feasibility
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Site Preparation Costs
Site Preparation Costs
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Marketing Strategy
Marketing Strategy
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Target Market
Target Market
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Target Market Strategy
Target Market Strategy
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Product
Product
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Price
Price
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Feasibility Study Purpose
Feasibility Study Purpose
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Marketing Definition
Marketing Definition
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Demand Importance
Demand Importance
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Price (Marketing Mix)
Price (Marketing Mix)
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Promotion (Marketing Mix)
Promotion (Marketing Mix)
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Place (Marketing Mix)
Place (Marketing Mix)
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Demand Analysis Goal
Demand Analysis Goal
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Industry Analysis
Industry Analysis
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Marketing Feasibility Survey
Marketing Feasibility Survey
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Factors Affecting Project Feasibility
Factors Affecting Project Feasibility
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Why Identify a Project?
Why Identify a Project?
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Guides to Identify Project Opportunities
Guides to Identify Project Opportunities
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Project Benefits
Project Benefits
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Items Included in Project Cost Estimate
Items Included in Project Cost Estimate
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Economic Analysis
Economic Analysis
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Project Cycle
Project Cycle
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Project Cost Estimate
Project Cost Estimate
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Importance of Feasibility Studies
Importance of Feasibility Studies
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Drawdown Schedule
Drawdown Schedule
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Marine Insurance and Freight
Marine Insurance and Freight
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Installation Costs
Installation Costs
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Start-up and Trial Run
Start-up and Trial Run
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Process Acquisition/Patents/Licenses
Process Acquisition/Patents/Licenses
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Study Notes
Project Definition
- This refers to a plan to invest resources that can be an independent entity.
Reasons for Defining a Project
- Determines project scope
- Determines funding sources and amounts, as well as timeline
- Enables analysis and evaluation of investment merits
Project Identification and Promotion
- Evaluating long-term investments
Project Cost
- Cost Estimates
- Timetable
- Drawdown Schedule
- Financial Package
Project Benefits
- Market/Commercial
- Technical
- Managerial
- Financial
Economic Analysis
- Conducted by comparing project costs and potential benefits, encompassing both financial and economic factors
Project Cycle
- Activities from the conception to operational stages
Phases of the Project Cycle
- Project Identification: Seeking potential investment projects
- Project Preparation: Preliminary assessment via initial designs, technical processes, and initial financial/market calculations
- Project Appraisal: Reviewing technical, market, financial, managerial, and economic aspects to ensure viability
- Documentation: Translating appraisal findings into formal records
- Project Supervision: Managing the project through implementation, construction, and operation
Functions in the Project Cycle
- Market/Commercial
- Technical
- Financial
- Economic
- Managerial
Why Identify a Project?
- Deals with the scarcity of resources (capital, labor, etc.) and ensures resources are used effectively based on investment objectives.
Guides to Identifying Project Opportunities
- Study Imports/Exports
- Investigate Local Materials and Resources
- Study Available Skills
- Monitor Economic Indicators
- Make Industry Studies
- Originate or Apply Technology
- Examine Inter-Industry Relationships
- Evaluate Development Plans
- Review Old Projects
- Observe Experience Elsewhere
- Use Standard Industry Classification Lists
Importance of Feasibility Studies
- Provides investors with viability and vital information for sound decision-making.
- Required by financial institutions for large loan applications.
Scope of a Project
- The scope includes pre-operating activities, management, marketing, technical/production, financial, and socio-economic feasibility
Nature of a Project
- Practical and accounts for future inflationary trends, with careful consideration of data inputs
Project Cost Estimate
- Approximate investment requirements from inception to commercial operations
Factors Affecting Project Feasibility Cost
- Size, nature, depth, data availability, and project length
Items in a Project Cost Estimate
- Pre-operating and Organizational Expenses
- Land
- Site Preparation and Improvements
- Buildings and Other Structures
- Machinery and Equipment
- Marine Insurance and Freight
- Bank Charges and Other Local Expenses
- Custom Duties and Taxes
- Installation Costs
- Spare Parts
- Start-up and Trial Run
- Process Acquisition/Patents/Licenses
- Technical Assistance
- Other Fixed Assets
- Financial Charges During Construction or Pre-operating Period
- Working Capital
- Provision for Contingencies
Pre-Operating and Organizational Expenses
- Cover costs from project inception to operations start-up.
- Includes initial investigations, legal fees, analysis, studies, and paperwork
Land Cost
- Includes notarial and registration fees from market rates, contracts, or offers
Site Preparation and Improvements
- Includes land surveys, drainage, clearing, grading, roads, landscaping, and fire protection
Buildings and Other Structures
- Includes process buildings, offices, warehouses, labs, shops, and auxiliary areas
Machinery and Equipment
- Covers both main and auxiliary equipment, with costs based on supplier quotes, experience, and estimates
Marine Insurance and Freight
- Inland and ocean freight, handling, and insurance costs
Customs Duties and Taxes
- Applicable unless exempted by government incentives
Bank Charges and Other Local Expenses
- Opening letters of credit and local delivery costs
Installation Costs and Spare Parts
- Includes machinery foundation, plumbing, electrical support, and spares
Start-Up and Trial Run
- Costs during test runs
Process Acquisition/Patents/Licenses
- Costs based on supplier contracts or as a percentage of sales/profits
Technical Assistance
- Costs for experts, travel, and on-site support
Other Fixed Assets
- Vehicles, furniture, and industry-specific needs
Financial Charges During Construction or Pre-Operating Period
- Interest on loans and financial fees
Working Capital
- Funds for materials, work-in-progress, finished goods, receivables, and cash
Provision for Contingencies
- Covers accidental events, errors, and unforeseen changes
Rapid Cost Estimate Methods
- Unit Price
- Six-tenths Factor
- Capacity Adjustment by Exponential Method
Project Timetable
- Activities from conceptualization to operations
- Estimation errors cause delays and cost overruns
Funds Drawdown Schedule
- Specifies when funds should be withdrawn.
- Helps in planning financial charges.
Feasibility Study Outline
- Introduction: Project description and Industry Assessment
- Market Feasibility: Competitor Profile, Target Market, Demand and Supply Analysis, Pricing, and Distribution System
- Technical Feasibility: Plant Location, Operations Process, Capacity, and Design
- Management Feasibility: Ownership and personnel requirements
- Financial Feasibility: Capital Requirements and Financial Projections
- Socio-Economic Feasibility: Assesses social costs and benefits against economic analysis
Marketing
- Planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create satisfactory exchanges
Marketing Involves
- Involves market research, product development, design and testing before manufacturing
- Focusing on consumer needs to enhance their satisfaction
Marketing also Includes
- Planning, organizing, directing, and controlling decisions related to product lines, pricing, promotion, and servicing
- Ensuring proper distribution and profitable flow of goods to consumers
Challenges in Marketing
- Monitoring and adapting to changes in a dynamic market environment
- Managing necessary transformations
- Growing the organization for long-term sustainability
Tools for Marketing (4 Ps)
- Product: Features, benefits, and quality that fulfills needs
- Price: Affects profit margins, demand, and strategy
- Promotion: Advertising, PR, and direct marketing
- Place: Ensuring product availability at the right place and time
Marketing Feasibility
- Industry Description and analysis to determine market conditions.
- Assess Industry Competitiveness.
- Determine Market Potential and access to Market Outlets.
- Create Sales Projections.
Objectives of Marketing Feasibility
- Measure the extent to which the market needs the goods/services
- Design appropriate marketing strategies
- Analyze demand-supply to plan effectively
Market Definition
- Clearly defines the nature, users, geography, and product/service characteristics to investigate demand/supply
Marketing Strategy
- Selecting target markets by developing a marketing mix
Target Market Strategy
- Identifying attractive market segments
Three Questions for Marketing Planning
- Where are we today? (Situation Analysis)
- Where do we want to go? (Objective Setting)
- How do we get there? (Program Formulation)
Marketing Feasibility Overview
- Industry Analysis Assessment
- Marketing Planning, and Supply-Demand Analysis
- Target Market Analysis
Marketing Feasibility Survey
- Conducted to understand client needs and perceptions
- Define the information
- Identify population
- Design questions
- Determine sample size
- Select sampling methods
- Analyze data
Demand Analysis
- Estimating market demand
- Identifying demand factors (population, income, prices)
- Evaluating trends
- Forecasting demand
Supply Analysis
- Sources of supply
- Local production, Imports, Product substitutes
Pricing Considerations
- Legal pricing laws
- Consumer behavior
- Competitor pricing
- Seasonal demand
- Profit targets
Distribution System
- Path from production to consumers
- National,Regional,Municipal,Retail
Promotions
- Marketing efforts
- Advertising, Public relations, Discounts and specials
Marketing Plan
- Guides future efforts
- Components
- Objectives and strategies
- Assessment of threats and opportunities
- Comparison of planned versus actual performance
Why Marketing Plans Fail
- Lacking real plans, poor analysis, little stakeholder input, unrealistic goals, bad communication, or market changes
Factors affecting marketing
- Product/Project Description
- Industry Assessment
Market Feasibility
- Competitor Analysis (4Ps), target market, supply/demand analysis, pricing
Feasibility Study Outline - Market Feasibility
- Competitor Analysis using the 4Ps (Product, Price, Place, Promotion)
- Target Market Selection
- Supply and Demand Analysis
- Pricing Strategy
- Distribution System
- Promotional Strategies
- Evaluation of Marketing Feasibility
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