New+Venture+slides+day+2-+chapter+3+feasibility+analysis+upload

New+Venture+slides+day+2-+chapter+3+feasibility+analysis+upload

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Professor Joshua Hernsberger The Paul Merage School of Business University of California, Irvine Feasibility Analysis
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What Is Feasibility Analysis? Feasibility Analysis Feasibility analysis is the process of determining whether a business idea is viable. It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing.
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When To Conduct a Feasibility Analysis Timing of Feasibility Analysis The proper time to conduct a feasibility analysis is early in thinking through the prospects for a new business. The thought is to screen ideas before a lot of resources are spent on them Components of a Properly Conducted Feasibility Analysis A properly conducted feasibility analysis includes four separate components
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Components of Feasibility Analysis
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Product/Service Feasibility Analysis Purpose Is an assessment of the overall appeal of the product or service being proposed. Before a prospective firm rushes a new product or service into development, it should be sure that the product or service is what prospective customers want.
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Product/Service Feasibility Analysis Components of product/service feasibility analysis Product/Service Desirability Product/Service Demand
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Product/Service Desirability Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environmental trend, solve a problem, or take advantage of a gap in the marketplace? Is this a good time to introduce the product or service to the market? Are there any fatal flaws in the product or service’s basic design or concept? Step 1: Ask the following questions to determine the basic appeal of the product or service.
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Step 2: Administer a Concept Test A concept statement should be developed. A concept statement is a one page description of a business, that is Distribute to people who are asked to provide feedback on the potential of the business idea. The feedback will hopefully provide your team with: A sense of the viability or the product or service idea. Suggestions for how the idea can be strengthened or
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This note was uploaded on 01/31/2012 for the course MGMT 190 taught by Professor Joshuahernsberger during the Summer '11 term at UC Irvine.

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New+Venture+slides+day+2-+chapter+3+feasibility+analysis+upload

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