INTRODUCTION TO FEASIB STUDY SCRIPT

SLIDE 2: INTRODUCTION

Before we start to the lesson proper, let’s first have an application about the topic. In
2019, Elon Musk announce plans for Tesla’s new Cybertruck. According to NICOLAS
MORPUS, a project management expert, it looks like an awful presentation of a child’s
crayon drawing of what a vehicle would look like. Furthermore, the truck’s specifications
are quite impressive. Imagine? It has an 800 horsepower and a thousand pound-feet of
torque, magnificent, right? On the other hand, there are a few glaring issues that Musk
seems to ignore that makes me wonder about the feasibility of Tesla’s future production
model. Such as the questionable window durability, parking issues, and its ugly design.
So the question is? Is it worth it? The expense, the time, and the effort it requires to
build and market? What do you think? Because for us, we believe that he would really
benefit from a large, in-depth feasibility study into the Cybertruck and whether or not it’s
ready for the mainstream truck market.

SLIDE 3: BUT, WHAT IS A FEASIBILITY STUDY?

 It is definitely on a higher level than project management basics.

 The development and recognition of project management during the last few
years has raised the need for feasibility studies.
 To say, a feasibility study is the initial design stage for any project or plan.
 As the name infers, it is an analysis of the viability of an idea.
 It also helps to answer the essential question, “should we proceed with the
proposed idea?”
 And lastly, the objective study may be completed in conjunction with a SWOT
planning process, which looks at the strengths, weaknesses, opportunities, and
threats.
SLIDE 4: MOREOVER, FEASIBILITY STUDIES CAN ALSO HELP DETERMINE THE
FOLLOWING:

a) The first question would be… “does the company have the required resources or
technologies on their product?” If not, it would be difficult for them to make it
possible.

b) And the second one would be… “does the proposal offer a reasonable return vs.
risk from the investment?” Determining early that a business idea will not work
can save time, money, and maybe a heartache later.

SLIDE 5: FEASIBILITY STUDIES CAN BE USED IN MANY WAYS BUT MAINLY

FOCUS ON PROJECTED BUSINESS UNDERTAKINGS. Keep in mind that
businessmen, entrepreneurs, farmers, and others with a business idea should conduct
a feasibility study to determine the viability of their idea before proceeding with the
development of a business.

SLIDE 6: A FEASIBLE OPERATING CHANGE OR BUSINESS RESTRUCTURE is

one where the business will generate adequate cash flow and profits to withstand the
short-term risks it will encounter, and the remain viable in the long term to meet the
goals of the founders. The venture might be an investment start-up or the
purchase/expansion of an existing business, beyond its present business footprint or
enterprise.

SLIDE 7: If you are planning to conduct a feasibility study you will need the follow the
following SIX PART OF EFFECTIVE FEASIBILITY STUDY:
1. First, we have the PROJECT SCOPE it is used to clearly define the business
problem or opportunity that has to be addressed within the study, meaning it is
something that the project should covers. It also defines who is affected by your
study whether they are directly or indirectly affected. This includes the project
 participants and the end-users. The project scope also defines clearly what are
the things that need to be considered for the participants. The scope also or
should be definitive & to the point, this means that the scope of the project or the
purpose of the project is clear for the participants and the one who's making the
study.

2. Number two the CURRENT ANALYSIS, is used to evaluate the current method

implementation like a new product or system from this analysis we can discover
the strengths and weaknesses of the current approach. In the current analysis,
we also discovered the pros and cons of the approach for the study whether it
would be effective or it can lead to failure.

3. For the third one the REQUIREMENTS it is defined depends on the object of the
project attention. The requirements focus on the task that determines the needs
or condition delete the new or altered product or project, taking account of the
possibly conflicting requirements of the various folder analyzing, documenting,
and managing so where are system requirements. Requirements are critical to
the success or failure of the feasibility study. The requirements should be
documented testable traceable related to identified the business needs or
opportunities.

4. THE APPROACH- it represents the recommended solution or course of action to

satisfy the requirements. here in the approach, you will have to create various
alternatives with an explanation as to why these alternative solutions are
selected or developed in order to determine the viability of the study. Like for
example the use of existing structures and commercial alternatives are
considered are you going to build a new building or you're going to buy a
building.
There is overriding consideration for the approach:
           · does the recommended approach satisfy the requirements?
           · is it also a practical or viable solution?
For the fourth part, a thorough analysis should be performed in order for you to perform
the next step properly.

5. Evaluation- this will examine the cost-effectiveness of the approach selected

here you will analyze the estimated total cost of the project including the
recommended solution and other alternatives you will also estimate it so that it
offers an economic comparison. For example, for a development project such as
building construction, you will estimate the labor and out-of-pocket expenses that
are assembled along with the project schedule showing the project path and the
start-end date of the project. And after all of this total is calculated an evaluation
summary is prepared which includes such things as a cost and benefit analysis,
return investments and etc.

6. For the last part, the REVIEW- after all the preceding elements were assembled
into a feasibility study of formal review is being done or conducted with all the
parties involved in the study. The review serves two purposes first is to
substantiate the thoroughness and accuracy of the feasibility study. Meaning all
the parties involved will review if all the preceding elements we're done
accurately and thoroughly.
Number two is to make the project decision. Here all the parties will decide
whether a project or the feasibility study will be approved or reject or to ask that it
would be revised or not before making the final decision. This is why it is
important to follow all the previous parts or elements so that you have the chance
your study or project will be approved.
If the project or the study will be approved all the parties team to sign the document
which expresses their acceptance and commitment to it bird that the teachers carry a lot
of weight even though it may be a seemingly small gesture. If the possibility study is
rejected of course there would be a reason for its rejection and it should be explained
and attached to the document.
SLIDE 8: WHAT IS A FEASIBILITY STUDY?

1. It is an analysis that takes all of a project's relevant factors into account—including

economic, technical, legal, and scheduling consideration.

-For you to understand more, I will briefly discuss what economic, technical, legal, and
scheduling we need to consider if we are going to conduct a feasibility study. Under
ECONOMIC, it demonstrates the net benefit of a proposed project; Next is the
TECHNICAL, where in they need to determine the potential economic viability of a
process to know which technologies have the greatest likelihood of economic success;
Then, LEGAL is about the assessment to investigate whether any aspect of the
proposed project with legal requirements; And lastly, the SCHEDULING where
consideration is the degree to which a deadline for a strategy plan, project or process is
either realistic and achievable to achieve the project successfully. In addition, the
project managers considered the pros and cons of undertaking a project before they
invest a lot of time, money, and effort.

2. It can provide a company's management with crucial information.

- It means that a feasibility study is objectively and rationally uncovers the strengths and
weaknesses of an existing business or proposes a venture, opportunities, and threats
that are presented by the environment to prevent the company from entering carelessly
into risky business. In short, you need to know the SWOT Analysis of the business that
you want to conduct a feasibility study.

3. It is a practicality assessment for a proposed plan, product, project management tool,

or new execution method.

- The importance of a feasibility study is to indicate whether or not a company, team, or

organization will fulfill its promises smoothly at a reasonable period of time. And this is
one of the most important project management techniques you’ll want to learn to save
your organization time, money, and lots of headaches.
SLIDE 9: KEY TAKEAWAYS

- These are the things that we should keep in mind when we heard the word
“feasibility study”:
 A feasibility study is a proposed plan or project.
 It is also about launching a new business or adopting a new product line.
A new product line is a product that is not new to the market but is usually
new to the company.
 And take note that it is a good idea to have a contingency plan. It is a
course of action designed to help an organization to respond effectively to
a significant future event in case of unforeseeable circumstances if the
original project is not feasible in short you need to come up with a back
plan of your feasibility studies.

SLIDE 10: A feasibility study is an assessment of the practicality of a proposed plan or

project. It analyzes the viability of a project to determine whether the project is likely to
succeed.

 As the name implies, these studies ask the following questions:

 Is this project feasible?
 Do we have the people, tools, technology, and resources necessary for this
project to succeed?
 Will the project get us the return on investment (ROI) that we need and expect?

SLIDE 11: THESE ARE THE GOALS OF FEASIBILITY STUDIES…

1. A feasibility study's goal is to truly understand all aspects of a project, concept, or

plan. Because if you know the complete strategy in one feasibility, you'll
understand how important each component is, and you'll be given more ideas as
well.
2. Another goal is to become aware of any potential problems that could occur while
implementing the project. If you understand the entire concept first, you will
 immediately recognize a project problem, and you will be able to fix the problem
in your project quicker because you understand the entire concept.

3. And lastly, is to determine if, after considering all significant factors, the project is
viable—that is, worth undertaking. As we mentioned, determining early that a
business idea will not work can save time, money, and maybe a heartache later.

SLIDE 12: So before I continue, I would like to put something out. and that is “A
FEASIBILITY STUDY IS NOT A BUSINESS PLAN”. While it may seem the feasibility
study is similar in many ways to the business plan, it is important to keep in mind that
the feasibility study is developed prior to the venture. The roles of these two have been
frequently misunderstood. But let me show you their main differences.

SLIDE 13: FEASIBILITY STUDY VS. BUSINESS PLAN

1. First, a feasibility study answers or addresses the question "is this a viable
business venture?", therefore it provides an investigative function. Because you
want to know if the business you are planning will do you good in the future. This
study is filled with calculations, analysis and estimated projections.
On the other hand, a business plan provides a planning function in generating or
handling that specific business. This is made up of mostly tactics and strategies
to be implemented in order to grow the business. So basically, feasibility studies
help determine whether to go ahead with the business or with another idea,
whereas business plans are designed after the decision to go ahead with the
plan that has already been made.

2. Feasibility Studies outlines and analyzes several alternatives or methods of

achieving the success of a business. And just like what is said by earlier
reporters, this study will help in narrowing the scope of the project in order to
identify the best business scenario/scenarios.
 These scenarios will be used for the business plan in order to outline the actions
which are needed to make the proposed "idea" into "reality".

3. As what I've said earlier feasibility study helps in narrowing the scope of the
project in order for owners or entrepreneurs to easily identify two or three
scenarios or alternatives. This is needed since there is always uncertainty, we
should have assumptions about what might happen in the future and how will the
organization respond to that. If one conducts a feasibility study it will give them
the chance to ask and get answers to questions that could assess the business’
potential, and to predict the likelihood of success or failure, this helps determining
the risks associated with the ideas.
While business plans only deals with one alternative scenario. And I am
pertaining to the scenario that have been proposed by the feasibility study. Since
different scenarios have already been identified, business owners would be able
to make plans accordingly. These business plans will explain how management
will deal with the risks so that it will make a profit.
These business scenarios are not only to identify different things which could
impact their businesses, but also this could be of great help in developing
strategic responses.

4. And lastly, business pans are considered as roadmaps or blueprints for

implementation. Since this helps you have a sense of direction as you go about
planning the things you need and the things you would like to do in relation to
your business venture.

*PWEDE SABIHIN PWEDE HINDI* This business plan can also be used by investment-
seeking entrepreneurs to convey their vision to potential investors. Also can be used by
firms that are trying to attract key employees, prospect for new business, deal with
suppliers or simply to understand how to manage their companies better. So when we
come to think of, feasibility studies and business plans are not the same, but they are
needed in order to make greater choices for business owners and entrepreneurs. It
makes them more mindful of the workability and profitability of a business venture.
SLIDE 14: Project leaders may find themselves under pressure to skip
the "FEASIBILITY ANALYSIS" step and go directly to building a business. Individuals
from within and outside of the project may push to skip this step. Reasons given for not
doing a feasibility analysis include:
1. The first reason given is they think that the business is feasible because there is
an existing business already.
2. Next, why do they need to do another feasibility study when one was done just a
few years ago?
3. They think that a feasibility study is just a way for consultants to make money.
4. Market analysis has already been done by the business that is going to sell us
the equipment. 
5. Another reason is why not just hire a general manager who can do the study?
6. And lastly, they say that it is just a waste of time.
- These reasons given should not dissuade you from conducting a meaningful &
accurate feasibility study because... just because that "existing business" works or is
feasible, it doesn't mean that your proposed business will be feasible as well... And
hiring a general manager does not negate your responsibility for ensuring that the
feasibility study is conducted properly. You need to engage in the project and evaluation
process, understand the issues involved, and question the basic assumptions used in
the study // and YES, a feasibility study can be expensive, they are also time-
consuming. However, the results of the study could potentially save significantly more
time and money by calling to attention potential shortfalls or success. Remember that
behind every successful business, they go through examining all of the issues and
assessing the probability of business success first.

SLIDE 15: So next are the REASONS TO CONDUCT A FEASIBILITY STUDY.

1. First is.... it gives focus to the project and outlines alternatives.

2. Next narrows business alternatives - It will help to narrow the scope of the project
to identify and define alternatives. The feasibility will help to identify the best
alternative for the situation.
3. Identifies new opportunities through the investigative process - It can open your
eyes to new possibilities, opportunities, and solutions you might never have while
conducting this study.

4. Identifies reasons not to proceed - It can gain knowledge about the project before
investing budget, time, or other resources into it, the information will help in
making the judgment regarding whether to proceed or not.

5. Enhances the probability of success by addressing and mitigating factors early

on that could affect the project - it helps to enhance the success rate of the
project by evaluating multiple parameters. The project feasibility has to be all
around, for the given business problem or improvement opportunity, the study
shall be done considering all relevant parameters.

6. Provides quality information for decision-making - It helps to make critical

decisions before the project. The crucial decision can be in terms of whether or
not the project is doable, whether or not the project is operationally and
financially viable.
The last three reasons are: 
- It provides documentation that the business venture was thoroughly
investigated.
- It helps in securing funding from lending institutions and other monetary
sources.
- It helps to attract equity investment.

7. Since you have documentation as proof that the business was thoroughly
investigated, it will evaluate the project's potential for success, therefore it is an
important factor in the credibility of the study for potential investors and lending
institutions.