THC 304

ENTREPRENEURSHIP
IN TOURISM AND
HOSPITALITY

Module 2: The Feasibility Study

(Phase 1)

Name of Student:
Course/Year/Section:
Instructor/Contact Number: Lucila B. Bacalla/09177064269

ABM 201 – BUSINESS FINANCE

College of Hospitality and Tourism

Course Overview

Course No. THC 304

Course Code
Descriptive Title Entrepreneurship in Hospitality and Toursim
Credit Units 3 units
School Year / Term Second Semester, AY 2021-2022
Mode of Delivery Modular Approach
Name of
Kristin O. Espita , Lucila B. Bacalla
Instructor/Professor
This course describes the skills, knowledge and performance
outcomes required to plan and develop a feasible Business Plan by
understanding the nature and scope of entrepreneurship, scanning
the market of potential entrepreneurial venture opportunities, and
identifying and evaluating the methods of venturing into business
including but not limited to starting one’s own business, buying
Course Description existing businesses and the process franchising. It also emphasizes
on assessing the possible characteristics and mindset of
entrepreneurs, analyzing typical entrepreneurial venture
challenges, errors and rewards, identifying effective strategic
management, developing product and service innovations and
introducing the concepts of environmentally sustainable practices,
social entrepreneurship and intellectual property management.

1. Develop knowledge in assessing the market viability of new

business ideas
Course Outcomes 2. Acquire entrepreneurial personality and characteristics
3. Facilitate conduct of projects/study effectively
4. Display persuasion skills in presenting ideas
A high-quality corporate University of Science, Technology and
SLSU Vision
Innovation
SLSU will:

a. develop Science, Technology and Innovation leaders and

professionals.
SLSU Mission b. produce high-impact technologies from research and
innovations;
c. contribute to sustainable development through responsive
community engagement programs;
d. generate revenues to be self-sufficient and financially viable.

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Module Guide
How to navigate this module

Entrepreneurship in Tourism and Hospitality (HPC 304) is one of most opportune topics
for students in hospitality and tourism programs. The study on entrepreneurship is
necessary as it helps in exploiting business potentials in the hospitality and tourism
industry.

The module is designed to equip students with the knowledge and skills necessary for
making an effective feasibility study especially in the aspect of opportunity recognition
and articulating plans and ideas as they embark to the real world after they graduate.

The module is furnished with pre-test and post-test, discussions, evaluation/assessment

tasks, and formative assessments to help you learn the nature and scope of
entrepreneurship and the crafting of feasibility study.

The modules made use of illustrative diagrams and tables for you to easily understand
the topics. The references used for this are the research output published on some
reputable research sites, published books and e-books, and learning materials related to
entrepreneurship and feasibility study.

This module covers the following lessons, namely: a) Successful Entrepreneur

Personality traits; and b) The Entrepreneurship Process.

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Lesson I. Description of Products and Services, Technology Considerations,

Product Marketplace, Marketing Strategy

Intended learning outcome/s:

At the end of the lesson, you will be able to:

1. Make a description of the product or service considered for entrepreneurship
2. Discuss different factors that will contribute to the potentiality of the product
or service

Now get started

Introduction

Everyone wants to open and operate a successful business or project. This is the
sole intention of any project developer or entrepreneur. However, these are confronted
with a serious reality. This reality is that not all business or projects are viable of feasible.
In other words, these projects or business are faced by the difficult issue of long-term
sustainability. This the critical challenge or question confronting all business or projects.
In this case, it is important to conduct a feasibility study to determine the viability or
sustainability of the project in the future. A feasibility study provides a blueprint to
determine feasibility of a business endeavor or a planned project.

A feasibility study will help determine the profitability of the business venture.
Before starting a business, seasoned entrepreneurs and investors would want to know if
the business would be worth their time, effort and resources. It is worthwhile to know
that many entrepreneurs have abandoned solid business ideas because the profitability
could not be ascertained on conducting a feasibility study on the business idea. Further,
it also proves to the entrepreneur, venture capitalists, lenders and investors the existence
of the market, the liquidity of the business venture and the expected return on
investment.

In addition, a feasibility study helps identify the flaws, business challenges,

strengths, weaknesses, opportunities, threats and unforeseen circumstances that might
affect the success and sustainability of the business venture. Before starting a business, a
feasibility study will enable you to estimate the financial, human and technological
resources that will be needed to ensure the successful launching of the business. It reveals
the number and level of skill or unskilled workers to be employed and their salary scale.
Furthermore, it determines the amount of capital required to start the business. It helps
in establishing the budget plan, working plan and cash flow projections of the business.

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Key to remember

Feasibility Study
Products and Services
Technology Consideration
Marketing Strategy

Let’s Learn

A feasibility study is a systematic plan and analysis of the sustainability of a project

taking into consideration factors such marketing, production or technical issues,
organizational and management aspects and financial implications. In other words,
feasibility study is the evaluation and assessment of a proposed project or business. This
is an important endeavor before any further action can be taken. On the hand, it
influences the decision or course of action to be taken by an investor, financier or
management of an organization.

A feasibility studies main goal is to assess the economic viability of the proposed
business. The feasibility study needs to answer the question: “Does the idea make
economic sense?” The study should provide a thorough analysis of the business
opportunity, including a look at all the possible roadblocks that may stand in the way of
the cooperative’s success. The outcome of the feasibility study will indicate whether or
not to proceed with the proposed venture. If the results of the feasibility study are
positive, then the cooperative can proceed to develop a business plan. If the results
show that the project is not a sound business idea, then the project should not be pursued.
Although it is difficult to accept a feasibility study that shows these results, it is much
better to find this out sooner rather than later, when more time and money would have
been invested and lost.

BENEFITS OF A FEASIBILITY STUDY

There are several benefits of conducting a feasibility study. one the major benefits
is that a feasibility study identifies the merits and demerits of a projects. In reality, it
provides a cost benefit analysis of undertaking a specific activity, project or business.
Therefore, someone can make an informed decision about a specific activity or project.
At the same time, a feasibility study also minimized risks by taking actions without
understanding and comprehending their financial, legal or reputational ramification to
an organization or a business. For this reason, a feasibility study provides a
comprehensive understanding about a project or plan. Furthermore, a feasibility study
identifies potential challenges and problems while executing the plan or project.
Moreover, a feasibility study takes into consideration all relevant factors to be considered
in the implementation of the project or plan

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FEASIBILITY STUDY FORMAT

A Feasibility Study has the following components:

1. Executive Summary
2. Description of Products and Services
3. Technology Considerations
4. Product/Service Marketplace
5. Marketing Strategy
6. Organization and Staffing
7. Schedule
8. Financial Projections
9. Findings and Recommendations

1. EXECUTIVE SUMMARY

The executive summary provides an overview of the content contained in the

feasibility study document. Many people write this section after the rest of the document
is completed. This section is important in that it provides a higher level summary of the
detail contained within the rest of the document.

2. DESCRIPTION OF PRODUCTS AND SERVICES

This section provides a high level description of the products and/or services
which are being considered as part of the feasibility study. The purpose of this section is
to provide detailed descriptions of exactly what the organization is considering so this
information can be applied to the following sections of the document. It is important that
this description captures the most important aspects of the products and/or services that
the organization is considering as well as how it may benefit customers and the
organization.

As part of your product/service feasibility analysis, you should conduct primary

research with potential customers in order to assess the desirability of your new
product/service idea, as well as evidence of likely demand. Examples of such research
include concept tests and buying intention surveys.

You can find additional evidence of likely demand by looking for information
about the new product or service in business, industry, or news sources available from
Library Databases or other online sources.

3. TECHNOLOGY CONSIDERATIONS

This section should explain any considerations the organization must make with
regards to technology. Many new initiatives rely on technology to manage or monitor
various business functions. New technology may be developed internally or contracted
through a service provider and always result in costs which must be weighed in
determining the path forward.

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Every business needs at least some kind of technology to operate. The technology
component of your feasibility study should include discussions about telephone
answering systems, computer hardware and software, and inventory management.

Do not overlook items like cash registers and potentially the ability to accept credit
cards and process checks. You might need special devices to accommodate the disabled,
or teleconferencing equipment and facilities. Cellphones and PDAs are almost a must for
most businesses, and you might need alarm or camera systems and manufacturing
equipment as well.

4. PRODUCT/SERVICE MARKETPLACE

This section describes the existing marketplace for the products and/or services
the organization is considering. It may describe who the target market consists of for
these products or services, who the competitors are, how products will be distributed,
and why customers might choose to buy our products/services. Most marketplaces are
dynamic environments in which things change constantly. To enter a new marketplace
blindly will usually result in an organization not fully understanding its role and not
maximizing its resulting benefits.

5. MARKETING STRATEGY

This section provides a high level description of how the organization will market
its product or service. Some topics which should be included are: how does an
organization differentiate itself from its competitors; types of marketing the organization
will utilize; and who the organization will target. Marketing efforts must be focused on
the right target groups in order to yield the greatest return on investment.

The ultimate goal of any marketing strategy or feasibility study is to help your
organization grow and increase brand awareness. Developing awareness - who you are,
what you do and why preservation is important – will lead to increased support and use
of your services, programs, and partnerships.

Let’s sum up

 A feasibility study is a systematic plan and analysis of the sustainability of a project

taking into consideration factors such marketing, production or technical issues,
organizational and management aspects and financial implications.

 There are several benefits of conducting a feasibility study:

o A feasibility study identifies the merits and demerits of a projects.

o A feasibility study also minimized risks by taking actions without
understanding and comprehending their financial, legal or reputational
ramification to an organization or a business.

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o A feasibility study identifies potential challenges and problems while

executing the plan or project.
o A feasibility study takes into consideration all relevant factors to be
considered in the implementation of the project or plan

 A Feasibility Study has the following components:

1. Executive Summary
2. Description of Products and Services
3. Technology Considerations
4. Product/Service Marketplace
5. Marketing Strategy
6. Organization and Staffing
7. Schedule
8. Financial Projections
9. Findings and Recommendations

Let’s assess what have you learned in this lesson

1. Each group will now write the Phase 1 of the Feasibility Study.

a. Description of Products and Services

b. Technology Considerations
c. Product/Service Marketplace
d. Marketing Strategy

Critiquing of Feasibility Study (Phase 1) will be based on Rubric Assessment for

Output (Exemplary – 15; Strong – 12; Proficient – 9; Developing – 6; Emerging –
3)

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References

Bhosale, P. (2015). Why you must have Feasibility Report before starting a business.
Retrieved from https://www.noomii.com/articles/5800-why-you-must-have-
feasibility-report-before-starting-a-
business#:~:text=Before%20starting%20a%20business%2C%20a,successful%
20launching%20of%20the%20business.&text=It%20will%20also%20help%20
you,flow%20projections%20of%20the%20business.

Masanja, N. (2020). Practical Guide to Feasibility Study. NMM Printers. Tanzania

Wolfe, L. (2019). How to Write a Professional Technical Feasibility Study. Retrieved

from https://www.thebalancecareers.com/writing-technical-feasibility-study-
3515778#:~:text=A%20technical%20feasibility%20study%20assesses,to%20b
ring%20all%20this%20together.

https://canvas.northwestern.edu/courses/21997/pages/feasibility-study-
template?module_item_id=227077

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