FEASIBILITY

Feasibility is concerned with whether the organization has the resources required to implement the strategy. Resources include capital, people, time, market access and expertise. Evaluation tools include:
Cash flow analysis and forecasting Break-even analysis

Resource deployment analysis

Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained. As such, a well-designed feasibility study should provide a historical background of the business or project, description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, feasibility studies precede technical development and project implementation

Five important factors

1) Technology and system feasibility
The assessment is based on an outline design of system requirements, to determine whether the company has the technical expertise to handle completion of the project. When writing a feasibility report, the following should be taken to consideration:

A brief description of the business to assess more possible factor/s which could affect the study The part of the business being examined The human and economic factor The possible solutions to the problems

At this level, the concern is whether the proposal is both technically and legally feasible (assuming moderate cost).

2) Economic feasibility
Economic analysis is the most frequently used method for evaluating the effectiveness of a new system. More commonly known as cost/benefit analysis, the procedure is to determine the benefits and savings that are expected from a candidate system and compare them with costs. If benefits outweigh costs, then the decision is made to design and implement the system. The analysis must accurately weigh the cost versus benefits before taking an action. Cost-based study: It is important to identify cost and benefit factors, which can be categorized as follows:

1. Development costs; 2. Operating costs. This is an analysis of the costs to be incurred in the system and the benefits derivable out of the system. Time-based study: This is an analysis of the time required to achieve a return on investments. The future value of a project is also a factor.

3) Legal feasibility
Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts.

4) Operational feasibility
Operational feasibility is a measure of how well a proposed system solves the problems, and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development.

5) Schedule feasibility
A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. Schedule feasibility is a measure of how reasonable the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. You need to determine whether the deadlines are mandatory or desirable.

Other feasibility factors

Market and real estate feasibility
Market feasibility studies typically involve testing geographic locations for a real estate development project, and usually involve parcels of real estate land. Developers often conduct market studies to determine the best location within a jurisdiction, and to test alternative land uses for given parcels. Jurisdictions often require developers to complete feasibility studies before they will approve a permit application for retail, commercial, industrial, manufacturing, housing, office or mixed-use project. Market Feasibility takes into account the importance of the business in the selected area.

Resource feasibility
This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies,

Cultural feasibility
In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered and these factors are to be well known. Further an enterprise's own culture can clash with the results of the project.

Financial feasibility
In case of a new project, financial viability can be judged on the following parameters:

Total estimated cost of the project Financing of the project in terms of its capital structure, debt equity ratio and promoter's share of total cost Existing investment by the promoter in any other business Projected cash flow and profitability

Agenda In agenda the following things always have very important and discussed

Location Date and Time Attendees Presenter Purpose Agenda Items

Output
The feasibility study outputs the feasibility study report, a report detailing the evaluation criteria, the study findings, and the recommendations. Feasibility report is always very helpful in analyzing the cost and other related issues during the working of the said project. When we prepare feasibility for a project then first of all we consider these points: Background information Why the project started Problem or Opportunity

Introduction to new project In this a brief introduction of the project discusses.

A brief introduction on possible solutions a list of the main objectives always prepare that what are the objectives and what will be the achievement after that project. During the feasibility report its also analyse that how much the scope have that project. It also checks that how much possibility is there to complete that project.

Functional Requirements A list of functional requirements for the new project is always prepared that what will be the requirement for the project. This is very helpful to guess the total cost of the project.

Possible solutions List of all the possible solutions prepared as alternative that if there is any mishandling than what will be the suitable Comparison After the completion of the multiple choices then the comparison of the options. Here Compare both solutions Make up values of NPV ROI

Suitability
Suitability deals with the overall rationale of the feasibility.

Does the feasibility address the mission? Does it reflect the organization's capabilities? Does it make economic sense?

Evaluation tools include strength, weakness, opportunity, threat (SWOT) analysis

Over all in all of the feasibility process includes the following points that are always helpful for the management. There is also the option that the feasibility fill be full accepted or rejected because after the feasibility it is checked that how much this project will be helpful for the achievement of the aims/objective. Title Introduction Background Objectives Requirements Possible solutions Recommendation Summary

Questions After discussing all of the feasibility reports points its concluded that feasibility is always very important for the successful project and achieving the target of that project. Because after the feasibility we are able to decide that how much the project will be beneficial for us or it may be in loss. In other word we may say that the feasibility is the forecasting about the project that what will be the cost, what time will require and whats the problem should be there.

Recommendation Recommend one solutions for the further action that will be the most appropriate one. In recommendation its always keep in mind that this is the most economically, environmental friendly, reasonable and the best solution of the objective for which we are planning that project. Support your choice with reasonable arguments that will be helpful for the further process and the selection of that feasibility will be easy.
Implementation

While project that fit the feasibility may receive additional investment, those that don't must also be addressed, either via consolidation with another product/service, divestment to another firm, immediate retirement or harvesting without further investment. Additionally, the exact means of implementing feasibility needs to be considered. These points range from: Alliances with other firms to fill capability/technology/legal gaps Investment in internal development Mergers/acquisitions of products or firms to reduce time to market