Feasiblity Studies Flashcards
What is the definition of feasibility studies ?
A detailed analysis that considers all of the critical aspects of a proposed project in order to determine that likelihood of it succeeding.
Advantages of completing a feasibility study?
Helps formulate the most important and critical considerations for a new project.
Helps set out guidelines for the design+developing stages that follow.
Will ultimately establish whether or not a product is commercially viable.
What are the factors that should be taken into account when discussing feasibility?
Technical.
Market.
Commercial.
Risk.
What is technical feasibility?
Before launching a new product, they take into account the proposed plans by analysing the process. This includes tools, technology, materials, labour and logistics.
Technical feasibility it to help make informed decisions regarding production in the early stages of the product life cycle.
Advantages of technical feasibility?
Enhances project results
Risk minimisation- can identify potential obstacles and address them proactively.
Resource allocation- can allocate resources effectively, ensuring a higher chance of success.
Cost saving- prevents investing in projects that may not be feasible, as the project has been developed.
Disadvantages of technical feasibility?
Lack of technical expertise- team may lack skills, leading to project delays, errors or failure.
Slow feasibility study process
Ignoring competition-may result in suboptimal solutions.
Working with the wrong team- may lack specific skills.
What is market feasibility?
This examines whether there is place in wither market for a new product. It identifies who the target market is, their buying habits and patterns. Also, it looks into past, current and future competitors.
Advantages of market feasibility?
Gain competitive advantage.
Identifying potential customers.
Understanding marketing demand.
Disadvantages of market feasibility?
Time-consuming
Costly
What is commercial feasibility?
This evaluates the profitability and viability of a proposed project of business. It aims to objectively access the potential of success and return on investments.
Why is Risk one of the factors in feasibility?
This is because feasibility studies could identify risks with the launch of a new product but allows manufacturers to prepare in advance for the best ways to minimise the risk.
