Conducting an Effective Feasibility Study

What is the primary purpose of a feasibility study?

• To assess the practicality of a proposed plan or method

• To finalize the project budget

• To hire project staff

• To market the product or service

When is a feasibility study typically conducted in a project lifecycle?

• After creating the business case

• During the market analysis phase

• At the project's conclusion

• Before the project starts

What is the first step in conducting a feasibility study?

• Conducting a market survey

• Planning the business organization

• Preparing a projected income statement

• Conducting a preliminary analysis

Why is conducting a market survey important in a feasibility study?

• To calculate the total project cost

• To finalize the project schedule

• To identify if there is demand for the product or service

• To understand staffing needs

What should be included in the financial projections of a feasibility study?

• Marketing costs exclusively

• Initial investment and expected ROI

• Employee salaries only

• Technology development expenses

What is the significance of the go/no-go decision in a feasibility study?

• It selects the project manager

• It finalizes the project team

• It determines if the project budget will increase

• It decides whether to proceed with the project or not

How can existing templates and tools benefit a feasibility study?

• By eliminating the need for stakeholder input

• By providing a structure for the report

• By automatically generating financial projections

• By reducing the time needed for market research

Why is stakeholder involvement crucial in a feasibility study?

• To provide technical support

• To fulfill legal requirements

• To ensure all perspectives are considered

• To assist in the distribution of the final report

What role does market research play in a feasibility study?

• It determines the project's geographical location

• It is used to select project management software

• It helps in understanding the competitive landscape

• It identifies potential investors

What is a key component of the feasibility report?

• An executive summary and business opportunity evaluation

• A detailed project timeline

• A comprehensive risk assessment

• A list of potential project sponsors