...W13543 FLY ASH BRICK PROJECT: FEASIBILITY STUDY USING CVP ANALYSIS S. K. Mitra and Shubhra Hajela wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2013, Richard Ivey School of Business Foundation Version: 2013-12-19 In April 2013, Rajiv Sharma had a business plan. For quite some time, he had been doing some market research exploring the potential of his “dream project” — establishing a fly ash brick manufacturing unit — and had seen huge potential for profit in the project. His long-time friend Alok Gupta was also interested but had a few doubts regarding the feasibility of the project. Sharma, on the other hand, was sure of his plan. Years of work in the construction industry had shown him the potential of using large volumes of fly ash bricks in construction...
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...to determine whether or not the planned investment idea is feasible. The feasibility of an investment has to be considered with respect to several different aspects in order to determine whether the investment should be realized or not. Carrying out a feasibility analysis is therefore one of the most critical steps in the decision-making process. A feasibility analysis is an effective analytical tool that can be used to evaluate investments from various perspectives, e.g. technical, social, legal, financial, market, and organizational. Financial feasibility is often a predominant factor in feasibility analysis, as most investments are not realized if they do not generate profit for the project owners. The focus of this thesis is on financial feasibility analysis and its application in the decision-making process. Precision and reliability of feasibility analysis relies on the accuracy of information used in the analysis. The appropriate level of detail has to be decided with respect to what stage the investment is on. On early stages the level of uncertainty is often high, but as the investment opportunity evolves information become more detailed and reliable. As uncertainty can highly affect the results of the analysis, the level of detail has to be taken into account when basing decisions on the results. To assess the feasibility of investments relevant criteria have to be chosen. Feasibility calculations need to be done with care and the complexity of the calculations...
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...Information Systems Analysis and Design CSC340 VII. The Feasibility Study What is a Feasibility Study? Feasibility Study? Types of Feasibility Cost/Benefit Analysis Risk Analysis Comparing Alternatives Information Acquisition Acquisition Feasibility Study Contents Contents Do it! 2004 Jaelson Castro and John Mylopoulos The Feasibility Study -- 1 Information Systems Analysis and Design CSC340 The Feasibility Study The objective of a feasibility study is to find out if an information system project can be done, and if so, how. A feasibility study should tell management: Whether the project can be done; What are alternative solutions? What are the criteria for choosing among them? Is there a preferred alternative? After a feasibility study, management makes a go/no-go decision. • A feasibility study is a • management-oriented activity 2004 Jaelson Castro and John Mylopoulos The Feasibility Study -- 2 Page ‹#› Information Systems Analysis and Design CSC340 Dimensions of Feasibility Operational -- how will the solution work? Technical -- is the technology needed available? Economic -- return on investment Schedule -- can the system be delivered on time? Constraints may be hard or soft 2004 Jaelson Castro and John Mylopoulos The Feasibility Study -- 3 Information Systems Analysis and Design CSC340 Economic Feasibility The bottom line for many projects! Economic feasibility amounts to judging whether possible benefits of the project are worthwhile. As soon as...
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...WHY I’M PASSIONATE ABOUT REAL ESTATE? Return: In most of the markets real estate investments perform better than equities and other asset classes. In emerging markets probably you have to go for development projects, as rental yield is not very attractive. In most of the developed markets real estate has performed better than stock market over time. And by leveraging your investment you can increase your return on equity many folds. Cash flow component in return: This one of the best thing about real estate investments – it behaves like a fixed income security, and with better yield. Rental income makes real estate more attractive even during tough time and many investors love to focus on the cash flow. Depreciation: You can’t depreciate your stocks, bonds and mutual funds. Depreciation is a gift from the government for real estate investors. Dampening of volatility in the portfolio: Real estate prices don’t fluctuate on daily basis. Fully optimized portfolios with real estate component in it have much lower volatility. Inflation hedge: real estate investments provide a good hedge against inflation. Rents usually increase with inflation, while mortgage payments on the property remain stable. This increases cash flow component. WHY SHOULD YOU NOT INVEST IN REAL ESTATE? Illiquid: Many a times real estate investments behave like illiquid assets. Generally it takes time to execute an actual exit, and liquidity can completely disappear from the market in tough times. Management...
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...FEASIBILITY STUDY OUTLINE 1. The Preliminary Section a. Title Page b. Approval Sheet c. Acknowledgements (if any) d. Table of contents e. List of tables (if any) f. List of Figures (if any) g. List of Annexes/Appendices 2.0 THE EXECUTIVE SUMMARY 3.1 Highlights 2.1.1 Project Background Name of the Proposed project: Type of Business Organization: Location: Proponents: 2.1.2 Management Feasibility Summary 2.1.3 Marketing Feasibility Summary 2.1.4 Technical Feasibility Summary 2.1.5 Financial Feasibility Summary 2.1.6 Socio-Economic Feasibility Summary 2.1 Conclusions (state here, the chances of implementing your project; the advantages of implementing it; and your final analysis and conclusion of the feasibility of your project) 2 Project Background 3.2 Project Proponents Name Address % Ownership 3.3 Proposed Name of the Business/Logo * Here you could state the reason/s four your choice of name or the significance of the name and the logo chosen 3.4 Type of Business Organization * State here if your proposed project is a Single Proprietorship, a Limited or General Partnership, a Corporation, a Subsidiary/Branch/ohers. Indicate the reasons for your choice. 3.4 Location of...
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...Information Systems Analysis and Design CSC340 VI. The Feasibility Study What is a feasibility study? What to study and conclude? Benefits and costs Cost/Benefit analysis Accounting methods Comparing alternatives Do it! 2002 Jaelson Castro and John Mylopoulos The Feasibility Study -- 1 Information Systems Analysis and Design CSC340 The Feasibility Study Phase n The objectives of a feasibility study are to find out if an information system project can be done (...is it possible?...is it justified?) and to suggest possible alternative solutions. n A feasibility study should provide management with enough information to decide: - whether the project can be done - whether the final product will benefit its intended users - what are the alternatives among which a solution will be chosen (during subsequent phases) - is there a preferred alternative n After a feasibility study, management makes a go/no go decision The feasibility study is a management-oriented activity 2002 Jaelson Castro and John Mylopoulos The Feasibility Study -- 2 Page 1 Information Systems Analysis and Design CSC340 What to Study? ...What to Conclude? n Things to be studied during the feasibility study phase: ü The present organizational system, including users, policies, functions, objectives,... ü Problems with the present system (inconsistencies, inadequacies in functionality, performance,..., ü Objectives and other requirements for the new system (what needs to...
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...What are the attributes to be considered for evaluating any investment project in Bangladesh? Answer: By project we mean a plan or proposal; a scheme or something undertaken, especially something requiring extensive planning and work. For implanting a project there is need proper management of project for getting the desire outcome. By project management we understand that organizational management system that assigns employees to specific projects teams when special projects are contracted and then reassigns them back to the organization when the project is completed. Project management also involves coordinating project activities with organizational divisions and departments in order to complete their objective. There are a number of attributes to be considered for evaluating any investment project activities including: 1. the technical feasibility, 2. marketing prospects, 3. financial soundness, 4. economic viability 5. and environmental impact of the project A feasibility study is a detailed analysis of a company and its operations that is conducted in order to predict the results of a specific future course of action. Small business owners may find it helpful to conduct a feasibility study whenever they anticipate making an important strategic decision. For example, a company might perform a feasibility study to evaluate a proposed change in location, the acquisition of another company, a purchase of major equipment or a new computer system, the introduction...
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...Feasibility Study Name University of Phoenix System Analysis and Development CMGT/555 Instructor January 9, 2015 Feasibility Study A feasibility study is an essential part of any software development project. The feasibility study can, and should, help answer the question “Should we even attempt this project and why?” Completing an effective feasibility study can prevent unnecessary commitments of valuable company resources by determining the potential success rate of any project. This project, designing and implementing a bulletin board type forum for wireless technical support representatives, is no different and a proper feasibility study will determine whether this is a worthwhile, cost effective project. According to Tim Bryce from the Project Smart Company, a good feasibility study will address the following issues (Bryce, 2008): 1) Project Scope 2) Current Analysis 3) Requirements 4) Approach 5) Evaluation 6) Review The first section determines the scope of the project. This is where the current problem or improvement is clearly stated. A well-defined scope will keep the project on target and help prevent “scope creep” where the project loses sight of the intended goal. Stake-holders, end users, project participants, and the project owner or sponsor is also clearly stated in this section. The current analysis is an outline of how the process is done now. Without a clear outline and analysis of the current method, it is hard to...
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...10/24/2011 WHAT IS A FEASIBILITY STUDY • A feasibility study is defined as an evaluation or analysis of the potential FEASIBILITY STUDY impact of a proposed project or program. It is conducted to assist decision‐ makers in determining whether or not to implement a particular project or p g program. • The study is based on extensive research on both the current practices & the proposed project & its impact on the current practice of the enterprise. • The feasibility study will contain wide‐ranging of data related to financial & operational impact & will include advantages & disadvantages of both the current situation & the proposed plan. • The feasibility study is conducted during the deliberation phase of the business development cycle prior to commencement of a formal Business business development cycle prior to commencement of a formal Business Plan. It is an analytical tool that includes recommendations & limitations, which are utilized to assist the decision‐makers when determining if the Business Concept is viable (Drucker 1985; Hoagland & Williamson 2000; Thompson 2003c; Thompson 2003a). Mahfuzul Hoque Ph D Mahfuzul Hoque Ph. D Professor , Faculty of Business Studies, Department of Accounting & Information Systems, University of Dhaka. October 24, 2011 • • • DMH‐ Project Management 1 THE IMPORTANCE OF A BUSINESS FEASIBILITY STUDY It is estimated that only one in fifty business ideas are actually ...
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...| ECI PROJECT PLAN2014-15 | bcorp | [Date] | [Course title] | | | ECI PROJECT PLAN2014-15 | bcorp | [Date] | [Course title] | | PROJECT REPORT ON: STRATEGIC PLANNING, FINANCING AND IMPLEMENTING A PRELIMINARY IMPLEMANTATION IN “EXOTIC CAR INC (ECI) FOR 03 YEARS”. With this project report we are explaining about the project strategic plan, analysis, appraisal, finance and preliminary implementation for initial 03 years. Also, we will study all phases of project like - project planning, project analysis, project initiation, project implementation, and project result. Every stage is vital to make a project success. The major areas of the project reports are defined below: Project planning and analysis: 1. ANALYSIS We are about to create a new Project activity plan for ECI. We are about make a plan which will be feasible to implement for attaining more customer and for attaining quality of service 24/7. In this Analysis we will do in-depth study of all the departments of ECI from production to marketing to make a solid analysis of ECI business ways. 2. Detailed planning I. Technical feasibility The Technical Feasibility Study reports shows the details of how ECI will deliver a product or service i.e., materials, labor, transportation, technology needed, etc. A increase in business productivity in ECI would reach through its Technical belongings and thus the Technical products like Materials for car services, Car washer machines...
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...No.9 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431 MARKET ANALYSIS AND THE FEASIBILITY OF ESTABLISHING SMALL BUSINESSES Azzam Azmi Abou-Moghli, PhD Applied Science University Ghaith Mustafa Al-Abdallah, PhD Applied Science University Abstract This study aims to explore the nature of relation and effect between market analysis and feasibility of establishing small businesses operating in the services sector in Jordan. Four independent variables were identified to market analysis: location, demand, price and competitors. The study population consisted of (163) cases and the researchers used a close ended 42-item questionnaire, with a (83.43%) reliability coefficient, as per the Chronbach Alfa equation for collecting the primary data of the study. Furthermore, two types of analysis were employed: simple regression analysis and stepwise multiple analysis. The study made a number of conclusions, most important of which is: there is a statistically significant relationship between the location, demand, price and competitors and the feasibility of establishing small businesses. Keywords: Market Analysis, Feasibility Studies, Service Sector, Small Businesses, Jordan 1.0 Introduction Market analysis of businesses is deemed as scientific tool to obtain relevant information about the realities of the proposed market. This will benefit the investor in showing the business feasibility to be studied and its preference over alternative investment opportunities...
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...conducive for development and growth. as a result of which various projects are coming up and due to which various applications are being received by state and national financial institutions for financial assistance. Project finance is thus becoming a field of specialization in itself. There is an ever increasing thrust on the capital formation and this capital formation is done in any economy through massive infrastructure projects like setting up a new industry , launching of the green field projects to name a few. Apart form this the Govt. of India has identified certain core factors through which it can make a quantum leap in the area of foreign exports namely the IT sector and the Pharma sector. And due to the competitive advantage that India has because of its labour force, which ids highly skilled and at the same time available very cheap, the Pharma Industry in India is set for growth. But at the same time Pharma industry is a different type of industry altogether and it has own set technical requirement and also its own capital and financial requirements. Through this project I would like to bring forward the various details which are of up most importance and importance to the Pharma industry right form the setting up to actual growth prospects and have also enclosed in section 2 a detailed case study by which the various complexity are discussed along with the DPCO guidelines 1995. The project also attempts to...
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...understanding of project management. • Understand why project management is needed and how it differs from other forms of management. • Identify the relevance of project management to the business and academic world of management. • Identify the role of a project manager. • Identify the purpose or relevance of a feasibility study in the project environment. • Identify all the stakeholders and identify their needs and expectations. Project management is seen as a rather modern discipline, however many of the greatest monuments in the world, e.g. Pyramids, Taj Mahal etc, could not have been formed without some form of project management. The art and science of project management has been used in many ways although it was not until the 20th century that businesses began to see the relevance and importance of this discipline. Its role in business began as external to the organisation, however in recent years more and more organisations have begun to use project management internally. Project management has become a vital part of many businesses and it is used in many different fields of study, from engineering, programming or IT development, research and development, product development, marketing etc. The aim of this assignment is to see how project management is defined, how it applies to the telecommunications business and how project managers and organisations can use project management to ensure stakeholders’ expectations are met. QUESTION 1: Explain what project management...
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...Week 2 Analysis Report BUSN460 Senior Project Professor: Raouf Ghattas January 20, 2013 Issue 1: CanGo is in need of a formal business plan. A formal business plan includes a mission and vision statement to help define the business and where the company would like to go in the future. As the owner/operator of CanGo, Elizabeth never developed a formal business plan for the business from the beginning and therefore had no documented blueprint for the business to speak of. Perfect starting issue! Recommendation: A business plan is a written document that demonstrates persuasively that enough products or services can be sold at a profit for your firm to become a viable business. The three primary reasons for writing business plans are (1) to aid you in determining the feasibility of your business idea, (2) to attract capital for starting up, and (3) to provide direction for your business after it is in operation. CanGo needs a written that will help find omissions and flaws in their ideas by allowing other people to critically review and analyze the plan. A business plan tells you what your business objectives are; when, where, why, and how your business will accomplish its objectives; and who will be involved in running the business. This planning process will help define CanGo’s short term goals and help determine the actions that need to be taken to accomplish them and then gather and commit the necessary resources (Hatten, 2008). The mission statement needs...
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...firm's vision, purpose, and values. Mission statements usually focus on longterm challenges and goals, the importance of the firm's stakeholders, and a commitment to the firm's role as a corporate citizen. 2. What is a SWOT analysis? Prepare a SWOT analysis of your school or your employer. Answer: The letters SWOT stand for strengths, weaknesses, opportunities, and threats. A SWOT analysis can focus on a specific product or project, an operating division, the entire company, or the mission statement itself. Strengths – Affordable, comprehensiveness, quality, and growth of online education Weaknesses - lack of financial support for faculty Scholarship Opportunities - international and off-campus study and exchange programs Threats - risk of losing prominent faculty and staff for genuinely better opportunities at other schools. 3. What is an effective way to assess user requests for additional features and functions? Answer: As users rely more heavily on information systems to perform their jobs, they are likely to request even more IT services and support. 4. What are four types of feasibility? Which type focuses on total cost of ownership? Which type is influenced primarily by users? Answer: Operational feasibility: Operational feasibility means that the proposed system will be used effectively after...
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