16 Questions
What is the primary purpose of a project feasibility study?
To provide necessary information to decide whether to begin a project
What is a key aspect of technical feasibility?
Availability of technical resources and expertise
What is a crucial step in a project feasibility study?
Describing the project purpose and goals
What is a key consideration in organizational or managerial feasibility?
Skilled individuals for the project
What is a potential consequence of a project with low technical feasibility?
Project is likely to fail
What is an essential aspect of market feasibility?
Pricing model and market competition
What is a key consideration in financial or economic feasibility?
Sufficient budget for the project
What is a consequence of a project with low market feasibility?
Project will likely fail due to lack of demand
What is the primary purpose of a feasibility plan?
To determine if a business can meet its operating expenses
What is the primary goal of a feasibility study?
To help a budding entrepreneur turn a good idea into a successful business
What is the purpose of market research in a feasibility plan?
To ensure there is a demand for the product or service
What is the benefit of conducting a feasibility study?
To uncover opportunities and threats in the market
What is the purpose of a competitive analysis in a feasibility plan?
To differentiate the business from its competitors
What is the purpose of financial analysis in a feasibility plan?
To determine how much it costs to run the business on an ongoing basis
What is the outcome of conducting a feasibility study?
A decision on whether to proceed with the business venture
What is the purpose of organizational competence in a feasibility plan?
To ensure the company stays innovative
Study Notes
Project Feasibility Study
- A document that provides a detailed description of a project, including its technical, financial, and organizational aspects.
- Helps determine whether a project is viable and likely to succeed.
Feasibility Study Areas
- Technical feasibility: assesses whether the project is technically possible.
- Financial feasibility: evaluates whether the project has sufficient budget and resources.
- Organizational feasibility: examines whether the project has the necessary personnel and skills.
- Market feasibility: determines whether there is a market demand for the project's product or service.
Steps to a Project Feasibility Study
- Description of the project:
- Purpose and goals
- Project scope and stakeholders
- Timeline and task breakdown
- Expected outcome and deliverables
- Market feasibility:
- Identify target market and competition
- Analyze market demand and pricing
- Technical feasibility:
- Assess necessary expertise and technical resources
- Evaluate logistical and geographical requirements
- Financial feasibility:
- Determine budget and resource allocation
- Evaluate financial viability and potential revenue
- Organizational feasibility:
- Identify necessary personnel and skills
- Determine management and task assignments
Feasibility Plan and Research
- Determines the viability of a business idea and helps decide whether to proceed.
- Main purpose: to determine whether a business can meet operating expenses.
- Feasibility research involves:
- Market research: analyze target market, competition, and demand.
- Competitive analysis: differentiate from competitors.
- Organizational competence: ensure innovation and adaptation.
- Financial analysis: evaluate costs, revenue, and profitability.
Purpose of Feasibility Study
- Helps entrepreneurs assess the viability of their business idea.
- Benefits:
- Examines strengths and weaknesses of an idea.
- Uncovers market opportunities and threats.
- Identifies necessary resources and potential pitfalls.
Test your knowledge about project feasibility studies, a crucial step in determining a project's viability. Learn how to evaluate projects and make informed decisions.
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