Step 3 feasibility study feasibility study is an

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STEP 3: FEASIBILITY STUDY Feasibility study is an evaluation and analysis of the potential of a proposed project which is based on extensive investigation and research to support the process of decision making. Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in 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. Feasibility study involves carrying out an initial study or investigation of possible courses of action available to fulfill the need identified in the first stage. This establishes possible options for implementing the project idea. This stage involves the assessment of all the available options in terms of both their operational practicability and financial performance. This exercise reduces the number of options to those that are feasible and viable enough to warrant a closer examination. Feasibility study is therefore an analysis of the ability to complete a project successfully, taking into account legal, economic, technological, scheduling and other factors. Rather than just diving into a project and hoping for the best, a feasibility study allows project managers to investigate the possible negative and positive outcomes of a project before investing too much time and money. A well-designed feasibility study should provide a historical background of the business or project, a 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. A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for potential investors and lending institutions. It must therefore be conducted with an objective, unbiased approach to provide information upon which decisions can be based. The five areas of feasibility include; Technical, Economic, Legal, Operational, and Scheduling. 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 factors which could affect the study The part of the business being examined 3
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The human and economic factor The possible solutions to the problem At this level, the concern is whether the proposal is both technically and legally feasible (assuming moderate cost).
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