Answer to Question #172772 in Management for Prabhdeep

Question

Subject :PROJECT PLANNING AND CONTROL

1. a)What is a feasibility report? (please answer in 100 to 150 words)

b)What are the various components of feasibility report? ((please answer in 200 to 250 words)

c)Discuss the format of a good feasibility report. (please answer in 100 to 150 words)

2. a)Discuss the need and importance of understanding environment for business opportunities.(please give at least 8 points for need and 8 points for importance)

b)How the various stages of entering into a business i.e. idea generation, short listing and selection of a product/ service are made? (please answer in 150 words)

Answer 1

a. A feasibility report is a testimony that attempts to create some action. Feasibility reports are created to persuade/help the decision-makers to choose between available options. Remember that your option is not the only one; the decision-makers will probably have many to choose from. A feasibility report also determines whether or not the investigated task can be done with the number of resources available OR how many resources will be necessary to complete the task. Feasibility may be useful in many different situations, such as event planning, finances, or even remodeling your home.

b. Technical Feasibility: This area reviews the engineering feasibility of the project, including structural, civil, and other relevant engineering aspects necessitated by the project design. The technical capabilities of the personnel and the capability of the projected technologies to be used in the project are considered.

Economic Feasibility: Economic feasibility is the process of identifying the financial benefits and costs associated with a development project. It involves the feasibility of the proposed project to generate economic benefits. A benefit-cost analysis (addressing a problem or need in the manner proposed by the project compared to others, the cost of other approaches to the same or similar problem) is required.

Schedule Feasibility: How long will it take to get the technical expertise? Assess the schedule risk. What are the real constraints on project deadlines?

Operational Feasibility: Operational feasibility is mainly concerned with whether the system will be used if developed and implemented. Whether Will there be resistance from users that will affect the possible application benefits?

Financial Feasibility: Financial feasibility should be distinguished from economic feasibility. Financial feasibility involves the project organization's capability to raise the appropriate funds needed to implement the proposed project. 

Resource feasibility: This involves asking 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, and developmental procedures with company revenue prospectus.

Organizational Feasibility: This analysis is conduct to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to lunch its business successfully.

c. The nature of the business, Management, Teams, Financial and Economic Analysis, and Marketing plan. In other words, the major areas covered by a feasibility study can be divided into nine major areas, namely:

1. Introduction
2. Description of the business
3. Market consideration – A preliminary Evaluation
4. Management Team
5. Technical Specifications and Production plan
6. Marketing Plans
7. Examination of the critical risks and problems
8. Financial and Economic plans
9. Evaluation and conclusion

2a. 1. Enabling the identification of opportunities and getting the first-mover advantage:

The business environment provides many opportunities to firms to improve their performance. The firms that can scan these opportunities at an early stage get maximum benefit and leave their competitors behind.

2. Helping in the identification of threats and early warning signals or Radar effect:

Environment understanding helps an enterprise recognize qualitative information in advance, which can prepare it for facing likely challenges.

3. Tapping useful resources:

Business requires many resources like raw materials, tools, equipment, finance, labor, etc., for performing business activities. These resources are known as inputs. The business environment provides all these inputs to the business firms to carry out their activities and expects something in return.

4. Coping with the rapid changes:

The business environment is very dynamic. One can see changes like new technologies, fragmented markets, more demanding customers, heavy global competition, etc. Thus, to cope with these changes efficiently, managers must understand the environment and should adopt appropriate courses of action at the right time. It helps management become more sensitive to the ever-changing needs of customers. As a result, they can respond to such changes effectively.

5. Assisting in planning and policy formulation:

The business environment brings both threats and opportunities to a business. Hence, understanding of environment helps the management in future planning and decision making. For example, competition increases with the entry of new firms into the market.

6. Improvement in performance:

Environmental awareness provides continuing, broad-based education for management. Objective qualitative information generated by such understanding provides a strong basis for strategic thinking. The enterprises that monitor their environment closely can adopt suitable business practices to improve their performance and become leaders in the industry.

7. Image building:

Environmental understanding generates a feeling among the public that a business is sensitive and responsive to its environment. This helps in building the image or reputation of the firms.

8. Understanding its business environment helps an organization make realistic plans and ensure its effective implementation. It also helps the business enterprise in the identification of opportunities and threats. Consequently, such an enterprise is likely to succeed in achieving its goals smoothly & consistently.

b. The first and foremost stage of entering into a business is ideation. Ideas come from everywhere, can be in any form, and can be numerous. This stage of ideation involves creating a large pool of ideas from various resources, including:

Internal Sources:

The unbeatable source of idea generation starts from internal sources. Many companies are paying incentives to their employees to come up with workable ideas.

Market Research:

Companies are constantly keeping an eye on the volatile market to review the changing needs, requirements, and trends they love.

Rivals:

The company’s SWOT analysis can help you with ideation. Take a look at the offering at your rivals and find vulnerabilities and cons before strategizing your idea.

SWOT analysis:

Business organizations may require their weaknesses, strengths, opportunities, and threats to develop a feasible idea.

Consumers:

 Interviewing your consumers will definitely help you to generate the best ideas. You can conduct various review sessions and polls to come up with the best.