Feasibility Analysis - Revision history

Tkokotas at 17:46, 16 November 2018

2018-11-16T17:46:39Z

← Older revision		Revision as of 17:46, 16 November 2018
Line 1:		Line 1:
			''Developed by Iga Cichecka''


	==Abstract==		==Abstract==

Iga: /* Definition */

2018-02-26T19:15:09Z

Definition

← Older revision		Revision as of 19:15, 26 February 2018
Line 6:		Line 6:

	==Definition==		==Definition==
	'''Feasibility study''' is an analytical tool used to asses the likelihood of the success of the project. It supports decision making process (usually before the implementation stage).		'''Feasibility study''' is an analytical tool used to asses the likelihood of the success of the project. It supports decision making process (usually before the implementation stage) <ref>Page 401, 2017, Exploring Strategy: Text and Cases.</ref>.

	==Application==		==Application==

Iga: /* Definition */

2018-02-26T19:14:29Z

Definition

← Older revision		Revision as of 19:14, 26 February 2018
Line 6:		Line 6:

	==Definition==		==Definition==
			'''Feasibility study''' is an analytical tool used to asses the likelihood of the success of the project. It supports decision making process (usually before the implementation stage).

	==Application==		==Application==

Iga: /* Annotated Bibliography */

2018-02-26T19:03:08Z

Annotated Bibliography

← Older revision		Revision as of 19:03, 26 February 2018
Line 116:		Line 116:
	==References==		==References==
	<references />		<references />

	~~==Annotated Bibliography==~~

	~~Bryce Tim, ''The Elements of a Good Feasibility Study'', 2015~~

Iga: /* Evaluation */

2018-02-26T18:57:41Z

Evaluation

← Older revision		Revision as of 18:57, 26 February 2018
Line 95:		Line 95:
	The assessment of feasibility study is based on the assessments of all its components. The evaluation is individual for each study - the components and priorities differ between the projects and there is no single pattern. In order to have wider perspective the outcomes may be compared to similar business cases.		The assessment of feasibility study is based on the assessments of all its components. The evaluation is individual for each study - the components and priorities differ between the projects and there is no single pattern. In order to have wider perspective the outcomes may be compared to similar business cases.

	However, there are some universal conditions which should be fulfilled when presenting the outcomes of the study. First and foremost they should be as concise as possible and easy to understand. When applicable, the cause and effect relationships should be clearly stated <ref>Page 6, 2000, Cooperative Feasibility Study Guide.</ref>. The most important part of the evaluation is the final conclusion - weather the studied project is feasible or not. This part should include pros and cons which influenced the final decision.		However, there are some universal conditions which should be fulfilled when presenting the outcomes of the study. First and foremost they should be as concise as possible and easy to understand. When applicable, the cause and effect relationships should be clearly stated <ref>Page 6, 2000, Cooperative Feasibility Study Guide.</ref>. The most important part of the evaluation is the final conclusion - weather the studied project is feasible or not <ref>Page 401, 2017, Exploring Strategy: Text and Cases.</ref>. This part should include pros and cons which influenced the final decision.

	If the study has been conducted by an external consultancy the results and conclusions should be discussed with the project team members before accepting the study.		If the study has been conducted by an external consultancy the results and conclusions should be discussed with the project team members before accepting the study.

Iga: /* How to organise a study */

2018-02-26T18:56:48Z

How to organise a study

← Older revision		Revision as of 18:56, 26 February 2018
Line 22:		Line 22:


	''' 2. Group characteristics''' - prior to conducting a feasibility study a group of project members should be wisely chosen. Motivation and ambitions of the members are key to lead to the project’s implementation. However, at different stages of the project a knowledge of specialists may be needed, e.g. lawyers. analytics, etc. It is essential to identify which actors may be needed in the project and most importantly - establish a strong leadership team. The group should depend on the scale and scope of the project as well.		''' 2. Group characteristics''' - prior to conducting a feasibility study a group of project members should be wisely chosen. Motivation and ambitions of the members are key to lead to the project’s implementation. However, at different stages of the project a knowledge of specialists may be needed, e.g. lawyers. analytics, etc <ref>Page 400, 2017, Exploring Strategy: Text and Cases.</ref>. It is essential to identify which actors may be needed in the project and most importantly - establish a strong leadership team. The group should depend on the scale and scope of the project as well.

Iga: /* Components of the study */

2018-02-26T18:56:14Z

Components of the study

← Older revision		Revision as of 18:56, 26 February 2018
Line 85:		Line 85:


	'''Economical Feasibility''' - is usually the most prioritised component of the feasibility study. It supports a decision making process more than other components, since even if the analysis has positive outcomes, if the economical feasibility is negative, then the project usually would not get finalised (in this form).  Economical feasibility study is often conducted as a cost-benefit analysis. The estimated costs and revenues of the project are being compared. In the majority of cases, if the costs overgrow the expected revenues then the project is considered as unfeasible. The economical analysis is the most complex one, since it should include spendings on all the factors of the project: one-off costs, temporary costs, permanent costs, etc. The study should show the expected cash flow scheme. Moreover, the expected spendings may change throughout the project, hence the economical feasibility study should never be considered finished.		'''Economical Feasibility''' - is usually the most prioritised component of the feasibility study. It supports a decision making process more than other components, since even if the analysis has positive outcomes, if the economical feasibility is negative, then the project usually would not get finalised (in this form)<ref>Page 399, 2017, Exploring Strategy: Text and Cases.</ref>.  Economical feasibility study is often conducted as a cost-benefit analysis. The estimated costs and revenues of the project are being compared. In the majority of cases, if the costs overgrow the expected revenues then the project is considered as unfeasible. The economical analysis is the most complex one, since it should include spendings on all the factors of the project: one-off costs, temporary costs, permanent costs, etc. The study should show the expected cash flow scheme. Moreover, the expected spendings may change throughout the project, hence the economical feasibility study should never be considered finished.

	During the economical analysis administrative solutions may also be decided on, e.g. how the finances would be documented, how the cash flow would be controlled. The graphical representation showing project areas and the financial balance for each of them may also help to identify the main sources of revenues and spendings in the project.		During the economical analysis administrative solutions may also be decided on, e.g. how the finances would be documented, how the cash flow would be controlled. The graphical representation showing project areas and the financial balance for each of them may also help to identify the main sources of revenues and spendings in the project.

Iga: /* How to organise a study */

2018-02-26T18:45:13Z

How to organise a study

← Older revision		Revision as of 18:45, 26 February 2018
Line 25:		Line 25:


	'''3. Group decisions''' - since the outcomes of the feasibility study may be used as a supportive argument in decision making process, it is useful to clarify the attitude of group members towards decision making. It is a key issue if they are willing to invest into the prior-implementation study? If they are a risk takers or prefer to play it safe? Are they fast to decide or rather tend to elaborate for a long time on the best solution? In addition, it should be decided together with representatives if the costs of the study do not exceed the costs of potential failures. Possibly on this stage one can establish a guideline for future decision-making.		'''3. Group decisions''' - since the outcomes of the feasibility study may be used as a supportive argument in decision making process, it is useful to clarify the attitude of group members towards decision making. It is a key issue if they are willing to invest into the prior-implementation study? If they are a risk takers or prefer to play it safe? Are they fast to decide or rather tend to elaborate for a long time on the best solution? In addition, it should be decided together with representatives if the costs of the study do not exceed the costs of potential failures. Possibly on this stage one can establish a guideline for future decision-making <ref>Page 6, 2000, Cooperative Feasibility Study Guide.</ref>.

Iga: /* Components of the study */

2018-02-26T18:43:35Z

Components of the study

← Older revision		Revision as of 18:43, 26 February 2018
Line 53:		Line 53:
	As stated, the components of feasibility study differ between the studies and should be individually chosen for each business case. The list presented below points out the most common components.		As stated, the components of feasibility study differ between the studies and should be individually chosen for each business case. The list presented below points out the most common components.

	'''Technical Feasibility''' - before proceeding with the next stages of the project it is essential to make sure that technological equipment needed to finalise it is available on the market, the group can afford renting or buying it in the demanded quantity. It is also crucial to check weather the technology can be transported to the site of the project and if it can work properly under the foresaw conditions. The costs of maintenance of the technology are often overlooked such as energy consumption. If machines are used in the project, in order to estimate the production capacity the production time ratio as well as the amount of the input material ought to be calculated before. The technological issues also include the spatial demands of the project.		'''Technical Feasibility''' - before proceeding with the next stages of the project it is essential to make sure that technological equipment needed to finalise it is available on the market, the group can afford renting or buying it in the demanded quantity. It is also crucial to check weather the technology can be transported to the site of the project and if it can work properly under the foresaw conditions. The costs of maintenance of the technology are often overlooked such as energy consumption. If machines are used in the project, in order to estimate the production capacity the production time ratio as well as the amount of the input material ought to be calculated before. The technological issues also include the spatial demands of the project <ref>Page 191, 2005, Entrepreneurship and Business Innovation.</ref>.

Iga: /* Evaluation */

2018-02-26T18:40:04Z

Evaluation

← Older revision		Revision as of 18:40, 26 February 2018
Line 95:		Line 95:
	The assessment of feasibility study is based on the assessments of all its components. The evaluation is individual for each study - the components and priorities differ between the projects and there is no single pattern. In order to have wider perspective the outcomes may be compared to similar business cases.		The assessment of feasibility study is based on the assessments of all its components. The evaluation is individual for each study - the components and priorities differ between the projects and there is no single pattern. In order to have wider perspective the outcomes may be compared to similar business cases.

	However, there are some universal conditions which should be fulfilled when presenting the outcomes of the study. First and foremost they should be as concise as possible and easy to understand. When applicable, the cause and effect relationships should be clearly stated.  The most important part of the evaluation is the final conclusion - weather the studied project is feasible or not. This part should include pros and cons which influenced the final decision.		However, there are some universal conditions which should be fulfilled when presenting the outcomes of the study. First and foremost they should be as concise as possible and easy to understand. When applicable, the cause and effect relationships should be clearly stated <ref>Page 6, 2000, Cooperative Feasibility Study Guide.</ref>. The most important part of the evaluation is the final conclusion - weather the studied project is feasible or not. This part should include pros and cons which influenced the final decision.

	If the study has been conducted by an external consultancy the results and conclusions should be discussed with the project team members before accepting the study.		If the study has been conducted by an external consultancy the results and conclusions should be discussed with the project team members before accepting the study.