PRE-FEASIBILITY STUDY

Title Page

Approval Sheet

Acknowledgment

Dedication

Table of Contents

List of Figures

List of Tables

List of Appendices

FEASIBILITY STUDY
(Discuss the following details in paragraphs except for those required to be presented in
table or other means.)

CHAPTER 1 - INTRODUCTION

-Background
Discuss the rationale and the significance of your study.

-Related Literature and Industry Review

Discuss how your study is related to at least 10 literatures which also states an industry
review on a global, national, or local scale.

CHAPTER 2 - MANAGEMENT ASPECT

-Introduction

-Ownership
State the owner’s name, address, birthday, and marital status of the owner/s. Also discuss
the business name, its form of ownership, office address, and the address where the
operation will take place.

-Mission, Vision, and Core Values

Discuss the mission, vision, and core values of the organization.

-Legal Requirements
Discuss all applicable legal requirements that the organization must comply with in the
operations of the business subject of the feasibility study.
-Organizational Structure
Initially discuss the components and functions of the organizational structure of the business
then present an organizational chart illustrating the relationships of the personnel of the
organization from the owners to the staff/laborers.

-Administrative Procedures
Discuss significant administrative procedures to be implemented in the organization (e.g.
recruitment, staff selection, timekeeping, and uniform).

-Manpower Requirements and Remunerations

Discuss the necessary personnel, their functions, duties, and responsibilities, their minimum
qualifications, and applicable remunerations benefits in accordance with the Labor Code and
other relevant and existing laws, rules, and regulations (may be presented in table). Also
discuss other remunerations that the organization will grant to its personnel.

-Pre-Operating Activity Schedule

Initially make a brief discussion of the pre-operating activity schedule then present a Gantt
chart of the necessary activities before the start of the operations. Indicate also the specific
date of the start of the operations.

CHAPTER 3 - MARKETING ASPECT

-Introduction

-Product and Brand Name

Discuss the product/s (whether they are goods or services) of the business and its brand
name. It is strongly encouraged to discuss the level of product diversification of the
organization.

-Target Customer
Discuss the identified market size, market segmentation, growth and trends, and other
relevant characteristics of the target customer.

-Pricing Strategy Analysis

Discuss the methods and the results of the pricing strategy analysis conducted pertaining to
the product of the organization.

-Demand and Supply Analysis

-Demand
Discuss the methods and the results of the demand analysis (may be presented in table).
-Supply
Discuss the methods and the results of the supply analysis (may be presented in table).
-Gap (if any) / Competition Analysis
If demand exceeds the supply, discuss how you will be able to fill the demand gap. If supply
exceeds demand, discuss your target market share and competition analysis.

-Marketing Strategy
Discuss the applicable marketing strategies (including advertisements in various media) that
the organization will implement based on the facts that were mentioned in the prior
sub-topics.

-Porter’s Five Forces Analysis

Initially discuss your analysis about your business’ strategies using Porter’s Five Forces then
illustrate it in charts.

CHAPTER 4 - TECHNICAL ASPECT

-Introduction

-Technical Product Description

Discuss the technical description of the organization’s product/s. For goods, it is strongly
encouraged to present a sample picture of the finished product/s. For services, a sample
picture of a tangible item that underwent the service may be presented.

-Operational Procedures
Discuss the procedures in manufacturing/performing the product. Be as objective as
possible. Charts may be used to present the procedures.

-Supply-Chain Management
Discuss the supply-chain (i.e. the flow of raw materials/supplies to
manufacturing/performance of the product/s to distribution) that will be implemented. Be as
objective as possible. Charts may be used to present the supply-chain management.

-Product Costing
Discuss and present a computation in good accounting form the product unit cost. The unit
will depend on the nature of the product. If the product is manufactured, the direct costs and
the overhead must be presented.

-Equipment, Furniture, Fixtures, and Supplies

This sub-topic must be presented in two separate tables: (a) Equipment, Furniture, and
Fixtures; and (b) Supplies. Both tables must contain the following details: Description,
Number of Units Required, Unit, Cost Per Unit, Total Cost. The Equipment, Furniture, and
Fixtures table must also indicate the Estimated Useful Life of the assets. The Description
must be as detailed and objective as possible. Sample pictures may also be used for better
appreciation. Also indicate the source of the assets.

-Business Location
Discuss the technical aspect of the business location. Indicate landmarks where it is near.
Present a map where the business is situated. In case the office address and the place of
operation are significantly far from each other, make an explanation regarding the matter and
present both in the map. Also discuss whether the location/s are owned or leased.

-Floor Plan and Layout

Present a floor plan and layout of the location illustrating its interior physical arrangement,
with measurements.
-Facility Perspective
Present the exterior perspective of the facility. It must show how the facility will look from the
outside.

-Facility Cost
Discuss the estimated cost of the facility. Be as objective as possible. A program of works
may be presented to show the estimated cost of the facility. In case the facility is estimated
on a lump-sum basis, discuss the source of the estimate.

CHAPTER 5 - SUSTAINABILITY ASPECT

-Introduction

-Socio-cultural Climate and the Enterprise’s Impact

Discuss the current socio-cultural climate of the market/target area where the product/s will
be distributed/performed and the possible effects of the product or the business itself to that
climate.

-Environmental Impact Assessment and Management

Discuss how the business and the product will affect the environment on a local, national, or
global scale (whichever may be appropriate) and the organization’s management of that
effect.

CHAPTER 6 - FINANCIAL ASPECT

-Introduction

-Summary of Assumptions
Discuss the assumptions used in this study which will affect the presentation of the projected
financial statements, including the scope of the five-year projection. Ensure that the
assumptions used are reasonably sound.

-Capitalization Structure
Discuss the capitalization structure of the owners, including long-term debts that were
acquired to put up the business. Also discuss to whom this capitalization structure is
attributable. Present the computation in good accounting form.

-Initial Capital Outlay

Discuss and present the computation in good accounting form the necessary initial outlay
cost for the operations.

-Projected Financial Statements

Present in good accounting the five-year projection of the following financial statements in
order below:
-Statement of Financial Position
-Statement of Financial Performance
-Statement of Cash Flows
-Statement of Changes in Equity
-Notes and Computations
The Notes and Computations must support the aforementioned financial statements and
must be supported by the data presented in the demand analysis, the product cost
computation, the assumptions discussed in this Chapter, and other data discussed in this
study.

-Financial Statement Analysis

Present in good accounting form the following:
-Payback Period
-Return on Investment (for the five-year projection)
-Inventory Turnover (for the five-year projection)

REFERENCES
(Present in latest APA style)