INDUSTRY FEASIBILITY ASSESSMENT

YOU’RE NOT CURRENTLY OPERATING IN THIS INDUSTRY, BUT YOU WOULD LIKE TO ENTER. NECESSARY STEPS:

1. COMPLETE AN ENVIRONMENTAL ASSESSMENT Industry overview Competitive environment Macro environment Generate likely environmental scenarios Identify key success factors in the industry 2. STUDY 3 OR MORE FIRMS THAT OPERATE IN THE INDUSTRY Scrutinize each firm’s operations Identify its strengths, weaknesses and competitive advantages

3. BUILD A FAVORABLE FEASIBILITY ARGUMENT Identify and justify a master strategy and plan Gather evidence that each feasibility criterion can be met Has sufficient proof been found to start this business? Convince me!

where are the opportunities and threats? .ENVIRONMENTAL ASSESSMENT A) THE COMPETITIVE ENVIRONMENT (OUTLINE OPPORTUNITIES AND THREATS) How big is the industry? . what is the competitive environment like in this industry? Clearly reveal the opportunities and threats? B) THE MACRO ENVIRONMENT (OUTLINE OPPORTUNITIES AND THREATS) Political currents (supports. productivity..How large is each? Who are the largest competitors? …Which segments are they in? Are there vacant niches? …Are needs and clients being neglected? In general. pending legislation) Economic factors (inflation. controls.How many segments? . unemployment) Socio-cultural/demographic shifts and changes Technological changes that will have impact in the industry Once again..

2 C) ENVIRONMENTAL SCENARIOS (FIVE TO SEVEN YEAR SCENARIOS) Describe 4-6 environmental/competitive trends that will evolve over the next 5-7 years. . D) KEYS TO SUCCESS IN THIS INDUSTRY (NAME AT LEAST FIVE) What must any firm in this industry do to create a sustainable competitive advantage? Justify your claims. Identify optimistic and pessimistic scenarios for each.ENVIRONMENTAL ASSESSMENT -. Clearly reveal the most-likely (expected) environmental/competitive scenarios to be encountered in the next 5-7 years.

E) Reveal how each firm measures up on the key success factors. and success in managing the task environment). ASSESS AT LEAST THREE ORGANIZATIONS THAT COMPETE IN THIS INDUSTRY (REVEAL STRENGTHS.. portfolios. resources. etc) B) Evaluate financial and market performance (strength/weaknesses) C) Assess the vision. structure. weaknesses. WEAKNESSES AND IMPLICATIONS FOR EACH) A) Provide a brief company background (products. strategies. .Is the strategy working? (strengths/weaknesses) D) Other company strengths/weaknesses assessed (personnel. etc.COMPANY EVALUATIONS 2. F) What is the overall condition of each firm? Summarize their strengths. and competitive advantages (if any). locations. size. lines of business. .

POLICIES AND DAILY PROCEDURES HAVE BEEN DEVELOPED AND PUBLISHED IN AN OPERATING MANUAL 5. AN ADEQUATE PHYSICAL FACILITY HAS BEEN DESIGNED AND A GOOD LOCATION HAS BEEN FOUND 4. OUR BASIC OPERATING PHILOSOPHY.FEASIBILITY STUDY CRITERIA PROVE THAT THE FOLLOWING ARE TRUE: 1. OUR STAFFING PLAN HAS BEEN FORMULATED AND QUALIFIED WORKERS ARE AVAILABLE . WE HAVE A UNIQUE STRATEGY THAT WILL GIVE US A COMPETITIVE ADVANTAGE 2. THERE IS SUFFICIENT DEMAND TO SUPPORT A NEW COMPANY ENTERING THIS INDUSTRY 3.

2 6. 10. REALISTIC CAPITAL BUDGET ESTIMATES HAVE BEEN DEVELOPED TO COVER ALL START-UP COSTS OUR OPERATING BUDGET ESTIMATES (PRO-FORMA STATEMENTS FOR 3 YEARS) SHOW A PROFIT CAN BE SUSTAINED OUR DETAILED MARKETING PLAN WILL ATTRACT SUFFICIENT CUSTOMERS TO MEET REVENUE PROJECTIONS OUR RISK-MANAGEMENT PLAN WILL COVER ALL POSSIBLE OPERATING EXPOSURES AND LIABILITIES WE HAVE ADEQUATE FINANCIAL RESOURCES TO COVER ALL THE COSTS OF THIS VENTURE 7.FEASIBILITY STUDY CRITERIA -. 8. 9. IS THERE SUFFICIENT EVIDENCE TO SAY “YES” TO EACH OF THESE CRITERIA? …DO YOU HAVE ENOUGH PROOF? .

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