UGM June 2019 Q38
- A
Product/service feasibility; Industry/target market feasibility; Organizational feasibility; Human resource feasibility
- B
Industry/target market feasibility; Organizational feasibility; Human resource feasibility; Leadership feasibility
- C
Financial feasibility; Product/service feasibility; Ind ustry/target m ark et feasibility; Organizational feasibility
- D
Ind ustry/target m ark et feasibility; Organizational feasibility; Financial feasibility; Leadership feasibility
- Option : C
- Explanation : Feasibility Analysis: Process of determining if a business idea is viable. A feasibility analysis is an assessment of a potential business rather than strictly a product or service idea. If busines idea is not feasible then one should either modify or drop the same.
(a) Product/Service Feasibility: Assessment of the overall appeal of the product or service proposed.
1. Ensure that the proposed product or service is desirable and serves a need in the marketplace.
2. Determine if there is demand for the product or service, there are two ways:
> Buying intentions survey.
> Conducting library, Internet research.
(b) Industry/Target Market Feasibility: Assessment of the overall appeal of the industry and the target market for the product or service being proposed.
(c) Organizational Feasibility: To determine whether a proposed business has sufficient management expertise, organizational competence, and resources to successfully launch its business.
1. Evaluate the ability, of its initial management team.
2. Determ ine whether the proposed venture has or is capable of obtaining sufficient resources to move forward.
(d) Financial Feasibility: To determine whether a proposed business is financially viable or not.
1. Calculate the total cash needed to prepare the business to make its first sale & sources of the same.
2. Estimate a proposed start-up’s potential financial performance by comparing it to sim ilar, already established businesses.
