Business Feasibility Study. A business feasibility study can be defined as a process or study for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes, and assessing the range of costs and benefits associated with several alternatives for solving such problems.
A business feasibility study, moreover, is used to support the decision-process based on a cost-benefit analysis of the actual business or project viability. It is hence conducted during the deliberation phase of the business development cycle prior to the commencement of the actual business plan. It is an analytical tool that includes recommendations and limitations, which are in turn utilized to assists the decision-makers when determining if the concept is viable (Drucker 1985; Hoagland & Williamson, 2000; Thompson 2003).
Business Feasibility Study: Complete Parts and Format. You can use the format below for a performance task (major output) of Accountancy, Business, and Management (ABM) senior high school students, or even for college students taking a program related to business management.
Title Page
Table of Contents
Executive Summary
I. Organization and Management Background
1.1. Vision, Mission, Goals, and Objectives
1.1.1. Vision Statement
1.1.2. Mission Statement
1.1.3. Goals
1.1.4. Objectives
1.1.5. Philosophy
1.2. Business Profile
1.2.1. Name of the Company
1.2.2. Contact Information
1.2.3. General Business Information
1.2.4. Description of the Logo
1.2.5. Entrepreneur Background
1.3. Organizational Chart and Management Team
1.3.1. Partnership Agreement
1.3.2. Organization Chart
1.4. Management Schedule
1.5. Other Management Activities
II. Production and Operation
2.1. Detailed Product Description
2.2. Product Development Flowchart
2.3. Enterprise Delivery System
2.4. Plans of Distribution
2.5. Suppliers (Supply Chain Management)
2.6. Technology Consideration
2.7. Major Start-Up Needs
2.8. Operating Work Flow
III. Marketing Aspects
3.1. Marketing Objectives
3.2. Market Analysis
3.2.1. Market Research
3.2.2. Market Size
3.2.3. Market Growth Rate
3.2.4. Market Profitability
3.2.5. Industry Cost Structure
3.2.6. Distribution Channels
3.2.7. Market Trends
3.3. Micro and Macro Environmental Analysis
3.3.1. Customer Analysis
3.3.2. Competitive Analysis
3.3.3. SPEET Analysis
3.3.4. SWOT Analysis
3.4. Marketing Strategies
3.4.1. Product Strategies
3.4.2. Pricing Strategies
3.4.3. Distribution Strategies
3.4.4. Advertising and Promotional Strategies
3.4.5. Corporate Social Responsibility and Business Ethics
3.4.6. Socio-Economic Impact
IV. Accounting and Finance
4.1. Capital Expenditures (Start-Up Capital)
4.2. Sources of Funds
4.3. Sales Projection
4.4. Operating Expenditures
4.5. Financial Statements
4.5.1. Income Statement
4.5.2. Balance Sheet
4.5.3. Cash Flow Statement
4.6. Financial Statement Analysis
4.6.1. Vertical Analysis
4.6.2. Horizontal Analysis
4.6.3. Break-Even Analysis
4.6.4. Cost-Benefit Analysis
4.7. Financial Ratios
4.7.1. Payback Period
4.7.2. Return on Sales or Net Profit Margin
4.7.3. Gross Profit Margin
4.7.4. Operating Profit Margin
4.7.5. Debt Ratio
4.7.6. Equity Ratio
4.7.7. Return on Investment
Appendices
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