Feasibility Study (Prelims) PDF

**LEARNING OJECTIVES** - Recognize what a feasibility study is; - Contrast the difference between feasibility study and business plan; - Appreciate the need to write a feasibility study before a business starts - Appraise the conditions that makes business opportunity feasible **Pro...

**LEARNING OJECTIVES** - Recognize what a feasibility study is; - Contrast the difference between feasibility study and business plan; - Appreciate the need to write a feasibility study before a business starts - Appraise the conditions that makes business opportunity feasible **Project Feasibility Study**- is a systematic investigation which ascertains whether a business is viable and, if so, the degree of its profitability (Cabrera, 2000)\ - is an analysis or research into practicality of a proposed plan or method based on factors like market place, competition, available technology, manpower, and, financial resources (Dictionary.com n.d.) -is an analysis of the ability to complete a project successfully, taking into account the legal, economic. Technological, scheduling, and other factors (Investopedia.com, n.d.) \- is a technique to examine and assess as startup business to find out if it is technically doable, logically within a project cost, and adequately profitable (Camilar-Serrano, 2014) -is a systematic inquiry on a proposed business activity that is used to determined its viability in all areas directed towards the measurement of a profitability level (Aduana, 2021). **PURPOSES OF FEASIBLITY STUDY** The general purpose in the conduct of FS is to test the viability of a business project in all areas. Corollary to this underlying premise, FS is conducted to achieve the following: 1\. Enhance the sustainability of a particular business endeavor undertaken. 2\. Easily facilitate the evaluation of a project\'s success in all areas covered by the study 3\. Seek the infusion of additional fresh working capital from a financial institution. 4\. Determine the recovery period of capital investment or the expected return on Investment. 5\. Serve as a measuring instrument in evaluating actual project results. 6\. Mitigate, if not totally avoid, the expected business difficulty that may be experienced during the actual implementation of the project. 7\. Meet and satisfy the requirements set by the investors of a proposed business project.\ \ **FEASIBILITY STUDY VS. BUSINESS PLAN** FS is carried out with the aim of finding out the workability and profitability of a business venture. Business plan is developed only after it has been established that a business opportunity exists and the venture is about to commence. This means that a business plan is prepared after a feasibility study has been conducted. FS report is filled with calculations, analysis and estimated projections of a business opportunity. FS is all about business idea viability. FS report reveals the profit potential of a business idea or opportunity to the would-be- business owner. Business plan is made up of mostly tactics and strategies to be implemented in order to start and grow the business. Business plan deals with business growth plan & sustainability. Business plan helps the entrepreneur raise the needed startup capital from investors. **QUALITIES OF A GOOD FEASIBILITY STUDY** **Comprehensive**- The study should fully cover all areas that need to be scrutinized. It should present the overall perspective of the proposed project so that users are properly guided in making economic decision. Complete and comprehensive information is necessary to hasten the formulation of decisions. **Objective**- Being objective denotes an unbiased presentation of the findings of the study based on a fair evaluation and critical analysis of data from various sources. Data should not be manipulated to meet the specific needs of a particular investor nor be directed towards an inadmissible purpose. **Simple**- The language and expressions of a feasibility study should be simple to enhance understanding **Reliable**- means that there is a high degree of truthfulness in the available data, the analysis and evaluation, and the conclusion of the study. **USEFULNESS OF A FEASIBILITY STUDY** -A proposed project can benefit from the results of a feasibility study in various ways such as the following: 1\. For the benefit of the project proponents, it is still the most scientific Instrument, with different interdependent aspects, that can be used in project design or redesign. 2\. It can minimize, if not totally eradicate, the business difficulty that may be experienced in the actual implementation of the project. This would greatly benefit the prospective investors. 3\. It is considered the most reliable instrument in making a decision of whether to Implement or discard a project, which would also directly benefit the investors 4\. It is the most comprehensive medium that can be used to evaluate a project in terms of infusing additional fresh capital or granting tax exemption incentives. Financial institutions and government agencies could make use of the results in these areas of the feasibility study. 5\. It is an effective tool for evaluating the profitability level and sustainability of a proposed project. Prospective investors put much weight on this aspect of a project during the analytical process. **LIMITATIONS OF A FEASIBILITY STUDY** Though FS provides substantial benefits to its users, it has some Inherent limitations such as the following: 1\. Valuable information greatly needed in the study may not be readily available. 2\. The cost of gathering the necessary data required in the analysis, formulation of conclusions, and drafting of recommendations may be very high. If the required data are not used because of the high costs of acquisition and conclusions are reached merely on available information, questions may arise as to the reliability of the findings and conclusions. 3\. Competitors may have available data directly related to their operations, but they may hesitate to share such information because of confidentiality in terms of effects on taxation, production process, marketing strategies, market share, and other related aspects of the business, 4\. The person undertaking the study may not have acquired the necessary professional expertise and competency in making the feasibility study. High- order critical thinking skills are required in preparing the feasibility study, in addition to the basic requirements of an educational background in the field of economics, industrial engineering, accounting, financial investment, laws and taxation. 5\. FS still remains a forecast, and nobody can vouch for the attainability of the forecast. What happens in the future may be the result of a trend in the past, but FS can only provide indicators of probabilities. **FACTORS AFFECTING THE PREPARATION OF A FEASIBILITY STUDY** A variety of factors can affect the preparation of a feasibility study. They may be related to the length of time and funds required to undertake and finish a study. *Some of the factors are as follows:* 1\. Type of Industry 2\. Size of the Project 3\. Purpose of the study 4\. Party preparing the study 5\. Requirements of prospective Investors **CONDITIONS THAT MAKE A BUSINESS OPPORTUNITY FEASIBLE** 1\. **Real demand**- The business idea or opportunity must have real market demand. The business opportunity must either satisfy a need or solve a problem. 2\. **Good return on Investment (ROI)**- Any business opportunity which a business-minded individual intend to pursue must show a strong possibility of yielding a good return on investment. 3\. **Competitive**- Except that the business idea is the first of its kind, there is bound to be competition. If the business idea or opportunity is not competitive, just forget it because it will never stand a chance. 4\. **Meet the objectives of the entrepreneur** Before ever starting a business, there are certain alms and objectives a business minded individual intend to achieve using that business as leverage. For a business opportunity to be viable. It must meet his objective 5\. **The competence of the entrepreneur and his team** A business opportunity will only be feasible if it is backed by a strong business team. There are good and solid business opportunities which fail to breakthrough because of the Incompetence of the team **EVALUATING THE PROFIT POTENTIAL OF THE BUSINESS IDEAS/OPPORTUNITIES** 1\. Is there a market for it? There is a need to conduct extensive market research in order to assess the marketability of the business idea, and find out if people would be interested in the proposed product or service. a\. How large is the existing market for the proposed business idea? b\. Is it a promising market or a mature one? c\. Is it in a fresh or mature category? d\. Who are the prospective customers e\. Do they actually need the proposed product or service? 1\. What is the status of the competition like? 2\. Does the business idea solve a problem? If the business idea in his mind can help solve a problem, then it can solve the problem for others as well. This is an essential technique of checking the bearing of the business idea. 3\. Is the business idea unique? If the idea is distinctive, a lot of customers would willingly jump at the product/service offer, and no challenges from the competition will be faced. If the would-be-business owner cannot distinguish his business Idea this way, he won\'t survive the rigor of competition. The most essential thing is discovering an exceptional angle to the product idea and flavoring it with unique selling tips that can threaten the competition. 4\. What is the price point? Great and promising business ideas that try to find solution to certain problems must be sold less pricey than what the market will tolerate. It is also important to know the potential customer\'s spending habits and earning power to decide how much money these customers will be willing to pay and how frequent they will buy. 5\. Will Investors be Interested? If the business idea would create interest with other Individuals and businesses then rest assured that the offer would probably turn into a lucrative venture. Investors need to know the profitability chance of the new business concept so that they Invest on the idea. 6\. Is the business Idea hard to replicate? A good business idea should have strong barriers or differentiations to threaten the competition. 7\. Can the business idea lest? is it scalable? If the business idea will continue to be relevant, will remain to be the best answer to the customer\'s problems, and will continue to bring in more revenue for the business in the years to come, there is a great chance of survival. Never go after trends and fads because they will surely disappear overnight. 8\. What is the driving force of the business? The willpower to solve the customer\'s problems should be the driving force. There must be an absolute passion about the business proposition and commitment to continue it through the good and bad times. If the owner\'s focus is on profit alone, then there\'s a good chance that business idea will be unsuccessful.\ \ **OBJECTIVES OF MARKET STUDY** The market study seeks to determine the following 1\. Evaluate the trends in the industry 2\. The size, the nature and growth of the total demand for the product 3\. The description and price of the product to be sold 4\. The supply situation and the nature of competition 5\. The different factors affecting the market of the product 6\. Establish a pricing policy 7\. The appropriate marketing program for the product **MARKET FEASIBILITY** a.ka Market Study examine the nature of the unsatisfied demand which the project seeks to meet, its growth and the manner in which it is to be met. -It\'s the part of the feasibility where the demand-supply situation is examined, carget markets analyzed and the marketing program formulated Focuses on the behavior of the slope of demand curve while applying the concept of ceteris paribus *\"IS THERE A POTENTIAL AND SUBSTANTIAL DEMAND FOR THE PRODUCT OR SERVICES\"* HOW DOES A MARKET FEASIBILITY STUDY DIFFER FROM A MARKETING PLAN? **[THE MARKET FEASIBILITY STUDY]** - All feasibility studies should look at how things work, if they will work, and identify potential problems. - Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses. - Feasibility studies are assessment tools - not just reports to try and sell your business to investors. They should consider both pros and cons and analyze a variety of potential business scenarios. **MARKETING PLAN-** maps out specific ideas, strategies, and campaigns based on feasibility study investigations, that are intended to be implemented. **ENVIRONMENTAL ANALYSIS-** strategic technique used to identify all internal and external factors that could affect a company\'s success process of evaluating and monitoring the movements of varying Environmental forces surrounding a business firm **[SWOT ANALYSIS]** - a framework used to evaluate a company\'s competitive position and to develop strategic planning. - assesses internal and external factors, as well as current and future potential. - technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity - Involves identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and new ideas **[PESTEL OR STEEP]** - strategic framework commonly used to evaluate the business environment in which a firm operates. Traditionally. the framework was referred to as a PEST analysis, which was an acronym for Political, Economic, Social, and Technological; in more recent history, the framework was extended to include Environmental and Legal factors as well. CHAPTER II - MARKET FEASIBILITY A. Project Description B. Demand C. Supply D. Demand-Supply Analysis E. Target Market F. Pricing G. Marketing Practices & Programs Term of Payment/Sale Distribution Channel Promotion Transportation Arrangement Packaging & Labeling **PRODUCT DESCRIPTION** Explanation of what the product is as well as a description of the product\'s features Aims to conveys the features and benefits of a product, ranging from basic facts to stories that make a product compelling to an ideal buyer In describing the product to be marketed, the following are taken into consideration: 1\. Name of the product 2\. Properties/Features of the product - physical, chemical, agronomic properties etc. 3\. Uses of the product - as a finished commodity, as input to other production activities etc. 4\. Major users of the product - individuals and/or firms that could be the users of the products/services 5\. Geographical areas of dispersion - place of distribution or where the product or service is mostly found *WHY IS A PRODUCT DESCRIPTION SO IMPORTANT?* **Highlight value.** When a customer considers purchasing what you have to offer, the only question in their mind is. \"How is this going to benefit me?\" If your description answers that question, it can convince a potential customer to pull the trigger on a purchase. **Describe the benefits.** Every product or service has features directly tied to its benefits. A good description emphasizes those benefits, increasing the desire for your products or services. **Showcase your unique selling point.** What makes your products or services different from your competitors\'? A good description will clearly communicate that difference to your audience, so your offering stands apart from other. similar options in the market. **PRODUCT DESCRIPTION: N-S-P-P-USP MODEL** The acronym stands for NEED, SITUATION, PERSON, PRODUCT DESCRIPTION ANDUNIQUE SELLING PROPOSITION. This method serves as a good way in making detailed product description. It explains the need for the product, the situation why the product has to be made, the person/s who will be requiring and using it, the description of the product and the unique selling proposition to make a good sale of the product. **DEMAND ANALYSIS-** is making a numerical evaluation of the market and the segments of the market that one has defined in the following areas: 1\. [POTENTIAL DEMAND] - maximum demand that the consumers could buy in a determined period of time 2\. [ACTUAL DEMAND] -the demand for the product/service in the current and previousyears. If data is not available, sales data on a national or regional level from published articles or agency\'s report can be used to make estimates. 3\. [FUTURE DEMAND] - demand projections in the upcoming years. 4\. [EVOLUTION OF DEMAND]-graph of historical sales in the previous year of the product/service industry to see its market trends and define the phases of the product life cycle. **PAST DEMAND** Consumption represents the demand for goods and services by individuals and households in the economy Importations refer to the total number of units produced outside the country or outside the scope of the study that are sold in the Philippines or in the local community *Local Production* - refer to the goods produced or services rendered in the local community **FUTURE DEMAND** Projected Demand Based on Past Demand Arithmetical Straight line Geometric curve Statistical Straight line Geometric curve or serni-log Parabolic **ANALYZING YOUR CURRENT MARKET** -Any solid evidence you have that there is a demand (or market) for your product or services will help you sell your idea. This is particularly important if you are marketing something unique, or within a very small, specialized market. You need to show that your ideas is novel because you have found a niche and not because there is no existing market for the idea. -A good source for finding out what is selling (and what is not) is the Department of Labor. Industries showing employee growth is often a good indicator of an industry\'s overall stability. -Massive layoffs or few employers or employees, indicates fewer business opportunities. -Where there is demand for something, there should be correlating growth in employment, the number of new companies being formed, or in the industry\'s overall combined revenue. **[ANTICIPATED FUTURE MARKET (BASED ON INDUSTRY TRENDS)]** -This section should include a narrative description, as well as attached spreadsheets, graphs, or tables to showing trends, statistics, or projections. -There are no sure-fire ways to tell if an industry will have measurable growth in the future, but you can make logical and reasonable predictions based on trends, past growth, and current markets. **1. Use Facts, Not Fictions** It is critical in this section that your projections are fact-based as much as possible. Any business cakes risics; the key is to minimize those risks is by carefully studying already successful businesses. Rather than target just the entire industry, try to isolate similar businesses and study what they are doing, how they are doing it, and their financial track record. **2. Visit your Competitors Websites** You can obtain a lot of information just from visiting company websites and looking over product lines. Look for discontinued products or services and high-priced items. Somewhere in between these two things are probably the most stable long-term items. Discontinued means consumers are no longer demanding the product, while high-priced items may indicate a fad. **3. Look at Big Companies Strategies** Since big companies spend big bucks on market research, take advantage of their money spent and public information. For example, if you are trying to crack the pet market, look at PetSmart and Petco. What new product lines or services are they offering? Chances are good that they spent millions researching industry trends to develop new product ideas. **4. Study Press Releases** Look for press releases about businesses in your industry. Press releases are an advertisement, but they also often tell why a company is branching out, closing a division, or change its product line. They have already done the research for you so do not hesitate to take clues from other businesses. ***[COMPETITION]*** **LOCAL COMPETITION** -If you are planning to serve only a local market, start by identifying every competitor within a fifty (50) mile radius. The fastest way to do this is using a telephone book or online business locator -List each competitor by location and distance from you, and from each other. You should closely examine all competing businesses that are within fifteen miles of your location. Consider their locations, business hours, and how long they have been in business. These things can help you determine how hard it will be to establish a similar business in the same geographic area. -You should also make note of any similar businesses in your area chat have recently gone out of business. There may be a reason such as poor location, high taxes or operating restrictions, or there may be not enough demand for the product or service in that area to sustain a business. -Researching local competitor information can tell you two things: What works now and what has not worked for other business owners. **NATIONAL COMPETITION** - If you are planning to sell your products or services on a larger scale through franchise development, or Internet sales, you need to look beyond local competition. - You can start with Forbes \"World\'s Biggest Companies. You can search the list by country, rank, industry, and by other variables to fine-tune your search. - To find smaller competition, use a search engine to find businesses by key words related to your industry. For example, if you are starting on online retail outlet for specialty apparel, try searching on \"specialty apparel.\" The return will show you companies selling similar products that are ranking high in search engine results and may be getting more business. - Visit their websites see what they are selling and what they are not selling. - If you are not sure what keywords relate to your industry, use free, online keyword search tools to help you know what most people are searching for in your related field. **SUPPLY** The supply situation may be determined as follows: 1\. Who and where are the direct competitors? 2\. Determine historical domestic supply as comprised by local production and importations. 3\. If there is a foreign market, determine the historical supply patterns in the targeted countries as comprised by their local productions and importations. 4\. Evaluate supply growth patterns and project future supply by applying appropriate projections methods. **SUPPLY ANALYSIS** Product Substitutes Importations - Import duties - Tax-free importations - Export pricing and subsidies Local Production - Relative strength of the competitors, including the project, in terms of: - Location - Rated capacity and production volume **PROJECTED SUPPLY BASED ON PAST SUPPLY** Arithmetical - Straight line - Geometric curve Statistical - Straight line - Geometric curve or - semi-log - Parabolic **DEMAND-SUPPLY ANALYSIS CONT:** The analysis may be conducted in the following manner: 1\. Compare the demand and supply trends. 2 Determine the amount of demand unsatisfied, especially in the projections. If demand appears to be fairly satisfied by supply, it is important to consider the either or both of the following: 2\. Whether the quality of the products is such that it may create additional demand or redirect part of existing demand in its favor. 3\. Determine the share of the market by establishing the proposed product volume (determined in the technical study) as against the total market size. **PRICES** - Cost of Importation or Production - Cost of Transportation - Importers\' and Manufacturers\' Price - Other Prices - Effects of the Flag Law - Price for the Project **FACTORS AFFECTING THE MARKET** - Demand may be significantly affected by population growth, income changes, taste, rural/urban developments, prices of substitute and complimentary products, and such marketing tools as advertising, promotions, credit policies, etc. - Supply may be influences by the development of substitute products, the entry or exit of firms, sources and cost of production factors, governmental policies, improved technology, etc. - Prices may be affected by production costs, price controls, inflation, etc. - Terms of Sales - Distribution Channels - Management and ownership - Transportation Arrangements - Prices set by the competitors - Promotions - Marketing programs of the competitors - Packaging - Brand Name MAJOR PROCESSES IN THE STUDY OF FUTURE DEMAND To summarize the procedures in conducting a demand study, the proponent should perform the following: 1\. Identify the consumers. (Target Market- Market Segmentation) (It must be made clear that market segmentation, as marketing tool, does not determine the demand of the product/service. It only identifies the probable consumers of a product based on a particular criterion. It reduces the demand base to specific consumers. - Identifying the market simply means trying to determine who will use the product or who will be interested to use it. - The demand for a product in terms of quantity or number is note considered. There is a clear distinction between the number of consumer\'s using the product and the number of goods in demand. - At this stage, the primary concern of the proponent is to know who will use the product - Market segmentation is only a marketing tool that determines the specific consumers of a product where the study of demand is focused. EXAMPLE 1: A feasibility study is conducted to determine the viability of constructing a banana chips factory in Cotabato province. The broad question is, \"Is there a demand for banana chips!\" - Who are the consumers of banana chips? - In case the proponent has limited his/her study of demand to a specific consumer ranging from 10-18 years old as the primary consumers, then interviews or gathering of data through questionnaires should be conducted within that age range. EXAMPLE 2: A feasibility study is conducted to determine the viability of establishing a roofing processing plant in Cocabaco province. - Who is the consumer in this study? Who will use the roofing products? - The proponent may consider the following to segment the market, households, school buildings. commercial establishments, and offices. These are the possible end-users of roofing products. - The proponent may make further segmentacion to narrow down the specific consumers. (It is highly emphasized that identifying the consumers simply refers to the process of knowing who the present users are or who are interested and have the financial capacity to use the product or service.) **SECONDARY SOURCES OF PAST DEMAND DATA** When past demand data cannot be provided by different national government agencies and other private offices. the proponent may gather past demand data from the existing and prospective users of a product, using either of the following: When conducting a survey, the instrument to be used is a questionnaire, not an interview. A feasibility study is quantitative research NOT a qualitative study; hence, a questionnaire is the most appropriate research instrument. The questionnaire must be carefully reviewed, corrected, and refined by the proponents. The basic premise in framing a questionnaire is that it should be able to capture all the desired and needed information to determine the past demand data. ** EXAMPLE 1:** A feasibility study is conducted to determine the viability of establishing a rice milling station in one of the municipalities of Cotabato province. The two following major data on demand are needed: Total rice production in the area for the past 10 years Total rice milled in the area for the past 10 years (However, these data can hardly be provided immediately at the barangay level and, sometimes, even at the municipal level. The worst-case scenario would be that the government office expected to have the data does not have them.) **EXAMPLE 2:** A feasibility study is conducted to determine the viability of establishing a banana chips factory in the province of Cotabato, the proponent would be interested on the following demand data: 1\. Total consumers of the province 2\. Percentage of consumers eating banana chips 3.Total number of packages of banana chips consumed in the province 4\. Frequency of eating banana chips in a day The absence of the database from various offices and agencies that are expected to be repositories of updated data is the worst predicament in the conduct of a feasibility study. **DETERMINING SIZE OF THE DESIRED DATA** The sample size from a given population should be identified to ensure reliability of the data gathered. There are different statistical formula to compute the sample size. The computation of the desired sample from which to gather the information should be shown in the appendix as not to obscure the primary purpose of the feasibility study **3. Evaluate Past Demand Patterns** In evaluating the data, the proponent should be primarily concerned with the following factors: 1\. Patterns of demand 2 Government programs influencing the demand 3\. Fiscal and monetary policies of the national government 4\. Trends in the world market.. **[4. Forecast Future Demand]** \- In forecasting, only the demand pattern that has been adjusted should be considered. -In other words, abnormal data resulting from government programs, wars and natural disasters, fiscal and monetary directions of financial institutions, and other external factors that may directly or indirectly affect the projection should be removed from the historical study of demand data. -No forecasting tool is superior over another. Furthermore, not one method produces more accurate results that another. They are just projection tools, and the results they produce remain as forecasts **[5. Evaluate Future Demand Projection]** \- Before any final projection of future demand can be done, the dats must first be critically evaluated. \- The different forecasting tools may produce different predicted values using the same baseline data The proponents must thoroughly review the results before these are used to determine whether or not there is demand. \- The projection methods and che projection base used in predicting future demand must also be reviewed. - Behavior of the past demand must be considered. - The nature of the product should also be carefully considered by reviewing its relationship to its user base. (eg Study on demand for rice should be based on population data; demand for cars is directly related to the income of individuals.) **STUDY OF SUPPLY** - The study of supply intends to answer the primary question. \"Are there existing suppliers of the proposed product or service!\" - The study should identify the entities that currently produce or provide the desired prodüct or service. - It should not be limited to direct competitors only. Indirect competitors must also be included because they can influence the buying behavior of consumers in one way or another - In comparison, the two subsections of the market study appear as follows: Study of Demand Study of Supply ---------------------------------------- ------------------------------------- Who uses or buy the products/services? Who provides the products/services? **MAJOR PROCESSES IN THE STUDY OF SUPPLIES** 1\. Identify who and where the competitors are. \- Competitors refer to the current suppliers of the proposed product or service which exhibit indications of continuous operations in the future. \- They should be categorically identified, and complete information about them be considered. \- In gathering information about competitors, the following questions should be addressed clearly - Who are the competitors? - Where are the competitors - Are they direct or indirect competitors? - How long have they been in business? - Are they publicly Isted companies or closed corporations - Who are the majority shareholders of the competitors? - Where do they channel their producтs? - Do they produce primary or substitute products - What marketing strategy do they supply? \- Competitors, like buyers or consumers, need to be properly classified or segmented. This may be done according to the following - Their size - Whether they are domestic or foreign entities - Their coverage area \- Other factors that are considered for classifying businesses by any size may include the following - The number of employed manpower - Gross sales during the period - The amount of business and income taxes paid \- The type of competition should also be studied because it greatly influences the marketing strategies to be adopted. There should be an in-depth study of the areas covered by the competitors, whether their presence is felt at the national or regional level **2. Gather information on the total goods produced by competitors** \- These data refer to information on similar goods produced by existing firms. The major suppliers of the products should be given preferential attention. \- In case the proposed project will sell a product not presently existing in the market, the data on other similar products may be considered as historical supply \- Non-availability of supply data is a major drawback in the supply study. The proponent may source information from the following agencies - Department of Trade and Industry (DTI) - Bureau of Customs (BOC) - Bangko Sentral ng Pilipinas (BSP) - National Economic and Development Authority (NEDA) - Board of investments (BOI) - Philippine Statistics Authority (PSA) **3. Evaluating the Supply Growth Pattern** \- In evaluacing the historical supply growth pattern, the proponent may consider the following guide questions: 1. Is the supply pattern increasing or decreasing? 2. Does the percentage of increase remain constant? 3. Are there government projects that significantly influence the supply growth pattern? 4. Are there new suppliers of the product? 5. Are there moves from the private sector that will significantly influence the supply? **4. Forecasting Future Supply** \- In forecasting future supply, the goods produced by suppliers or competitors are predicted for the next 3 to 5 years \- In forecasting, the total historical supply data shall be used, not the individual supply data of competitors **5. Evaluating the Results of Future Forecasts** \- The result of the forecast may not be the final data to be used in determining whether or not there is enough supply. The predicted output may either be increased or decreased depending on the favorability of the expected external elements that may directly or indirectly affect the supply pattern. \- The predicted values of future supply should be presented in tabular form. Each table should be accompanied by an accurate, brief, and clear description of the presentation. **DEMAND-SUPPLY ANALYSIS** - In this part, the question \"Is there a demand or none?\" is finally answered. - The findings in both the demand and supply studies are combined in this section and are usually presented in tabular form. **MARKET SHARE ANALYSIS** - Market share refers to the share of the proposed project in the total demand. It is the ratio of what the proposed project can sell in relation to the total projected demand.