FT-CRD-119-00 Feasibility Study Framework
FT-CRD-119-00 Feasibility Study Framework
FT-CRD-119-00 Feasibility Study Framework
A Feasibility Study
Presented to the Faculty of the
Business and Management Department
STI College <School Name>
In Partial Fulfilment
of the Requirements for the Degree
Bachelor of Science in Business Administration
<Date of Submission>
This research proposal entitled: <Feasibility Study Title> prepared and submitted by
<Researcher's Given Name MI. Family Name>; <Researcher's Given Name MI.
Family Name>; <Researcher's Given Name MI. Family Name>; and <Researcher's
Given Name MI. Family Name>, in partial fulfillment of the requirements for the
degree of Bachelor of Science in <Program>, has been examined and is recommended for
acceptance and approval.
ENDORSED BY:
NOTED BY:
This feasibility study titled: <Title of the Study> prepared and submitted by
<Researcher's Given Name MI. Family Name>; <Researcher's Given Name MI.
Family Name>; <Researcher's Given Name MI. Family Name>; and <Researcher's
Given Name MI. Family Name>, in partial fulfillment of the requirements for the
degree of Bachelor of Science in <Program>, has been examined and is recommended for
acceptance and approval.
<Panelists' Given Name MI. Family Name> <Panelists' Given Name MI. Family Name>
Panel Member Panel Member
Noted:
<Feasibility Study Coordinator's Given <Program Head's Given Name MI. Family
Name MI. Family Name> Name>
Feasibility Study Coordinator Program Head
Page
Title Page i
Acknowledgment ii
Abstract iii
Endorsement Form for Presentation Defense iv
Approval Sheet v
Table of Contents vi
List of Figures vii
CHAPTER I: INTRODUCTION
Background of the Study 1
Organizational Background
Statement of the Problem
Objectives of the Study
Significance of the Study
Scope and Delimitations
Operational Definition of Terms
Review of Related Literature and Studies
Research Methodology
CHAPTER II: THE MARKETING ASPECT
Objectives of the Marketing Aspect
Industry Analysis
Environmental Analysis
Market Analysis
The Marketing Program
Presentation, Analysis, and Interpretation of Data
CHAPTER III: THE MANAGEMENT ASPECT
Objectives of the Management Aspect
Pre – operating Period
Project Originators/ Promoters/ Managers
Project Schedule
Operating Period
Form of Business Ownership
Internal Organization
CHAPTER IV: OPERATIONAL ASPECT
Objectives of the Operational Aspect
Product/Service Specifications
Raw Materials
Production Process/Service Delivery
Building and Facilities
Machinery and Equipment
Labor Requirements for Production
INTRODUCTION
The Introduction is a key paragraph for both readers and writers. First impressions
matter. The reader will be more inclined to read a paper and consider a position if the
initial paragraph is clear, organized, and engaging. A carefully crafted first paragraph acts
as a springboard for the writer, establishing the order and direction for the entire paper.
The form and content of an introduction depend upon many factors, including the
specifics of the assignment, the intended audience, the style of the discipline, and your
professor's expectations. In general, your Introduction should capture the reader’s
attention; reflect the question raised by the assignment; provide essential context for your
topic, and define key terms
This section describes a brief description of the proposed business venture and the
product/service it offers. This may also include the organizational type (public, non-
profit, market); organizational form (sole proprietorship, general partnership, limited
partnership, corporation); and the graphic identity of the proposed business (trademarks,
logo, copyrights, domain names, patents, slogans).
b. Organizational type
c. Organizational form
d. Graphic identity
Organizational Background
a. Vision
b. Mission
d. Values Statement
This part must present what the researchers seek to answer about their proposed business
venture. The problem statement must be specific to marketing, management, operational,
financial, and socio-economic aspects of the business.
a. Marketing Aspect - What are the relevant marketing strategies the business should
adopt to gain a significant market share?
c. Operational Aspect - What kind of production and distribution process should the
business employ to achieve efficient business operations?
d. Financial Aspect - What are the ways to maximize the profit and minimize the
cost incurred by the business?
This is closely related to the statement of the problem (or general objectives) and
summarizes the study's specific objectives. The specific objectives specify exactly what
the researchers will do in each aspect of the study (marketing, management, operational,
etc.); how, where, when and for what purpose. The objectives must be stated using
action verbs. Some examples include: to compare, to calculate, to assess, to determine, to
verify, to describe, to explain, etc. Avoid the use of vague non-active verbs such as: to
appreciate, to understand, to believe, to study, etc.,
It justifies the importance of the feasibility study and its contribution to new and
innovative ways of managing and marketing a business. This also discusses the possible
benefits that the society can reap from the result of the study.
The scope explains the extent and parameters of the study in relation to the sample size
(if surveys/interviews will be conducted), geographical location or setting (where
interviews/surveys are conducted), population traits (of the chosen respondents), among
others. Delimitations, on the other hand, explains why particular variables are included or
This refers to a detailed explanation of the technical terms and measurements used during
data collection. Operational definition of terms helps standardize the presented data to
avoid inconsistencies and possible misinterpretation by future researchers who will
conduct related studies.
This part is NOT a summary but an evaluation and synthesis of related studies. Literature
comprises a collection of published information/materials on a particular area of research,
such as books and journal articles of academic value. Internet sources may also be used
however, the researcher must only cite credible sources of information/data.
a. 10 Local Literature
b. 10 Foreign Studies
Research Methodology
This narrative details the particular procedures and/or techniques used to identify, select,
process, and analyze information relating to the study. This may cover the type of
This presents a detailed list of objectives relating to the internal and external environment
of the business, demand and supply conditions, target market, product, price, place, and
promotions strategy, etc.
Objective 1;
Objective 2;
Objective 3.
Industry Analysis
Environmental Analysis
It presents the influences of the environmental forces below on the demand and supply of
the proposed product/service.
a. Demographic Environment
b. Economic Environment
c. Natural Environment
d. Technological Environment
e. Political Environment
f. Legal Environment
Market Analysis
It analyzes a potential market for the proposed product/service using the demand and
supply quantum. Using the result of your research instrument (survey questionnaires,
interview, etc.), the demand and supply quantum can be computed by deducting the
annual supply of the product/service from the annual demand.
Demand Conditions:
Household population in Cainta 110,721
Population who are not qualified as consumers (7%) 7,75O
Net Potential Market 102,971
Multiply: Average amount spent of buyers P 100
Monthly spending P 10,297,100
Multiply: Annual buying frequency 15
Annual spending P154, 456,500
Divide: Proposed average price P 28.50
Annual Demand 5,419,526 units
Supply Conditions:
Estimated Monthly Sales P 180,000
Multiply: Months in a year 12
Annual Sales P 2,160,000
Multiply: Number of competitors in the same location 13
Annual supply in pesos P 28,080,000
Divide: Average price of products based on survey of 30
supplier’s opinion
Annual Supply 936,000 units
Sample Interpretation: Based on the demand and supply quantum, it is clear that the
market is not yet fully served based on the remaining demand of 4,483,526 units.
Therefore, the proposed business has potential market feasibility since there are still
many unsatisfied demands.
c. Price strategy – It determines the demand for the product to the market. Internal
and external factors must be considered in setting the demand price for the
product. Internal factors involve manufacturing cost, while external factors
involve market demand and competition.
d. Place Strategy – It describes/presents the route of the product from the producer
to the retailer and the consumers or end-users. Product distribution is important in
a business to consistently make the product available to the market. An
illustration depicting the place strategy is required on this part.
Some relevant points for interview/survey are as follows: respondents’ age bracket,
gender, occupation, product/service preference, factors that affect buying decisions,
willingness to purchase the proposed product and/or service. For interviews/surveys, the
researchers are encouraged to set a sample size with a minimum of 50 respondents and a
maximum of 100 respondents.
Present the gathered data in tables and graphs with comprehensive interpretation and
analysis. See the example below.
Table 1 and Figure 1 show that majority of the respondents are willing to buy the
proposed product. 92.67 percent of the respondents answered “yes” while 7.33
percent of the sample answered “no”. This means that the possibility of the business
to operate and generate sales would be feasible.
THE MANAGEMENT ASPECT
This presents a detailed list of objectives relating to the project originators of the
proposed business, schedule of activities, the form of business ownership, organizational
structure, proposed compensation scheme, etc.
Objective 1;
Objective 2;
Objective 3.
It details the activities before the actual operation of the plant. It also includes a
discussion of the necessary pre-operating requirements of the business.
b. Management (with their classifications [i.e., general or capitalist partner] and their
participation in management [i.e., general manager])
Project Schedule
The lists of activities and time allotment for each activity from the conduct of the
feasibility study to the start of the actual business operations.
Operating Period
Internal Organization
b. Organizational Chart
THE OPERATIONAL ASPECT
This presents a detailed list of objectives relating to the technical specifications of the
proposed product/service, raw materials needed in production, manufacturing process,
machinery and equipment required, plant location and design, office and production area,
etc.
Objective 1;
Objective 2;
Objective 3.
Product/Service Specifications
Raw Materials
A list of direct and indirect raw materials used in the production process must be
presented in this part. Corresponding quantity and prices needed to produce a single
product or deliver a unit of service must also be presented.
A flow chart that presents the manufacturing process of the product or the delivery of
service to the consumers. A detailed step-by-step procedure presenting product
manufacturing/service delivery with corresponding photos and descriptions must be
included.
A complete illustration and discussion pertaining to the provision of space in the facility
must be included in this part.
A comprehensive list of factory equipment, including furniture and fixtures. Each item
must be presented with its required specifications, quantity needed, and estimated prices.
This section includes business address and amount rental for lease or capital investment if
the facility will be purchased.
Production Schedule
It presents the target number/quantity of products and/or services that the proposed
business should produce in a span of a day, month, and year.
This section covers the estimated amount of annual utility expense (electricity, water,
telephone, internet, etc.). The waste disposal plan must also be discussed in this part.
This presents the cost of raw materials and labor needed to produce/deliver a unit of
product/service.
THE FINANCIAL ASPECT
This presents a detailed list of objectives relating to assumptions for projected financial
statements, project capital investment, sources of capital, financial projections, and ratio
analysis, etc.
Objective 1;
Objective 2;
Objective 3.
Statement of Assumptions
This detail the amount of initial capital investment; date of the fiscal year; operating days
per annum; percentage of annual production that will be sold; rent expenses; salaries and
wages; additional expenses for 13th-month pay, SSS, PhilHealth, and Pag-Ibig
contributions; depreciation method for fixed assets; utility expenses; supplies and indirect
materials expense; and the cost of sales.
The cost of sales presents the total annual production units of the product and/or service.
This can be derived by listing the daily production output (derived from production
schedule) of the proposed business multiplied by the number of workers, multiplied by
the number of workdays in a week, multiplied by the number of weeks in a month, then
in a year.
A sample is presented below:
Statement of Assumptions
It presents the estimated expenditures of the firm in building and site facilities, machinery
and equipment, furniture and fixture, salaries and wages, among others. A brief narrative
specifying the basis of the assigned cost/amount for each area must be included.
Sources of Capital
This indicates the source of the initial capital investment (i.e., a partnership business must
present the classifications of each partner [general, capitalist] along with their capital
contribution [if the source of capital is through own funding or savings]).
Financial Analysis [see Feasibility Study Guide (Financial Aspect).xlsx for full
details]
ABC Partnership
Projected Statement of Comprehensive Income
for the period ending December 31, 201A - 201E
ABC Partnership
Projected Cash Flow Statement
As of December 31, 201A - 201E
ABC Partnership
Projected Statement of Financial Position
As of December 31, 201A - 201E
Non-current assets:
Furnitures and Fixtures 50,530.00 45,477.00 40,923.30 36,830.37 33,147.33
Less: Accumulated Depreciation 5,053.00 4,547.70 4,092.93 3,683.04 3,314.73
Book Value 45,477.00 40,929.30 36,830.37 33,147.33 29,832.60
Machineries and Equipment 54,500.00 49,050.00 44,145.00 39,730.50 35,757.45
Less: Accumulated Depreciation 5,450.00 4,905.00 4,414.50 3,973.05 3,575.75
Book Value 49,050.00 44,145.00 39,730.50 35,757.45 32,181.71
Total non current assets 94,527.00 85,074.30 76,560.87 68,904.78 62,014.31
TOTAL ASSETS 2,208,815.09 2,070,379.55 2,275,125.80 2,311,438.97 2,349,399.19
Current Liabilities:
Income Tax Payable 586,785.90 598,041.62 610,000.45 622,202.50 634,646.54
This presents a detailed list of objectives relating to persons and entities that will benefit
from the proposed business, social benefits of the venture, and the undertaking's social
responsibilities and economic implications.
Objective 1;
Objective 2;
Objective 3.
Social Implications
It describes the social responsibility of the proposed business. This part may focus on the
social benefits that can be derived from the proposed business.
Economic Implications
It presents the possible contributions of the proposed business to the economy and the
local community where it operates.
Summary of Findings
This includes a summary of all the aspects of the business plan. It synthesizes the five (5)
aspects of the study to prove the viability of the proposed product and/or service.
Conclusions
The conclusion part must provide answers to the given statement of the problem
involving marketing, management, technical, financial, and socio-economic aspects of
the business.
Recommendations
The recommendation part may highlight suggestions/courses of action for existing firms
that succeed/failed in similar undertakings (as compiled under the review of related
literature section). This may include recommended strategies relating to the five (5)
business aspects. This part may also provide recommendations for future
researchers/students who would simulate or study the viability of a similar business
undertaking.
Your reference list should appear at the end of the paper. It provides the information
necessary for a reader to locate and retrieve any source cited in the body of the paper.
Each source cited in the paper must appear in the bibliography; likewise, each entry in the
reference list must be cited in the text. The references should begin on a new page
separate from the text of the manuscript; label this page BIBLIOGRAPHY centered at
the top of the page (bold, but do not underline or use quotation marks). All text should be
double-spaced just like the rest of the text.
Basic Rules
All lines after the first line of each entry in your reference list should be indented
one-half inch from the left margin. This is called hanging indentation.
Authors' names are inverted (last name first); give the last name and initials for all
authors of a particular work unless the work has more than six authors. If the
work has more than six authors, list the first six authors and then use et al. after
the sixth author's name to indicate the rest of the authors.
Reference list entries should be alphabetized by the last name of the first author of
each work.
If you have more than one article by the same author, single-author references or
multiple-author references with the exact same authors in the exact same order are
listed in order by the year of publication, starting with the earliest.
When referring to any work that is NOT a journal, such as a book, article, or Web
page, capitalize only the first letter of the first word of a title and subtitle, the first
word after a colon or a dash in the title, and proper nouns. Do not capitalize the
first letter of the second word in a hyphenated compound word.
Do not italicize, underline, or put quotes around the titles of shorter works such as
journal articles or essays in edited collections.
Example:
Two Authors: List by their last names and initials. Use the ampersand (&) instead of
"and."
Example:
Wegener, D. T., & Petty, R. E. (1994). Mood management across affective states: The
hedonic contingency hypothesis. Journal of Personality & Social Psychology, 66,
1034-1048.
Three to Six Authors: List by last names and initials; commas separate author names,
while the last author name is preceded again by ampersand.
Example:
Kernis, M. H., Cornell, D. P., Sun, C. R., Berry, A., & Harlow, T. (1993). There's more
to self-esteem than whether it is high or low: The importance of stability of self-
esteem. Journal of Personality and Social Psychology, 65, 1190-1204.
More Than Six Authors: If there are more than six authors, list the first six as above and
then "et al.," which stands for "and others." Remember not to place a period after "et" in
"et al."
Example:
Harris, M., Karper, E., Stacks, G., Hoffman, D., DeNiro, R., Cruz, P., et al. (2001).
Writing labs and the Hollywood connection. Journal of Film and Writing, 44(3),
213-245. Organization as Author: Name of Organization. (year)
Example:
Example:
NOTE: When your essay includes parenthetical citations of sources with no author
named, use a shortened version of the source's title instead of an author's name. Use
quotation marks and italics as appropriate. For example, parenthetical citations of the two
sources above would appear as follows: (Merriam-Webster's, 1993) and ("New Drug,"
1993).
Two or More Works by the Same Author: Use the author's name for all entries and list
the entries by the year (earliest comes first).
Example:
When an author appears both as a sole author and, in another citation, as the first author
of a group, list the one-author entries first.
Example:
References that have the same first author and different second and/or third authors are
arranged alphabetically by the last name of the second author, or the last name of the
third if the first and second authors are the same.
Example:
Wegener, D. T., Kerr, N. L., Fleming, M. A., & Petty, R. E. (2000). Flexible corrections
of juror judgments: Implications for jury instructions. Psychology, Public Policy,
& Law, 6, 629-654.
Wegener, D. T., Petty, R. E., & Klein, D. J. (1994). Effects of mood on high elaboration
attitude change: The mediating role of likelihood judgments. European Journal of
Social Psychology, 24, 25-43.
Example:
Berndt, T. J. (1981a). Age changes and changes over time in prosocial intentions and
behavior between friends. Developmental Psychology, 17, 408-416.
Article in Journal Paginated by Volume: Journals that are paginated by volume begin
with page one in issue one, and continue numbering issue two where issue one ended, etc.
Example:
Article in Journal Paginated by Issue: Journals paginated by issue begin with page one
every issue; therefore, the issue number gets indicated in parentheses after the volume.
The parentheses and issue number are not italicized or underlined.
Example:
Scruton, R. (1996). The eclipse of listening. The New Criterion, 15(30), 5-13.
Article in a Magazine
Example:
Henry, W. A., III. (1990, April 9). Making the grade in today's schools. Time, 135, 28-
31.
Article in a Newspaper: Unlike other periodicals, p. or pp. precedes page numbers for a
newspaper reference in APA style. Single pages take p., e.g., p. B2; multiple pages take
pp., e.g., pp. B2, B4 or pp. C1, C3-C4.
Schultz, S. (2005, December 28). Calls made to strengthen state energy policies. The
Country Today, pp. 1A, 2A.
Note: Because of issues with html coding, the listings below using brackets contain
spaces that are not to be used with your listings. Use a space as normal before the
brackets, but do not include a space following the bracket.
A Translation
Example:
Note: When you cite a republished work, like the one above, work in your text, it should
appear with both dates: Laplace (1814/1951).
Example:
Helfer, M. E., Keme, R. S., & Drugman, R. D. (1997). The battered child (5th ed.).
Chicago: University of Chicago Press.
Article or Chapter in an Edited Book: When you list the pages of the chapter or essay in
parentheses after the book title, use "pp." before the numbers: (pp. 1-21). This
abbreviation, however, does not appear before the page numbers in periodical references,
except for newspapers.
Example:
O'Neil, J. M., & Egan, J. (1992). Men's and women's gender role journeys: Metaphor for
healing, transition, and transformation. In B. R. Wainrib (Ed.), Gender issues across the
life cycle (pp. 107-123). New York: Springer.
Government Document
Example:
Example:
Conference Proceedings
Example:
Schnase, J.L., & Cunnius, E.L. (Eds.). (1995). Proceedings from CSCL '95: The
First International Conference on Computer Support for Collaborative
Learning. Mahwah, NJ: Erlbaum.
Electronic Sources- Article From an Online Periodical: Online articles follow the same
guidelines for printed articles. Include all information the online host makes available,
including an issue number in parentheses.
Example:
Bernstein, M. (2002). 10 tips on writing the living Web. A List Apart: For People Who
Make Websites, 149. Retrieved from
http://www.alistapart.com/articles/writeliving
Newspaper Article
Example:
Parker-Pope, T. (2008, May 6). Psychiatry handbook linked to drug industry. The New
York Times. Retrieved from http://www.nytimes.com
Online Lecture Notes and Presentation Slides: When citing online lecture notes, be sure
to provide the file format in brackets after the lecture title (e.g. PowerPoint slides, Word
document).
Example: