Assignment # 1

Submitted to:
Mr. Shahbaz Ahmad

Submitted by:
M. Atiq ur Rehman

Registration number:
17-ARID-5389

Subject:
Entrepreneurship (MGT-617)

Semester:
BBA-8th

Date:
16-June-21
Question 01

Jason Willis just applied for a bank loan to finance a smoothie restaurant that he plans to open.
The banker asked Jason if he conducted any primary research to assess the feasibility of the
restaurant, and Jason replied that he spent countless evenings and weekends in the library and on
the Internet collecting data on the feasibility of smoothie restaurants, and he is confident that his
restaurant will be successful. He said that he even did careful research to make sure that
smoothie restaurants do well in demographic areas that are similar to the area where he plans to
open his restaurant. If you were the banker, how would you react to Jason’s statements?

Answer:

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. Feasibility studies also can provide a company's
management with crucial information that could prevent the company from entering carelessly
into risky businesses.

A feasibility study is an assessment of the practicality of a proposed project or system. A

feasibility study aims to objectively and rationally uncover the strengths and weaknesses of an
existing business or proposed venture, opportunities and threats present in the natural
environment, the resources required to carry through, and ultimately the prospects for success. In
its simplest terms, the two criteria to judge feasibility are cost required and value to be attained.

Jason has a misunderstanding of what primary research is. Primary research is research that is
collected by the person or persons completing the analysis. Administering a concept statement is
an example of primary research. What Jason has done is complete secondary research, which
probes data that’s already collected. Jason’s banker may appreciate the secondary research he’s
done, but probably wants to see evidence that Jason has actually talked to potential customers
and business partners.