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Sample Coursework Paper on Feasibility Analysis

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Sample Coursework Paper on Feasibility Analysis

The role of feasibility analysis is to determine if the business idea for a landscaping service in HOA communities with no on-site property management services are valuable and worth pursuing.

Part 1: Product/Service Feasibility

            The focus of product/service feasibility is to evaluate the customer’s interest, purchase interest, and desirability.

  1. Product/service desirability

The targeted consumers are homeowner associations (HOA) with condos or townhomes in Charlotte NC. The product is desirable because in the past, the management of properties has been conducted by property managers who are not on-site. The service is desirable because it reduces the cost of HOA landscaping, while increasing its value, hence leading to a win-win situation for both the clients, employees, and the organization. Other than reducing costs, the new services to be provided will create a competitive edge in the market. Value provision will be used to position the service in the market.

  1. Product/service demand

The demand for the services is very high given the limited number of companies offering the services in Charlotte, NC. Owing to the uniqueness of the services, it would be impossible to replicate the services in the market. The service demand is high because targeted customers need a beautiful community with local on-site contacts that need on-site supervisors for HOA neighbors to contact.

 

 

Part 2: Industry/Target Market Feasibility

The analysis is to provide the market with the benefits of timeliness, industry attractiveness, and identification of the niche market.

  1. Industry attractiveness

The housing and landscaping industry is very attractive market, in spite of the high levels of competition in the market. The market deemed attractive is characterized by the following.

  • It is not crowded, as most of the current agencies do not provide onsite management.
  • It is large and growing as the demand for on-site management services increases.
  • The market is not mature
  • It is important to the customer
  • It has very high, rather than low, operating margins.

Information to support the attractiveness of the industry will be gathered through primary research and secondary research, especially competitor’s web sites, government statistics, and industry related publications.

  1. Target market attractiveness

The targeted niche market is attractive for the new business venture because the organization can establish itself within the industry without much competition from existing competitors. However, duplication of the services in the near future, competitors improving their labor force quality, service offerings, or guaranteed improvement in these two improvements are some of the risks associated with the market.

Part 3: Organizational Feasibility
  1. Management prowess

The founder of the business has passion for the business idea and has a good understanding of the markets in which the organization will operate within. In addition, there is an expertise to launch the new business venture.

  1. Resource sufficiency

The business requires limited resources for its establishment. In addition, the entrepreneur has adequate resources to launch the proposed venture.

Part 4: Financial Feasibility
  1. Total start-up cash needed

The business venture is not capital intensive, but costs will be incurred when starting the business. The cash will needed to meet labor costs, set office, office materials and computer costs, pay employees, start a website, and finance the primary research to be carried. To grow the new business venture government funded grants will be sought for expansion purposes.

  1. Overall financial attractiveness of the proposed venture

In general, the proposed venture is very attractive, feasible, and profitable. High returns are expected from the venture given the low total start-up cash required. Lack of similar organizations did not provide data related to overall financial attractiveness.

Overall Feasibility

 

Overall feasibility of the business Idea

Suggestions for Improving the Feasibility

Product/Market Feasibility

Feasible

 

Industry/Market Feasibility

Feasible

 

Organizational Feasibility

Feasible

 

Financial Feasibility

Feasible

 

Overall Assessment

Feasible

 

 

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