FEASIBILITY STUDY

A feasibility study is part of the

initial design stage of any
project/plan. It is conducted in What is
order to objectively uncover the 
strengths and weaknesses of a
Feasibility
proposed project or an existing study
business. It can help to identify
and assess the opportunities and
threats present in the natural
environment, the resources
required for the project, and the
prospects for success. TREY 2
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 It is conducted in order to
find answers to the following
questions:
What is
1. Does the company possess Feasibility
the required resources and
technology?
study
2.Will the company receive a
sufficiently high return on
its investment?

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 Steps in a
Feasibility Study

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Conducting a feasibility study involves the following steps:
1. Conduct preliminary analyses.
2. Prepare a projected income statement. What are the possible revenues
that the project can generate?
3. Conduct a market survey. Does the project create a good or service that is
in demand in the market? What price are consumers willing to pay for the
good or service?
4. Plan the organizational structure of the new project. What are the staffing
requirements? How many workers are needed? What other resources are
needed?
5. Prepare an opening day balance of projected expenses and revenue
6. Review and analyze the points of vulnerability that are internal to the
project and that can be controlled or eliminated.
• Decide whether to go on with the plan/project. TREY 5
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SEVEN ELEMENTS
OF A FEASIBILITY
REPORT:

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You need to persuade the
decision maker to even
consider any sort of
alternative. You need to
convince them to even
read your report first. Tell
them what they will gain
personally or as an
organization by
considering your work.

INTRODUCTION
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 Criteria/Constraints
You must specifically map out the criteria of what the ideal outcomes are. This
will allow you to make practical and logical decisions. You can present the
criteria in your feasibility report in one of two ways. First, you can separate the
criteria into its own section. This is best when you have a extensive report and
you need to go in-depth with the explanation. Second, you can incorporate the
criteria throughout your report as the criteria become relevant. However, it is
important to realize that whichever strategy you chose make sure that the
criteria is introduced early in the report. It is also very important to map out the
constraints of your suggested solutions. This will show the audience that you
understand and acknowledge the fact that no solution is perfect. This will also
make sure that the audience makes the decision in their best interest.
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 It is very important to
present facts that are
accurate and relevant. You
should state the reliable
sources you used and what
method they came from
(internet, interview, book,
etc.). Without a credible
research method or
credible sources your
document itself will lack
credibility.
METHOD
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OVERVIEW OF ALTERNATIVE OPTIONS
You must underline the key
features of each possible
option. Make sure they are
easy to understand and
presented in a friendly
layout. Keep in mind that
the goal is to allow your
audience to make the best
decision.
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 This should be the bulk of
your report, you must
evaluate the options using
the criteria you created.
Add graphs, charts, etc. to
show that you have
studied your options, and
EVALUATION
have come up with
statistics that back up your
reasons as to why your
alternative beats the
competition.
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You need to state the
conclusion you have
came up with. How did
you evaluate the
alternatives? And then
from there, which
alternative best fit your
organization.

CONCLUSIONS
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RECOMMENDATIONS
You need to use your
experience and
knowledge in order
to state which option
you think should be
adopted.

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 CONTENTS OF A
FEASIBILITY
REPORT

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 a. Background of the study
b. Objectives of the study
c. Scope and Limitation
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 a.Product description
b.Industry profile
c.SWOT Analysis
i. Strength
ii.Weaknesses
iii.Opportunity
iv.Threats
d.Demand and Supply Analysis
e.Marketing Plan
i. Promotion
ii.Pricing

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MARKETING STUDY
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 TECHNICAL AND
PRODUCTION
a.Process flow/operation
process
b.Machineries and
equipment
c.Location

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 ORGANIZATIONAL
AND MANAGEMENT
STUDY

a.Forms of Organization
b.Organizational structure
c.Duties and responsibilities

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 FINANCIAL
STUDY
a.Capital
requirements
b.Preparation of
financial statements
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