Mgt 401 Business Analysis
DQ Week 2 MGT 401
Hello Class, How may an entrepreneur determine a business ventures success? Nothing can determine 100% if a business venture will be successful. However, the feasibility analysis can help determine if an idea is viable or worth pursuing. Explain the components of conducting a feasibility analysis The feasibility analysis can be presented in 3 interrelated phases:
1. Industry and Market feasibility analysis - The focus in this phase is twofold: (1) to determine how attractive an industry is overall as a “home” for a new business, and (2) to identify possible niches a small business can occupy profitably. A useful tool for this analysis is Porter’s five forces model.
2. Product or Service feasibility analysis - determines the degree to which a product or service idea appeals to potential customers and identifies the resources necessary to produce the product or provide the service. Primary and secondary researches are useful tools to gather the required information.
3. Financial feasibility analysis - a broad financial analysis is sufficient at this phase consisting of the initial capital requirement, estimated earnings, and the resulting return on investment.
4.
What element do you feel is the more important? Provide examples to support your rationale …show more content…
And can it be done? The third phase brings the analysis full circle answering the question will it be profitable? Therefore to answer the last question you have to know the answer to the first two questions in turn making the entire process important. This is all based on the assumption that making money is the end goal. For example if opening up a high end salon in a residential area where the median income is $35,000, and there are already 2 existing salons will require answers to all three questions in order to achieve some level of
Hello Class, How may an entrepreneur determine a business ventures success? Nothing can determine 100% if a business venture will be successful. However, the feasibility analysis can help determine if an idea is viable or worth pursuing. Explain the components of conducting a feasibility analysis The feasibility analysis can be presented in 3 interrelated phases:
1. Industry and Market feasibility analysis - The focus in this phase is twofold: (1) to determine how attractive an industry is overall as a “home” for a new business, and (2) to identify possible niches a small business can occupy profitably. A useful tool for this analysis is Porter’s five forces model.
2. Product or Service feasibility analysis - determines the degree to which a product or service idea appeals to potential customers and identifies the resources necessary to produce the product or provide the service. Primary and secondary researches are useful tools to gather the required information.
3. Financial feasibility analysis - a broad financial analysis is sufficient at this phase consisting of the initial capital requirement, estimated earnings, and the resulting return on investment.
4.
What element do you feel is the more important? Provide examples to support your rationale …show more content…
And can it be done? The third phase brings the analysis full circle answering the question will it be profitable? Therefore to answer the last question you have to know the answer to the first two questions in turn making the entire process important. This is all based on the assumption that making money is the end goal. For example if opening up a high end salon in a residential area where the median income is $35,000, and there are already 2 existing salons will require answers to all three questions in order to achieve some level of