Feasibility-Manual-1st-Edition-Edited-Perused-Formatted
Feasibility-Manual-1st-Edition-Edited-Perused-Formatted
Feasibility-Manual-1st-Edition-Edited-Perused-Formatted
INTRODUCTION
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Author: Noella G Baclangen
A feasibility study is not a business plan. The distinct views of both are
frequently misunderstood. While the feasibility study provides an investigating
function that addresses the question of “Is this a viable business venture?”, the
business plan provides a planning function since it outlines the actions needed
to take the proposal from the “idea” to “reality”.
Hence, a feasibility study outlines and analyzes several alternatives or
methods of achieving business success. It helps to narrow the scope of the project
to identify the business scenario(s). It is conducted before a business plan.
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Author: Noella G Baclangen
Steps in the Conduct of a Feasibility Study
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Author: Noella G Baclangen
purchasing of land, buildings, and equipment, financing for assets,
and accounts receivables.
6. Review and analyze all data
¬ This step is significantly important as well to make sure that
everything is as it should be and that nothing requires changing or
tweaking. Accordingly, do not rush and just comply with the
contents of the study; try to take a moment and look over the work
done one last time.
7. Make a Go/No-Go Decision
¬ As an advocate, facing a decision to pursue the study is not as
simple as it is. At this point, try to consider a couple of things before
making that binary choice whether the commitment is worth the
time, effort, and money and whether it is aligned with the
organization’s strategic goals and long–term aspirations.
The project long-range objective are the goals that outlines the path of
the proposed venture in the future which is usually five or ten (10) years. These
objectives must be measurable and could help the proposed venture reach its
growth goal.
C. Feasibility Criteria
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D. Major Assumptions and Conclusion
The major assumptions per chapter are information not stated in the
report/study and must be factual for the study’s conclusion to hold true. It
states some missing or unstated premises that make the conclusion valid. It
usually answers the question “What makes the study feasible in terms of
marketing, technical, operation, financial, management, legal, and economic?”
A. Business Description
3 kinds of Logos
1. Font–Based logos
2. Logos that literally demonstrate what a company does
3. Abstract Graphic Symbols
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Author: Noella G Baclangen
B. Product/Service Description
¬ It indicates what value the user gets from it or what it promotes to the
market, economy, household, etc.
C. Target Market
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Author: Noella G Baclangen
D. Demand Analysis
This refers to making a numerical evaluation of the market and the
segments of the market that are defined in the following areas:
a. Potential Demand – This is what the maximum consumers could buy
in a determined period of time.
b. Actual Demand – This is the demand for the product or service for the
current year or the previous year if the data is not available. It could
be obtained on a national or regional level from many different
sources.
c. Future Demand – This is the estimate of the increase in demand for
the next year as a percentage of actual demand.
d. Evolution of demand – This involves making a graph of historical data
such as sales in the sector/proposed area. Through this, one can see
the market trends and define the phases of the products’ cycle.
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¬ Actual demand (willing and able to purchase/acquire/use the
proposed product or service) refers to the definite market that will
acquire, purchase, or use the output of the proposed venture.
D.3 Supply Side
The supply side must be supported by the technical study which is
the computed estimated production capacity.
¬ From the market research conducted and in analyzing the competition
and industry stand of the proposed venture, Historical Data must be
provided to support the estimated ability and willingness of the
supplier or producer to come up with a product.
¬ The projected supply is the estimated capacity of the proposed
venture to provide, produce, or make available its product or service
to its customers.
D.4 Demand (Supply Gap Analysis)
In this part, it should be noted that the gap is not negative.
Otherwise, it would mean that there is no unsatisfied demand thus, the
proposed business, project, or venture is no longer needed or is not
applicable.
D.5 Projected Sales (Revenue Analysis)
¬ The projected sales must be presented on the basis of what exactly is
your price and your capacity to produce. This does not consider the
demand since not 100% will be your customers.
¬ Another basis of determining the sales is on the unsatisfied demand
which could be your possible target in ratio of the percentage of
those who are willing and able to devour, consume, avail, or use the
proposed product or service.
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Author: Noella G Baclangen
¬ SWOT (do this if necessary)
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7. Premium pricing. This is a practice where owners set a high price to give
the impression that a product must have unusually high quality. This is
applicable for real state business, cars or automobiles. Simply applicable
only for businesses that are under oligopoly market structure where
there are strong barriers to entry.
8. Bundle pricing. A strategy applicable to those businesses that sell
multiple products together for lower price than if they were purchased
separately.
F.2 Product/service strategy
In this portion make sure to answer the question “what”, “for whom”,
“how” because it helps in developing the product or service that would be
made available for the market.
5 PROMOTIONAL STRATEGIES
1. Traditional and online advertising
2. Personal selling
3. Direct marketing
4. Public relations and sponsorships
5. Sales promotion
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4. Exclusive distribution
5. Selective distribution
Table #. Title
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This part includes those that are used for the movement, storage,
control, and protection of materials, goods, and products during the course of
manufacturing, production, operation, disposal, and consumption.
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B.4. Transportation Modes
¬ This part of the technical study includes when the proposed
business or venture needs transportation that carries their
products from place to place. Also, it includes ventures such as
transportation services where they pick up their customers or
where they send them out.
¬ Examples include commercial cars such as 10-wheelers, vans,
private cars, etc.
C. Manufacturing/Merchandising/Service Process
If the proposed study is in production, use the manufacturing process. If
it is on buying and selling, then use merchandising process. The same case
for the service process if the study is on the service side.
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Used in input and output
Input/Output operation such as those
production
Used for arithmetic operations
Processing
and data manipulations
Used for decision making between
Decision
two or more alternatives
Used to connect different flowline
especially if the logistic is too long
On-page Connector
and there are different group of
process in every stage.
Used to connect the flowchart
portion on a different page. This is
Off-page Connector
used if the flow chart is not fitted
on one page.
Predefined Represent a group of statements
Process/Function performing one processing task.
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C.2. Estimated Production Capacity
This includes:
¬ Expected production schedule and volume which serves as the
basis of the actual production and operation. This will be
illustrated in the supply side of the Market Study.
¬ Number of shifts planned
C.5. Utilities
These are the water, communication, electricity, and other basic
needs to help the operation work smoothly.
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Author: Noella G Baclangen
Chapter 4. MANAGEMENT STUDY
A. Vision – Mission – Objectives
Vision is what you see about your business in the next 10 years or more
while mission is how will the business work it out to achieve its vision. On the
other hand, objectives are the specific actions it would obtain, surpass and
work it out to be able to do its mission thus achieving its vision.
B. Business Forms and Key Personnel
This consists of the different human resources that would run the business,
project, or venture in an effective and efficient manner. The business form is the
structure of how the organization will be managed.
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B.5 Employment Process
It is an illustration that shows how will the management carry out its
VMO by selecting and hiring employees to support the organization in
accomplishing its VMO.
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Chapter 5. FINANCIAL STUDY
A. Capital Requirements and Strategy
This presents what strategy or decision will the business-owner-to – be
doing in order to maintain its finances. Funds and assets to support the proposed
business in its operation and for continuous existence and development
B. Financial Projections
This illustrates the projected cost, income, and budget for the next five
years of operation including the pre-operation year.
C.1. Liquidity
¬ Current ratio
¬ Acid Test Ratio
¬ Working Capital
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C.2. Profitability
¬ Return of Equity
¬ Return on investment
¬ Gross profit ratio
¬ Net profit ratio
¬ Operating ratio
C.3. Stability
¬ Debt-to-asset ratio
¬ Debt-to-equity ratio
¬ Earnings per share ratio
The financial ratios must be interpreted and analyzed for the readers to
understand what those numbers imply or indicate for the proposed venture.
Every value must be well-versed and corroborated with the rest of the study.
Note that businesses that will be formed under sole proprietorship and
small businesses will be under the Department of Trade and Industry (DTI) while
those under partnership and corporations must be under the Securities and
Exchange Commission (SEC).
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Other matters to be discussed in this chapter include:
¬ Patents, Copyrights, and Trademarks if the business, project, or
venture will offer such. There is a need to also discuss the process of
obtaining these from the supposed business owner, or if the business
is a patent from others, then discuss the process of how it was
obtained.
¬ Licensing Agreement/Patent Assignment must also be discussed if the
business, project, or venture will use a particular brand or technology
that others own. As such, an agreement between the parties should be
presented.
A.2. Taxation
This part details all the possible taxes the government could or will
impose on the business that need to be paid.
Taxation elaborates the different taxes directly involved to the proposed
venture, business, or project that they must comply excluding the specifics
that the employees or the owners have to pay.
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3. Environment Conservation
a. Its advantage and disadvantage to the nature and to the habitats
around it (including people)
Appendices
These are the related documents that support the feasibility study. Include
also the processes undergone, computations and notations done if there are, and
documentation showing the proponents in action.
Attachments
These comprise the documents that support the operation of the proposed
business. They include among others pertinent documents obtained from the
different offices of the Barangay, LGU/City, or province.
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PART 2
POLICIES AND GUIDELINES
A PRACTICAL GUIDE
for the
BSBA/BSHM FEASIBILITY STUDY
Paper
Margins
For those pages presented in a portrait style, the consistent margin is
1.5” left, 1.0” top, right, and bottom. The footer margin is 0.5.
All feasibility studies must use “Bookman Old Style” font style size 12 for
all the contents. Tables, graphs, and figures can have lower font size than 12
but not lower than font size 10. These font type and sizes shall be used in all
entries and discussions of the study, from the very first page to the last entry of
the study.
Specifically, the title of the figure, chart, and table must be size “12”
while the contents of the table shall have a font size lower than “12” until font
size “10”. Financial statements or financial schedules and notes can be lowered
up to font size “8”.
Spacing
¬ before: 0 pt;
¬ after: 0 pt.
¬ line spacing: double space (DS)
2. All tables must have a line spacing of single space (SS).
3. All spaces must be consistent technically so that it will not affect the
development of other paragraphs and chapters.
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Indention
All paragraphs must be indented to 0.50” or using the first default tab in
Microsoft Word. The subsequent discussions and contents shall use the left
margin.
Justification
The content of the feasibility study body is justified. The major headings
must be centered and written in caps lock. Subsector per chapter must be in
Caps lock to include:
A. NAME OF THE BUSINESS
¬ Properties of the Business (option 1) Observe the alignment
¬ Properties of the Business (option 2) of the next subsector
per item
B. CAPITAL REQUIREMENTS
¬ Sales Budget (option 1)
¬ Sales Budget (option 2)
Number of Copies
A Minimum of two (2) original copies must be submitted. A third copy may
be submitted if requested by the adviser, or if the researchers need a copy of their
own. The 2 copies will be distributed to the school library and to the department,
respectively.
Pagination
The page to be adopted is either the Accent bar 2 or Accent bar 4, bottom
page right side with a font style and size of bookman old style 10.
Every first page of the chapter has an invisible page (counted but not seen)
The title page is counted but with an invisible page too.
The main body of the study is consecutively numbered with numerals. The
page must be consistent along all the pages no matter if it is in portrait form or
landscape form. The documentation and curriculum vitae pages may not have
page numbers.
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POLICIES
The feasibility study proposal has 7 chapters that the students must
complete before the end of the semester. Accordingly, the following must be
observed:
1. Students are required to finish three (3) units of feasibility study in their
particular courses.
2. Each group must have at least 4 members but does not exceed 6 members.
Each group member must contribute and participate in completing the task
given to him/her and must be responsible for taking up what is assigned to
him/her in the study.
3. If one member of the group does not participate at all costs, the other
members may decide to remove him/her informing the instructor of their
decision.
4. Each group must come up with a business proposal or a project proposal that
will be presented to the instructor for approval. Once the study is approved,
they will have to choose an adviser who will guide them in the conduct of their
study.
A. The proponents
All group members must be officially enrolled in the feasibility subject and
have supposedly finished thesis writing/business research/HM research.
This will give them the necessary background for the conduct of the feasibility
study.
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¬ Advisers from the department can only take up to 3 groups to be
advised. This will ensure proper and sufficient supervision accorded to
the student researchers.
¬ The adviser should guide the students through, helping them with
every part and every detail of the study, what areas need improvement,
and what needs to be developed. This would ensure a study of good
quality.
B.2. Instructor
¬ The instructor of the feasibility subject can also be an adviser. This is
with the condition that no other available adviser is at hand to assist
the enrolled students. Correspondingly, the rule of 3 groups per adviser
shall apply.
¬ In terms of the final decision regarding inputs in the study, the
instructor shall have the final say as he/she is aware of the format
being followed.
C. On Defense Procedure
There are two defenses that will be strictly followed and to be scheduled
on two separate occasions. This is due to the nature of the study composed
of lengthy parts. The two defense schedules will give the chance to both
students and panel members to be effective in the defense.
Prior to the defense, the following should have been undertaken:
¬ After the series of lectures/discussions on the subject, the
students should have prepared and presented their proposal or
concept to their instructor for approval.
¬ Once approved, the students can now proceed to write their
chapters 1, 2 and 3 following discussed guidelines.
¬ Once the first three chapters are done together with a sound
conceptual framework, the group can proceed with the
formulation of their survey questionnaires to be approved by the
instructor. (take note: chapter 1 only may be presented as a
concept form since it will be formalized after all other chapters
were done)
¬ In turn, the instructor shall have the concurrence of the adviser
of the group regarding the administration of the questionnaire
to the target respondents. (It is expected that the questionnaire
underwent the validation and reliability testing.)
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Once chapters 1 (optional), 2, and 3 are finalized, the group can now
be scheduled for the first defense (preliminary defense).
Pre–Defense
¬ There will be a Pre-defense that will be conducted which can be
considered as a midterm exam. The chapters to be defended will be
Chapter 2: Marketing Study and Chapter 3: Technical Study, although
Chapter 1 is part of the chapters to be completed.
¬ These two chapters compose mostly of the financial decisions that will
be presented in Chapter 5.
¬ The instructor is responsible for endorsing the students for Pre-
defense, who in turn, informs the adviser of the group of the impending
defense.
Taking Down notes
¬ During the defense, the adviser will be in charge of taking down notes
on the suggestions/corrections the panel members give. This will give
the chance for the proponents to concentrate on answering the
questions coming from the pane members during the defense.
Whenever applicable, one of the group members can help the adviser
take down notes.
¬ All suggestions/corrections are collated and given to the group for
incorporation later in the finalized manuscript.
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Final Oral Defense
¬ The final oral defense shall proceed only when all the chapters are
completed and perused by the adviser. In addition, the endorsement
and approval for the final defense must be done by both the instructor
and the adviser.
¬ The schedule of the final oral defense is preferably the week before the
final examination or at the latest, within the examination week.
¬ The time and schedule of said defense will be determined by the
instructor in accordance with the free time of the selected panel
members of the proponents.
Technical Review
Technical Review is a must in every study. This is to ensure that the format
is in accordance with the format designed for institutional use. Note that
technical review is different from technical edition since the latter pertains to
not only reviewing but also making some editions on the paper to harmonize
the contents of each chapter. Technical review is more of how the paper is
written in general, and how the words are written and used in particular.
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Schedule of Fees:
D.1. Pre-Defense
Each Panel Member = 250
Adviser = 300
The defense fees shall be given to the FS instructor either before or after
the schedule of the final defense.
The defense fees shall be disbursed by the FS instructor to the defense
committee only when the hard-bound copies of the research are submitted (or
if the paper is ready for technical review). Acknowledgment receipt shall be
issued for record purposes.
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4. during the editing of the papers, check and give back the manuscript
to the group within two (2) to three (3) days only; and
5. The chairperson essentially directs the other members during the
defense process and summarizes the corrections and suggestions at
the end of the defense for the adviser and proponents’ consideration.
C. The Adviser
1. Facilitates during the defense concerning the level of comprehension of
his/her advisees.
2. Performs similar functions as the panel members to include among others:
a. thorough examination of the written materials submitted by the
group;
b. helps address the unsatisfactory progress of the study based on the
result of the presentation during the pre-defense and final oral
defense; and
c. provides specific corrections/suggestions/comments for the
improvement of the study.
3. Reads and helps the group in crafting (includes edition and modification)
the final manuscript and see to it that it is worth bounding.
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By: Noella G. Baclangen
PART 3
FEASIBILITY FORMAT
XXXXXX2017
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ENDORSEMENT
This Feasibility Study titled, TITLE (IN CAPSLOCK) and submitted by NAME OF
PROPONENTS (IN CAPSLOCK) in partial fulfillment of the requirements for the
course Feasibility study (FM 110/HM130/MM131), has been completed and
recommended for acceptance and approval for ORAL EXAMINATION.
________________________
Instructor
This is to certify that the feasibility study entitled, NAME OF THE PROPOSED
CHAIRPERSON
Chairperson
PANEL 1 PANEL 2
Member Member
Endorsed:
_________________________
Adviser
(Be consistent in the formation and style of the name of the panels, adviser and
other higher authorities involved.)
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APPROVAL SHEET
This FEASIBILITY STUDY titled TITLE OF THE STUDY prepared and submitted
The names
NAME OF THE CHAIRPERSON must be in
Chairperson CAPSLOCK
Date Signed: _____________ form as it is
presented
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Noted:
NAME OF THE DEAN ________________
Dean Date
College of Business Management
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ACKNOWLEDGEMENTS. Xxx xxx xxx xxx xxx xxx xxxx Insert two blank single-space lines here.
and the text.] xxx xxx x xxxx xxx xxxx xxx xxx. Xxxxx
Show page number here. Put it at the right
xxxxxxx xxxxx xxxx [ The name is in full capitals, and margin. It should be in ‘footer’ (not within the text
portion of the manuscript). Do this to all
flush to the right margin. The idle name can be spelled in preliminary pages.
The Proponents
Page │1
Take note: the table of contents is in double space
page
The executive summary must be presented and
Title Page . . . . . . . . . . . . . . . . . . i
summarized only on one page. If not possible, the
Endorsement . . . . . . . . . . . . . . . . ii
summary can be up to two pages maximum.
Approval Sheet . . . . . . . . . . . . . . . iii
Avoid too many discussions on the executive
Acknowledgements . . . . . . . . . . . . . iv
summary since this part gives only a picture of the whole
Executive Summary . . . . . . . . . . . . . v
study.
Table of Contents . . . . . . . . . . . . . .. vi
Make sure the executive summary attracts other
Chapter 1: Chapter Summary
investors and those interested.
A. Name of the Business . . . . . . . . . 2
The executive summary should be B. Project Long Range Objective. . . . . 3
idea your study wants to present to prospective investors. D. Findings and Conclusion
Major Assumptions and Conclusions
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the study, the reason for its establishment, and what’s behind
Insert two blank single spaces here
the proposal.
1| Page of the
Insert two blank single space lines above the boundary
figure.
the same font style and form as the text. It is set flush to the
Figure 2. Xxxxxxx
left margin. If the figure caption is long enough it must be up
Place the figure caption under the figure. Write the caption in
to two lines, it is single-spaced, with the second line starting sentence case. The caption has the same font size as of those
text. It is set flush on the left margin.
under the first line after the figure number. It does not have
any end punctuation. It is not underlined, nor italics. There is Insert one blank single space above the caption.
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A table (Table 1) is introduced before it is shown. The caption In the text introduce first the table before showing it.
is placed above the table. There are 2 blank single spaces above Insert two blank spaces above the table caption.
the caption and one blank single space below the caption. If the
Place the table title/caption above the table. Write it in
title/caption of the table has two or more lines, it is single- sentence case. The title/caption has the same font
style and size as the text. It is set flush on the left
spaced with the second line starting under the first line after margin.
the table number. Use single spacing if it has two or more lines with the
second line starting under the line after the table
number
Table 1. Frequency of the Number of Buyers of Green Tea
Beneath the Starry Starry Night Insert one blank space line below the caption
PARTICULARS YEAR RESPONSE Type the header row, or the first level in full capitals.
Xxxxxxx 123 Zzz
Use double lines used at the top and bottom of the
Xxxxxxxx 123 Zzz table
Xxxxxxx 123 Zzz
xxxxxxxx 123 Zzz Insert two blank single space lines after the table.
Below the table is the analysis and interpretation of PARTICULARS YEAR RESPONSE
Xxxxxxx 123 Zzz
what is presented in the table. The table does not contain any Xxxxxxxx 123 Zzz
Xxxxxxx 123 Zzz
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vertical signs. Horizontal lines are only for the header and
xxxxxxxx 123 Zzz
bottom rows.
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Table 3. Continued …
xxxxx xxxxx xxxxx xxx xxxx xxx xxxx. If there are numbers
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Title of the Appendix A Do not show the page number on the first page of every major
section, such as the APPENDICES.
[The appendices contain instruments like the questionnaire, The appendix can contain single spaced text
interview schedule, letters of transmittal, decrees or laws, sets
of raw data, statistical computations or other relevant
information.] READ ME
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OTHER CONSIDERATIONS
Executive summary
Acknowledgements
Conclusions
Your conclusions are generalizations that you can glean from your
results. Write them as inferences: do not repeat what have you found
after conducting the surveys and findings.
Recommendations
Attachments
This part contains the documents and legal basis that supports your
proposal. It contains the business permit, sanitary permit, Income tax
return (ITR), Lot title, fire safety inspection certificate, registration of
corporations and partnerships with the SEC, etc.
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A. Introduction
Emerging Developing Well done Excellent
1 2 3 4 5
No or little introduction Interesting or engaging introduction
Comment: Comment:
B. Organization
Emerging Developing Well done Excellent
1 2 3 4 5
Disorganized or poorly organized • Well organized and easy to follow
Comment: • Smooth transition
Comment:
C. Delivery
Emerging Developing Well done Excellent
1 2 3 4 5
• Manuscript was read or seemed memorized • Speech was clear, smooth and
• Speech was too slow/fast/soft articulate
• Eye contact lacking or absent • Voice projection and spacing effective
• Delivery unsure, uncomfortable, stiff, • Eye contact appropriate, help connect
unprepared to panelists
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Comment:
D. Content
Emerging Developing Well done Excellent
1 2 3 4 5
• Paper and presentation highly technical for audience • General audience can understand the
• Terms undefined or minimally defined; background paper presentation
information lacking; or assumptions lacking • Key terms defined and necessary
• Presentation deficient in evaluation and synthesis information provided
• Assumptions surfaced
Comment: • Presentation information evaluated and
well synthesized
Comment:
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• Technical Chapter
E. Response to Question
Emerging Developing Well done Excellent
1 2 3 4 5
Misunderstands questions; sometimes can Answers questions well with reference to
not answer questions own work; shows knowledge of subject
Comment: Comment:
TOTAL SCORE:
Name of Panel:
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Ditablan, Eustaquio, 2009. Feasibility Study Handbook. National Book Store, 24K
Printing Co., INC
WEBSITE SOURCES
Smallbusiness.wa.gov.au/marketing/marketing-promotion-strategies
mbaskool.com – www.mbaskool.com/business-concepts
projectmanager.com – https://www.projectmanager.com/training/how-to-conduct-a-
feasibility-study
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projectsmart.co.uk – https://www.projectsmart.co.uk/requirements-
management/elements-of-a-good-feasibility-study.php
grit.ph – https://grit.ph/feasibility-study/
wecoop.eu – https://wecoop.eu/regional-knowledge-centre/project-development/
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