Feasibility Studies BUSE 628
Dr. Khaled Aldeeb
Faculty of Economics and Administration
King Abdulaziz University

Home Work Assignment

Prepared By

Name: Ahmed Abnawi
ID: 1500912
A feasibility study is an important step in the formation or expansion of any business idea. A feasibility study is usually conducted after producers have discussed a series of business ideas or scenarios. The feasibility study helps to frame specific business scenarios so they can be studied in-depth. During this process the number of business alternatives under consideration is usually quickly reduced.
However, when a company or a person attempt to conduct a Feasibility study there are some challenges that they may face and these challenges may form some obstacles against conducting a study will list some of these challenges: * How you will start?
In order to conduct a Feasibility study for a business you need to assure that you are covering all the aspects related to your study. You need to be very clear about what parts you're going to address and how to work with your business colleagues to construct a coherent view.

* What to do?
Feasibility is hard to prove. To control this vagueness, implement a written plan of action. The inherent uncertainty makes planning a feasibility study harder than usual, although the project can fail only if the final report is inconclusive.

* Wrong Team
Any professional study is only as good as the team that does the work. Yet there is a tendency to try to find consultants who specialize in just one area, for example, restaurants, medical devices, social media, etc. This might seem to be the safest choice, but it can be overly restrictive and lead to highly formulaic outcomes. Selecting a consultant that specializes in only one area (for example nursing homes) can be particularly problematic if the project crosses traditional specialization boundaries. Another error is to hire an engineering consultant to do the market and economic analysis. A better approach is to hire a team with a mix of the required skills — from economic and market analysis to engineering and sustainability.

* Organizational * Key questions to answer include: What organizational structure is the right one for your project? Who will serve on the board of directors? What are their qualifications? What qualifications are needed to manage this business?
Because all subsequent decisions depend on the organization’s legal business structure, the first question is critical and should be answered before you continue with the feasibility analysis. It is an important question and may take some research. Don’t hesitate to call on a qualified attorney or other advisor if necessary. While you need not know the answers to all the other questions in order for the business to be feasible, they must all be satisfactorily answered before you begin operations. This is a good time to begin the process of identifying appropriate individuals for the board, management and other staff positions, and to think carefully about what qualifications are necessary to manage this business.

* Technological
Key questions to answer include: What are the technology needs for the proposed business? What other equipment does your proposed business need? Where will you obtain this technology and equipment? When can you get the necessary equipment? How does your ability to obtain this technology and equipment affect your start-up timeline? How much will the equipment and technology cost?
Keep in mind that technology doesn’t necessarily mean complex machinery; if your business simply needs a personal computer, printer, and fax machine, those are your technological needs. However, making wise decisions on even simple purchases such as office machines may require some research. Obviously there are numerous types of personal computers on the market. You may want to check Consumer Reports for their recommendations, do some comparative shopping, and ask acquaintances about their experiences with different companies. Your cost estimates (question #e) will get plugged into your financial projections.

Finally, a pre-feasibility study may be conducted first to help sort out relevant scenarios. Before proceeding with a full-blown feasibility study, you may want to do some pre-feasibility analysis of your own. If you find out early-on that the proposed business idea is not feasible, it will save you time and money. If the findings lead you to proceed with the feasibility study, your work may have resolved some basic issues.