20MS2004 - Entrepreneurship

and Product Development

Lecture 14 to 17
Technical, Financial, Marketing, Personnel and
Management Feasibility
Technical Feasibility:

• This aspect evaluates whether the project is technically

possible to implement. It involves assessing the
availability of the required technology, skills, and
infrastructure to carry out the project successfully.

• Technical feasibility considers factors such as:

– Availability of required resources (technology, equipment,
materials)
– Skills and expertise needed to develop and maintain the project
– Compatibility with existing systems and infrastructure
– Potential technical challenges and risks
Technical, Financial, Marketing, Personnel and
Management Feasibility
Technical Feasibility: (Example)
Software Development:
• A company wants to develop a new mobile app for a
specific market.

• A technical feasibility study would assess whether the

required technology (programming languages,
frameworks, databases) is available and suitable for
creating the app.

• It would also consider factors such as the app's

performance on different devices, security requirements,
and integration with existing systems.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Technical Feasibility: (Example)
Manufacturing:
• A manufacturer is considering automating a certain
production process.

• The technical feasibility study would analyze the

feasibility of implementing the automation technology,
including the availability of the required machinery,
sensors, and control systems.

• It would also assess the compatibility of automation with

existing processes and the potential for improved
efficiency and product quality.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Technical Feasibility:
Technical, Financial, Marketing, Personnel and
Management Feasibility
Financial Feasibility:

• Financial feasibility assesses whether the project is

financially viable and can generate the expected returns
on investment. It involves estimating costs, revenues,
and potential financial risks.

• Key considerations include:

– Initial investment required (capital expenditure)
– Operating costs and expenses
– Revenue projections and potential profitability
– Break-even analysis and payback period
– Funding sources and availability of capital
Technical, Financial, Marketing, Personnel and
Management Feasibility
Financial Feasibility: (Example)
Healthcare Facility Expansion:
• A hospital wants to expand its facilities to accommodate
a growing patient population.

• A financial feasibility study would consider the costs of

constructing new wings or buildings, purchasing medical
equipment, hiring additional staff, and ongoing
operational expenses.

• The study would assess whether the increased patient

volume would generate sufficient revenue to cover the
expansion costs and maintain profitability.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Financial Feasibility: (Example)
New Product Launch:
• A consumer goods company is planning to introduce a
new line of organic snacks.

• A financial feasibility study would evaluate the costs of

product development, packaging, marketing, and
distribution.

• It would also estimate the potential sales revenue, taking

into account pricing strategies and market demand. The
study would determine if the projected revenue
outweighs the costs, leading to profitability.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Financial Feasibility:
Technical, Financial, Marketing, Personnel and
Management Feasibility
Marketing Feasibility:

• Marketing feasibility evaluates the project's potential

market acceptance and demand. It focuses on
understanding the target market, competition, and the
project's positioning within the market.

• Key points include:

– Target audience and market segmentation
– Competitive landscape and market trends
– Demand for the product or service
– Marketing and distribution strategies
– Pricing and sales projections
Technical, Financial, Marketing, Personnel and
Management Feasibility
Marketing Feasibility: (Example)
Restaurant Concept:
• An entrepreneur is planning to open a new restaurant
with a unique fusion cuisine.

• A marketing feasibility study would involve conducting

surveys and focus groups to gauge potential customers'
interest in the concept, understanding local dining
trends, and analyzing the competition.

• The study would evaluate whether the concept aligns

with consumer preferences and if there's a market gap to
fill.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Marketing Feasibility: (Example)
E-commerce Platform Expansion:
• An online fashion retailer wants to expand its operations
to a new international market.

• A marketing feasibility study would analyze the cultural

preferences, online shopping habits, and purchasing
power of the target market.

• It would assess the feasibility of adapting the marketing

strategies to resonate with the local audience and if the
expansion would generate sufficient sales.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Marketing Feasibility:
Technical, Financial, Marketing, Personnel and
Management Feasibility
Personnel Feasibility:

• Personnel feasibility assesses whether the project can

be staffed with the required skills and talent to execute
the project effectively. It involves evaluating the
availability of skilled personnel and their capacity to meet
project requirements.

• Considerations include:
– Required human resources and skills
– Availability of qualified staff or potential recruitment challenges
– Training and development needs for existing or new employees
– Organizational structure and roles/responsibilities
Technical, Financial, Marketing, Personnel and
Management Feasibility
Personnel Feasibility: (Example)
Start-up Venture:
• An entrepreneur is launching a tech start-up.

• A personnel feasibility study would involve evaluating the

availability of co-founders or team members with
complementary skills, such as technical development,
marketing, and business development.

• The study would determine if the founding team has the

necessary expertise to drive the start-up's success.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Personnel Feasibility: (Example)
Research Project:
• A university is considering undertaking a complex
research project.

• A personnel feasibility study would involve assessing the

availability of researchers, scientists, and technicians
with the required skills and expertise for the project.

• The study would determine if the university has the

necessary personnel to successfully carry out the
research.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Management Feasibility:

• Management feasibility examines whether the project

can be managed effectively and efficiently to achieve its
objectives. It focuses on the project's organizational and
managerial aspects.

• Key elements include:

– Project management capabilities and experience
– Governance structure and decision-making processes
– Risk management and mitigation strategies
– Communication and coordination mechanisms
– Alignment of project goals with overall organizational strategy
Technical, Financial, Marketing, Personnel and
Management Feasibility
Management Feasibility: (Example)
Merger and Integration:
• Two companies in the same industry are contemplating a
merger.

• A management feasibility study would involve evaluating

the leadership teams of both companies, their
management styles, and their ability to collaborate and
integrate operations.

• The study would assess whether the leadership can

effectively navigate the challenges of merging two
organizations.
Technical, Financial, Marketing, Personnel and
Management Feasibility
Management Feasibility: (Example)
Crisis Management Planning:
• A large corporation wants to develop a crisis
management plan.

• A management feasibility study would assess the

existing leadership's crisis management skills, the
capacity to make timely decisions under pressure, and
the ability to coordinate communication across
departments during a crisis.

• The study would determine if the management can

effectively handle unexpected challenges.
 Estimating and Financing funds requirement

• Estimating and financing funds requirement is the

process of determining the amount of money needed to
start or grow a business, and then finding ways to raise
that money.

• The first step is to create a financial plan that estimates

the startup costs and ongoing expenses of the business.
 Estimating and Financing funds requirement

• This plan should include the following:

– The amount of money needed to cover fixed costs,

such as rent, utilities, and salaries.
– The amount of money needed to cover variable costs,
such as the cost of goods sold and marketing
expenses.
– The amount of money needed for working capital,
which is the money used to finance day-to-day
operations.
 Estimating and Financing funds requirement

Once the financial plan has been created, the

next step is to identify potential sources of
financing.
These sources can include:
– Personal savings
– Bank loans
– Government grants and loans
– Investor funding
– Crowdsourcing
Schemes offered by various commercial banks

Commercial banks in India offer a wide range

of schemes to cater to the needs of different
customers.
Some of the most popular schemes offered by commercial
banks in India include:
Personal loans: Personal loans can be used for a variety
of purposes, such as consolidating debt, financing a major
purchase, or renovating a home.
Schemes offered by various commercial banks

Commercial banks in India offer a wide range

of schemes to cater to the needs of different
customers.
Home loans: Home loans are available for both new and
existing homes.
Business loans: Business loans can be used to fund a
variety of business needs, such as starting a new business,
expanding an existing business, or purchasing equipment.
Schemes offered by various commercial banks

Commercial banks in India offer a wide range

of schemes to cater to the needs of different
customers.
Auto loans: Auto loans can be used to finance the
purchase of a new or used car.
Education loans: Education loans can be used to finance
the cost of tuition, fees, and other expenses associated
with attending college or university.
Schemes offered by various commercial banks

Commercial banks in India offer a wide range

of schemes to cater to the needs of different
customers.
Investment products: Commercial banks also offer a variety of
investment products, such as savings accounts, fixed deposits, and
mutual funds.
In addition to these general schemes, commercial banks also offer a
number of specific schemes to target specific customer segments. For
example, many banks offer schemes for women, students, senior
citizens, and small businesses.
Schemes offered by various commercial banks

Here are some examples of specific schemes

offered by commercial banks in India:
State Bank of India (SBI):
SBI Mahila Mitra Loan Scheme: This scheme provides loans to
women entrepreneurs at lower interest rates and with relaxed
documentation requirements.
SBI Pradhan Mantri Mudra Yojana: This scheme provides loans to
micro and small enterprises (MSEs) at affordable interest rates.
SBI Senior Citizen Savings Scheme: This scheme offers a
guaranteed return on investment for senior citizens.
Schemes offered by various commercial banks

Here are some examples of specific schemes

offered by commercial banks in India:
HDFC Bank:
HDFC Bank SmartBuy Loan: This scheme provides loans to
customers to purchase electronic goods and appliances.
HDFC Bank Education Loan: This scheme provides loans to students
to finance their education at both domestic and international
universities.
HDFC Bank Home Loan on Flexi Interest Rate: This scheme allows
customers to choose their own interest rate for their home loan.
Schemes offered by various commercial banks

Here are some examples of specific schemes

offered by commercial banks in India:
ICICI Bank:
ICICI Bank Women's World Loan: This scheme provides loans to
women entrepreneurs at lower interest rates and with relaxed
documentation requirements.
ICICI Bank Insta Money Loan: This scheme provides instant loans to
customers against their salary slips or credit cards.
ICICI Bank SmartBuy Personal Loan: This scheme provides loans to
customers to purchase electronic goods, appliances, and other
personal items.
 Schemes offered by various financial institutions

Various financial institutions in India offer a

wide range of schemes to cater to the needs of
different customers.
Some of the most common schemes offered by
financial institutions in India include:

Banks: Banks offer a variety of schemes, including

personal loans, home loans, business loans, auto
loans, education loans, and investment products.
 Schemes offered by various financial institutions

Various financial institutions in India offer a

wide range of schemes to cater to the needs of
different customers.
Non-banking financial companies (NBFCs):
NBFCs offer a variety of schemes, including
personal loans, car loans, home loans, business
loans, and investment products.
 Schemes offered by various financial institutions

Various financial institutions in India offer a

wide range of schemes to cater to the needs of
different customers.

Insurance companies: Insurance companies offer a

variety of schemes, including life insurance, health

insurance, motor insurance, and travel insurance.

Mutual funds: Mutual funds offer a variety of schemes,

including equity funds, debt funds, and hybrid funds.

Queries and Discussion???