Objectives of Managerial Feasibility Studies: Managerial Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats as presented by the environment, the resources required to carry through, and ultimately the prospects for success. Managerial Feasibility is the study of whether or not a project is worth doing. However the Objectives of Managerial Feasibility Studies are as follows: 1. Gives focus to the project and outline alternatives.
2. Narrows business alternatives
3. Identifies new opportunities through the investigative process. 4. Identifies reasons not to proceed.
5. Enhances the probability of success by addressing and mitigating factors early on that could affect the project. 6. Provides quality information for decision making.
7. Provides documentation that the business venture was thoroughly investigated. 8. Helps in securing funding from lending institutions and other monetary sources. 9. Helps to attract equity investment.
10. The feasibility study is a critical step in the business assessment process. If properly conducted, it may be the best investment you ever made. Functions of Managerial Feasibility Studies: As such, a well-designed Managerial feasibility study should provide a historical background of the business or project, description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations, feasibility studies precede technical development and project implementation. The main functions of the Managerial feasibility study is to prepare- 1) Project Specification: The project specification has all the information about the project which is more like a guideline for the project. It gives a great insight to the management about the kind of investment involved for undertaking a project along with the manpower, hardware, software and other factors. 2) Cost Benefit Analysis: Cost Benefit analysis is a method to identify the gross benefit involved in the development and implementation of a new system. Basically, it tells the organization whether they are economically prepared for the project. 3) Prepare Feasibility Report: Managerial Feasibility Report contains various feasibility studies like:- Technical Feasibility, Economic Feasibility ,Operational Feasibility, Social Feasibility ,Time Feasibility ,Management Feasibility And Legal Feasibility.
Methods of Managerial Feasibility Studies: Managerial Feasibility studies can take on different forms, depending on their contexts. In large enterprises, schools, and government agencies, a Managerial feasibility study could take months or even years of work in conjunction with outside consultants. On the other hand, a small business with the right connections and resources can perform an ad hoc feasibility study over the course of a few days. Regardless of the timeframe involved, the project manager in charge of the Managerial feasibility study must remain impartial as he or she handles four critical tasks:
Whether a Managerial feasibility study lasts for six months or six...