Week 7 - feasibility analysis

Question 1

What is a feasibility analysis?

Answer 1

The process of determining if a business idea is viable.

Question 2

• What are the four areas that a properly executed feasibility analysis explores?

PIss OFf

Answer 2

1. Product / service desirability & demand
2. Industry & market trends.
3. Organisational feasibility
4. Financial feasability

Question 3

• What is product/service feasibility?

Answer 3

An assessment of the overall appeal of the product or service being proposed relative to product desirability and product demand.

Question 4

• What is a concept test and what does it include?

Dare To Be Put Down

Answer 4

showing a preliminary description of a product or service idea, (concept statement), to industry experts and prospective customers.  Includes:
•	Description of product/service
•	Target market
•	Benefits of product 
•	Positioning relative to competitors
•	Description of management team

Question 5

• What is industry/market feasibilty?

Answer 5

An assessment of the overall appeal of the industry and the target market for the product or service being proposed.

Question 6

• What is industry attractiveness?

Answer 6

An assessment of the industries overall attractiveness. In general attractive industries include these (but are not limited to) attributes:
• Are young rather than old
• Are early rather than late in their life cycle
• Are fragmented rather than concentrated

Question 7

• What is target market attractivenss?

Answer 7

An assessment of the attractiveness of a smaller group of customers within the total market with similar needs.

Question 8

• What is organisational feasibility?

Answer 8

Determining if a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.9

Question 9

• What are the two primary issues to consider in an organisational feasibility analysis?

Answer 9

Management Prowess: the prowess, or ability, of its initial management team, whether it is a sole entrepreneur or a larger group in achieving org goals.

Organizational feasibility analysis is to determine whether the proposed venture has or is capable of obtaining sufficient resources to move forward.

Question 10

• What is financial feasibility?

Answer 10

An assessment of the cash available to the organisation for start up an initial operations. Includes:

• startup cash required
• Estimate based on similar businesses
• Overall financial attractiveness: projected sales & rate of return