Importance Of Feasibility Study

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3.1 Feasibility Study: Feasibility studies is a study which aim to uncover the strengths and weaknesses of an existing business or a proposed business with a clear objective, opportunities and threats currently in the market, the resources available and required for the business, and ultimately the projection for success. The two major criteria to judge the feasibility of the business are the cost factor and the value of service provided. A well-planned feasibility study would provide a clear background of the business history or project, a detailed description of the product or service, accounting statements of the organization, details of the operations and management, marketing research and policies, financial data, legal requirements and…show more content…
In some scenarios, a detailed feasibility may sometimes help the management to take corrective measures and decisions which could help the company achieve the same result through easier or affordable means. For example, after a feasibility study one would realize that, it may be possible to improve a manual filing system rather than purchasing an expensive software. The study can only be valuable for the organization, if the information provided in the feasibility study determines to be feasible and effective which can ensure the implementation of the project without any hassle. It helps in achieving a competitive edge by developing strategies and converting the idea’s or plans into achievable goals. The objectives or goals can be broken down to make it simpler and realistic. A series of these simple steps can make a foundation for the project to be implemented and throughout this process various results and effects associated with the implementation can be exposed in the feasibility study. 3.2 Elements of a Feasibility Analysis: 3.2.1 Industry and Market Feasibility Analysis: • It determines the attractiveness of the industry and its ground a for new business. • To identify a potential niche market that can achieve profitability. In order to analyze the Industry and Market feasibility for setting up a testing facility for…show more content…
The bargaining power of suppliers can also be expresses as the market of inputs. Suppliers would be able to dominate or control the flow of raw materials, labour, components and expert services if there are few very few suppliers. If an organization needs plastic bottles to supply it product and there is only one supplier who sells plastic bottles, the company will have no alternative other than to buy it from that supplier which would make the supplier have control. The supplier may even refuse to work with the company and charge high prices for its

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