PM-Feasibility-Market, Technical, Financial and Economic

This presentation, "PM - Feasibility Analysis," delves into the comprehensive assessment of a project's viability across market, technical, financial, and economic dimensions. It explains tools like SWOT analysis, Porter’s Five Forces, NPV, and Benefit-Cost Analysis while highlighting factors such as market demand, resource availability, and technological advancements. The presentation also covers economic viability, focusing on social impact, environmental sustainability, and long-term benefits. Designed for project managers, students, and professionals, this deck equips you with essential frameworks and methodologies to make informed project decisions and enhance success rates.

1. FEASIBILITY ANALYSIS:
Feasibility analysis is an assessment of the potential success of a project,
considering all essential aspects, such as market demand, technical capabilities,
financial resources, and economic impact.
Types of Feasibility Studies:
Market Feasibility: Assesses if there is sufficient demand and market potential.
Technical Feasibility: Evaluates if the necessary technology, resources, and
skills are available.
Financial Feasibility: Determines if the project has adequate funding and
profitability.
Economic Viability: Assesses the broader economic impact and sustainability.

2. MARKET FEASIBILITY
Definition: Market feasibility studies evaluate whether there is a demand for the product or service, the
competitive landscape, and the target market’s needs.
Key Elements:
Market Size and Demand:
Estimating the current and potential market size.1.
Understanding customer demographics, preferences, and buying behavior.2.
Market Trends:
Identifying trends and changes in customer needs and preferences.1.
Analyzing shifts in technology, consumer behavior, and economic conditions that may impact
demand.
2.
Competitive Analysis:
Evaluating competitors’ strengths, weaknesses, market share, pricing, and positioning.1.
Understanding competitors' responses and identifying gaps to leverage as competitive advantages.2.

3. Customer Analysis:
Conducting surveys, focus groups, and feedback to gauge customer
interest, preferences, and potential usage frequency.
1.
Defining the target audience and segmentation.2.
Pricing and Revenue Model:
Determining competitive pricing strategies based on market research.1.
Developing revenue models, such as subscription, direct sales, or
licensing.
2.

4. TOOLS FOR MARKET FEASIBILITY:
SWOT Analysis: To identify strengths, weaknesses,
opportunities, and threats.
Porter’s Five Forces: Analyzes competitive forces in the
industry (e.g., competition, supplier and buyer power).
Customer Surveys and Interviews: Collect qualitative data
on customer preferences and willingness to pay.

5. TECHNICAL FEASIBILITY
Definition: Technical feasibility focuses on whether the project can be practically
implemented with available technology, resources, and expertise.
Key Elements:
Technology Requirements:
Identifying the technology needed to develop, produce, and deliver the product/service.1.
Evaluating if existing technology meets requirements or if new investments are
necessary.
2.
Resource Requirements:
Assessing the availability of raw materials, facilities, and equipment.1.
Determining the required level of workforce, skill sets, and training needs.2.

6. Infrastructure:
Evaluating if the current infrastructure supports project
implementation.
1.
Identifying needs for upgrades or additional infrastructure.2.
Process Design and Workflow:
Mapping out production processes, identifying critical steps, and
minimizing potential bottlenecks.
1.
Developing a workflow that maximizes efficiency and minimizes waste.2.

7. TOOLS FOR TECHNICAL FEASIBILITY:
Process Flow Diagrams: Visual representation of the
production or service delivery process.
Prototyping: Developing a model or sample to test
functionality and identify technical challenges.
Technology Assessment: Evaluating the readiness,
sustainability, and scalability of the chosen technology.

8. FINANCIAL FEASIBILITY
Definition: Financial feasibility determines whether a project is financially viable by
assessing projected costs, revenues, and funding sources.
Key Elements:
Capital Requirements:
Estimating initial setup costs, operational expenses, and working capital needs.1.
Including all costs such as equipment, salaries, marketing, and overheads.2.
Revenue Projections:
Forecasting income based on expected demand, pricing strategies, and market size.1.
Taking into account seasonal fluctuations, customer acquisition rates, and retention
rates.
2.

9. Funding Sources:
Identifying potential sources of capital such as loans, equity, venture capital, or
grants.
1.
Analyzing the feasibility of obtaining each funding type and their costs.2.
Profitability Analysis:
Calculating metrics like Net Present Value (NPV), Internal Rate of Return (IRR), and
Return on Investment (ROI) to determine financial attractiveness.
1.
Conducting a break-even analysis to identify the minimum sales volume required to
cover costs.
2.

10. TOOLS FOR FINANCIAL FEASIBILITY:
Net Present Value (NPV): Measures the profitability
by discounting future cash flows to their present
value.
Internal Rate of Return (IRR): Indicates the expected
percentage return from an investment.
Break-Even Analysis: Determines the point at which
revenues equal expenses, helping gauge
profitability timelines.

11. 5) ECONOMIC VIABILITY
Definition: Economic viability evaluates a project’s potential impact on the broader
economy, including social, environmental, and long-term economic factors.
Key Elements:
Benefit-Cost Analysis (BCA):
Quantifies the benefits and costs, allowing for a clear understanding of net gains.1.
Includes direct benefits (e.g., profit) and indirect benefits (e.g., employment
generation).
2.
Social Impact:
Evaluates how the project benefits society by creating jobs, improving living
standards, and supporting local economies.
1.
Analyzing effects on healthcare, education, and social welfare if applicable.2.

12. Environmental Impact:
Identifying potential negative environmental impacts and developing
sustainable practices.
1.
Conducting Environmental Impact Assessments (EIA) if necessary.2.
Sustainability Assessment:
Ensuring the project aligns with sustainable practices and reduces long-term
environmental impact.
1.
Considering renewable resources, waste management, and eco-friendly
technologies.
2.

13. TOOLS FOR ECONOMIC VIABILITY:
Benefit-Cost Ratio (BCR): Compares benefits to costs; a BCR greater than
1 suggests economic viability.
Social Return on Investment (SROI): Measures social, environmental, and
economic value created by the project.
Sensitivity Analysis: Tests the effect of changes in economic variables
(e.g., inflation, interest rates) on project outcomes.

14. CRITICAL SUCCESS FACTORS (CSFS)
Critical Success Factors are key areas that must be achieved for a project to succeed and
reach its objectives.
Common CSFs:
Clear Objectives and Vision:
Defining specific, measurable goals aligned with organizational strategy.
Ensuring all stakeholders understand and support project goals.
Strong Leadership and Support:
Involving executives and managers to provide direction, resources, and
encouragement.
Maintaining a champion or sponsor for high-level support.

15. Effective Communication:
Establishing transparent, regular communication between project team
members and stakeholders.
Using communication channels to manage expectations and updates.
Resource Availability:
Ensuring timely access to financial, technical, and human resources.
Planning for contingencies and backup resources if needed.
Risk Management:
Identifying potential risks and implementing risk mitigation strategies.
Monitoring and controlling risk factors throughout the project lifecycle.