PROJECT MANAGEMENT Project Feasibility study

2. Business Development Feasibility
Study
• A business development feasibility study is an analytical tool
that is used to determine if a particular business concept is
viable.
• It is heavily weighted towards market research and analysis.
• It must provide clear evidence to the stakeholders that a
concept is viable.
• Only 1 or 2% of new business ideas are actually viable - that's
why we are not all millionaires!
• So the business development feasibility study is a very useful
tool that must be used to avoid the waste of valuable
resources.
• If the results of the study show that the project is feasible then
it can be developed into a full scale business plan

3. The business development feasibility study would
include sections dealing with:
1. Introduction
2. Details of the product or service
3. Identification of any technical issues
4. The existing market and the competition
5. The business structure
6. Marketing and sales strategy
7. Operational parameters
8. Staffing levels
9. Patents, trademarks etc
10. Regulatory issues
11. Environmental issues
12. Risk analysis
13. Profit and loss and balance sheet forecasts
14. Cash flow and capital requirements
15. Recommendations and conclusions

4. Difference Between Pre-feasibility Studies, Business Development
Feasibility Studies And Project Development Feasibility Studies
They are all similar but because the final product is different there is a
different emphasis on the various elements of each study.
For instance if a firm is planning to establish a new business making
shoes in one of four countries somewhere in Europe The Pre-
feasibility study might include:
1. Introduction to the basic social and business infrastructure of each
country
2. The skills of the local workforces
3. The availability of local raw materials and their cost and quality
4. The manufacturing facility
5. The social, political and economic risks
6. The incentives available
7. The planning and regulatory regime
8. Recommendations of the country of choice and terms of reference
for a feasibility study

5. If an established international shoe-maker is planning to establish a new business
making shoes in Italy The business feasibility study might include the following
elements:
1. Introduction
2. Details of the range of shoes
3. The machinery to be used
4. The market for the shoes and the competition
5. The business structure of the foreign entity
6. Marketing and sales strategy
7. Operational parameters
8. Staffing levels
9. Patents, trademarks etc
10. Regulatory issues
11. Environmental issues
12. Risk analysis
13. Profit and loss and balance sheet forecasts
14. Cash flow and capital requirements
15. Recommendations and conclusions

6. If an established international shoe-maker is planning to build a
factory extension alongside its existing operation
The Project Development Feasibility Study might include:
1. Introduction
2. Details of the new range of shoes
3. Examination of new manufacturing techniques and the
machinery required
4. How the new range will compete in the existing market
and the competition
5. The additional managers required
6. Staffing levels
7. Planning and local issues
8. Risk analysis
9. Profit and loss and balance sheet forecasts
10. Cash flow and capital requirements
11. Recommendations and conclusions

7. The feasibility study outlines and analyzes several
alternatives or methods of achieving business success.
 So the feasibility study helps to narrow the scope of
the project to identify the best business model. The
business plan deals with only one alternative or
model.
The feasibility study must narrow the scope of the
project to identify and define two or three scenarios or
alternatives.
 The consultant conducting the feasibility study may
work with the group to identify the “best” alternative
for their situation. This becomes the basis of the
business plan.

8. The feasibility study is conducted before the business
plan.
 A business plan is prepared only after the business
venture has been deemed to be feasible.
 If a proposed business venture is considered to be
feasible, then a business plan constructed that provides a
“roadmap” of how the business will be created and
developed.
The business plan provides the “blueprint” for project
implementation. If the venture is deemed not to be
feasible, efforts may be made to correct its deficiencies,
other alternatives may be explored, or the idea is dropped.

9. Project & project management
The past several decades have been marked by rapid
growth in the use of project management as a means
by which organizations achieve their objectives. In the
past, most projects were external to the organization—
building a new skyscraper, designing a commercial ad
campaign, launching a new product etc.
“A temporary endeavor undertaken to create a unique
product or service” (Project Management Institute,
2004, p. 5).

10. Direct Project Goals
Performance
Cost
 Time.

11. The Project Manager
The Project Manager (PM) Is Expected To;
Integrate all aspects of the project
Ensure that the proper knowledge and resources are
available when and where needed.
Above all, ensure that the expected results are produced
in a timely, cost-effective manner.
The challenges are many and the risks significant, but so
are the rewards of success. Project managers usually
enjoy organizational visibility, considerable variety in
their day-to-day duties, and often have the prestige
associated with work on the enterprise’s high-priority
objectives.

12. Trends in Project Management
Achieving Strategic Goals.
Achieving Routine Goals.
Improving Project Effectiveness.
Virtual Projects.

13. THE PROJECT LIFE CYCLE
Most projects go through similar stages on the path
from origin to completion, these stages are known as
the project’s life cycle.
The project is born (its start-up phase) and a
manager is selected, the project team and initial
resources are assembled, and the work program is
organized.
Then work gets under way and momentum quickly
builds. Progress is made. This continues until the
end is in sight.

14. Components Of Project Analysis
Important Components of project analysis are;
1. Market analysis
2. Technical analysis
3. Financial analysis
4. Economic analysis
5. Ecological analysis

15. 1. Market analysis
Market analysis
Market share
Potential
market

16. 2. Technical analysis
technical
analysis
Sensible
choice
Technical
viability

17. 3. Financial analysis
Financial analysis
ReturnRisk

18. 4. Economic analysis
Economic
analysis
Other impacts
Benefits and cost
in shadow prices

19. 5. Ecological analysis
Ecological
analysis
Restoration
measures
Environmental
damage

20. Assignment # 2
Conduct market analysis and submit report in next
session.
 Trends of demand and supply of the proposed project idea

21. Thanks to Allah
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