Understanding Feasibility Studies

What is a feasibility study?

• A feasibility study is an evaluation of a project's viability and potential success.

• A feasibility study is a legal document for project approval.

• A feasibility study is a marketing strategy for new products.

• A feasibility study is a financial report on past projects.

Why is a feasibility study important?

• A feasibility study is important because it evaluates the viability and potential success of a project.

• It provides a detailed marketing plan.

• It guarantees project funding.

• It eliminates all risks associated with the project.

What are the main components of a feasibility study?

• Market analysis, technical feasibility, financial analysis, legal considerations.

• Project timeline, stakeholder interviews, risk assessment

• Employee satisfaction survey, product design, marketing strategy

• Resource allocation, team dynamics, customer feedback

How does a feasibility study help in decision making?

• A feasibility study aids decision making by providing a comprehensive analysis of a project's viability, costs, benefits, and risks.

• It focuses solely on the project's timeline without considering costs.

• It provides a detailed marketing strategy for the project.

• It guarantees project success without any risks.

What types of feasibility studies exist?

• Technical, Economic, Legal, Operational, Schedule

• Marketing, Strategic, Tactical

• Cultural, Historical, Psychological

• Financial, Environmental, Social

What is the difference between technical and economic feasibility?

• Technical feasibility focuses on technology and resources, while economic feasibility focuses on financial viability and cost-effectiveness.

• Economic feasibility assesses technical skills required.

• Technical feasibility evaluates market demand.

• Technical feasibility is only about software development.

How can market analysis be included in a feasibility study?

• Analyze only the historical sales data

• Ignore customer feedback and preferences

• Include market size, customer demographics, competitor analysis, and market trends in the feasibility study.

• Focus solely on financial projections

What role does risk assessment play in a feasibility study?

• Risk assessment helps identify and evaluate potential challenges, informing decision-making in a feasibility study.

• Risk assessment is unrelated to financial analysis.

• Risk assessment guarantees project success.

• Risk assessment is only necessary for large projects.

What are common challenges faced when conducting a feasibility study?

• Unlimited budget availability

• Excessive stakeholder support

• Insufficient data, unclear objectives, stakeholder resistance, budget constraints, and time limitations.

• Overly optimistic projections

How can the results of a feasibility study impact project planning?

• They are solely focused on marketing strategies.

• The results of a feasibility study can significantly influence project planning by identifying risks, resource needs, and guiding scope and budget adjustments.

• They have no effect on project planning.

• They only determine the project's timeline.