Feasibility Study Report: Analysis of Project Viability and Outcomes

This report delves into the significance of feasibility studies in business development, emphasizing their role in assessing project viability and informing decision-making. It highlights the process of conducting a feasibility analysis, including stakeholder feedback, market research, and the development of operational plans and financial projections. The report underscores the importance of transparency and unbiased approaches in feasibility studies, detailing how they provide legal and technical evidence to support project validity. Furthermore, it contrasts feasibility studies with cost-benefit analysis, explaining their respective applications in financial decision-making. The report also references relevant literature on feasibility analysis and cost-benefit analysis to support its claims.

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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

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as other relevant legal obligations. Since feasibility established a project’s potential success it
must be conducted in a transparent manner and in an unbiased approach (Balduzzi et al, 2012
p.101). Conducting feasibility analysis is significant because it not only provides legal but also
technical evidence on the validity of a project. Besides with a well-prepared feasibility study risk
mitigation is enhanced because it facilitates contingency planning as well as risk treatment
strategy.
Cost benefit analysis is a tool that businesses use to scrutinize and analyze their decisions. Here,
the analyst sums up all benefits associated with a certain issue, or idea or action and weighs them
against the proposed costs associated with the action (Boardman, Greenberg, Vining, Weimer ,
2017 p.56).Unlike feasibility analysis that is used in more complex and critical financial decision
making, feasibility is used for non-critical financial decisions.

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Reference
Balduzzi, F., Bianchini, A., Carnevale, E.A., Ferrari, L. and Magnani, S., 2012. Feasibility
analysis of a Darrieus vertical-axis wind turbine installation in the rooftop of a building. Applied
Energy, 97, pp.921-929.
Boardman, A.E., Greenberg, D.H., Vining, A.R. and Weimer, D.L., 2017. Cost-benefit analysis:
concepts and practice. Cambridge University Press.
Bonifaci, V., Marchetti-Spaccamela, A., Stiller, S. and Wiese, A., 2013, July. Feasibility analysis
in the sporadic dag task model. In 2013 25th Euromicro conference on real-time systems (pp.
225-233). IEEE.