[Business Management]

[COBMA2]

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Week 2: Lesson 3
Introduction

• Feasibility Analyses
• Explain what a feasibility analysis is and why it is important
• Describe a Product/service feasibility analysis
• Describe an Industry/target market feasibility analysis
• Describe an Organizational feasibility analysis
• Describe a Financial feasibility analysis
• Why is a feasibility analysis important
 What will be covered
in today’s lesson?
Feasibility Analyses
meaning
Four key areas for conducting a
Week 2 feasibility analysis

Lesson 3 Why is a feasibility analysis

Question 1

Question 2
 Product/service feasibility
 Industry/target market feasibility
 Organizational feasibility
 Financial feasibility
Question 1
Prepare a feasibility analysis
Source: Tucker 2009
Exam technique

Before you start answering the question you need to discuss the following
1. What is a feasibility analysis?
2. The following 4 items needs to be defined and discussed.
 Product/service feasibility
 Industry/target market feasibility
 Organizational feasibility
 Financial feasibility
3. What is primary and secondary research and how was the research conducted.
What research was used in the study.
4. You need to indicate whether the project if feasible (if amounts are provided, use
them as reference)
5. Give a conclusion
Memorandum
Feasibility analysis: is the process of determining if a business idea is viable. (1)

If a business idea falls shot on one or more of the four components of feasibility analysis it should be dropped or
rethought (1) . Four key areas for conducting a feasibility analysis
• Product/service feasibility: (1) Is an assessment of the overall appeal of the product or service being proposed. (1)
• Industry/target market feasibility: (1) is an assessment of the overall appeal of the industry and the target market
of the product or service being proposed. (1)
• Organizational feasibility: (1) is conducted to determine whether an opposed business has sufficient management
expertise, organizational competence, and resources (1)
• Financial feasibility: (1) A preliminary financial assessment. Will the project financially succeed. (1)

Discussion
• Product/service feasibility: two components to product/ service feasibility
1. Product/Service desirability (1) (HERE YOU NEED TO DISCUSS IF THE TARGET GROUP WANT THE PRODUCT) (Other
answers can also be provided, these are just sample answers)
Lack of parking can cause students to be late for classes or having to park in an unsafe area. By using bicycles
students will not have problems finding parking areas. Students and staff who want to reduce the impact on the
environment, would consider to use this method of transportation. (1)
2. Product/service demand (1) (HERE YOU NEED TO DISCUSS WHETHER THERE IS A DEMAND FOR THE PRODUCT)
This is a new project that was developed. The university is trying to reduce their impact on the environment. They
found a gap in the market. Some students and staff would like to be more healthy and have a lower impact on the
environment, they will consider to use bicycles as transportation. (1)

The problem is that bad weather conditions and far distance travel could hinder staff and students from using this
method of transportation. This method of travel will only be used in particular seasons. (1)

Industry/target market feasibility: There are two components to industry/target market feasibility analysis:
1. Industry attractiveness (1) (HERE YOU NEED TO DISCUSS WHETHER THE INDISTRY WANTS TO PRODUCT OR SERVICE)

As seen above the industry is attracted to the process of reducing their impact on the environment. (1)
2. Target market attractiveness. (1) (HERE YOU NEED TO DISCUSS WHETHER THE TARGET MARKET WANTS TO
PRODUCT OR SERVICE)
This is a new project that was developed. They found a gap in the market. Some students and staff would like to be
more healthy and have a lower impact on the environment, they will consider to use bicycles as transportation. (1)

Distance and weather conditions can influence the demand and use of bicycles. (1)
Organizational feasibility: There are two primary issues to consider in this area:
1. Management prowess (1) (HERE YOU NEED TO DISCUSS WHO WILL BE REPSONSIBLE FOR THE PROJECT SUCCESS)
The universities staff will have to monitor the situation, to see whether students and staff are using the bicycle
paring. (1)
2. Resource sufficiency. (1) (HERE YOU NEED TO DISCUSS WHETHER THE RESOURSE IS FREELY AVAILABLE )
Bicycles are cheaper than cars and are easier to maintain. Bicycles are freely available at sporting store and other
stores. (1)

Financial feasibility: The most important issues to consider at this stage are:
2. total start-up cash needed, (1) (HERE YOU NEED TO DISCUSS HOW MUCH THE PRODUCT OR SERVICE WILL COST TO
IMPLAMENT)
The university must build bicycle parking spaces and shelters. This can cost a lot of money. As this is a profitable
university, they will have the funds to pay for the shelters and parking spaces. (1)
2. Financial performance of similar businesses, (1) (HERE YOU NEED TO DISCUSS HOW OTHER COMPANIES ARE DOING
WITH SIMULAR PRODUCTS OR SERVICES)
Other institutions are also implementing projects to reduce their impact on the environment. Their statistics were
not provided. (1)
3. The overall financial attractiveness of the proposed venture. (1) (HERE YOU NEED TO DISCUSS WHETHER THE
PROJECT IS PROFITABLE OR CHEAP ENOUTH TO IMPLAMENT)
This project is free to students and staff to use. Bicycles are cheaper than cars and are easier to maintain. As this is a
profitable university, they will have the funds to pay for the shelters and parking spaces. (1)
Primary research
Is research that is collected by the person or persons completing the analysis. (1) It normally includes talking to
prospective customers, getting feedback from industry experts, conducting focus groups and administering
surveys. (1)
Secondary research
Probes data that is already collected. (1) The date generally includes industry studies, census bureau data, analyst
forecast and other pertinent information gleaned through library and internet research. (1)

For this study a secondary research (1) method was used. There are no formal interviews or questionnaires. (1)
This is an industry study as the university will gather their information through observations. (1)

Is the project feasible: Yes, it is possible for the university to implement this project. Some students and staff will
use bicycles as transportation, which will reduce traffic congestions and parking problems. The implementation of
the bicycles parking will motive people to use them. The only problem is that weather conditions and distance will
cause this project to only be performed by some individual and at certain times. (1)

Conclusion
Yes, it is feasible to implement, even if students and staff only use the bicycles on a certain months as this will
reduce their impact on the environment and make parking easier even if it is only on certain days. (1)
Question 2

Case Study
Lilt axed after 48 years and will relaunch as new Fanta flavour.
We are saying goodbye to one of the most loved soft drinks after
almost 50 years on the market.
Lilt, owned by Coca-Cola, has been sold under the advertising slogan ‘the totally tropical taste’ since the 1970s.
But the company has announced plans to scrap the drink – and many people are less than pleased. Former Love Island
contestant, Georgia Townend, was one of those Lilt fans left reeling.
‘Our rational minds told us this day may come, but our hearts always held onto hope,’ she tweeted.
‘Our beloved Lilt has succumbed to gentrification of the worst kind.’
But all is not lost as Coca-Cola confirmed the soft drink will be relaunched under a new name – Fanta Pineapple and
Grapefruit. Coinciding with Valentine’s Day, dorm tomorrow the new name and packaging will roll into stores.
The Fanta flavor is said to have ‘the same totally tropical taste’ as Lilt.

Lilt fans may have spotted a gradual transition as the drink has made its way
into the Fanta family over the past few months, with changes to packaging
and logo,’ said Coca-Cola Euro pacific Partners the, Grocer reported.
‘Some have even hypothesized on social media that Lilt may be becoming
part of the Fanta brand, and one went as far as producing their own news
broadcast-style video.’

Question
Divide the students in groups and have them prepare a feasibility analysis on
the new Fanta flavors Lilt Fanta Pineapple and Grapefruit. Give the students +/-
10 to 15min to discuss this new products of Fanta. The students will have to
provide feedback on whether they think the products are feasible.
Question 3

Quiz
_____ is an assessment of the overall appeal of the product or service being proposed.
A. Concept testing
B. Product/service feasibility analysis
C. Test marketing
D. Usability testing

All of the following are suitable questions to ascertain Product/Service Desirability EXCEPT:
A. Does it make sense?
B. Is the product or service financially feasible?
C. Is this a good time to introduce the product or service in the market
D. Are there any fatal flaws in the product or service's basic design or concept?

In a Feasibility Study the general description of the business is a summary of the following EXCEPT:
A. the type of business being planned and what it will set about to do.
B. which needs of the market it will seek to fill.
C. the means by which the business intends to be different from other businesses;.
D. the principal strengths and opportunities of the business and the threats and weaknesses it will face.
E. Description of each type and level of jobs to be done in the business
_____ is an assessment of the overall appeal of the product or service being proposed.
A. Concept testing
B. Product/service feasibility analysis
C. Test marketing
D. Usability testing

All of the following are suitable questions to ascertain Product/Service Desirability EXCEPT:
A. Does it make sense?
B. Is the product or service financially feasible?
C. Is this a good time to introduce the product or service in the market
D. Are there any fatal flaws in the product or service's basic design or concept?

In a Feasibility Study the general description of the business is a summary of the following EXCEPT:
A. the type of business being planned and what it will set about to do.
B. which needs of the market it will seek to fill.
C. the means by which the business intends to be different from other businesses;.
D. the principal strengths and opportunities of the business and the threats and weaknesses it will face.
E. Description of each type and level of jobs to be done in the business
A business idea must be both possible and feasible. “ Possible” involves the availability of thefollowing EXCEPT, to set
up the business that is manufacture the product or offer the service idea.
A. Skills
B. technology
C. Infrastructure
D. None of the above

________ is the process of determining whether a business idea is viable.

Industry studies, census bureau data, analyst forecast, and other pertinent information gleaned through library and
internet research are examples of ________ research.
A. secondary
B. action
C. principal
D. Primary
A business idea must be both possible and feasible. “ Possible” involves the availability of thefollowing EXCEPT, to set
up the business that is manufacture the product or offer the service idea.
A. Skills
B. technology
C. Infrastructure
D. None of the above

________ is the process of determining whether a business idea is viable.

Industry studies, census bureau data, analyst forecast, and other pertinent information gleaned through library and
internet research are examples of ________ research.
A. secondary
B. action
C. principal
D. Primary
Talking to prospective customers, getting feedback from industry experts, conducting focus groups and administering
surveys are examples of ________ research.
A) secondary
B) action
C) principal
D) Primary
A________ is the group of founders, key employees, and advisers that either manage or help manage a new business in
its start-up years.
A) New-venture team
B) Product evaluation team
C) Service delivery team
D) Market evaluation team
Indicate whether the following is True of false
1. There are two components to product/ service feasibility analysis namely: Product/Service desirability and
Product/service demand,
2. Three commonly utilized methods for doing it (Product/Service demand) is Talking face to face with potential customers,
Utilizing online tools to assess demand and Library, internet and gumshoe research
3. A firm’s target market is the portion of the industry that it goes after or to which it wants to appeal.
4. An industry is a group of firms producing a similar product or service, such as computers, children’s toys, airplanes, or
social networks.
Talking to prospective customers, getting feedback from industry experts, conducting focus groups and administering
surveys are examples of ________ research.
A) secondary
B) action
C) principal
D) Primary

A________ is the group of founders, key employees, and advisers that either manage or help manage a new business in
its start-up years.
A) New-venture team
B) Product evaluation team
C) Service delivery team
D) Market evaluation team
Indicate whether the following is True of false
1. There are two components to product/ service feasibility analysis namely: Product/Service desirability and
Product/service demand. TRUE
2. Three commonly utilized methods for doing it (Product/Service demand) is Talking face to face with potential customers,
Utilizing online tools to assess demand and Library, internet and gumshoe research TRUE
3. A firm’s target market is the portion of the industry that it goes after or to which it wants to appeal. TRUE
4. An industry is a group of firms producing a similar product or service, such as computers, children’s toys, airplanes, or
social networks. TRUE
Chapter 4 will be discussed
in the next class

•Chapter 4
•Business model will be discussed
•Understanding how to develop an
effective business model.
Krasteva, G. 2023. Lilt axed after 48 years and will relaunch as new Fanta flavour [online]. Metro. Available from:
https://metro.co.uk/2023/02/13/lilt-axed-after-48-years-and-will-relaunch-as-new-fanta-flavour-18276580/. [Accessed
16 February 2023].
Tucker, J. 2009. Getting Around: Transportation alternatives. SlideShare, Pilot project at Memorial
University Of Newfoundland. Pp 1-10