Economic aspect -the purpose of the economic feasibility assessment is to determine the positive

economic benefits to the organization that the proposed system will provide. It includes
quantification and identification of all the benefits expected. This assessment typically involves a
cost/ benefits analysis.
The purpose of an economic feasibility study (EFS) is to demonstrate the net benefit of a
proposed project for accepting or disbursing electronic funds/benefits, taking into consideration
the benefits and costs to the agency, other state agencies, and the general public as a whole.
Market analysis studies the attractiveness and the dynamics of a special market
within a special industry. It is part of the industry analysis and thus in turn of the
global environmental analysis. Through all of these analyses the strengths,
weaknesses, opportunities and threats (SWOT) of a company can be identified.
Finally, with the help of a SWOT analysis, adequate business strategies of a
company will be defined.[1] The market analysis is also known as a documented
investigation of a market that is used to inform a firm's planning activities,
particularly around decisions of inventory, purchase, work force
expansion/contraction, facility expansion, purchases of capital equipment,
promotional activities, and many other aspects of a company.
Market demand analysis
Companies use market demand analysis to understand how much consumer
demand exists for a product or service. This analysis helps management determine
if the company can successfully enter a market and generate enough profits to
advance its business operations. While several methods of demand analysis may be
used, they usually contain a review of the basic components of an economic
market.

Demand forecasting is the art and science of forecasting customer demand to drive holistic
execution of such demand by corporate supply chain and business management. Demand
forecasting involves techniques including both informal methods, such as educated guesses, and
quantitative methods, such as the use of historical sales data and statistical techniques or current
data from test markets. Demand forecasting may be used in production planning, inventory
management, and at times in assessing future capacity requirements, or in making decisions on
whether to enter a new market
Demand forecasting is predicting future demand for the product. In other words it refers to the
prediction of probable demand for a product or a service on the basis of the past events and
prevailing trends in the present.
Forecasts are becoming the lifetime of business in a world, where the tidal waves of change are
sweeping the most established of structures, inherited by human society. Commerce just happens

to the one of the first casualties. Survival in this age of economic predators, requires the tact,
talent and technique of predicting the future.
Forecast is becoming the sign of survival and the language of business. All requirements of the
business sector need the technique of accurate and practical reading into the future. Forecasts are,
therefore, very essential requirement for the survival of business. Management requires
forecasting information when making a wide range of decisions.
The sales forecast is particularly important as it is the foundation upon which all company plans
are built in terms of markets and revenue. Management would be a simple matter if business was
not in a continual state of change, the pace of which has quickened in recent years.
It is becoming increasingly important and necessary for business to predict their future prospects
in terms of sales, cost and profits. The value of future sales is crucial as it affects costs profits, so
the prediction of future sales is the logical starting point of all business planning.
A forecast is a prediction or estimation of future situation. It is an objective assessment of future
course of action. Since future is uncertain, no forecast can be percent correct. Forecasts can be
both physical as well as financial in nature. The more realistic the forecasts, the more effective
decisions can be taken for tomorrow.
In the words of Cundiff and Still, Demand forecasting is an estimate of sales during a specified
future period which is tied to a proposed marketing plan and which assumes a particular set of
uncontrollable and competitive forces. Therefore, demand forecasting is a projection of firms
expected level of sales based on a chosen marketing plan and environment.
Promoter-person or thing that promotes, furthers, or encourages.
a person who initiates or takes part in the organizing of a company, development of a project, etc.
a person who organizes and provides financial backing for a sporting event or entertainment.
A sales forecasts must be developed as part of the market analysis. The sales forecast becomes
the basis for financial projections in the finance section of the business plan. There are different
ways to estimate sales, but regardless of which one is used, the entrepreneur must be able to
justify the basis for their forecasts. Thus, the sales forecast is subject to the assumptions that
were made when estimating sales for the new venture. These assumptions are critical because
investors typically study assumption sheets (Barringer and Ireland, 2011).
This study describes an unique cash budget exercise that requires students to conduct sensitivity
analysis of the assumptions in their sales forecast. The focus of the exercise is not on how to
convert credit sales estimates to cash receipts as is typical in many textbooks. It requires the
students to make a connection between their sales estimates and the financial statements they
create. The Smoothie Doozie exercise described in this study pushes the learning down to the

individual student level and provides a fast track approach to grading the exercise in large class
sections that does not overwhelm the teaching faculty member.

Trend forecasting is a complicated but useful way to look at past sales or market
growth, determine possible trends from that data and use the information to
extrapolate what could happen in the future. Marketing experts typically utilize
trend forecasting to help determine potential future sales growth. Many areas of a
business can use forecasting, and examining the concept as it relates to sales can
help you gain an understanding of this tool.
preinvest

We undertake studies to determine the feasibility of planned investments. We work with your
team, and if necessary with external technical specialists, to assess the commercial, technical,
social, environmental, institutional, political and financial viability of the proposed investment.
The output usually is a bankable business plan with narrative and financial sections that meets
the requirements and expectations of investors and banks.
Having demonstrated the feasibility of the proposed investment and determined the financing
requirement, we can proceed with finance acquisition.

What is pre-feasibility study?

Pre-feasibility study is a preliminary study undertaken to determine, analyze, and select the best
business scenarios. In this study, we assume we have more than one business scenarios, then we
want to know which one is the best, both technically and financially. In pre-feasibility we select
the best idea among several ideas. It will be hard and takes time if we explore each scenario
deeply. Therefore, shortcut method deem acceptable in this early stage and can be used to
determine minor components of investment and production cost.
If the selected scenario is considered feasible, it is recommended to continue the study to
feasibility to get deeper analysis of the selected project scenario.
What is feasibility study?
Feasibility study is an engineering study based on test work and engineering analysis, which
presents enough information to determine whether or not the project should be advanced to be
final engineering and construction stage. This is a go/no-go decision point, thereby implying
that sometimes the answer is NO. However, once a project is advanced to the feasibility study

stage, companies often have committed considerable capital and professional reputation and
therefore assume the answer will be that the project is feasible. That is also the second
difference between feasibility study and pre-feasibility study. We first consider to arrange prefeasibility study if we still dont have idea how to get financial resource to execute the project.
Unlike pre-feasibility study, we must be ready for financial resources if we move to feasibility
study.
Sometimes, we put term bankable before feasibility study. Adding this term simply means that
the level of effort that has been incorporated into the study is sufficient for outsourcing
financing, provided the project is feasible. Typically bankable means an overall accuracy level
of +/- 15% on the feasibility study.
To some industry, the act of commissioning a bankable feasibility study has come to mean that
the project is feasible. As a result, they assume if they ask for a bankable feasibility study, they
will get the study which shows the project is feasible.