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    Unwanted Things by Someone in Business: - Loss - Failed - Subject To Legal Sanctions

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    Kazuyano Doni
    A business feasibility study evaluates the potential success of a proposed business venture by comprehensively examining various important aspects, including market factors, marketing, management, finance, human resources, technology, and the external environment. The study aims to objectively assess the strengths and weaknesses of the business idea while identifying threats and opportunities to determine if the business concept is feasible and has good prospects for profitability and sustainability.

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    Unwanted Things by Someone in Business: - Loss - Failed - Subject To Legal Sanctions

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    Kazuyano Doni
    76 views44 pages
    A business feasibility study evaluates the potential success of a proposed business venture by comprehensively examining various important aspects, including market factors, marketing, management, finance, human resources, technology, and the external environment. The study aims to objectively assess the strengths and weaknesses of the business idea while identifying threats and opportunities to determine if the business concept is feasible and has good prospects for profitability and sustainability.

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    A business feasibility study evaluates the potential success of a proposed business venture by comprehensively examining various important aspects, including market factors, marketing, management, finance, human resources, technology, and the external environment. The study aims to objectively assess the strengths and weaknesses of the business idea while identifying threats and opportunities to determine if the business concept is feasible and has good prospects for profitability and sustainability.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    76 views44 pages

    Unwanted Things by Someone in Business: - Loss - Failed - Subject To Legal Sanctions

    Uploaded by

    Kazuyano Doni
    A business feasibility study evaluates the potential success of a proposed business venture by comprehensively examining various important aspects, including market factors, marketing, management, finance, human resources, technology, and the external environment. The study aims to objectively assess the strengths and weaknesses of the business idea while identifying threats and opportunities to determine if the business concept is feasible and has good prospects for profitability and sustainability.

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    Unwanted things by someone in business

    Loss Failed Subject to legal sanctions

    WHY IS A FEASIBILITY STUDY?

    AVOID RISK OF SUCH LOSSES OF ANY INVESTMENT

    COMPLETING THE REQUIREMENTS OF RULES & LAW APLLIED IN THE ESTABLISHMENT OF A BUSINESS

    WHY IS A FEASIBILITY STUDY?

    AS CONSIDERATION TO ACCEPT OR REJECT ANY INVESTMENT DECISION (FEASIBLE / NOT FEASIBLE).

    PURPOSES OF A FEASIBILITY STUDY


    AVOIDING RISK OF LOSSES FACILITATING PLANNING FACILITATING THE IMPLEMENTATION OF WORK FACILITATING CONTROL

    New Ventures Failure


    a) Does not have a comprehensive knowledge of the market b) Does not have a comprehensive knowledge of the technical requirements of the business c) Does not have a comprehensive knowledge of the financial aspects d) The absence of the uniqueness of the products offered.

    e) Lack of understanding of the legal aspects related to the


    business

    What is a feasibility study?


    A feasibility study is an evaluation and analysis of the potential of the proposed project which is based on extensive investigation and research to support the process of decision making. An activity that learns deeply whether or not a business or businesses run are feasible

    Learning deeply means seriously examine the data and information, then measured, calculated and analyzed by using a particular method. Feasible means is the business carried on providing benefits greater than costs

    Things to be considered before developing a business feasibility study


    FEASIBILITY STUDY needs cost; the cost for developing a business feasibility should not be greater than the VALUE BENEFITS of the business" that will be generated; FEASIBILITY STUDY takes TIME: So to make it should not take too long, so that the data will no longer UP TO DATE, and the costs will be greater; FEASIBILITY STUDY needs SKILLS; so that it should be made by skillful and knowledgeable person .

    The aims of a feasibility study


    Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success.

    How to judge feasibility study


    two criteria to judge feasibility are cost required and value to be attained

    The objectives of BSF


    A feasibility study evaluates the project's potential for success; therefore, the perceived objectivity is an important factor in the credibility to be placed on the study by potential investors and lending institutions.

    BENEFITS

    ANALIST

    THE ANALYST: APPLICATION OF SCIENCE & KNOWLEGDE, GET FEE, SOCIAL SERVICES

    MANAGEMENT

    INVESTOR/ BANKING

    AS A SOURCE CONSIDERATIONS IN MANAJERIAL DECISION

    GOVERNMENT PEOPLE

    TO ASSES THE BUSINESS OPPORTUNITY WHETHER FEASIBLE OR NOT

    BASIS FOR CONSIDERATION IN ASSESSING & GRANTING A BUSINESS PERMIT FOR THE PORPOSED PROJECT

    TO SEE WHETHER THE BUSINESS TO OPEN WILL HARM THE ENVIRONMENT OR OTHERWISE, SO THAT PEOPLE CAN ACCEPT OR REJECT IT.

    Business Environment
    A. Internal Environmental Analysis B. External environmental analysis Role of Business Environment Analysis 1. Policy-oriented role (initial information for a broad strategic issues) 2. Role-oriented strategic planning (strategic environmental forecasting) 3. Function-oriented role (improve the performance of functions of the organization) Environmental Analysis Techniques 1. Profit impact analysis of market strategy (comparing models of strategy on the return of capital) 2. Analysis of the range of values (value chain analysis) 3. functional analysis

    Forces influencing Industries


    Michael Porter

    Potential Entrants
    Threats of New Entrant Industry Competitors

    Bargaining Power of Suppliers

    Supplers Rivalary among existing firms Rivalary among existing firms

    Buyers Bargaining Power of Buyers

    Substitute Products or Services

    Threats of Substitute Products or Services

    Structural reasons why


    some industries were profitable * Firm concentration * Established cost advantages * Product differentiation * Economies of scale

    Structural reasons
    all represented barriers to entry in certain industries, thus allowing those industries to be more profitable than others.

    Porters Five Forces


    * Threat of Entry * Bargaining Power of Suppliers * Bargaining Power of Buyers * Development of Substitute Products or Services * Rivalry among Competitors

    Barriers to Entry
    large capital requirements or the need to gain economies of scale quickly. strong customer loyalty or strong brand preferences. lack of adequate distribution channels or access to raw materials.

    Power of Suppliers
    high when
    * A small number of dominant, highly concentrated suppliers exists. * Few good substitute raw materials or suppliers are available. * The cost of switching raw materials or suppliers is high.

    Power of Buyers
    high when
    * Customers are concentrated, large or buy in volume . * The products being purchased are standard or undifferentiated making it easy to switch to other suppliers. * Customers purchases represent a major portion of the sellers total revenue.

    Substitute products
    competitive strength high when
    * The relative price of substitute products declines . * Consumers switching costs decline. * Competitors plan to increase market penetration or production capacity.

    Rivalry among competitors


    intensity increases as
    * The number of competitors increases or they become equal in size. * Demand for the industrys products declines or industry growth slows. * Fixed costs or barriers to leaving the industry are high.

    Summary
    As rivalry among competing firms intensifies, industry profits decline, in some cases to the point where an industry becomes inherently unattractive.

    BUSINESS FEASIBILITY STUDY


    An activity that learns deeply about a business or businesses run in the context of whether or not the business is feasible

    Learning in depth means seriously examine the data and information, then measured, calculated and analyzed by using a particular method Feasible: Is the business carried on to provide benefits greater than costs Business Business carried on providing benefits, both financial and non-financial

    Important Tips to Develop A Business Feasibility Study


    Completeness and Accuracy of Data and Information Experts in the Feasibility Study Team Determination of Methods and Right Measurement The Loyalty of Team Feasibility Study

    Factors cause why a business feasibility study failed


    Incomplete Data and Information Not careful or precise Miss calculation Wrong work Implementation Environmental Conditions Deliberate elements

    STAKEHOLDERS WHO ENGAGE WITH FEASIBILITY STUDY


    Business Actors and Investors Profit-oriented and adds the Wealth of owners of capital Creditors to assure the security of funds distributed (guarantee of principal and interest). Government expansion of employment opportunities, savings of foreign exchange, people income Community Positive result for the community

    Aspects of BFS
    Consumer Markets and Producers Marketing Techniques and technology Management Human Resources Natural Resources Finance Political, Economic and Social Industry environment Juridical (legal) Environmental Business risk

    Market Aspect
    How large is the market wide Measuring and predicting Supply and Demand Demand growth (trend and projections) Competition among producers Product life cycle Dependence of business on producers, consumers, natural resources

    Marketing Aspect
    Segmenting, Targeting, Positioning Attitudes, behaviors, and customer satisfaction Strategy, policy, and marketing program Marketing Mix (4 P's: Product, Price, Place, Promotion)

    The purposes of marketing aspect


    Maximizing Consumption Maximizing Customer Satisfaction Maximizing choice (product range) Maximizing Product Quality Increase sales volumes of goods and services Dominate the market and face competition Meet the demand for a product and services Meet the customers need on the product

    Technical and Technological Aspects


    Selection of Production Strategy Selection and Product Planning to be produced Quality plan Selection the Technology Production capacity plan Inventory management Type of technology Product quality control Equipment and machinery Factory location Plant layout Technological developments

    Human Resource Aspect


    HR planning Job analysis Recruitment, Selection, and Orientation Productivity Training and Development Job performance Required Skill Pattern of salary / wages (compensation) Career planning Occupational Safety and Health Discharge

    Aspek Manajemen
    Bentuk badan usaha Rencana Kerja Struktur Organisasi Koordinasi, implementasi, dan controlling

    Management Aspect
    Forms of business entities Work Plan Organizational structure Coordinating, implementing, and controlling

    FINANCIAL ASPECT
    The amount of funds needed Financing structure (source of funds)

    FINANCIAL

    Selection of investment: buy, rent, cooporation Profit and Ioss proforma Balance sheet proforma Investment analysis: IRR, NPV, Payback Period vs. Interest Rate

    Competition and other environmental aspects


    Formal juridical Bureaucratic system Political climate The economic situation Value system Living Environmental Technological developments Business competitive situation

    Juridical Aspect
    This aspect of the study covers the completeness, perfection and authenticity of the documents. This assessment includes the Company Law Board (Individual, State or Local Corporate, Limited Corporation, firm, CV, Cooperatives, Foundations), owned licenses, certificates Land and other supporting documents.

    A. Business Actors Forms of Business Entities The Identity of Business Manager B. The business is run C. Location and Time Frame D. Other Business Licenses and Permits E. Communities and Local Government Support

    The ultimate purposes of a BFS


    Assess whether the "something" can become feasible (feasible) or not, from various aspects and interests It depends on the maker mindset Optimistic vs. Pessimistic Alignments Political pressure Educational Background Working Experience

    The ultimate purposes of a BFS


    Convince us that your "business deserve to do. Convince yourself that your "business" is feasible to do.

    Steps on BFS
    Collecting data Processing data Analyzing Data
    Not Feasible

    Decision making Recomendation Business Execution

    Reject

    Tips for Successful Business Feasibility Study


    To avoid or minimize the risk of business failure, so the entrepreneur need to evaluate the Business Opportunity or so often called as as the Business Feasibility Study which generally consists of four stages as follows:
    Formating the team work Retrieving the data and information, in order to complete the accurate dan relevant data obtained Analyse the data & information Preparing reports

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