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Market Feasibility
Feasibility study is a detailed work of collection of data analysis and conclude the feasibility of that operation.
For instance production feasibility study will use data such as production capacity of machinery to answer the question " can we produce required quantities of products, in required time frame with given cost constraints?
Market feasibility study includes
- Nature of market
- Cost of production
- selling price and profit
- Demand
- Market share
- Target Market
- Location of Plant
- Construction of factory, plant and its size
- Availability of raw material
- Selection of Machinery
- Utilities
- Production capacity
- Staff requirements
- Technical viability
- Total cost of project
- Source of capital
- Subsidiary sources for additional finances
- Financing for future development of business
- Break even analysis
- Estimation cash and fund flow
- Return on Investment
- proposed balance sheet
- Cost of Labour and Technology
- Location- will the people in the neighbourhood accept your plant there ( Remember Nano case in West Bengal)
- Social problem-
- Pollution - pollution concern - remember kaiga project
- Other Problems
1 comment:
A similar type of framework to analyze the feasibility of a sort of ERP or a custom built software comprises of TELOS.
T--> Technical Feasibility
E-->Economic Feasibility
L-->Legal Feasibility
O--> Operational Feasibility
S--> Scheduling Feasibility
Techical Feasibility :
This should ascertain the technical expertise, infrastructure, the employees required available and if not, what are the options.
Another aspect to look into is, if the software proposed can accomplish the expected task ?
Maintenance and Implementation should also be looked into.
Economic Feasibility :
This study should look into the "Return on Investment" of the proposed custom built software or choose amongst the "off the shelf" ones in the similar terms such as SAP , Oracle or BAAN for instance.
Costs such that those of licensing, implementation ( time to implement increases the overall cost), consultancy , purchase, implementation, training, maintenance , repair , etc. and the benefits , such as (automation, decision making superiority, ease of communication etc. should be taken into account.
A cost benefit analysis could be done in case of multiple options.
There are certain indirect benefits ( ex : time saved which can be utilized in some other activity) and indirect costs ( Construction, consultancy) which should be taken into account while weighing the costs and the benefits.
Legal Feasibility :
This factor is an important one and aspects such as the correct licensing( a license to customize the ERP to suit the organizational strategy for instance), and intellectual property rights, should be considered.
Another factor could be the government patronization, and liabilities amongst the those that should be considered.
Operational Feasibility :
If built/purchased, will the software be able to achieve the required goals ?
How will the system satisfy the problems of the organization.
Operational Feasibility is one of the most important aspect an organization has to consider as it may end up paying for a software that might satisfy at first, but fail to live up to the expectations later.
The hindrances that could occur might have to do with anything techy at all. It might more be a "employee acceptance" problem as a new interface may be a big issue or the software itself might suggest a "power redistribution" amongst the employees.
There should also be sufficient training, and support from the vendor to accomplish this task.
Scheduling Feasibility :
The software should be built in the time specified give or take a few as the extra time adds up to a mighty cost. A
part from that, the software might not include those modules that support the functions that were added in the organizations during the time of development.
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