Feasibility Analysis is the process of determining whether a business idea is viable. It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing. Part 1: Product/Service Feasibility A. Product/service desirability B. Product/service demand Part 2: Industry/Target Market Feasibility A. Industry attractiveness B. Target market attractiveness Part 3: Organizational Feasibility A. Management prowess B. Resource sufficiency Part 4: Financial Feasibility A. Total start-up cash needed B. Financial performance of similar businesses C. overall financial attractiveness of the proposed venture You operate a fast food restaurant in downtown Kingston which sits beside the Morant Bay taxi stand they make JMD$2,000,000 from 2,000 passengers buying breakfast and dinner as they arrive and leave Kingston to and from Morant bay. The cost to build a new franchise in Morant Bay is JMD$10,000,000 and operational costs for staff and expenses is JMD$24,000,000 annually. Therefore to make a return in one financial year the company would need to make JMD$34,000,000. There are four (4) new fast food brands entering rural markets and the industry has seen over 20% growth in sales over the last the last 2 years. Additionally there are 300,000 new homes being built in Morant Bay The company recruits MBA graduates directly into its management and leadership program. The program generates more leaders than there are open positions. Its HR department has a robust succession plan for all its key management roles. The company has also implemented a very sophisticated national IT infrastructure capable of supporting aggressive geographic growth and expansion without friction and waste allowing management to measure and manage key objectives and results as well as drive remote collaboration and activities. The company has a team dedicated to the design, recruitment and training of staff and standing up of new stores. The company is also cash rich with over JMD$2 Billion in reserve. l. Should you proceed with the Morant Bay Expansion? a. Industry/Target Market Feasibility is true b. Product/Service Feasibility is true c. Financial Feasibility is true d. All the above e. Organizational Feasibility is true
Feasibility Analysis is the process of determining whether a business idea is viable. It is the preliminary evaluation of a business idea, conducted for the purpose of determining whether the idea is worth pursuing.
Part 1: Product/Service Feasibility
A. Product/service desirability
B. Product/service demand
Part 2: Industry/Target Market Feasibility
A. Industry attractiveness
B. Target market attractiveness
Part 3: Organizational Feasibility
A. Management prowess
B. Resource sufficiency
Part 4: Financial Feasibility
A. Total start-up cash needed
B. Financial performance of similar businesses
C. overall financial attractiveness of the proposed venture
You operate a fast food restaurant in downtown Kingston which sits beside the Morant Bay taxi stand they make JMD$2,000,000 from 2,000 passengers buying breakfast and dinner as they arrive and leave Kingston to and from Morant bay.
The cost to build a new franchise in Morant Bay is JMD$10,000,000 and operational costs for staff and expenses is JMD$24,000,000 annually. Therefore to make a return in one financial year the company would need to make JMD$34,000,000.
There are four (4) new fast food brands entering rural markets and the industry has seen over 20% growth in sales over the last the last 2 years. Additionally there are 300,000 new homes being built in Morant Bay
The company recruits MBA graduates directly into its management and leadership program. The program generates more leaders than there are open positions. Its HR department has a robust succession plan for all its key management roles. The company has also implemented a very sophisticated national IT infrastructure capable of supporting aggressive geographic growth and expansion without friction and waste allowing management to measure and manage key objectives and results as well as drive remote collaboration and activities. The company has a team dedicated to the design, recruitment and training of staff and standing up of new stores.
The company is also cash rich with over JMD$2 Billion in reserve. l.
Should you proceed with the Morant Bay Expansion?
a.
Industry/Target Market Feasibility is true
b.
Product/Service Feasibility is true
c.
Financial Feasibility is true
d.
All the above
e.
Organizational Feasibility is true
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
