Department: BBA

Name: SAUGATA PAUL

Semester: 6
Roll No: 33405021017
Subject Name: Project
Management
Subject Code: BBA601
Topic :Feasibility study of Project
 Introduction
In order to determine the chance of a project succeeding,
a feasibility study examines every aspect that is crucial
to the project's success. ROI, or return on investment, is
a key indicator of business performance since it
represents the projected returns from the project.
The process of arranging, planning, and managing
resources to successfully accomplish particular project
goals and objectives is known as project management. A
feasibility study is an initial investigation to ascertain
the merits and viability of a proposed project or
enterprise.

A feasibility study aims to provide an independent assessment that

examines all aspects of a proposed project, including technical, economic,
financial, legal, and environmental considerations. This information then
helps decision-makers determine whether or not to proceed with the
project.
In a feasibility study, a proposed plan or project is evaluated for its
practicality. As part of a feasibility study, a project or venture is evaluated
for its viability in order to determine whether it will be successful.
 Types of Feasibility Study
A feasibility analysis evaluates the project’s potential for success; therefore,
perceived objectivity is an essential factor in the credibility of the study for
potential investors and lending institutions. There are five types of feasibility
study—separate areas that a feasibility study examines, described below.
 Technical Feasibility:
The organization's technological resources are the main subject of this
evaluation. It aids in the assessment of an organization's technical team's
ability to translate concepts into functional systems and the capacity of its
technical resources. Evaluating the suggested system's hardware, software,
and other technical needs is another aspect of technological viability. To use
an implausible example, no organization would want to attempt to install Star
Trek transporters inside its structure as this endeavor is not now technically
possible.
 Economic Feasibility :
This assessment typically involves a cost/ benefits analysis of the project,
helping organizations determine the viability, cost, and benefits associated
with a project before financial resources are allocated. It also serves as an
independent project assessment and enhances project credibility—helping
decision-makers determine the positive economic benefits to the organization
that the proposed project will provide.
 Legal Feasibility:
This assessment investigates whether any aspect of the proposed project
conflicts with legal requirements like zoning laws, data protection acts or
social media laws. Let’s say an organization wants to construct a new office
building in a specific location. A feasibility study might reveal the
organization’s ideal location isn’t zoned for that type of business. That
organization has just saved considerable time and effort by learning that
their project was not feasible right from the beginning.
 Operational Feasibility:
This assessment involves undertaking a study to analyze and determine
whether and how well—the organization’s needs can be met by completing
the project. Operational feasibility studies also examine how a project plan
satisfies the requirements identified in the requirements analysis phase of
system development.
 Market feasibility:
The market feasibility portion of your report provides the reader with
insightful information about company statistics, market research and the
future outlook for the company. Start by summarizing your company's
industry. Discuss its history, current practices and trends along with future
projections for the industry as a whole.
Then you can start narrowing your focus to discuss how your company fits
within this industry.
List your top competitors, your primary sources of revenue, sales figures and
potential niche areas you could pursue to expand your customer base.
The market feasibility section helps your reader gain more of an
understanding of your company, what it has to offer and how your feasibility
project could benefit its growth.

Benefits of a Feasibility Study

Preparing a project's feasibility study is an important step that may assist
project managers in making informed decisions about whether or not to
spend time and money on the endeavor. Feasibility studies may also help a
company's management avoid taking on a tricky business endeavor by
providing them with critical information.
An additional advantage of doing a feasibility study is that it aids in the
creation of new ventures by providing information on factors such as how a
company will work, what difficulties it could face, who its competitors are,
and how much and where it will get its funding from. These marketing
methods are the goal of feasibility studies, which try to persuade financiers
and banks whether putting money into a certain company venture makes
sense.
 Importance of Feasibility Study
The importance of a feasibility study is based on organizational desire to
“get it right” before committing resources, time, or budget. A feasibility
study might uncover new ideas that could completely change a project’s
scope. It’s best to make these determinations in advance, rather than to
jump in and to learn that the project won’t work. Conducting a feasibility
study is always beneficial to the project as it gives you and other
stakeholders a clear picture of the proposed project.
Below are some key benefits of conducting a feasibility study:
 Improves project teams’ focus
 Identifies new opportunities
 Provides valuable information for a “go/no-go” decision
 Narrows the business alternatives
 Identifies a valid reason to undertake the project
 Enhances the success rate by evaluating multiple parameters
 Aids decision-making on the project
 Identifies reasons not to proceed
Internal Project Constraints: Technical, Technology, Budget, Resource,
etc.
Internal Corporate Constraints: Financial, Marketing, Export, etc.
External Constraints: Logistics, Environment, Laws, and Regulations, etc.
 7 Steps to Do a Feasibility Study
1. Conduct a Preliminary Analysis:
A preliminary investigation is necessary to determine whether a full
feasibility study is warranted. During this stage, key information will be
gathered to assess the project's potential and make a preliminary decision
about its feasibility. This should include a review of relevant documents,
interviews with key personnel, and surveys of potential customers or users.
2. Prepare a Projected Income Statement:
To do a feasibility study, you must create a projected income statement.
Your projected income statement will show how much money your
business is expected to make in the coming year. It will include both your
estimated revenue and your estimated expenses. This document will be
essential in helping you make informed decisions about your business.
3. Conduct a Market Survey, or Perform Market Research:
Conducting market research is an important step in any feasibility study. By
understanding the needs and wants of your potential customers, you can
determine if there is a market for your product or service. You can also get
an idea of what your competition is doing and how to best position your
business to meet the needs of your target market.
4. Plan Business Organization and Operations:
When starting a business, one of the first things you need is to plan your
organization and operations. This involves creating a structure for your
company and figuring out the logistics of how you will run it.
5. Prepare an Opening Day Balance Sheet:
The opening day balance sheet is a snapshot of the company's financial
position at the beginning of the business venture. The purpose of the
opening day balance sheet is to give an idea of the amount of money that
the company has to work with and track its expenses and income as they
occur.
6. Review and Analyze All Data:
The feasibility study should include reviewing and analyzing all data
relevant to the proposed project. The data collected should be verified
against source documentation, and any discrepancies should be noted. The
purpose of the feasibility study is to provide a basis for making a decision,
and the data should be sufficient to support that decision.
7. Make a Go/No-Go Decision:
It is important to know when to cut your losses when starting a business.
The go/no-go decision in a feasibility study comes in. The go/no-go
decision is a key part of a feasibility study, and it can help you determine
whether or not your business idea is worth pursuing.
 Conclusion
This article introduces the concept of a feasibility study and provides a few
tips on conducting one. A feasibility study is an important tool for
evaluating a project before starting it. By understanding the feasibility of a
project, you can make better decisions about whether to move forward.

The goal of the feasibility study is to present a thorough examination of

the possible advantages and difficulties of setting up a micro grid for
renewable energy in urban settings. Stakeholders can decide whether a
project is viable and sustainable by considering its technical, economic,
market, and environmental factors. The study's conclusions will provide a
solid basis for future strategic planning and decision-making procedures.

We hope this helped you understand the concept of feasibility study better.
To learn more about similar project management concepts, explore our
library of Project Management articles or check out our Post Graduate
Program in Project Management that covers new trends, emerging
practices, tailoring considerations, and core competencies required of a
Project Management professional.