CARLOS HILADO MEMORIAL STATE COLLEGE

College of Business, Management and Accountancy

Fortune Towne Campus, Bacolod City
MID-TERM EXAMINATION
Feasibility Study
First Semester, AY 2020-2021
Name: Calvin Kier Caballes Course &Sec.: BSBA 4B Date: 10-26-2020
Score:_______
Test I. Identification. Write the word or group of words that best describe each statement.
Machineries and equipment 1. This subsection of the feasibility indicates the number
specifications, rated capacities of major machineries, prices of equipment’s to be used, and
balancing of capacities of each major and auxiliary equipment and standby units
Definition of terms 2. This subsection of the feasibility that include the conceptual and
operational terminologies used should be clearly defined according to how these terms
are used in the project study.
Product description 3. This subsection of the feasibility includes the name of the product
(Popular and scientific, if any) and the reasons for using it and also it describes the physical,
chemical and mechanical properties of the product.
Plant size, Projected Production, and production schedule 4. This subsection of the feasibility study
presents the expected attainable annual production volume for the next five years considering
start-up and technical factors.
Demand analysis 5. This subsection of the feasibility present the projected annual volume of the
domestic demand for the next five years.
Background of the study 6. This subsection of the feasibility which provide description of the
project, information about the firms goals and objectives, nature of the business, its size and
location, plans and programs that will be implemented ad the significance of the project
Project site and development 7. This subsection of the feasibility study present the location
desirable in terms of supply of raw materials, labor, and markets and other factors.
Pricing strategy 8. This subsection of the feasibility study describes how the product/service will
be priced, how to attract more customers and how it becomes different from its competitors.
Specific Objectives 9. This subsection of the feasibility study, states the specific objectives that
cover financial, marketing, operational or production, management or organizational goals.
Waste management 10. This subsection of the feasibility study which describes the method of
waste disposal to be Adopted.
Significance of the study 11. This subsection of the feasibility study provides the benefits of the
study to different parties and stakeholders.
Supply analysis 12. This subsection of the feasibility study presents the projected annual
volume of the domestic supply for the next five years.
Projects sales 13. This subsection of the feasibility study provide useful information for about
the expected volume or amount of goods to be sold in the market.
Research methodology 14. It is a critical part of the feasibility which provides the specific
procedures or techniques applied to collect and analyze the data of the study.
Competitor's profile 15. This subsection of the feasibility study describes the strengths and
weaknesses of the competitors.

Test II. Market Analysis Analysis (15 pts).

Analyze the following hypothetical market scenario of a proposed vegetable and fruit trading
business:
Opportunities:

1.Customers limit their movement due to fear of the virus.

2.The increasing access and interest of the customers to social media and other online
platforms.
3.The customers are becoming health conscious.
4.Customers are very particular about hygiene and cleanliness because of the fear of the virus.
5.There are available abundant sources of supply of vegetables and fruits in the province.
6.There is a decreasing number of customers going to the supermarket or wet market for safety
reasons.

Threats:

1.The purchasing power of customers declines due to the economic crisis.

2.Customers have fear having physical contact with others due to the virus.

Requirements: Based from the above business scenario, develop the following: (5 pts each.)

1.Pricing strategy – identify the basis for formulating the strategy and discuss why this strategy
is chosen.
-Penetration pricing—setting a low price to enter a competitive market and raising it
later

2.Promotion strategy – identify the type of promotional strategy to be adopted and how would
this implemented. Also, discuss how the products will be packaged and handled that will meet
the requirements of the customers.

-Providing Free Samples

-Give a sample to show how great the product is. The strategy works when a product can be
broken down into smaller components while still giving the full experience.
3.Distribution Strategy – discuss how the products will reach the market.

Push marketing aka Outbound

-Push marketing goes back a long way and uses a more traditional approach. Push marketing
strategies focus on a product-client facing. The main objective in this type of approach is
to minimize the time and effort the customer is making from the beginning all the way to the
purchase. The typical brand behavior, in this case, is almost synonymous with traditional
marketing. Techniques such as direct selling (either door to door or through
showrooms), points of sale and distribution, trade shows, public transports or highway ads
and so on.

Test III. Technical Analysis. (15 pts.)

Analyze the following hypothetical business scenario:

You are conducting a study to determine the technical feasibility of establishing a
computer repair shop business in Bacolod City. To provide answer for this, you search for the
necessary requirements to operate the business. After which, you have found it to be feasible.

 Requirements:  Expand your thinking when answering the following questions: (5 pts. each )

1. Where should be a strategic location for the proposed business? Why?

 In Start Your Own Business, Before you start shopping for business space, you need to have a
clear picture of what you must have, what you'd like to have, what you absolutely won't
tolerate and how much you're able to pay. Developing that picture can be a time-consuming
process that's both exciting and tedious, but it's essential you give it the attention it deserves.
While many startup mistakes can be corrected later on, a poor choice of location is sometimes
impossible to repair.

2.What are the materials and equipment needed for the business? (you may research online for
your answers)

 Small businesses often run on a shoestring budget. Some basic supplies go a long way towards
making your operation run smoothly and look professional. It is especially important to outfit
your office with appropriate supplies if you operate a home-based business, where it is vital to
separate your home and business for practical, business and tax purposes.

3.Discuss how the service will be rendered.

 Services rendered is the conclusion of a service agreement that is presented to the client to
demand payment. After the agreed upon activity is completed it could be said that services
were rendered successfully.
Test IV. Essay (15 pts.). Please be guided by the rubrics for reaction and essay when
answering the questions.

1.Is feasibility study important before deciding the kind of business to pursue? Justify your
answer.
 Yes it is important For me feasibility study is an analysis is used to determine the viability of
an idea,
Feasibility studies are important to business development. They can allow a business to
address where and how it will operate, such as ensuring a project is legally and technically
feasible as well as economically justifiable. Feasibility studies aim for marketing strategies
that could help convince investors or banks that investing in a particular project or business is
a wise choice.

2.How you do you conduct a feasibility study? Describe the process of doing so.

 The primary purpose of the preliminary analysis is to screen project ideas before extensive
time, effort, and money are invested. Two sets of activities are involved.
Describe or outline as specifically as possible the planned services, target markets, and unique
characteristics of the services by answering these questions, determine whether there are any
insurmountable obstacles. A "yes" response to the following indicates that the idea has little chance
for success, Define the geographic influence on the market.
Review population trends, demographic features, cultural factors, and purchasing power in the
community.
Analyze competing services in the community to determine their major strengths and weaknesses.
Factors to consider include pricing, product lines, sources of referral, location, promotional activities,
quality of service, consumer loyalty and satisfaction, and sales.
Determine total volume in the market area and estimate expected market share.
Estimate market expansion opportunities (e.g., responsiveness to new/enhanced services).

3.Is the result of the feasibility study must be positive all the time? Justify your answer.

 Yes, because This assessment typically involves a cost/ benefits analysis of the project, helping
organizations determine the viability, cost, and benefits associated with a project before
financial resources are allocated. It also serves as an independent project assessment and
enhances project credibility—helping decision-makers determine the positive economic
benefits to the organization that the proposed project will provide.

GOOD LUCK!!!!!!!!!
Prepared by:

Dr. Ma. Teresa B. Ballados

Subject Teacher