Format of Feasibility Study
Format of Feasibility Study
A Feasibility Study
Presented to
In Partial Fulfillment
__________________________
by
Name of Students
June 2023
4
Acknowledgments xxx
List of Appendices
References xxx
Resume
6
Chapter 1
Introduction
Chapter 2
In Chapter 2 include the introductory paragraph the represent the content of the study.
Encio et.al (n.d.) remind us that a good literature review must include concepts, theories, and
Related Studies
Synthesis
Chapter 3
Methodology
Research Design
In this section describe the research design to be used in conducting the feasibility
study. This serves as blueprint of the study. Aduana (2023) suggests that usually in a feasibility
study adopts the historical design because of past data collected from the reliable sources that
serve as basis in forecasting. In the absence of historical data, the research design can either
approaches.
8
Research Locale
In this section identifies the location or place the study will be conducted. This includes
This section defines the person, institutions, or entity that will provide much-needed
information about the study. The participants should be randomly or conveniently selected. In
case historical data are not present, demand and supply data are provided by the present
Research Instrument
This section identifies the instruments to be used in data gathering such as: demand and
supply of the product or service; potential customers of the proposed product or service; and
present and prospective competitor/s. Also, state the reason for the selection of a particular
research instrument and each part must be properly explained. The research instrument must
Ethical Consideration
This section contains the ethical practices that must be observed by the
proponent/researcher during the conduct of the feasibility study. This includes the practices and
procedures from the time questionnaire is submitted and approved by the subject advisor. It
Similarly, the date of administration and retrieval of the research instruments and the retrieval
percentage must be stated and the data processing procedure must be stated, as well.
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Statistical Tool
This describes the different statistical tools that must be used to assist the analysis.
Forecasting Tool
In this section defines the forecasting tools to be used in projecting historical data of
Industry Analysis
This analysis focuses on the different environmental factors that affect the industry to
Competitors’ Analysis
It describes how the competitor/s should be analyzed using the marketing tool or if not
Customer Analysis
This section contains the analysis to be conducted about the prospective customers.
This includes how the questionnaire carefully prepared to capture their prospect buyers, the
income or budget, the willingness to purchase the product or avail of the service, taste and
Market Analysis
It describes how the market will be analyzed relative to the demand and supply. You can
use the analysis through the trends of historical demand and supply data, forecasting, gap
Management Analysis
This describes the analysis of the most appropriate organization and structures for the
proposed business includes the qualification requirements, job descriptions, functions, and
Technical Analysis
This content includes on how the required physical facilities, manufacturing processes,
and operation will be analyzed such as the availability of the required raw materials, conversion
This section identifies how the business registration and licensing requirements and taxation
Socio-economic Analysis
This section contains the analysis on how the business impacts or contributes to the
Financial Analysis
This section includes the different projected financial statements that will be prepared
and the financial analysis tools, such as financial ratios and capital budgeting, that will be used
A Feasibility Study
Presented to
In Partial Fulfillment
__________________________
by
Name of Students
June 2023
13
Acknowledgments xxx
Taxation xxx
Conclusion xxx
Recommendations xxx
References xxx
Employee’s Contract
Supplier’s Agreements
Resume
17
Certificate of Plagiarism
18
State the complete name of the business owner/s of the proposed business or project.
This section contains the business name as suggested by the proponent and must the state the
It states here the location of the business and justify the reason/s of choosing such location.
Describe here the nature of the business, product or service that will provide and the market
Mode of Financing
List the possible sources of funds to finance the initial capital in starting up the operation of the
business.
Major Assumptions
Assumptions inherent in the preparation of the feasibility study involves projections and
It contains the results of the study base on the data, facts, and analyses. Conclusions must be
clearly stated.
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Chapter 1
Introduction
revised, modified, or improved based on the comments and suggestions of the panel of
The background of the study introduces the topic to the readers and the introduction
should provide an outline of what the topic is all about. (Encio et. al, n.d., p.42).
According to Aduana (2021), it contains at least four paragraphs with four to five
statements each as discussed below:
The first paragraph contains the conceptualization of the proposed business of the
proponent or researcher. However, related literature and studies need not be cited.
The second paragraph discusses the “what should be” scenario of the project. The
arrangement of the related literature and studies should be from the global to the local
environment to describe the situation.
The third paragraph directs the attention of the prospective investors to the “what is”
situation of the project. The review of related literature and studies as cited are arranged from
the global to the local market.
The last paragraph explains the gap between the “what should be” and “what is”
situations so as to support the need in conducting a feasibility study.
Objectives of the Study
The general and specific objectives that has been presented during the proposal
defense may be retained, revised, modified, or improved based on the comments and
This section specifies the general and specific problems or objectives of the study. It is
usually composed of two statements. The first statement is about the general objective of the
feasibility study such as to determine the viability of the proposed project. Encio, et.al (n.d.) that
in general objective should include the timeframe. On the other hand, the second statement
states about the specific objectives of the study includes to determine the feasibility of the
proposed project in terms of the market, management, technical, legal, socio-economic, and
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financial (Aduana, 2023). Encio, et.al (n.d) emphasizes that the both general and specific
objectives must be stated in declarative form.
Definition of Terms
In this section should be defined the variables conceptually and operationally. The key
terms are arranged alphabetically. Aduana (2023) emphasizes that the operational definition
outlines how the term will be used in the feasibility study.
Significance of the Study
List what/who will significantly benefit from the proposed business or from the feasibility
study and explain why and how each will be gained or benefited includes various individuals,
entities, or communities as approved by the panel during the proposal defense.
Scope and Limitations
Clearly discuss the purpose of the study, the research design, and the participants in the
study, the research instrument used, as well as the data gathering and data analysis procedures
as approved by the panelists during the proposal defense.
Chapter 2
In Chapter 2 include the introductory paragraph the represent the content of the study.
Encio et.al (n.d.) remind us that a good literature review must include concepts, theories, and
Related Studies
Synthesis
21
Chapter 3
Methodology
Research Design
In this section describe the research design used as approved by the panelists in
conducting the feasibility study. This serves as blueprint of the study. Aduana (2023) suggests
that usually in a feasibility study adopts the historical design because of past data collected from
the reliable sources that serve as basis in forecasting. In the absence of historical data, the
research design can either be descriptive, descriptive correlational or mixture of the quantitative
Research Locale
In this section identifies the location or place the study conducted as approved by the
panelists. This includes the area where customers and competitors are located.
This section defines the person, institutions, or entity that provided much-needed
information as approved by the panelists about the study. The participants should be randomly
or conveniently selected. In case historical data are not present, demand and supply data are
Research Instrument
This section identifies the instruments used in data gathering as approved by the
panelists such as: demand and supply of the product or service; potential customers of the
proposed product or service; and present and prospective competitor/s. Also, state the reason
for the selection of a particular research instrument and each part must be properly explained.
The research instrument must be tested its validity and reliability especially if it is a researcher-
made questionnaire. Likewise, pilot testing should include in conducting the study.
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Ethical Consideration
This section contains the ethical practices that observed by the proponent/researcher
during the conduct of the feasibility study. This includes the practices and procedures from the
time questionnaire is submitted and approved by the subject advisor as included the
This section identifies the different procedures performed in data gathering as approved
by the panelists. Similarly, the date of administration and retrieval of the research instruments
and the retrieval percentage must be stated and the data processing procedure must be stated,
as well.
Statistical Tool
This describes the different statistical tools used to assist the analysis.
Forecasting Tool
In this section defines the forecasting tools used in projecting historical data of demand
Industry Analysis
This analysis focuses on the different environmental factors that affect the industry to
Competitors’ Analysis
It describes how the competitor/s analyzed using the marketing tool or if not available,
Customer Analysis
This section contains the analysis conducted about the prospective customers. This
includes how the questionnaire carefully prepared to capture their prospect buyers, the income
or budget, the willingness to purchase the product or avail of the service, taste and preferences,
Market Analysis
It describes how the market analyzed relative to the demand and supply. You can use
the analysis through the trends of historical demand and supply data, forecasting, gap analysis,
Management Analysis
This describes the analysis of the most appropriate organization and structures for the
proposed business includes the qualification requirements, job descriptions, functions, and
Technical Analysis
This content includes on how the required physical facilities, manufacturing processes,
and operation will be analyzed such as the availability of the required raw materials, conversion
This section identifies how the business registration and licensing requirements and taxation
Socio-economic Analysis
This section contains the analysis on how the business impacts or contributes to the
Financial Analysis
This section includes the different projected financial statements that prepared and the
financial analysis tools used, such as financial ratios and capital budgeting, to determine if the
Chapter 4
Chapter 4 begins with an introductory paragraph about the contents of the chapter and
Market Aspect
In this section provides an assessment of the market demand for your product or
service, the results of customers’ needs, forecasting of the potential of potential markets,
opportunities and threats of your proposed business, and the marketing techniques used
Short history of your proposed business name (how you came up with that name)
Business Logo (make your own logo and explain each component, and it should be
created digitally)
Industry Analysis
A tabular presentation wherein the results identify the environmental factors that likely
affect the growth of the industry as supported by facts, data, and events based on the related
studies and findings. You can use Porter’s Five Forces Model Analysis (include Bargaining
et.al, 2014)
Competitor Analysis
In this section contains the variables used for data analysis should be presented in
Customer Analysis
This section includes the financial capacity of the customers, their willingness to buy the
product or service, and their income. Using the questionnaire be able to capture the information
about the target customers. Identify your target market either Business to Business Market
Factors/Measures Results
Geographic Target Market Segmentation
Firmographic Target Segmentation
Psychographic Target Market Segmentation
Need-Driven Target Market Segmentation
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Factors/Measures Results
Demographic Factors
Psychographic Factors
Behavioral Factors
Consumer Lifestyles (Consumer Trends)
The description should state whether the product or service is a consumer or industrial,
a primary or substitute product, a normal or inferior product, elastic or inelastic as to the price,
income or other variables and it should be supported by related studies as to the economic or
Study of Demand
It contains at least two tabular presentations wherein the first table presents the
historical demand for a minimum of five years while the second table shows the projected
demand (the projection computation usually included in the appendix). The basis of projected
Study of Supply
The results should be displayed in a two-tabular form presentation. The first table display
the historical supply for the past five years and the second table presents the projected supply
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in the next five years. The projected supply is adjusted based on the competitor analysis and
Demand-Supply Analysis
It represents in a tabular form the gap between future demand and supply which include
in the analysis whether there is an unsatisfied demand (shortage) or excess supply (surplus)
It involves here the production capacity of the proposed project. However, if the product
Marketing Objectives
This includes the marketing specific long-term (2 – 5 years) and short-term objectives (1
year) of the company in terms of their sales, operating expenses, profit, and marketing
strategies.
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This section assesses the company’s profile using the SWOT (strength, weakness,
threat, and opportunity) of the company and with TOWS Matrix can be used to generate
strategies.
Strengths Weaknesses
Opportunities
Threats
Pricing Analysis
1. Compute the cost by considering the direct materials, direct labor, and factory overhead.
3. Compare the price of the proposed product to the competitors’ prices (similar or
substitute products).
5. Determine the history of the similar or substitute products and related operating
expenses.
6. After properly studied and evaluated, set the final selling price.
This illustrates the marketing strategy in promotion of the product in the market. Applied
Management Aspect
This describes the nature of the business and forms of business ownership either sole
Organizational Structure
experiences, and technical skills for every position. It should clearly define the job description
Table 11 Manpower and Skills Requirements (sample from Abalona et.al, 2022)
Compensation Plan
This develops the salary and other benefits analysis align with the labor standards and
requirements as per DOLE.
Minimum Wage
Nigh Differential and Overtime
Day-offs and Holiday Pay
13th Month Pay
SSS, PhilHealth, Pag-ibig (HDMF) Benefits
Retirement Benefits
Meal and Rest Periods
Employment Process
Organizational Policies and Procedures
Company’s Code of Ethics
Technical Aspect
Product Technical Description
This describes the mechanical parts, color, size, weight, chemical content, or functional
parts. Include in the appendix the physical appearance or the prototype of the proposed
product.
Manufacturing/Merchandising/Service Process
The details of the process must be clearly explained. The proposed production process
must be presented in a diagram or through stages as explained clearly.
Production Schedule
Includes the number of units to be produced that must be aligned with expected market
shares and the production capacity of the equipment/machinery. The supporting schedules
include the following:
• Units to produce every month or quarter
• Raw materials schedule
• Direct labor schedule
• Factory overhead schedule
• Inventory schedule
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Total xxx
Business Registration/Permits
In order to determine the viability of the set-up business, the owner must consider the
first step is to register the business name. Since the proponent already identify the nature and
the type of business ownership, the next step is to identify the government agency that involve
This section explains if the owner or proponent should apply for these intellectual
Taxation
This includes the various taxes (income tax, expanded withholding tax, percentage tax,
value-added tax, etc.) that incur by the business and the taxation procedures such as
Socio-Economic Aspect
These are expected social and economic benefits the proposed business may provide to
various individuals, local community and care to the environment such as employment
Financial Aspect
Financial Assumptions
These include the financial assumptions sequentially based on the capital, drawing,
This section displays the five years projected financial statements that include: a)
statement of cash flow; d) statement of financial position; and e) notes to financial statements.
In this section includes the financial ratios and the capital budgeting tools such as
payback period, net present value, internal rate of return, the breakeven analysis. The results of
the analysis should be compared with the industry average and benchmark and will be the
Sensitivity Analysis
This part discusses particular assumptions used that will most likely have problem and
their correction actions to solve its negative impact to the business or project, as well as the
socio and economic aspect that may affect the projects should consider.
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Chapter 5
This chapter discussed the viability of the project based on the over aspects of the feasibility
The findings must be categorized into aspect of market, management, technical, legal,
socio-economic, and financial. The findings compared with the benchmark should be the basis
in obtaining a conclusion.
Conclusion
This section should be general and specific conclusions. Specific conclusions must state
Recommendations
in the study.
References
Appendices
• Project Milestone
• Employee’s Contract
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• Supplier’s Agreements
Certificate of Plagiarism
36
References
Aduana, N. L. (2021). Writing Project Feasibility Study (With Research Template). C & E Publishing, Inc.
Calayag, E. H. & Valenzuela, E. E. (2019). Feasibility Study Guidelines for Undergraduate Courses.
Great Books Publishing
Encio, L. T., Hernandez, C. N., Junsay, M. L., & Libo-on, R. M. (n.d.). Research Wrting Handbook.
Central Philippine University Printing Press
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APPENDICES
38
STUBCODE/GROUP #:
RATED BY:
NAME OF LEADER
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Student’s Name Ability to Mastery of presentation, Attitude, attire, TOTAL Grand Total
(Last Name, First Name) respond to content & organization of confidence
questions ideas 10 pts A+B
Group No.: GROUP 15 points 15 points 40 points (100 points)
SC: