Week 4 - Importance of Feasibility Study Flashcards
The importance of a feasibility study is based on
organizational desire to “get it right” before committing resources, time, or budget.
might uncover new ideas that could completely change a project’s scope
A feasibility study
Conducting a feasibility study is always beneficial to the project as
it gives you and other stakeholders a clear picture of the proposed project.
some key benefits of conducting a feasibility study:
- improves project teams’ focus
- Identifies new opportunities
- Provides valuable information for a “go/nogo” 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
Apart from the approaches to feasibility study listed above, some projects also require other constraints to be analyzed
- Internal Project Constraints
- Internal Corporate Constraints
- External Constraints
Internal Project Constraints
Technical, Technology, Budget, Resource, etc.
Internal Corporate Constraints
Financial, Marketing, Export, etc.
External Constraints
Logistics, Environment, Laws, and Regulations, etc.
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.
may also help a company’s management avoid taking on a tricky business endeavor by providing them with critical information.
Feasibility studies
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
which try to persuade financiers and banks whether putting money into a certain company venture makes sense.
