Digital assignment 3

Sayantan Ghosh
18BME0641

Feasibility study:

What Is a Feasibility Study?

A feasibility study is an analysis that takes all of a project's relevant factors into
account—including economic, technical, legal, and scheduling considerations
to ascertain the likelihood of completing the project successfully. Project
managers use feasibility studies to discern the pros and cons of undertaking a
project before they invest a lot of time and money into it.
A feasibility study is simply an assessment of the practicality of a proposed plan
or project. As the name implies, these studies ask: Is this project feasible? Do
we have the people, tools, technology, and resources necessary for this project
to succeed? Will the project get us the return on investment (ROI) that we
need and expect?

The goals of feasibility studies are as follows:

• To understand thoroughly all aspects of a project, concept, or plan
• To become aware of any potential problems that could occur while
implementing the project
• To determine if, after considering all significant factors, the project is
viable that is, worth undertaking
Tools for Conducting a Feasibility Study:
1. Suggested Best Practices:
Feasibility studies reflect a project's unique goals and needs, so each is
different. However, the tips below can apply broadly to undertaking a
feasibility study. You may, for example, want to do the following:
• Get feedback about the new concept from the appropriate
stakeholders
• Analyse and ask questions about your data to make sure that it's
solid
• Conduct a market survey or market research to enhance data
collection
• Write an organizational, operational, or a business plan
• Prepare a projected income statement
• Prepare an opening day balance sheet
• Make an initial "go" or "no-go" decision about moving ahead with
the plan

2. Suggested Components:

Once you have finished your basic due diligence, you might
consider the elements below as a template of items to include in
your study:

• Executive summary: Formulate a narrative describing details

of the project, product, service, plan, or business.
• Technological considerations: Ask what will it take. Do you
have it? If not, can you get it? What will it cost?
• Existing marketplace: Examine the local and broader
markets for the product, service, plan, or business.
• Marketing strategy: Describe it in detail.
• Required staffing (including an organizational chart): What
are the human capital needs for this project?
• Schedule and timeline: Include significant interim markers for
the project's completion date.
• Project financials.
 • Findings and recommendations: Break down into subsets of
technology, marketing, organization, and financials.
7 Steps for a Feasibility Study:

1. Conduct a Preliminary Analysis:

Begin by outlining your plan. You should focus on an unserved
need, a market where the demand is greater than the supply, and
whether the product or service has a distinct advantage. Then you
need to determine if the hurdles are too high to clear (i.e. too
expensive, unable to effectively market, etc.).

2. Prepare a Projected Income Statement:

This step requires you to work backwards. Start with what you
expect the income from the project to be and then what investment
is needed to achieve that goal. This is the foundation of an income
statement. Things to take into account here include what services
are required and how much they’ll cost, any adjustments to
revenues, such as reimbursements, etc.

3. Conduct a Market Survey, or Perform Market

Research:
This step is key to the success of your feasibility study, so make it
as thorough as possible. It’s so important that if your organization
doesn’t have the resources to do a proper one, then it is
advantageous to hire an outside firm to do so. The market
research is going to give you the clearest picture of the revenues
you can realistically expect from the project. Some things to
consider are the geographic influence on the market,
demographics, analysing competitors, value of market and what
your share will be and if the market it open to expansion (that is,
response to your offer).

4. Plan Business Organization and Operations:

Once the groundwork of the previous steps has been laid, it’s time
to set up the organization and operations of the planned business
 venture. This is not a superficial, broad stroke endeavour. It should
be thorough and include start-up costs, fixed investments and
operation costs. These costs address things such as equipment,
merchandising methods, real estate, personnel, supply availability,
overhead, etc.

5. Prepare an Opening Day Balance Sheet:

This includes an estimate of the assets and liabilities, one that
should be as accurate as possible. To do this, create a list that
includes item, source, cost and available financing. Liabilities to
consider are such things as leasing or purchasing of land,
buildings and equipment, financing for assets and accounts
receivables.

6. Review and Analyse All Data:

All these steps are important, but the review and analysis are
especially important to make sure that everything is as it should be
and nothing requires changing or tweaking. So, take a moment to
look over your work one last time. Re-examine your previous
steps, such as the income statement, and compare it with your
expenses and liabilities. Is it still realistic? This is also the time to
think about risk, analysing and managing, and come up with any
contingency plans.

7. Make a Go/No-Go Decision:

You’re now at the point to make a decision about whether the
project is feasible or not. That sounds simple, but all the previous
steps we’re leading to this decision-making moment. A couple of
other things to consider before making that binary choice is
whether the commitment is worth the time, effort and money and is
it aligned with the organization’s strategic goals and long-term
aspirations.
Best Practices for a Feasibility Study:
• Use templates/tools/surveys, or any data and technology that
gives you leverage
• Involve the appropriate stakeholders to get their feedback
• Use market research to further your data collection
• Do your homework and ask questions to make sure your data is
solid

FEASIBILITY STUDY:
STARTING A NEW INDIAN RESTAURANT

Executive summary:
The current report deals with the feasibility analysis of a new restaurant
in the UK that aims to serve Indian cuisines among the UK customers of
the restaurant industry. The analysis has incorporated the assumptions
and scope of business to gain profitability within the industry and target
region. The business owner has targeted to locate the restaurant at the
Barclaycard Arena as this is one of the commercial hubs at Birmingham,
Alabama. However, the competition at this region is higher in presence
of potential Indian restaurants. In that case, the increasing demand of
the Indian recipes has allowed the market to incorporate further ventures
in this region in the UK.

1. Introduction:
The current feasibility study will deliver the external feasibility of a
new restaurant in the UK to gauge its acceptability among the
target audience. Therefore, before the planning of a new venture is
initiated, conduction of the feasibility study is necessary to
understand whether the new idea of entrepreneurship is feasible
enough to run the business in long run. Therefore, the current
report will therefore deliver the probable market share and
profitability that the new venture will acquire after execution of the
business planning.
2. Product and service description:
The business will be a restaurant of Indian Cuisines in the UK
market to promote the products in the foreign market. Therefore,
the key products and services in the new venture will be different
flavours and essence of Indian culture and tradition through
different types of dishes and food items.
Therefore, the service attached to the Indian food items will be the
communication, warm behaviour and care of the restaurant visitors
with fulfilment of their needs immediately.

3. Market assessment:
Demand of the Indian cuisine in the UK market has attained a
steady growth during last decades due to the changing lifestyle of
the residents of the same. The increasing number of restaurants in
the UK has evidenced the same. According to the current statistics,
the Indian restaurant industry is worth more than 2.5 billion every
year. However, the section is facing a crisis of proper curry chef
and other Indian cuisines in Britain. Use of Indian herbs and
special spices has made the Indian recipes comparatively more
popular than the local recipes and typical fast foods of the UK.

4. Competition:
Competition is another factor in creating a new venture in the
target market region as the level of competition reveals the level of
market saturation and thus the further scope of the new venture to
attain desired market share in the target market region.

5. Economic impact:
Economic impact includes not only financial contribution but also
the improvement of social status of the residents of the UK.
Development of this venture would reduce the rate of
unemployment in Birmingham and other regions indicating
enriched economy through improved purchasing power. Therefore,
creating the employment is also an economic impact delivering
hike in individual and national income through generating flow of
cash. On the other hand, tax payment would improve the treasure
of government that in turn would be utilised in further development
in infrastructural base of the region and other rural regions.
 6. Technical and production analysis:
Technical and production deal with the use of techniques and
equipment in the production processes. The technique is based on
the typical cooking process of the Indian foods. However, the
equipment of cooking would be quite improved to conduct faster
preparation of the Indian cuisine. However, in case of Indian foods,
the real flavour of the cuisine needs appropriate time for preparing
the Indian recipes.

7. Conclusions and recommendations:

Based on the above discussions and analysis of the market
analysis, it is clear that the new Indian restaurant in the UK is
highly feasible in nature to execute the business idea in real. In the
context of current trend and demand statistics of the UK restaurant
chain, Indian cuisine has a comparatively higher demand and
preference due to the ingredients, used in preparation of the
recipes. Therefore, based on the demand of the Indian cuisine,
specifically the curry items, the Indian restaurants in Britain are
eager to hire the chefs from the India to add the real flavour of
Indian tradition and culture

Reference: google, YouTube, class notes

Thank you
By-18BME0641