In this article we will discuss about Concept of Feasibility Analysis: Meaning and its different types Market, Technical and Financial Feasibility.
Meaning of Feasibility Analysis
Feasibility Analysis refers to an analytical program in which the manager of the project has responsibility to determines the ration of success of the project and its has role to determines whether project is successful in future or not. Manager also determines that how much time is taken for completion of project. Feasibility analysis also determines the positive and negative aspects of the project.
There are different types of Feasibility Analysis are:
- Market Analysis
Market Analysis is a program in which the manager determines the value of its project in market. To completion of market Analysis Company must describe the company’s industry, identify its competition and potential customers, and project sales revenues for the period of interest. It helps to determines
- Current situation of the Market.
- It helps to identify opportunities
- It helps to set market objective
- It helps to determines market strategy
- Action programme 2.Technical Analysis
Technical Feasibility helps project manager to determine the available technology. Does the company have the technological resources to undertake the project? Are the processes and procedures conducive to project success? For the completion of task they use best technology which helps them to completion of their project with minimum cost, time and use of advance technology.
- Technical aspects
- Plant capacity
- Production technology
- Machinery and Equipments
- Technical instrument 3.Financial Analysis
Financial feasibility is analytical program which helps to determines that how much capital is needed for start-up of project, capital source, Return on investment and other financial consideration. It helps project manager to analyses that from where capital comes and how much it needed.
If in case of started of project the project manager mainly focus on financial sector.
- Profitability measures
- Estimation of sales and production cost
- Financial Analysis
- Finance appraisal