Euromicro Conference On Real-Time Systems

MANAGEMENT
SMB1103
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MANAGEMENT
Feasibility study is an analysis that puts all relevant project factors ranging from technical and
economic to ascertain the likelihood of successfully completing the project. In most cases project
managers undertake feasibility analysis to determine the advantages as well as disadvantages of
undertaking a particular project before they finally make a decision to invest on it. It is a tool that
provides companies with crucial information needed in decision making before getting into a
risky business (Bonifaci, Marchetti-Spaccamela, Stiller, Wiese, 2013 p.89). Feasibility analysis
is undertaken for three main reasons; one to thoroughly understand all aspects about a particular
project; to become aware of any potential drawback that might happen while implementing the
project and lastly; to determine if the project is viable after considering all possible factors.
Feasibility analysis is an important aspect for any company because through it businesses can
easily determine who they will operate. Besides, in doing so it enables one to identify all
potential obstacles that might otherwise impede its operations and in that way determine the
amount of funds required to keep the business running. Through undertaking feasibility studies,
mangers are able to not only understand but also reflect on projects unique goals and needs. To
successfully undertake feasibility analysis one needs to get feedback about the nature of the
proposed idea from relevant stakeholders. This should then be followed by a thorough market
survey in order to obtain relevant data that is vital in decision making. After a proper market
research has been undertaken, an operational plan on the business is prepared alongside with a
projected income statement and a decision is made depending on the nature of the plan
established.
A well-designed feasibility study often contains a historical background of the proposed project,
an in-depth description of the project including product or service to be involved, overall
operations and management of the study, relevant financial data, marketing research, tax as well