NAME SOMENDRA

PPE
PPE
 Feasibility Study An analysis of the ability to complete a project
successfully, taking into account legal, economic, technological,
scheduling and other factors. Rather than just diving into a project
and hoping for the best, a feasibility study allows project managers to
investigate the possible negative and positive outcomes of a project
before investing too much time and money. An analysis and
evaluation of a proposed project to determine if it

 (1) is technically feasible,

 (2) is feasible within the estimated cost, and
 (3) will be profitable. Feasibility studies are almost always
conducted where large sums are at stake. Also called feasibility
analysis. See also cost benefit analysis.
WHY FEASIBILITY STUDY?
 1. A feasibility study will help you to determine the profitability of the
business venture. Before starting a business, seasoned entrepreneurs and
investors would want to know if the business would be worth their time,
effort and resources. It is worthwhile to know that many entrepreneurs have
abandoned solid business ideas because the profitability could not be
ascertained on conducting a feasibility study on the business idea.
 2. A feasibility study will help prove to the entrepreneur, venture capitalists,
lenders and investors the existence of the market, the liquidity of the
business venture and the expected return on investment.
 3. A feasibility study will help you identify the flaws, business challenges,
strengths, weaknesses, opportunities, threats and unforeseen
circumstances that might affect the success and sustainability of the
business venture. Just like the case of my dad’s business, the business
failure and loss of money would have been avoided if we had carried out a
feasibility study. We simply jumped in based on someone’s
recommendations because we were flushed with cash and we paid dearly
for it.
OBJECTIVES OF FEASIBILITY STUDY
 The worth noting objectives of feasibility study are
shown in the following ways:
 i) To evaluate worthiness of the investment
 ii) To evaluate marketing, financing and
operational effectiveness.
 iii) To forecast problems in implementation &
operational phase
 iv) To help final decision making
 v) To evaluate environmental aspects with regard
to present & future
SCHEMATIC DIAGRAM OF FEASIBILITY STUDY
MARKET AND DEMAND ANALYSIS
 Market and Demand analysis The analysis which is done to
know the aggregate demand for the products or services is
known as market analysis. It focuses on present and
potential collective demand of the market. Hence, therefore
market analysis one easily get the answer of the following
question:
 What is likely aggregate demand for the product or service?
 The analysis which is done to know the market share is
usually known as demand analysis. It focuses on the present
and potential individual demand of the goods or services.
Hence, through market analysis, one can easily get the
answer of the following question:
 What share of the market will the proposed project enjoy?
TECHNICAL ANALYSIS FINANCIAL ANALYSIS
 Technical analysis Technical analysis is concerned primarily with
material inputs, production, technology, plant capacity, location and
site, machineries and equipment, structure and civil worker, project
charts and layouts, and work schedule.. Technical analysis
determines or examines whether proposed project can be
implemented with the availability of above aspects. The two main
themes of technical analysis are:
 i) To ensure that the project is technically feasible in terms of all
inputs available.
 ii) To facilitate most optimal formulation of the project in terms of
technology, site location and so on.
 Financial analysis The use of financial statements calculation ratios
and other techniques to monitor and evaluate the financial aspects
of any project is said to be financial analysis
SOCIAL COST BENEFIT ANALYSIS
 Social cost benefit analysis is a methodology developed for evaluating the
investment projets from the stand-point of the society (or economy) as a
whole. It is also known as economic analysis. According to Clifton and Eyffe,
“Social cost benefit analysis is the evaluation and appraisal of projects
contribution toward the society
 On the whole, it can be said that social cost benefit analysis is concerned
with tactical decision making within the framework of broad strategic
choices defined by planning at the macro level.
 Need to examine the following things:
 1. Contribution of projects towards savings by the nation, which is recycled
in the form of fresh investment to increase national income.
 2. Creation of merit goods or services like parks, public entertainment
places, roads and highways, educational institutions etc.
 3. Developing countries usually go for effective resources allocation and
capital investment.
ENVIRONMENTAL ANALYSIS
 : Environmental and ecological analysis should be done particularly for the projects
which have significant impact on natural environment and ecological implications
(polluting industries likebulk drugs, chemicals and lather processing). Two key points
need to be considered are:

 • Types of likely damage caused by project to environment

 • Cost of restoration measures required to ensure that the damage to the

environment is contained within acceptable limit.
 The following issues should be considered in environmental analysis:

 A. Physical / chemical (pollution) –

1 . Water
2.Land
3. Air
4. Noise
 b. Ecological
 - Species and population
 - Habitats and communities
 - Ecosystem a. Aesthetics (beautification)
 - Land
 - Air
 - Water
 - Biota
 - Man made objects
 - Overall composition Area of study is mostly dependent on the
nature of a project. For instance, a project of ‘Development of
Computer Software’ has neither impact on environment. Hence, it is
not required to conduct ‘environmental feasibility study’ of this
project.