GROUP 2

FEASIBILITY STUDY
AGOR, PAUL
BAUTISTA, PRINCESS
CUMLA
DE CASTRO, DIMPLE
LAUREL, STEPHEN
ROBLES, HAZEL
SORILLA, ALJON
VILLAMORA, JOHN WYNNE
FEASIBILITY STUDY
INTRODUC T ION

A feas i b ility s tud y i s a d etai led anal y s is that

co ns i ders al l o f the cri ti cal as p ects o f a
p ro p o sed p ro ject i n order to determi ne the
l i kel ihoo d o f i t s ucceed ing.

I t can hel p p ro ject managers d etermi ne the

ri s k and return o f p urs ui ng a p l an o f acti o n,
s ev eral s tep s s ho ul d b e co ns i dered b efo re
mo v i ng fo rw ard .

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WHO CONDUCTS A FE ASIBILI TY STUDY ?
A feasibility study may be conducted by a team of the
organization's senior managers. If they lack the expertise or
time to do the work internally it may be outsourced to a
consultant.

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 GOALS AND OBJECTIVES
Objective 1 Objective 2 Objective 3
In bus iness, " s uc c essf ul" mea ns tha t the T o tes t the f ea s ibility
Des ig n ed to help f ina ncial r etur n exc eeds the c os t. In a of a pr oposed c our se
dec is ion -makers nonpr of it, s uc c ess ma y be mea s ur ed in of a c tion a nd to
deter min e whether or other wa ys . A pr ojec t's benef it to the identif y a ny " ma ke or
n o t a pr o posed pr ojec t c ommunity it s er v es ma y be wor th the c ost. br ea k" is s ues tha t
o r in v es tment is likely
would a r gue a ga inst
to be s uc c essf ul. It
the a c tion being ta ken
iden tif ies both the
or s uggest tha t a
kn o wn c os ts a nd the
s uc c essf ul outc ome
expec ted benef its.
wer e unlikely.

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 TYPES OF FEASIBILITY STUDY

01 02 03 04

TECHNICAL FINANCIAL MARKET OPERATIONAL

A list of the An estimate of the An analysis of the An assessment if a
hardware and cost of the overall market for the produc t project can be
software needed, projec t and its or service, the industry, practically and
and the skilled labor expecte d return. competi ti on, consumer effectively carried out
required to make demand, sales by looking at things and
them work. forecasts , and growth what problems might
projec ti ons come up.
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 TYPES OF FEASIBILITY STUDY

05 06 07 08

ENVIRONMENTAL SOCIAL LEGAL RESOURCE

A n a s s e s s m en t a n d
analysis at how a
project can harm the
e n v i r o n m en t a n d
suggests ways to make
sure any negative effect
are small.
An assessment of A n a n a l y si s o f l e g a l a n d An e va lua tion of the
potenti al social r e g u l a to ry r e q u i r e men ts a va ila bility a nd
impacts of a project a p p l i c a b le t o a p r o j e c t a dequa cy of
on a local a n d a s s e ss c o m p l i an ce r e sour ce s r e quir e d
communi ty or w i t h r e l e v a nt l a w s a n d for the pr oje ct.
society. other legal
r e q u i r e me nts
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HOW TO CONDUCT A FE ASIBILITY STUDY
The exact format of a feasibility study will depend on the
type of organization that requires it. However, the same
factors will be involved even if their weighting varies.

Preliminary Analysis:

Although each project can have unique goals

and needs, there are some best practices for
conducting any feasibility study:

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HOW TO CONDUCT A FEASIBILITY STUDY
Conduct a market
survey or market
research to identify
Conduct a preliminary
the market demand
analysis, which
and opportunity for
involves getting
pursuing the project
feedback about the Analyze and ask
or business
new concept from the questions about the
appropriate data obtained in the
stakeholders early phase of the
STEP 3
study to make sure
that it's solid
STEP 1

STEP 2

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HOW TO CONDUCT A FEASIBILITY STUDY

Write an organizational, Prepare an opening

operational, or business day balance sheet
plan, including
Prepare a projected
identifying the amount
income statement,
of labor needed, at what
which includes
cost, and for how long
revenue, operating
STEP 6
costs, and profit

STEP 4

STEP 5

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HOW TO CONDUCT A FEASIBILITY STUDY

Identify obstacles and

any potential
vulnerabilities, as well
as how to deal with
them Make an initial "go" or
"no-go" decision
about moving ahead
with the plan

STEP 7

STEP 8

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BENEFITS WITH A FEASIBILITY STUDY
Help spot pot ent ial risks and
challenges early on.
RISK RE D U C T I ON
Lets managers see how they Can give you t he knowledge
might use resources. And you need t o make wise
whether the resources project choices in the
needed would be made fut ure.
available.
E FFIC IEN T U SE SMART D E C I SON -
OF RE SOU RC E S MAK I N G
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BENEFITS WITH A FEASIBILITY STUDY

Showing t hem a well -

Help managers est imat e Look at a project's legal and
thought -out plan will help
cost s, predict income, and compliance aspects
you to gain t heir confidence
check ROI.
and set their expectations
early.

G AI N SU P P ORT
FROM I MP ORT AN T
FIN AN C I AL P LAN N I N G ME E T I N G RU LE S ST AK E H OLD ERS

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 CONCLUSION
F ea s i bi l ity s tu di es h el p pr o j ect m a n a g er s deter m i n e
th e v i a bi l i ty o f a pr o j ect o r bu s i n es s v en tu r e by
i den ti f y i n g th e f a cto r s th a t ca n l ea d to i ts s u cces s .
Th e s tu dy a l s o s h o w s th e po ten ti a l r etu r n o n
i n v es tm ent a n d a n y ri s ks to th e s u cces s o f th e
v en tu r e.

A fea s i bi l i ty s tu dy co n ta i n s a deta i l ed a n a l y s is o f w h a t' s

n eeded to co m pl ete th e pr o po s ed pr o j ect. Th e r epo r t m a y
i n clu de a des cr i pti o n o f th e n ew pr o du ct o r v en tu r e, a
m a r k et a n a l y s i s, th e tech n o l o g y a n d l a bo r n eeded, a s w el l a s
th e s o u r ces o f f i n a n ci ng a n d ca pi ta l. Th e repo rt w i ll a ls o
i n clu de f i n a n ci a l pr o j ecti o n s , th e l i k el i h o od o f s u cces s, a n d
u lti m a tel y, a g o - o r - no -go deci s i o n .

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