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Introduction to Research and Feasbility Study

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RodolfoFaldas
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4 views

Introduction to Research and Feasbility Study

Uploaded by

RodolfoFaldas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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INTRODUCTION TO

RESEARCH AND
FEASIBILITY STUDY
Is any organized inquiry
carried out to provide
information for solving
problems.
Is it is a process of planning,
acquiring, analyzing, and
disseminating relevant data,
information, and insights to
decision makers in ways that
mobilize the organization to take
appropriate actions that, in turn,
maximize performance.
Determines the VIABILITY
of a product, service or
project which is not yet
operational.
A synthesis of separate
studies usually dealing with
the market, technical,
financial, socio-economic,
and the management
aspect of the project.
Chapter 1: Introduction
Chapter 2: Industry Aspect
Chapter 3: Marketing Aspect
Chapter 4: Organizational Aspect
Chapter 5: Production Aspect
Chapter 6: Financial Aspect
Chapter 7: Socio-Economic Benefit
Chapter 8: Conclusions and
Recommendations
1. The decision maker requests a detailed
research proposal from several
competing research providers w/ no
intention of selecting a firm to conduct
a research.

2. The decision maker is promising a


prospective research provider a long-
term relationship or additional projects
in order to obtain a very low price on
1. After quoting a set overall price for a proposed
research project , the researcher may tell the
decision maker that variable-cost items (e.g.
travel expenses, computer fees) are over and
above the quoted price.

2. Does not provide the promised incentive to


respondents for completing the interviews or
questionnaires. Also, the research provider
does not pay or delays indefinitely the fees
owed to the field workers.
3. The tendency to state that interviews are very
short when in reality they may last up to one
hour

4. Selling the respondents’ name and


demographic data to other companies w/out
their approval

5. Using infrared dye on questionnaires to trace


selective respondents for the purpose of
making a sales call
7. The selling of unnecessary or unwarranted
research services.

8. Falsifying data

a. curbstoning (or rocking chair


interviewing)
b. duplication of responses or the creation of
the “phantom” respondents.
c. manipulate data structures
d. Report selected (particularly favorable)
findings only.
Providing dishonest answers
or faking behavior.
1. To enhance the sustainability of a particular
business currently undertaken

2. To facilitate easily the evaluation of a project’s


success in all areas covered by the study

3. To seek the infusion of additional fresh


working capital from financial institution

4. To determine the recovery period of capital


investment or expected return on investment
5. To serve as measuring instrument in
evaluating actual project results against what
the study reveals

6. To reduce, if it cannot be totally avoided, the


expected business difficulty that maybe
experienced during actual implementation

7. To meet and satisfy the requirements set by


the investors of the proposed business project
1. Comprehensive. The study should fully cover
all the areas that needs to be scrutinized.

2. Objective. Unbiased presentation of the


findings of the study based on fair evaluation
and critical analysis of data from various
sources.
3. Simple. The language and expressions used in
a feasibility study should be simple to enhance
understanding

4. Reliable. High degree of truthfulness in the


available data, in the analysis and evaluation,
and in the conclusion of the study.
3. Valuable information greatly needed in the
study is not readily available.

4. Cost of gathering necessary data required in


the analysis, formulation of conclusions, and
drafting of recommendations is very high.
3. The competitors may have available data
directly related to operations, but they may
hesitate to share such information because of
confidentiality.

4. Person undertaking the study may not have


acquired the necessary professional expertise
ad competency in making feasibility study

5. Feasibility study still remains a forecast and


nobody can vouch for the attainability of the
3. Type of industry
4. Size of the project
5. Purpose of the study
6. Party preparing the study
7. Requirements of prospective investors
Defined:

Refers to a group of companies that


have common characteristics and are related
in terms of operational processes, products
sold, market, functions, or services offered.
Agriculture and mining

 Farming and
Ranching

 Fishing, Hunting and


Forestry and Logging

 Mining and Quarrying


Business Services

 Accounting and Tax


Preparation
 Advertising,
Marketing and PR
 Data and Records
Management
 Facilities
Management and
Maintenance
Computer and Electronics

 Consumer
Electronics, Parts and
Repair
 IT and Network
Services and Support
 Instruments and
Controls
 Network Security
Products
Consumer and Services

 Funeral Homes and


Services
 Laundry and Dry
Cleaning
 Parking Lots and
Garage Management
 Personal Care
Education

 Sports, Arts, and


Recreation
Instruction

 Technical and Trade


Schools

 Test Preparation
Energy and Utilities

 Sewage Treatment
Facilities

 Waste Management
and Recycling

 Water Treatment and


Utilities
Financial Services

 Insurance and Risk


Management
 Investment Banking
and Venture Capital
 Lending and
Mortgage
 Personal Financial
Planning and Private
Banking
Health, Pharmaceuticals, and Bio-
tech
 Outpatient Care
Centers
 Personal Health Care
Products
 Pharmaceuticals
 Residential and Long-
term Care Facilities
Manufacturing

 Furniture
Manufacturing

 Metals Manufacturing

 Nonalcoholic
Beverages


Media and Entertainment

 Motion Picture and


Recording Producers

 Newspapers, Books,
and Periodicals

 Performing Arts
Real Estate and Construction

 Architecture,
Engineering and
Design

 Construction
Equipment and
Supplies

 Construction and
Retail

 Beer, Wine and


Liquor Stores

 Clothing and Shoe


Stores

 Department Stores
Travel, Recreation, and Leisure

 Amusement Parks
and Attractions
 Cruise Ship
Operations
 Travel Agents and
Services
 Travel, Recreations
and Leisure Other
Wholesale and Distribution

 Metal and Mineral


Wholesalers

 Office Equipment and


Suppliers
Wholesalers
Project size is
usually
expressed
in terms of
investment
requirement
 Market information on the plan to expand

 Product information on the plan to offer new


product to the market

 Competition analysis because of entrance of a


new competitor

 Demand study on the plan to launch a new


service
An economist
An industrial
engineer
A mechanical
engineer
A marketing
consultant
 Accountant
 Lawyer
 Human
Resource
Officer
Prospective Management
Investors
Viability of expansion
Profitability
Selling and buying of
Sustainability businesses

Amount of funds to Supply and demand


be committed gap

Rate of return on
invested capital
Proponents Banks

Answer queries
Capacity to pay
Identify ways to
improve project Basis for credit
specification extension terms and
conditions
Use to attract
investors
Shareholders Government
Agencies
Investment decision
making Compliance with
minimum requirements
Determine expected
return on investment Provide funding
incentives or grants

Contribution to the
socio-economic
program of the gov’t.

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