MIDTERM 2 STUDY GUIDE

MIDTERM 2 STUDY GUIDE - Midterm 2 Study Guide BUS2 131D...

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Midterm 2 Study Guide BUS2 131D MODULE II: GENERATING INSIGHTS Feasibility Analysis • What is a feasibility analysis? Why is a feasibility analysis necessary? o Feasibility analysis- Def- the process of determining if a business idea is viable. Used to see if a business idea is worth pursuing and to screen ideas before spending resources on then. Comes before development of a business plan and after the opportunity recognition stage. It is necessary to see if a business idea is worth pursuing, otherwise resources and time are wasted. • What are the components of any feasibility analysis (product/service f.; industry/market f. ...)? What do these components deal with (understand what the different components of a feasibility analysis entail and why they are important)? o Product/service feasibility Def- an assessment of the overall appeal of the product or service being proposed. Before rushing to development, a firm should be confident that it’s what customers want and that it will have an adequate market For most firms, the number 1 success factor is delivering a superior product or service o Industry/market feasibility analysis Def- an assessment of the overall appeal of the market for the product or service being proposed. Should consider: industry attractiveness, market timliness, and identification of a niche market o Organizational feasibility analysis Def- conducted to determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business o Financial feasibility analysis Def- final stage of a comprehensive feasibility analysis and usually just a quick financial assessment is sufficient. More rigor is usually not needed because the specifics of the business will inevitably evolve. Most important issues to sonsider are total start-up cash needed,
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MIDTERM 2 STUDY GUIDE - Midterm 2 Study Guide BUS2 131D...

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