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Revised Guidelines in Writing Feasibility Study

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0% found this document useful (0 votes)
15 views13 pages

Revised Guidelines in Writing Feasibility Study

Uploaded by

Murielle Fajardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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GUIDELINES IN WRITING FEASIBILITY STUDY

INTRODUCTION
Everyone wants to open and operate a successful business or project. This is the sole
intention of any project developer or entrepreneur. However, these are confronted with a
serious reality. This reality is that not all business or projects are viable of feasible. In
other words, these projects or business are faced by the difficult issue of long-term
sustainability. This is the critical challenge or question confronting all business or projects.
In this case, it is important to conduct a feasibility study to determine the viability or
sustainability of the project in the future. A feasibility study provides a blueprint to
determine feasibility of a business endeavour or a planned project.
A feasibility study is a systematic plan and analysis of the sustainability of a project taking
into consideration factors such marketing, production or technical issues, organizational
and management aspects and financial implications. In other words, feasibility study is the
evaluation and assessment of a proposed project or business. This is an important
endeavour before any further action can be taken. On the hand, it influences the decision
or course of action to be taken by an investor, financer or top management of an
organization. There are several benefits of conducting a feasibility study. One of the major
benefits is that a feasibility study identifies the merits and demerits of a projects. In reality,
it provides a cost benefit analysis of undertaking a specific activity, project or business.
Therefore, someone can make an informed decision about a specific activity or project. At
the same time, a feasibility study also minimized risks by taking actions without
understanding and comprehending their financial, legal or reputational ramification to an
organization or a business. For this reason, a feasibility study provides a comprehensive
understanding about a project or plan. Furthermore, a feasibility study identifies potential
challenges and problems while executing the plan or project. Moreover, a feasibility study
takes into consideration all relevant factors to be considered in the implementation of the
project or plan. Given the significance of a feasibility study in decision making and
implementation of the project, many people especially potential investors, financiers or
even management lack the practical knowledge of feasibility study. In this regard, it
becomes difficult to write a feasibility study which will provide a roadmap for a particular
project. Based on this notion, this guidelines sets to address those practical challenges in
preparing a feasibility study. The purpose of this guideline is to provide practical basis to
write a feasibility study in order to determine the viability of a specific project and to have
a uniform format for the institution in writing the said study. Specifically, this guidelines will
provide the description and uniform parts of every important section in a feasibility study
with vivid discussions on the notable parts.

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A. STYLE AND FORMAT GUIDE

Title
1. Comprehensive. It captures the essence of and gives a complete idea about
what the paper is.
2. Catchy. It attracts interest.
3. Informative.
Title Page
1. The title page is the first part of the feasibility study that your reader sees . Thus,
it ought to be written in a clear and uniform manner that will give the reader an insight
into what the study is all about. Depending on the nature of the feasibility report, after
the title comes the name of the project leader as well as other subsidiary members
with their job titles

2. The date of the title page will be the date it will be signed by the Dean of the
College.
3. The leader of the group will be the first on the line using the family name, first
name and middle name format then followed by the members in alphabetically
order.

Indorsement Page
1. When signed by the Feasibility Study Adviser, it indicates that the manuscript
has been thoroughly examined by the Feasibility Study Adviser and is thus
recommended for oral examination by a panel of evaluators.
2. When signed by the Members of the Reading Committee (otherwise called
Panel of Evaluators), it indicates that they have scrutinized the contents, style, and
format of the manuscript and found them to be in accordance with the prescribed
institutional guidelines.
Approval Page
1. When duly-signed by the Members of the Reading Committee, it indicates that
they have individually and collectively accepted and approved the manuscript and
thereby attest to the accuracy of its contents both in substance and in form. They
also signify their indorsement of the manuscript for the final approval of the Dean.
2. When signed by the Dean as the final approving authority, the scholarly and
quality of the manuscript is further attested to.
3. See Appendix for Approval page template.
Acknowledgment Page
1. This is intended for all persons who had a direct and significant contribution to
the conduct of the research and the writing of the manuscript.

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Table of Contents
1. The table of contents aims to provide the reader with easy access to any
section within the report. Complete your table of contents after you finish the
report to make sure the page numbers coincide with the section titles
2. The heading TABLE OF CONTENTS must be bold-faced, centered, and in
uppercase letters.
3. Include Chapter heading and subheadings.
4. Include a separate List of Tables and List of Figures.
5. Use ellipses (dot space dot space...) to link the content to its page number.
Fonts, Fonts Size, Spacing and Margin

1. The study will utilize the Arial Font with size of 12 .


2. The study will use the 1 and ½ spacing for every chapter,
3. The margin will be 1 ½ inches in the left and 1 inch for the top, bottom and right side.

B. CONTENTS AND FORMAT GUIDE

EXECUTIVE SUMMARY

The executive summary should be the first major component of your feasibility study. In
this section, you should include an introduction to the project, its purpose, desired
solutions and an overview of the sources you used to support the legitimacy of the report.

The executive summary is the most important component of the feasibility report. This is so
because it provides the readers with a summarized view of what the feasibility report is all
about. Therefore, the executive summary ought to introduce the subject matter of the
feasibility report, the essence of such introduction and a brief overview of the history
surrounding the particular proposed research as well as a brief overview of the findings
revolving around the subject matter of the proposed project.
Think of the executive summary in a feasibility report as the introductory part of a descriptive
essay. Such type of essay will, first of all, provide the subject matter of the essay, a brief
summary of it as well as the inclusion of the topic sentences of each paragraph. That is
basically what the executive summary of a feasibility report entails
An executive summary should be included at the beginning of the report. In 2-3 pages,
the main points of the feasibility study are summarized for a quick review by busy
administrators and school board members. The executive summary provides the reader
with an overview of the feasibility study and will help them see the entire picture before
they read the details. Some decision-makers may only read the executive summary.
Thus, the executive summary should be concise and include the major findings of the
study followed by a recommendation.

SAMPLE FORMAT

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INTRODUCTION
A. Name of the Business..............................................................................
B. Title of the Study........................................................................................
C. Location of the Business.........................................................................
D. Description of the Logo............................................................................
E. Brief Description.........................................................................................
F. General Objectives of the Business......................................................
G. Research and Methodology....................................................................
G.1 Survey............................................................................................
G.2 Sampling Technique...................................................................
G.3 Survey Questionnaire..................................................................
G.4 Mapping........................................................................................
H. Project Summary.....................................................................................
H.1 Market Summary..........................................................................
H.2 Technical Summary.....................................................................
H.3 Management Summary..............................................................
H.4 Financial Summary.....................................................................
H.5 Socio-Economic Summary........................................................
I. Operational Definition of Terms............................................................
J. Scope and Delimitation...........................................................................

The executive summary provides a brief but comprehensive picture about the study. It will
include the background of study, the different objectives (from organization, marketing,
technical, financial and socio economic),and the method used in the data gathering.
The summary of the different chapter will be brief and concise and it will presents notable
concept that was discussed in the succeeding chapters.
The operational definition of terms will be limited only to the business technical words that
only business individual will understand and provides a simple definition how the word will
be utilized in the study.

MARKET STUDY

The market feasibility portion of your report provides the reader with insightful information
about company statistics, market research and the future outlook for the company. Start

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by summarizing your company's industry. Discuss its history, current practices and trends
along with future projections for the industry as a whole.

Then you can start narrowing your focus to discuss how your company fits within this
industry. List your top competitors, your primary sources of revenue, sales figures and
potential niche areas you could pursue to expand your customer base.

The market feasibility section helps your reader gain more of an understanding of your
company, what it has to offer and how your feasibility project could benefit its growth.

Composing and including market feasibility depends entirely on the nature of the study or
report. However, market feasibility, in a nutshell, is simply an estimation of the results
conducted regarding the market situation of the proposed project. In other words, the market
feasibility helps the readers to identify or ascertain the market competition of the subject
matter as well as its subsidiary competition and entire market analysis.
Market feasibility commences with a brief overview of the history revolving around the
emergence or growth of the proposed project followed by its current and future practices. After
stating these, the writer can go ahead and identify the market standings of the proposed
project. As fore mentioned in this section, this could include the market competition, analysis
as well as general market overview of the proposed project.

SAMPLE FORMAT
Objectives...................................................................................................
A. Demand Analysis......................................................................................
A.1 Past Demand.................................................................................
A.2 Projected Demand.........................................................................
A.3 Market Segmentation( if there’s any)..........................................
B. Supply Analysis........................................................................................
B.1 Past Supply....................................................................................
B.2 Projected Supply............................................................................
B.3 Competitors Analysis.....................................................................
C. Demand and Supply GAP Analysis.....................................................
D. Market Share Analysis.............................................................................
E. Projected Sales............................................................................................
F. Marketing Strategies...................................................................................
G. SWOT Analysis.........................................................................................

The market study is the first chapter of the study that will present the target market, its
competitors and the study will delimit only on the 4P’s of marketing. One notable issues in
this chapter will be the determination of the supply to be use in determining the potential
market or gap. If the study is new in the industry, the availment of the customer will be
use in determining supply amount for the computation of the GAP but if the market of
study is saturated then the study will use the satisfaction of the customer in determining
the supply amount. The presentation and swot anaylsis are vital in this chapter.
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TECHNICAL STUDY

The technical feasibility section outlines several operational factors that influence the
success of your business. Discuss your company's location, materials needed to create
the products or services you offer, the manufacturing process, quality assurance facilities
and necessary transportation to ship your products to retail locations.

The technical feasibility section provides your reader with a detailed understanding of
which factors maintain your business so you can continue delivering top-tier products and
services to your customer base. Additionally, this section helps support the credibility of
your financial feasibility section
This section is aimed at outlining the external or internal factors which influence either the
growth or decrease of the proposed subject matter. It could include the availability or scarcity
of singular items, the location of the subject matter and so on. The composition of this section
also depends heavily on the nature of the subject matter.
The essence of technical feasibility in a feasibility study to provide a necessary foundation
regarding the financial feasibility of the subject matter(also depending on the nature of the
subject matter) and also to give both the readers and writer a basic understanding or insight
regarding the subject matter.

SAMPLE FORMAT
Objectives..................................................................................................
A. Product Description..................................................................................
B. Product Pricing...........................................................................................
C. Time Motion Study.....................................................................................
D. Business Process.....................................................................................
E. Business Location...................................................................................
E.1 Mapping........................................................................
E.2 Floor Plan.....................................................................
E.3 Master Plan..................................................................
F. Machineries and Equipment...................................................................
G. Furniture and Fixtures..............................................................................
H. Kitchen Utensils........................................................................................
I. Supplies.......................................................................................................
I.1 Office Supplies................................................................................
I.2 Sanitary Supplies............................................................................
J. Other Supplies...........................................................................................

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K. Raw Materials...............................................................................................
L. Building Materials..........................................................................................
M. Other Materials............................................................................................
N. Store Uniform................................................................................................
O. Utility requirements.......................................................................................

The technical study is the chapter two of the study. The business process is
encourage to be presented based on the observation and industry practices.
Suppliers are encourage to be practical and readily available in the nearest
locality. Online suppliers of office equipment, furniture and fixtures are
discouraged. Floor plan if needed will be prepared by a person with the field of
specialization.

ORGANIZATIONAL STUDY

The organizational feasibility section demonstrates your company's legal and ethical
practices to the reader. This section should include an outline of the general structure of
your company, such as branch locations or departments.

You might want to include a small bio for each of your founders or board members. You
can also benefit from highlighting the HR procedures that your company uses to maintain
ethical and legal responsibility toward employees, as well as motivational methods you
use to instill productivity in the workplace.

The organizational feasibility section helps the reader determine whether your company's
current practices complement or support the proposed project.

This section describes the ethical practices revolving around the proposed subject matter. It
also varies depending on the nature of the feasibility study conducted. If it is a feasibility study
about a particular business venture, the organizational feasibility in the study could commence
with short biodata on the direct founders of the business as well as the procedures embarked
upon by the venture as a means of maintaining ethics and general growth.
The essence of this section is to ascertain whether or not the current standing of the subject
matter complements or supports it.

SAMPLE FORMAT
Objectives.................................................................................................................
A. Form of Business........................................................................................
B. Vision, Mission, and Core Values...........................................................
C. Capitalization..................................................................................................
D. Organizational Chart.................................................................................

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E. Manpower Requirement.............................................................................
F. Employment Process.................................................................................
G. Legal Requirements....................................................................................
G.1 SEC( Corp. & Partnership) & DTI( Sole) Requirements.......
G.2 PERMITS & LICENSES( Barangay & Municipality)...................
G.3 BIR Requirements...........................................................................
G.4 Regulatory Requirement( SSS, Philhealth & PAGIBIG)............
H. Organizational Policies and Regulations................................................
I. Code of Ethics..............................................................................................
J. Compensation and Benefits.....................................................................
J.1 Basic Salary.....................................................................................
J.2 Holiday Pay.......................................................................................
J.3 Overtime Pay....................................................................................
J.4 13 Month Pay...................................................................................
K. SSS,PhilHealth, Pag-Ibig and Leave Privilages..................................
L. Working Hours.............................................................................................
M. Waste Disposal Method.......................................................................….

The organizational study will be the third chapter of the study. The employment
process and organizational policies will be fitted to its nature and form as agreed.
The order of priority in the business registration will be observed.

FINANCIAL STUDY

The financial feasibility section outlines all aspects of your company's finances to the
reader. In this section, you should include information about your investors, current
revenue, assets and liabilities as well as total annual revenue from the previous year. You
should also include a cost-benefit evaluation that helps support your business needs.

The financial feasibility section aims to convince the reader to either invest their support,
funds or both into the proposed project by showing them the costs needed to maintain
business operations.

The aim of this section is to outline the financial standings of the subject matter. This could
include its gross net worth over the years, the total monetary input and output yearly as well
as its assets and liabilities. The writer can also explain to the reader why the figures are the
way it is, hence the findings from the technical feasibility section can be summarized and
included in this section as well.
The financial feasibility section of a feasibility study serves as a means of convincing or
discouraging the readers from venturing into the proposed project or ideology.

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SAMPLE FORMAT
Objectives.....................................................................................................
A. Major Assumption........................................................................................
B. Projected Cost..............................................................................................
C. Note to Financial Statement...........................................................
D. Note 1: Sales/ Service Income......................................................
Note 2: Cost of Goods Sale( if any).............................................
Note 3: Utilities Expense.................................................................
Note 4: Permit and Licenses.........................................................
Note 5: Advertising Expense...........................................................

Note 6: Salaries and Wages, 13th month pay and Government


contribution.......................................................................................
Note 7: Schedule of Liabilties........................................................
Note 8: Office Supplies Expense.................................................
Note 9: Depreciation Expense.......................................................
Note 10: Repair and Maintenance Expense..............................
Note 11: Transportation Expense..................................................
E. Financial Statements...........................................................................
F. Financial Ratios...................................................................................

The financial study is the fourth chapter of the study. The major assumptions will be
based on industry practices and standards. The capitalization will be the organizational
cost plus a range of working capital of not less than P 75,000 and not more than P
200,000. Notes are not limited of what is presented but it depends on the need of the
study. Analysis of the financial statements are vital and encourage. Presentation of the
financial statements will be based on the order of priority in the preparation of financial
statements.

SOCIO-ECONOMIC STUDY

The socio economic study will show the benefits of organizing a business
to the community, to the government and to the owner. It will show the
responsibility of business owners towards all stakeholders. The
responsibility in helping the community to grow and at the same preserving
the environment, to earned an income at the same time helping individual
to have a purchasing power.

SAMPLE FORMAT
Objectives..............................................................................................
ix
A. Contribution to the Economy...............................................................
a. 1 Government……………………………………………………………………
a. 2 Community………………………………………………………………………
a. 3 Business/Owners…………………………………………………………………
B. Promotion of Environmental Ethics....................................................

The socio economic study is the fifth chapter of the study. The contribution of having a
new business in the community, and in the government is highlighted together with the
social responsibility attached on it will be encourage.

APPENDICES.................................................................................................

An appendix is an optional section, but it's usually beneficial for the reader of the report.
This section includes any information that the reader might find useful but which is not
directly relevant to the other topics discussed in your report. Regardless of whether or not
you choose to include an appendix section, you should include references.

A reference section can have one or more pages depending on the number of
sources you used to create your report. You can use company documents, scholarly
articles related to your industry, or any additional documents you wrote during the
project's completion. Be sure to use citations that adhere to the style guide you are
using

SAMPLE FORMAT

A. Data on Market Study.................................................................


A.1 Total (Actual) Population...................................................
A.2 Computation of Unserved and Served Market...........
A.3 Computation of Population Sample..............................
A.4 Computation od Target Population.................................
A.5 Projected Population..........................................................
A.6 Comp. of Market Acceptability for Demand..................
A.7 Comp. of Frequency of Agreement for Demand..........
A.8 Comp. of Market Acceptability for Supply.....................
A.9 Comp. of Frequency of Agreement for Supply.............
A.10 Comp. for Division of Capacity to Supply..................

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TABULATION...............................................................................
QUESTIONNAIRE......................................................................
B. Letter for Building Permit, Building permit Application, Time
Table and Status / Gantt Chart................................................
B. 1 Letter for Building Permit...............................................
B. 2 Building Permit Application...........................................
C. Communication Letter for Population and
Data for Population.......................................................................
D. Legal Requirements......................................................................
E. Minimum Wage Rate.....................................................................
F. SSS, Philhealth and Pag-Ibig...................................................
F.1 SSS Contribution Table................................................
F.2 PhilHealth Contribution Table.........................................
F.3 Pag-ibig Contribution Table.............................................
G. Data on Technical Study.............................................................
G.1 Product Description..........................................................
G.2 Ingredients and Procedures...........................................
G.3 Comp. of Mark-up Percentage......................................
H. Evidences on Major Assumptions...............................................
H.1 Questionnaire.....................................................................
H.2 Documentations.................................................................
DOCUMENTATION ON DEFENSES
CURRICULUM VITAE.................................................................................
Lists of Tables
Lists of Diagrams
Lists of Figures

DEFENSES
The Study will have a two sets of defenses.
1. PRELIMINARY DEFENSES will be seated by the adviser and all member of the
panel to check the survey questionnaire , market study and comments on the title
of the study as the main output of their business research course. The objective
of this defense will eliminate the chances of any group for redefense during final
defense.

xi
2. FINAL DEFENSES will be seated by the adviser and all member of the panel to
check the completeness of the manuscript as to guidelines in writing the said
study, the viability of the study and the concept of the study.
ADVISER, CHAIRMAN & PANEL
1. The Advisership of the study will be equally distributed to all full time faculty
of the college except for the new entrant of the college. The new entrant will
be given one group for him/her to gain knowledge on how to handle a
feasibility study advisership. The Dean of the college is given the option of his
/her choice in accepting advisership.
2. The chairman of the panel will be distributed equally to all full time faculty
except for the new entrant and the Dean of the college. The Dean will be
given higher number of chairmanship as the highest authority of the college,
new entrant will also given one group for him/her to gain experience.
3. The Panel will be equally distributed to all fulltime faculty except the instructor
of the said course for allowing him/her a higher number . All Part time faculty
of the college will be given a one group for him/her experience.
4. The Chairman and panel are all randomly hand picked by the Leader of the
group.

GANNT CHART

First Four Weeks Preliminary defenses


Fifth week Preparation of technical study
Sixth week Preparation of organizational study
Seventh week Preparation of socio economic study
Eight week Preparation of financial study
9 to 16 weeks Final defenses
17 to 19 weeks Checking of the revised manuscript
1st week of 2nd semester Deadline of the hardbound and
clearances

SELECTION OF THE BEST FEASIBILITY STUDY


1. All chairman will nominate One (1) best feasibility study . All nominees are
all finalist of the Best Feasibility Study.
2. In the selection of the best feasibility Study, All fulltime faculty will
deliberate again and give their rating to all finalist from the given criteria,
to wit:
a. 20 % for the concept
b. 20% for the viability
c. 20 % format
3. The 40 % will be already graded from:
a. 20 % for the preparation of the Study ( midterm Grade)
b. 20 % for the weighted final defense grade

SELECTION OF THE BEST PRESENTER


1. All core faculty will be given the chance to nominate one student as best
presenter
2. The student with the most numbered nomination will be awarded as Best
Presenter using the presented point system,
Dean – will be 3 points
Permanent Faculty – 2 points

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Part Time Faculty - 1 point
3. In case of tie, All Core faculty of the college will cast their vote to
determine the awardees.

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