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Saturday, 22 September 2018

Dimensions of a Feasibility Study

       The following are the dimensions involved in feasibility studies.
The investigator must find answers to them.

1. The Technical dimension: Technical feasibility is important. It relates to finding out if the technology exists or whether it can be developed or borrowed. In technical feasibility, a marketer looks at the specifications of the machines, the ease of getting spare parts e.t.c. He also looks at the factory layout in which he plan a flowchart.

2. The physical dimension : This examines and determines the best place to locate the business to make it viable.

3. The marketing or commercial dimension : This considers the target market or consumers. The issue here is to ascertain if the market exists. We have to determine the extent, spread, depth and behaviour of the market. Is it a market that can be sustained or is it seasonal?

4. The legal dimension : This examines the law and status that affect investments generally and more specifically those that affect the project or business they want to undertake. We also look for opportunities or special incentives to begin or exploited.

5. The economic dimension : These looks at the economic environment. How buoyant is the economy? What is the rate of inflation? What is the GNP? e.t.c. The state of the economy will influence the success of failure of our intended projects.

6. The social political dimension : How stable is the society? The foreign partners may be discouraged if the is instability. What are the attitude and values of the people?
We have to understand the temper of the people.
How will they react to the future?

7. The personnel dimension : What is the nature of the personnel to be used in the project and where will they be recruited?
How many people are required now and will this grow as the business grows? Do we need to obtain labour from outside the country and if we do, what will this involved?

8. The financial dimension : What will be our gain or profit? What is the return on investment and payback period?