Thesis or Feasibility Study
Elective 5
Module 2: Week 3 & 4
Chapter 2: PROJECT SUMMARY
Is the first part of the study but is always written the last.
In this module we will be learning all about the creation of
project summary.
LEARNING OBJECTIVES:
At the end of the lesson, the students are exposed to be
able to:
1. Discuss the importance of project summary;
2. Describe the important points in selecting a business
trade name;
3. Discuss the mechanics in defining the industry;
4. Discuss the importance of describing the project;
5. Identify the factors in selecting the location
6. Describe the significance of an assumption; and
7. Discuss how to formulate a conclusion
I. ACTIVITY
In relation to module one, relate this module on the
business/project you want to conduct a feasibility study.
II. ABSTRACTION
Lesson 1: NATURE AND CONCEPT
The project summary presents the highlights of the
study, lists its major assumptions, and summarizes the
major findings and conclusions. The other terms for the
project are abstract, synopsis or overview.
The project summary, though it appears after the
title page and table of contents, is written only after all the
aspects of the study have been completed. It is very
important since not all readers have the luxury of time to
read every detail of the study. Oftentimes, readers check
the details only when they find the proposal financially
interesting. The project summary, therefore, should be
written in simple language and in interesting manner to
attract investors.
There are no defined or prescribed sections of a
project summary. It is recommended, though, that the
project summary have the following sections:
Sept 5, 2021 and Sept 11, 2021
1. Proposed name of business
2. Description of the industry
3. Description of the project
4. Location of the project
5. Highlights of major assumptions
6. Summary of findings and conclusion
With these sections, the total perspective of the
whole study is vividly presented to the reader.
 PROPOSED NAME OF THE
BUSINESS
In selecting a business name, several important
points should be considered. Remember that selecting a
business name is a delicate process in the business
planning. The business might be carrying the chosen trade
name for the next five decades, or more.
The business name should:
1. Be reflective of the business identity;
2. Reflect the philosophical values and culture that the
business cherishes;
3. Profess the brand identity of its product; and
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4. Be appealing to the customers
In proposing trade names, these questions need to be
answered:
1. How does the trade name look like?
2. Does it reflect the identity of the business?
3. Does it reflect the philosophical values and
organizational culture it cherishes?
4. Does it reflect the types of products or services it
produces or serves?
5. Will it attract customers’ attention?
Provide one to two brief paragraphs for this section
on the project summary.
In suggesting trade names the proponent should
observe same mandatory requirements set by the
government agencies like Department of Trade and
Industry (DTI),the Securities and Exchange(SEC),and the
Bangko Sentral ng Pilipinas (BSP).The proponents should
suggest three possible business names to choose from and
make brief explanations about the proposed trade names.
Before proposing the trade names to the investors,
the proponent should first check with DTI whether the
three suggested names already exist or not. In case a name
is already used or claimed by others, it should no longer be
suggested. If the proposed business organization is a sole
proprietorship or partnership, the proponent usually ends
at this point. However, when the proposed business firm is
a corporate entity, the proponent has to seek the approval
of the SEC for the proposed trade names. In similar
manner, the requirements of the BSP should be met.
 DESCRIPTION OF THE
INDUSTRY
This section of the project summary describes the
industry where the business belongs. A mere description,
however, will not suffice. It is very important that the
proponents cite the recent trends in the global market that
have bearing of the study. Likewise, the description should
indicate vividly current programs and thrusts of the
national government from which the proposed project will
benefit. In other words, the proponent gradually conditions
the minds of the readers on the attractiveness of the project
both in the local market and in the global arena.
In describing the industry where the proposed
business belongs, the proponent gradually should answer
the following:
1. What is the nature of the industry?
2. What are the trends in the global market?
3. What are the developments in the programs of the
national government?
4. Are there barriers in the form or higher tariffs and other
customs requirements?
5. What makes the project attractive?
6. What are the bright prospects of the proposed projects?
Provide one or two paragraphs for this section in
the project summary.
 DESCRIPTION OF THE
PROJECT
This section describes the nature of the projects,
and the product or service it will produce or serve. The
proponent should include in the description the particular
stage the project is presently in and whether the project
arises based on regional studies or is related to some
programs of the national government. In case there is
available information, the proponent may include
incentives provided by the government for such projects.
This section of the summary actually supports the
statements in the immediate preceding section by
providing specific details applicable to the business in
particular. The promoter of the study should have specific
answers to the following questions:
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1. What product or service will the business provide?
2. Is study a result of regional studies or consultations?
3. What is the potential of the project in the market?
4. Who is the major customer of the project or service?
5. What is the primary raw material required to produce
the product?
 LOCATION OF THE PROJECT
Oftentimes, we hear the provocative statement that
the project should be located in a strategic location .But
what does strategic mean?
The term strategic in the context means that the
location of the business, its head office, plant site and
outlets, should provide a competitive advantage and
ensure the attainment of maximum efficiency. Competitive
advantage means that the business has gained an edge
over its competitors that can hardly be occupied and which
provides higher profitability level. The location could
provide maximum efficiency if the business would be able
to produce the same amount of product at a lower cost.
A straight forward reason for the selection of
location should be indicated in this section. It is
emphasized that all underlying reasons for the project are
viewed valuable from the point of view of prospective
investors, and not from the side of the proponent.
The following questions should be answered in this
section:
1. What is the prevailing peace and order condition in the
proposed location?
2. Are there primary competitors within the vicinity of the
project?
3. What are the sources of raw material, labor, and utilities? based on either of the following:
4. What is the proximity of the location to the market?
5. Is there available transportation?
6. How far is the plant from the households?
7. What is the prevailing climate , temperature or weather
condition in the area?
In providing information about the location, one or two
paragraphs may be utilized.
 HIGHLIGHTS OF MAJOR
ASSUMPTIONS
A feasibility study, in its simplest term, is a
business forecast based on a mixture of absolute data and
professional opinion of experts in the field. The setting of
assumptions has already been accepted as a normal
procedure in conducting a study. There are widely
accepted assumptions in the field of economics, operation
research or quantitative analysis, accounting and other
specialized fields .Assumptions facilitate the conduct of
the study, and are required in some mathematical and
quantitative analysis.
However, assumptions, particularly in a feasibility
study, do not simply arise without any bases. They are
1. Past experience of other similar business
2. Trend in the local and global markets
3. Programs of the regional and national governments
4 .Economic, financial and monetary indicators
5. Economic, financial, and monetary indicators
The setting of assumptions is sometimes the
bottleneck of the study, and may become a constraint if
these are not reliable. Assumptions should be realistic and
measurable. This is the basic guiding principle. Remember
that investors are updated on the current or recent financial
data from exchanges, financial organizations, Bangko
Sentral ng Pilipinas, the Security and Exchange
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Commission, and other government agencies. Using
unrealistic assumptions spawns an element of doubt as to
the reliability of study among investors. They may lose
interest on the proposed project.
Assumptions are needed to answer the following
questions:
1. What is the market projection in terms of demand and
supply?
2. What is expected market share of the business?
3. How much is the expected costs of the product or
services?
4. What is the expected initial selling price of the product?
5. How many units will be produced every year?
6. What is the expected cost of the project?
7. How will the project be financed?
8. What is the expected rate of return on investment?
In the project summary, major assumptions are
usually provided with short descriptions, including their
quantitative bases.
Lesson 2: Summary of Finding and
Conclusions
This is usually the last section of the project
summary. It presents the findings on every aspect of the
study, and the concluding remarks and findings of the
proponent based facts.
Usually, a conclusion is reached on the following
areas:
1. Market study
2. Technical study
3. Management study
4. Financial study
THE proponent should give a specific conclusion
and recommendation on each of these aspects and should
provide a general conclusion on the whole study which he
deems appropriate based on the facts and data.
It is a must for the proponent to provide answers
the following questions:
1. Is the project feasible in terms of the market?
2. Is the project feasible in terms of the technical aspect?
3. Is the project feasible in terms of organizational set up?
4. Is the project feasible in terms of financial operation?
In case the answers to these four major questions
are all positive, then the general conclusion of the
proponent would indicate a high probability of the
feasibility of the proposed project. The promoter, however,
should never vouch for the attainment of the findings and
conclusion.
However, if one of the answers turns negative, then
the general conclusion on the feasibility of the project
cannot be reached. The proponent should clearly indicate
this situation in his concluding remarks. Based on all of
these analyses, recommendations, and conclusions clearly
indicate in the study, the user or prospective investor
makes his/her final decision. His /her decision may
sometimes be entirely different from the recommendations.
The decisions of the investors can only be either
implement the project or not. Implementation of the
proposal means commitment of funds; non –
implementations means that the project is discarded or
aborted.
Once the investor commits funds for the
implementation of the project, the proponent next prepares
a business plan. The business plan is a thorough and
detailed evaluation and scrutiny of different factors and
forces of the business environment. It presents the step-by-
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step procedures on how to implement the proposed
business.
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IV. APPLICATION
INSTRUCTION : Choose only two from among this
problems. Write your answers on a separate sheet of a log
bond paper. Submit it on deadline.
1. Think a proposed project to undertake, and identify
three possible trade names to us . Write the possible
reasons for every trade/business name selected.
2. Izza has requested a consultancy office to prepare a
feasibility study on opening a trade school in Hindang,
LEYTE. The proponent suggested the following trade
names:
a. Hindang Trade School
b. Hindang Institute of Technology
c. Hindang Vocational School
Discuss what identity each proposed trade name
reflects. Write possible culture and philosophical values
are cherished by each proposed trade name.
3. An investor is asking you to prepare a feasibility study INSTRUCTION: Write your answers on a separate
on putting up a mango processing plant in Davao City. sheet of long bond paper. Submit it -----------
Make a brief description of the industry that will
QUESTIONS:
attract the investor to the project. Indicate the worldwide
1. Describe the importance of a project summary.
demand for mango products and the demand trend in
2. Discuss the process of describing the industry
neighbouring Asian countries. Do not fail to mention in
your description the total revenue realized in previous 3. Discuss the importance of describing the nature of the
years. Make your own assumption and figures. business.
4. Identify the important factors in selecting the location.
Limit the description to two paragraphs. 5. Why are assumptions important in selecting the location?
6. Discuss how a conclusion is reached in a feasibility
4. You have been solicited to prepare a feasibility study to
study.
construct a seaweed processing plant either along the
coastline of Saranggani Province or General Santos City . V. REFERENCE:
Indicate your proposed plant site for the project, If  Aduana, Nick L. Writing Feasibility Study, 1st Ed 2015.
you have not been to the place, just assume the terrain of Quezon City. C&E Publishing Inc.
the locality, availability of materials, transportations,
utilities and even the cost of the land. Use at least two
Prepared by:
paragraphs to describe your preference for the location.
KRISZAR A. NAVARROZA
5. Your study reveals that candle making, with minimal Instructor
cost of investment, is feasible in all areas. Make a
conclusion applicable to the areas and to the whole study 0977-8018575
in general. Use at least two paragraphs for your conclusion. mkan122385@gmail.com
IV. ASSESSMENT ( TEST YOUR
UNDERSTANDING)