MAURI

LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
1

Lear
ningTasks/
Act
ivi
ti
esNo.2.
1

1.Descr
ibet
henat
ureofamar
ketst
udy
.

Answer:Amar ketst
udyisacompr ehensi
veanalysi
sofaspecifi
cmarketori
ndustr
yto
gather i
nfor
mat i
on and insi
ghts aboutits charact
eri
sti
cs,tr
ends,and potent
ial
opport
unit
iesorchal
lenges.I
tty
pical
lyi
nvolv
es:

 MarketSizeandGrowth:Det
ermi
ningt
hecur
rentsi
zeoft
hemar
ketandi
ts
hi
stori
cal
growthr
ate.

 MarketSegmentat
ion:Di
vi
dingt
hemar keti
ntosegmentsbasedonf act
orsli
ke
demographi
cs,
geography,
andbehav
iortounder
standdi
ff
erentcust
omergroups.

 Competit
ive Anal
ysis:Examini
ng competi
tor
sint
he mar
ket
,thei
rst
rengt
hs,
weaknesses,marketshar
e,andstr
ategi
es.

 Cust
omerBehav
ior
:Anal
yzi
ngconsumerpr
efer
ences,
buy
inghabi
ts,
andneeds.

 SWOTAnal ysi
s:Assessi
ngt
hestrengt
hs,weaknesses,
oppor
tuni
ti
es,
andt
hreat
s
associ
atedwit
henteri
ngoroper
atingi
nthemar ket
.

Theresul
tsofamar ketst
udyprovi
debusi
nesseswit
hval
uablei
nformati
onformaking
i
nformed decisi
ons r
egar
ding pr
oductdevel
opment
,pri
cing,market
ing,and ov
eral
l
marketst
rategy.

2.I
dent
if
ytheobj
ect
ivesoft
hemar
ketst
udy
.

Answer
:Themar
ketst
udyi
sconduct
edt
o:

1.det
ermi
net
hesi
zeandgr
owt
hoft
otal
annual
demand;

2.i
dent
if
ythepossi
bleent
ryofcompet
it
ors;

3.i
dent
if
ythepossi
bleent
ryofcompet
it
ors;

4.det
ermi
net
hepot
ent
ial
mar
ketshar
eoft
hepr
oduct
sorser
vices;

5.est
abl
i
shapr
ici
ngpol
i
cy;
and
 6.def
inet
heappr
opr
iat
emar
ket
ingpr
ogr
am.

3.Whati
smeantby“
demand”
?

Answer:Demandr ef
erst othequantit
yofapr oductorser vi
cet hatconsumer sare
will
i
ng and ablet o purchase atv ari
ous pri
ces dur i
ng a speci f
ic period.It'
sa
fundamentalconcepti n economics and isinfluenced by factors such as pr i
ce,
consumerpref
erences,income,andmor e.Thelawofdemandst atest hat
,allelsebei
ng
equal,asthepri
ceofapr oductorservicedecreases,thequant it
ydemandedf orit
i
ncreases,and vice versa.Underst
anding demand i s cruci
alf orbusi nesses and
poli
cymakersto make i nfor
med decisi
onsaboutpr ici
ng,production,and r esour
ce
all
ocati
on.

4.Gi
vet
hemaj
orpr
ocessesi
nthest
udyofdemand.

Answer
:Thef
oll
owi
ngmaj
orpr
ocessesshoul
dbeunder
taken:

1.i
dent
if
ytheconsumer
s,

2.gat
heri
nfor
mat
ionont
otal
pastdemand,

3.ev
aluat
epastdemandpat
ter
ns,

4.f
orecastf
utur
edemands,
and

5.ev
aluat
efut
uredemandpr
oject
ion.

5.Descr
ibehowt
hemar
keti
sident
if
ied.

Answer:Marketr
eferst
otheplacewheret
hebuyerandt
hesellermeet
.Iteхi
stsi
fther
e
areavail
ablesel
ler
sandwi l
li
ngbuy er
s;i
tceasestoeхistthemomentonepar t
yis
absent
.Thereisaneхchangethatt
akespl
aceinthemarket
;hencebothpart
iesshoul
d
bepresent.

6.I
dent
if
ythemaj
orpr
ocessesi
nthest
udyofsuppl
y.

Answer
:Thef
oll
owi
ngpr
ocessesmaybef
oll
owed:

1.Whoar
ethecompet
it
ors?

2.Wher
ear
ethecompet
it
ors?

3.Ar
etheydi
rectori
ndi
rectcompet
it
ors?

4.Howl
onghav
etheybeeni
nthebusi
ness?
 5.Ar
etheypubl
i
cly
-l
ist
edcompani
esorcl
osed-
cor
por
ati
ons?

6.Whoar
ethemaj
ori
tyshar
ehol
der
soft
hecompet
it
ors?

7.Wher
edot
heychannel
thei
rpr
oduct
s?

8.Dot
heypr
oducepr
imar
yorsubst
it
utepr
oduct
s?

9.Whatmar
ket
ingst
rat
egydot
heyappl
y?

7.I
dent
if
ycomef
act
orsaf
fect
ingt
heset
ti
ngoft
hepr
iceoft
hepr
oductorser
vices.

Answer:Set
ti
ngt
hepr
iceofapr
oductorser
vicei
nvol
vesconsi
der
ingv
ari
ousf
act
ors,
i
ncludi
ng:

 Cost
s:Thecostofproduct
ion,i
ncl
udi
ngmat
eri
als,l
abor
,andover
head,pl
aysa
si
gni
fi
cantr
ole.Busi
nessestypi
cal
lyai
mtocoverthesecost
sandgeneratea
pr
ofi
t.

 MarketDemand:Under
standinghowmuchcust omersar
ewi l
l
ingtopayfory
our
pr
oductorser
vicei
scruci
al.Higherdemandof
tenall
owsforhi
gherpr
ices.

 Compet i
tion:Anal
yzi
ngwhatcompeti
tor
sarechargi
ngforsi
mil
arproductsor
servi
ceshel psinsett
ingacompeti
ti
vepri
ce.Youcanchoosetoundercutor
dif
ferent
iatebasedonqual
i
tyorv
alue.

 MarketCondit
ions:Economi c conditi
ons,inf
lat
ion,and exter
nalfact
ors can
i
nfl
uencepri
ci
ngdecisions.Forinstance,dur
ingar ecessi
on,
customersmightbe
morepri
ce-
sensiti
ve.

 Target Audience:Dif
ferent customer segments may havev ar
ying pr
ice
sensit
ivi
ti
es.Consi
derpri
cingstr
ategi
esfordif
fer
entt
argetmar
ket
s.

 SeasonalorPromot
ionalPri
cing:Of
feri
ngdiscountsoradj
ust
ingpr
icesdur
ing
speci
fi
cseasonsorpromoti
onscanaffectsal
esvolume.

 CustomerFeedback:Gatheri
ng i
nputfrom customer
sthr
ough sur
vey
s or
feedbackcanhel
pindet
ermini
ngopt
imal
pr i
cing.

8.Di
scussmar
ket
ingpr
ogr
am.

Answer:Marketprogr
am i
tshowsthedi
ff
erentsetsofcoordi
nat
edmarketingacti
vi
ti
es
desi
gnedtoachi ev
emarketi
nggoal
s.Abri
efmar ket
ingprogr
am shoul
dbei ncl
udedin
thef
easibi
l
itystudysi
nceadetai
l
edprogr
am willbeincl
udedint
hebusinessplanonce
t
hepr
ojecti
simpl
ement
ed.
MAURI
LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
1

AssessmentNo.2.
1

1.Apr ospecti
vei
nv est
ori sint
erest
edi nopeningaprint
ingbusinessinIsabel
,Leyt
e.
Thisbusinesswil
lprovide,amongot hers,bookbi
ndi
ng,mimeographing,t
hepr i
nti
ngof
businessdocuments,businessandsocialcards.

Requi
red:

a.I
dent
if
yanddi
scusst
hemar
ketoft
hisst
udy

Answer:Toi
dent
if
yanddi
scussthemarketf
orapr
int
ingbusi
nessi
nIsabel
,Ley
te,y
ou
shoul
dconsi
dert
hefol
l
owi
ngf act
ors:

 LocalDemogr aphics: Anal

yzet
hepopulat
ionofIsabel
,Ley
te,andthesur
rounding
areas.Lookatf act orssuch asagegr oups,incomelevel
s,and educati
onal
backgrounds.Under standi
ngyourpot
enti
alcustomerbaseiscruci
al.

 Competi
tive Landscape:Research exist
ing pr
int
ing busi
nesses i
nthe area.
I
denti
fythei
rstrengths,weaknesses,andmarketshare.Thi
swillhel
pyougauge
thel
evel
ofcompet i
ti
on.

 Cust
omerNeeds:Under
standt
hespeci
fi
cpr
int
ingneedsofbusi
nessesand
i
ndiv
idual
sint
hear
ea.

 Trends and Technol

ogy
: St
ay updat
ed on i
ndust
ryt
rends and pr
int
ing
technol
ogi
es.

 Regul
ati
onsandPermits:Resear
chlocalr
egul
ati
onsandper mi
tsrequi
redfor
st
arti
ngapr i
nti
ngbusi
ness.Ensur
ecompli
ancewithenv
ironment
alandsafety
st
andards.

 Locat
ion:
Consi
dert
hel
ocat
ionofy
ourbusi
ness.

 Market
ingandPr omot
ion:Devel
opamar keti
ngstrat
egytor eachy
ourtar
get
audi
ence.Consideronl
ineandoff
li
nemar keti
ngchannel
s,suchassoci
almedia,
l
ocaladver
ti
sing,andnetwor
kingwit
hint
hecommuni ty.

 Qual
i
tyandPr
ici
ng:Det
ermi
net
hequal
i
tyofy
ourpr
int
ingser
vicesandpr
ici
ng
 st
rat
egy.Willy
ou of
ferpr
emi
um qual
i
tyata hi
gherpr
ice orcompet
e on
af
for
dabi
li
ty?

 Ri
skAssessment:Ident
if
ypotent
ialr
isksandchal
lenges,suchaschangesinthe
l
ocaleconomyort hethr
eatofonlineprint
ingservi
ces.Devel
opcont i
ngency
pl
anstomiti
gat
et heseri
sks.

b.Howwi
l
lthemar
ketbesegment
edi
nthi
sst
udy
?

Answer:Segmenti
ngthemar ketforapr i
nti
ngbusi
nessinI
sabel
,Leytecanbedone
basedonv ar
iouscr
it
eri
at otargetspeci
fi
ccustomergr
oupsef
fect
ivel
y.Her
earesome
potent
ial
marketsegmentati
onst r
ategi
es:

 Demogr
aphi
cSegment
ati
on:

 Age:
Segment
ingbyagegr
oups,
suchasst
udent
s,pr
ofessi
onal
s,orr
eti
rees.

 Gender:I
denti
fyi
ng i
fcer
tai
n pr
int
ing ser
vices ar
e mor
e popul
aramong
speci
fi
cgenders.

 I
ncome:
Tar
get
ingbusi
nessesori
ndi
vi
dual
sbasedont
hei
rincomel
evel
s.

 Geogr
aphi
cSegment
ati
on:

 Locat
ion:
Focusi
ngonspeci
fi
car
easwi
thi
nIsabel
,Ley
teornear
byt
owns.

 Urbanvs.Rural
:Dif
fer
ent
iat
ingbet
weenur
banandr
uralcust
omer
swhomay
havevary
ingpri
nti
ngneeds.

 Behav
ior
alSegment
ati
on:

 Occasi
on:Ident
if
ying cust
omers who need pr
int
ing ser
vices f
orspeci
al
occasi
onsl
i
keweddi ngsorcor
porat
eevents.

 UsageRate:Segment
ingbasedonhowf
requent
lycust
omer
srequi
repr
int
ing
ser
vices.

 Pr
int
ingNeeds:

 Bookbindi
ng:Segment
ingcust
omer
swhor
equi
rebookbi
ndi
ngser
vices,such
asstudent
sandauthors.

 Mimeographi
ng:I
denti
fyi
ngcustomer
swhoneedmi
meogr
aphi
ngser
vices,
l
ikeschool
sorgover
nmentoff
ices.
  BusinessDocument
s:Tar
get
ingbusi
nessesi
nneedofpr
int
eddocument
sfor
thei
roperat
ions.

 Busi
nessandSocialCar
ds:Focusi
ngonpr
ofessi
onal
s,ent
repr
eneur
s,and
i
ndiv
idual
slooki
ngf
orcar
dpri
nti
ng.

Mar
ketsegment
ati
onwil
lhelptail
ormarket
ingstr
ategi
es,pr
ici
ng,andser
vicest
omeet
t
hespeci
fi
cneedsandpref
erencesofeachcustomergroup,
maximizi
ngthesuccessof
t
hepri
nti
ngbusi
nessi
nIsabel
,Leyte.

c.Whatdoest
otal
demandr
epr
esenti
nthi
sst
udy
?

Answer :Totaldemandi nt hi
sst udyr epresentst heov eral
lmar ketdemandf orthe
print
ingservicesofferedbyt hepr ospecti
vei nvestorinIsabel,Leyt
e.Itencompasses
thecombi nedneedf orbookbinding,mimeogr aphing,print
ingofbusi nessdocuments,
businesscards,andsoci alcardswi t
hinthet argetarea.Understandi
ngt ot
aldemandis
crucialf
orassessingt hepotenti
alsizeofthemar ketanddet er
mi ni
ngifther
eisenough
demandt osuppor tt
henewpr int
ingbusiness.

2.Thet
otal
hist
ori
cal
demandf
orpr
awnsandl
obst
ersf
ort
hey
ear2015t
o2020i
sas
fol
l
ows:

KI
LOS

2010 398,
300

2011 434,
200

2012 412,
800

2013 460,
250

2014 497,
070

2015 571,
630

Requi
red:

a.Pr
ojectf
utur
edemandusi
ngasi
mpl
emov
ingav
erageandwei
ght
edmov
ingav
erage.

Answer
:

KI
LOS SI
MPLEMOVI NG WEIGHTEDMOVI
NG
AVERAGE AVERAGE(0.
4&0.
2)
 2010 398,
300

2011 434,
200 398,
300+434,200/2=
416,
250

2012 412,
800 434,
200+412,800/2=
423,
500

2013 460,
250 412,
800+460,250/2=
436,
525

2014 497,
070 460,
250+497,070/2=
478,
660

2015 571,
630 497,
070+571,630/2= 0.
4(571,
630)+0.
2(497,
070)
534,
350
=228,
652+99,
414

=328,
066

b.Di
scusst
heappr
opr
iat
epr
ocedur
est
obeunder
takenbef
oreapr
oject
ioni
smade.

Answer:Bef
oremaki ngapr oj
ecti
onf
orfutur
edemandofpr awnsandlobst
ers,it
's
i
mportanttofol
low asystemati
canddat
a-dri
venappr
oach.Her
earetheappropr
iat
e
pr
ocedurestounder
take:

 Dat
aCol
l
ect
ionandVer
if
icat
ion:

 Gatherhist
ori
caldat
aonpr
awnsandl
obst
ersdemandf
orasmanyy
ear
sas
possibl
e.

 Ensurethe accur
acyand r
eli
abi
l
ityoft
he dat
a sour
cest
o av
oid bi
ased
proj
ecti
ons.

 Dat
aCl
eani
ngandPr
epr
ocessi
ng:

 Remov
eanyout
li
ersoranomal
i
esi
nthedat
athatmi
ghtskewt
hepr
oject
ions.

 Addr
essmi
ssi
ngdat
aori
nconsi
stenci
esi
nthehi
stor
ical
dat
a.

 Dat
aAnal
ysi
s:

 Conductathor
oughanaly
sisofthehi
stor
icaldemanddat
atoi
dent
if
ytr
ends,
pat
terns,
andseasonal
i
tyifpr
esent
.
  Usestati
sti
calt
ool
sandt
echni
quesl
i
ket
imeser
iesanal
ysi
stounder
stand
thedat
ady nami
cs.

 Mar
ketResear
ch:

 Research and gat

herinfor
mati
on on f
act
orsthatcouldi nf
luence f
utur
e
demand,suchaschangesi nconsumerpr
efer
ences,economicconditi
ons,
andregulat
orychanges.

 St
akehol
derConsul
tat
ion:

 Consul
twithindustr
yexperts,st
akeholder
s,and marketanalyst
st o gai
n
i
nsight
sint
otheindust
ry'
sfut
uredi
recti
onandanypotenti
aldi
srupti
ons.

 For
ecast
ingMet
hods:

 Selectanappr opri
atefor
ecast
ingmethodbasedonthenat
ureofthedataand
theinsightsgainedfrom t
heanalysi
s.Commonmet hodsi
ncludeexponent
ial
smoot hing,r
egressi
onanalysi
s,ormachi
nelear
ningmodel
s.

 Val
i
dat
ionandTest
ing:

 Val
i
datethechosenf or
ecast
ingmodelusinghi
stor
icaldat
anotusedi
nthe
model
trai
ningphase.Thi
shelpsassesst
hemodel'
saccuracy.

 Ri
skAssessment
:

 I
denti
fypotent
ialr
isks and uncer
tai
nti
es thatcoul
dimpactt
he demand
pr
oject
ions,
anddev
elopriskmiti
gat
ionstr
ategies.

c.Willt
heresul
tofthepr
oject
ionbet
hef
inal
figur
etodet
ermi
nef
utur
edemand?
Discussyouranswer.

Answer :Ther esul

tofapr oj
ecti
onisnott y
pical
lyt hef i
nalf i
gureusedt odetermi ne
fut
uredemand.Pr ojectionsareestimatesbasedonav ai
labledat aandassumpt ions,
andt heyserveasapl anningtool
.Futuredemandcanbei nfl
uencedbyv ariousf
act ors
l
ikemar ketdynami cs, consumerbehav i
or,
economiccondi tions,andunfor
eseenev ent s.
Therefore,project
ionsshoul d beregular
lyupdated and r efined t
or ef
lectchangi ng
cir
cumst ances.Finalf igures f
ordet er
mini
ng futur e demand of ten r
esultfrom a
combi nati
onofupdat edpr oj
ecti
ons,marketresearch,andr eal-
ti
medat aanalysist o
makei nformeddeci sions.
MAURI
LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
2

Lear
ningTasks/
Act
ivi
ti
esNo.2.
2

1.Descr
ibet
henat
ureofat
echni
cal
study
.

Answer:Thetechnicalaspectofaf easi
bil
itystudyhel psy oudeterminethev i
abi
li
tyof
yourproposedprojectbyexami ni
ngt hetoolsaty ourdi sposalandthecost srequi
red
comparedt oconsumerdemandf orthi
st echnology.Thesedet ailsincl
udenecessar y
materi
als and l
abor ,l
ogist
ics ofthe projectand t echnologyr el
ated to pr
oducing,
deli
ver
ingandtrackingtheproduct
sorser vi
cesy ouintendt odevelop.

2.Di
scusst
het
hreemaj
orpr
ocessesi
nconduct
ingat
echni
cal
study
.

Answer
:Conduct
ingat
echni
cal
studyt
ypi
cal
l
yinv
olv
est
hreemaj
orpr
ocesses:

1.Planni
ngandDesi gn:Thisini
ti
alphaseinv
olvesdefini
ngt heobjecti
vesoft he
study,establi
shingaclearscope,anddesi gni
ngar esearchplan.Keyt asks
i
ncludeidentif
yingthepr
oblem orquest
iont
obeaddr essed,deter
mini
ngthedat a
coll
ecti
onmet hods,sett
ingatimeli
neandbudget,andsel ecti
ngtheappropri
ate
toolsorequipmentneededforthestudy
.

2.DataCol l
ecti
onandAnal ysis:Inthisphase,r esear
cher
sgatherr el
evantdata
accordingt otheplandev elopedint hef i
rststage.Thismayinvolv
econduct i
ng
experiments,surveys,i
nter vi
ews,orcol l
ecti
ngexi st
ingdat
a.Oncet hedat ais
coll
ected,i t
'sanalyzed using appropriatetechniques,whi
ch can rangef r
om
stat
isti
calanalysi
st osimul ati
onsormodel i
ng.Thegoalistodr aw meaningful
conclusionsandinsight
sf rom thedat a.

3.Reporti
ngandCommuni cation:Thef i
nalphaseinvol
vespr esenti
ngt hefindi
ngs
ofthest udyinaclearandcompr ehensi
vemanner .Researcherscreatereports,
presentati
ons,ort echnicaldocument st hatdetailthe study's methodology,
resul
ts,andconclusions.Ef fect
ivecommuni cat
ioniscrucialtoensur ethatthe
study'
sf i
ndingscanbeunder st
oodandusedbyst akehol
der s,whethertheyare
techni
cal exper
tsordecision-makers.
MAURI
LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
2

AssessmentNo.2.
2

Readar t i
clesinmanuf act ur
ingpl ast
ic.Basedont herequi
redingr
edientsformaking
pl
astic, prepareapl antlocationandl ayoutoftheproposedmanuf actur
ingplant.
I
ndicat ethev ariousalternat
iv einselect
ingtheplant'
slocati
onandci t
etheadv antages
anddi sadv antagesoft heplant .Makeanexactbutconci sedescri
ptionofbot htheplant
l
ayoutandt hegr oundlayout.

Answer
:

Si
de-
By-
SideMachi
ner
yLay
out

Averyeff
ici
entlay
out,maki
ngitthemostcommonl yused.I
tfeatureshighpr oducti
on
r
atesandl ackofcongesti
on.Thislayouthast hecapabili
tyoft ransfer
ringgoods
(
fi
nishedorraw);anadvant
ageforthefactor
y.Thepackerorser vercanal sot endto
morethanonemachineatonego.Thefi
nishedmat eri
alsf
lowinthecentrali
sl eandthe
r
awmat eri
alsar
efedint
othemachine.

Pl
antLay
out
:

 Consideralay
outthatfoll
owst hepr
ocessfl
owofplasti
cproduct
ion,
incl
udi
ng
recei
vingr
awmat eri
als,processi
ng,
quali
tycont
rol
,andstor
age.

 Ut
il
izepr
inci
plesofef
fi
ciency
,saf
ety
,andscal
abi
l
ityi
nthedesi
gn.

 I
ncor
por
ateadequat
espacef
ormachi
ner
y,st
orage,
andempl
oyeef
aci
l
iti
es.
  Ensur
ecompl
i
ancewi
thsaf
etyandenv
ironment
alr
egul
ati
ons.

Gr
oundLay
out
:

 Pl
ant
hephy
sical
arr
angementofbui
l
dings,
roads,
uti
l
iti
es,
andpar
kingar
eas.

 Ensur
eef
fi
cientf
lowofmat
eri
alsandper
sonnel
wit
hint
hepl
ant
.

 Al
l
ocat
ear
easf
orwast
edi
sposal
andenv
ironment
almanagement
.
MAURI
LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
3

Lear
ningTasks/
Act
ivi
ti
esNo.2.
3

1.Descr
ibet
henat
ureofamanagementst
udy
.

Answer :Themanagementst udyai mst o determinethemostappr opri

atet y
peof
business organi
zati
on,int erms off or
mat ion and str
uct
ure,thatwilleffecti
vel
y
accompl i
sh the busi
ness'
s object
ives.Att he end ofthe managementst udy,the
proponentshouldcategori
cal
lyincl
udear ecommendat i
onastowhatt ypeofbusiness
organizat
ionbeestabl
ished.

2.Di
scusst
hepr
imar
yobj
ect
iveofamanagementst
udy
.

Answer:Theobj ect
iveofthemanagementaspectofaf easi
bil
it
ystudyist odet
ermine
theopti
oneffecti
veoftheor gani
zati
onalset
upandthequali
fi
cati
onsoft heindi
vidual
s
whowi l
lmakeupt heorganizati
on.Thi
saspectwi
lldet
erminethesuccessfulr
eal
izati
on
oftheproj
ectstudy.

3.I
dent
if
ythev
ari
ouspr
ocedur
esi
nvol
vedi
ntheconductofamanagementst
udy
.

Answer
:Fol
l
owi
ngar
ethenecessar
yst
epsi
ntheconductofamanagement

1.sel
ect
ingt
heki
ndofbusi
nessor
gani
zat
ion

2.desi
gni
ngt
hei
nter
nal
str
uct
ure

3.st
aff
ingf
ort
hei
nter
nal
str
uct
ure

4.comput
ingt
otal
sal
ari
es,
compensat
ion,
andf
ri
ngebenef
it
s

5.pr
epar
ingat
imet
abl
e
MAURI
LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
3

AssessmentNo.2.
3

Theproposedprojectenvi
sionsadopti
nganorgani
zat
ionalst
ructur
ebyproductli
ne.
Fourpri
maryproductswil
lbesoldinthemar
ket–ProductAA,ProductBB,
ProductCC,
andProductDD.

Every pr
oduct di
vi
sion wil
lhav et he fol
l
owing funct
ionalar
eas:research and
devel
opment,manufact
uri
ng,f
inance/
account
ing,
marketi
ngandcustomerser
vice.

Theadmi ni
strat
iveandfi
nancedi
visi
onwil
lhavet hef
oll
owi
ngmaj ordiv
isi
ons:human
resources,legal
,procur
ement,fi
nance/
account
ing,publ
icr
elat
ions,andtrai
ningand
development .

Pr
epar
eanor
gani
zat
ional
char
tusi
ngt
hepr
oduct
-f
ocusst
ruct
ure.

Answer
:
MAURI
LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
4

Lear
ningTasks/
Act
ivi
ti
esNo.2.
4

1.Descr
ibet
henat
ureofaf
inanci
alst
udy
.

Answer :Thef i
nancialst
udyitdealswi ththecostofthepr
oject
s,theeхpectedr
evenue
tober eal
ized,theest i
matedoper ati
ngeхpensest obeincurred,andthebusiness
endeavour'sprojectedprofi
tabil
it
y.Thef inanci
alst
udyispri
marilyconcer
nedwiththe
business'sfinancialheal
th,and t hepr oponentisadvi
sed to workcloselywi
th an
accountantoraf inanci
alanalysti
npr epari
ngit

2.I
dent
if
ythepr
ocedur
esi
nconduct
ingaf
inanci
alst
udy
.

Answer
:Fol
l
owi
ngar
ethepr
ocedur
alst
epsi
nconduct
ingaf
inanci
alst
udy
:

1.sett
heassumpt
ionsandi
tsbasi
s

2.det
ermi
net
het
otal
costoft
hepr
oposedpr
oject

3.i
dent
if
ythesour
cesoff
inanci
ng

4.pr
epar
ethepr
oject
edf
inanci
alst
atement
s

5.per
for
mfi
nanci
alst
atementanal
ysi
s

3.Descr
ibet
heconceptoft
hepr
ojectcost
.

Answer :Projectcostr ef
er st othet ot
alfi
nanciali
nvestmentrequir
edt oplan,execute,
andcompl eteaspeci fi
cpr oject
.Itencompassesal lexpensesassociatedwi t
ht he
proj
ect,incl
udi ngmat eri
als,labor,equipment,over
head,andanyot hercostsnecessary
toachievet hepr oj
ect'
sobj ect i
ves.Eff
ecti
vecostmanagementi scruci
altoensurethat
aprojectstay swi t
hinbudgetanddel i
versit
sintendedresult
sont i
me.Moni tori
ngand
contr
olli
ng pr ojectcostsar eessent i
alaspect sofpr oj
ectmanagementt o pr
event
over
runsandf inanciali
nefficienci
es.

4.Whati
smeantby“
wor
kingcapi
tal
”?

Answer :Theterms“workingcapit
al”i
nthisconteхtref
erstot heamountofcurr
ent
assets,par
ti
cul
arl
ycashorhi ghl
yli
quidshort
-t
erm secur
iti
es,neededt
ocarryoutthe
business'
sday-
todayoperati
on
5.Di
scusst
hemet
hodsofanal
yzi
ngf
inanci
alst
atement
s.

Answer
:

 Hor
izant
alorCompar
ati
veAnal
ysi
s

Inhori
zont
alanal
ysis,youcancompar efigur
esf r
om onet i
meper i
odtofigur
es
fr
om abaset imeper i
odt ogetanov er
view ofchangesov ert
ime.Analyzi
ng
fi
nanci
altr
endsov erperiodsory earscanhel py outrackhow acompany '
s
fi
nanci
alst
atehaschanged, f
indpatt
ernsinitsdataandspotpotenti
alpr
oblems
andopport
uni
ti
es.

 Ver
ti
cal
orCommonSi
zeAnal
ysi
s

Vert
icalanaly
sis,whichisal soknownascommon- sizeanal ysis,i
ssimi larto
hori
zontalanalysi
sandcanbeper for
medont hesamef i
nancialdocument s.
Howev er
,fi
nancialanal
ystsperformv er
ti
calanal
ysi
sv ert
icall
yinsideofacol umn
rat
herthanhor i
zontal
lyacrosstimepper i
odsVerti
calanalysi
st ransl
atesf i
gures
i
nf i
nancialstat
ement stoper cent
agesofabasef i
gure,whichhasav al
ueof
100%.Usingpercentagescanmaket hedataeasi
ertov i
suali
zeandunder stand.

 Tr
endPer
cent
age

At r
endper centage,al
socal
ledan" i
ndexnumber,
"letsyoucompar efi
nancial
i
nformation,suchasnetsal es,costofgoodssold,oper
ati
ngexpenses,gross
prof
itandi nventory,ov
ert
imetoabaseper i
odoryear
.It
'saform ofhor
izontal
analy
sist hatr evealsachangeort rend i
nacompany '
sf i
nanci
alstatement
accountsov eraper i
odoft
ime.

 Fi
nanci
alRat
ios

Financi
alrati
osar ecreat
edwi ththeuseofnumericalval
uestakenfrom f
inanci
al
statementst o gainmeani ngfulinf
ormati
onaboutacompany .Thenumber s
foundonacompany ’
sf i
nancialstat
ements–bal ancesheet
,incomestatement,
andcashf lowst at
ement–ar eusedtoperfor
m quantit
ati
veanalysi
sandassess
acompany ’sli
quidit
y,leverage,growth,margi
ns,profi
tabi
l
ity,rat
esofr etur
n,
valuat
ion,
andmor e.
MAURI
LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
4

AssessmentNo.2.
4

A shoemanufacturi
ngbusinessi
spr oposedtobeestabl
ishedinIsabel
,Ley
teand
Visay
as i
s considered as t
he market
.By assuming t
he needed fact
s,cit
ethe
assumpt
ionsofyourstudyonthef
oll
owingconcer
ns:

Answer:Whenconduct i
ngaf easi
bil
it
yst udyforashoemanufact
uri
ngbusinessin
I
sabel,Leyt
ewi t
hVi say
asast het argetmarket
,y ouwoul
dneedt o makesever
al
assumpti
onsregardi
ngvari
ousaspectsofthebusi
ness:

a.Mar
ketShar
e:

Assumpti
on:Youcouldassumeaspeci
ficpercent
ageoft
hemar ketsharethatyour
busi
nessaimstocaptureint
heVi
say
asr
egion.Thi
scoul
dbebasedonmar ketr
esearch
andcompetit
oranal
ysis.

b.Sel
l
ingPr
ice:

Assumption:Youwouldneedt
oesti
mat
ethesell
ingpr
iceofyourshoes,whi
chcanbe
i
nfl
uencedbyf act
orssuchaspr
oduct
ioncost
s,competi
tor
s'prices,andconsumer
wil
li
ngnesstopay .

c.Vol
umeofPr
oduct
ion:

Assumption:You'
dneedt
oest
imatethequant
it
yofshoesy
oupl
antoproduceannual
ly.
Thiswoulddependony ourexpect
edsales,demandinthemar
ket
,andpr oducti
on
capaci
ty.

d.Pl
antLocat
ion:

Assumpt
ion:You'dneedt oassumet hespecifi
clocat
ioninIsabel
,Leyt
ewher eyouplan
toest
abl
i
shy ourmanuf actur
ingplant.Fact
orsli
keaccessibi
li
ty,i
nfr
ast
ruct
ure,andcost
ofl
andmayi nf
luencethisdecisi
on.

e.Pl
antCapaci
ty:

Assumpti
on:You'
dneedtodeci
deontheproducti
oncapaci
tyofyourmanufact
uri
ng
pl
ant,whi
chcanvarybasedonf
act
orsli
keavai
labl
eresour
ces,budget
,andexpect
ed
demand.Thi
sassumpt
ionwi
l
limpacty
ourpr
oduct
ionpl
anni
ng.
MAURI
LLO,
CHARLAI
NEV.BSI
E-I
V

I
Eng161Pr
ojectFeasi
bil
i
tySt
udy

Lesson2.
5

Lear
ningTasks/
Act
ivi
ti
esNo.2.
5

1.Descr
ibet
henat
ureoft
hesoci
o-economi
cst
udy
.

Answer:Asoci o-
economicstudyisar esearchapproachthatexami nest heinterpl
ay
betweensoci
alandeconomi cf act
orswithi
nagi vensociet
yorcommuni ty.Itaimst o
underst
andhow economi cconditi
ons,poli
cies,andacti
vit
iesimpactt hesoci alwell
-
bei
ng,behavi
ors,anddy namicsofi ndi
vi
dualsorgroups.Conv er
sel
y,i talsoexplores
how socialstruct
ures,cul
turalnorms,and demogr aphic char
acteri
stics i
nf l
uence
economicoutcomes.

2.Di
scusst
hepr
imar
yconcer
nsofasoci
o-economi
cst
udy
.

Answer
:Asoci
o-economi
cst
udyi
sbr
oadl
ydi
vi
dedi
ntot
hef
oll
owi
ngsect
ions:

1.empl
oymentcont
ri
but
ions

2.gov
ernmentbenef
it
s

3.ot
hersoci
o-economi
cconcer
ns