Areas of Feasibility Study:
1. Technical aspect
2. Marketing aspect:
a. Market chosen
b. Demand factor
c. Competitors status, whether we will face them even in future?
d. Market available in future
e. Whether the market is stagnant or growing?
f. Possible growth in export market
g. Availability of substitute products
3. Financial Feasibility study:
a. It relates to financial aspect of the project
b. Checking the project on profit front (for present & future)
c. The study related to the capital cost, working capital needs, sales revenue, earning estimates.
d. Financing agencies are more interested in doing feasibility study of this part of the project as their intention lies in how much profitable the project will prove to be.
e. Capital cost = cost of various items such as land, machinery, building etc.
4. Managerial feasibility study:
a. All ingredients of efficient management are taken into consideration in the proposed project.
b. Managerial personnel at all levels to be considered.
c. Proper analysis of organization structure.
d. Competence of managerial staff as success of any organization depends on the quality of the managerial staff.
Above stated all points should be considered and analyzed in totality.
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