Feasibility Analysis

Technical, Economic, Commercial and Project Financing

Introduction

Many organisations commit to a course of action that produces unsatisfactory results. This is almost always due to poor feasibility analysis before decisions are made. There is overwhelming evidence that project success is much more likely to be achieved in cases where a rigorous feasibility study has been carried out. This LAKESHORE ISL Feasibility Analysis training is designed to introduce best practice in feasibility analysis and to demonstrate how the effective application of this analysis in all dimensions of business development can result in market-leading levels of competitive performance – resulting in sustained business excellence.

This training will highlight:

• Best practice in fixing the scope and structure of a feasibility study
• Analysing technical feasibility
• Analysing economic and commercial feasibility
• Analysing financial feasibility
• Linking feasibility studies to the strategic plan of the organisation

Objectives

This training is designed to develop expertise in 5 key areas. At the end of this training you will learn to:

• Execute an effective feasibility study prior to making a major decision
• Define the main outcomes that will be monitored and measured
• Integrate and align each feasibility study with the overall strategic plan
• Keep all types of project on target in changing business conditions

Training Methodology

The instructor will deploy a full range of dynamic and interactive training methods. This will comprise a carefully balanced programme of conventional teaching, supported by real examples and case experience of individual issues. This will enhance learning through practical activities so participants can develop knowledge and skills to develop their part of the business. In addition, delegates will be given the chance to work in groups on case studies to develop their skills in the key aspects of this subject. Above all, the instructor will illustrate the main learning points with examples of real-life decisions on feasibility analysis and business planning in which he has been personally involved.

Organisational Impact

In sending employees to this training, the organisation will gain the following employee performance improvements in key business activities:

• Individuals and teams with a better appreciation of development possibilities
• Employees with improved skills in integrating and balancing activities and projects
• More powerful analytical capability at all levels of operational management
• Improved business planning, targeting and goal setting
• Better decision-making by managers on questions of change and development
• Clearer contribution in creating tomorrow’s organisation out of today’s organisation

Personal Impact

In attending this training, individual participants will gain the following career development benefits:

• Improved understanding of the basic drivers of the business
• Better appreciation of the linkage between strategic and operational management
• Sharper alignment and balance of personal and team activities with objectives
• Greater confidence in choosing and directing resources
• Improved decision-making at the operational level
• Enhanced career flexibility and potential

Who Should Attend?

This training is suitable for a wide range of professionals who have some experience of strategic and operational management, but will greatly benefit the following categories:

• Operations Managers
• Marketing and Business Planning Specialists
• Human Resource Specialists
• Financial Analyst and Management Accountants
• Systems Analysts and Business Process Designers
• Change Management Specialists

Seminar Outline

DAY 1

Introduction, Scope and Basic Concept of Feasibility

• The Meaning of Feasibility
• Difference between Feasibility Study and Business Plan
• Why are feasibility studies important?
• Guidelines on Designing a Feasibility Study
• How to Link a Feasibility Study with Your Business Plan
• Monitoring Outcomes and Learning to Improve
• Case Study for Group Work

DAY 2

The Technical Dimension of Analysis

• Assessing the Balance of the Proposed Activity with Current Capabilities
• Quantifying the Resource Gap and Planning to Deal with this Gap
• Case Example for Analysis and Discussion
• Technological Change and the Risk of Product or Process Substitution
• Feasibility Studies as Sources of Ideas for Innovation
• Case Example for Analysis and Discussion
• Case Study for Group Work

DAY 3

The Economic and Commercial Dimension of Analysis

• Impact of the Proposed Venture on Base-load Business
• Analysis of the Life-cycle of the Venture and Assessment of Sustainability
• Case Example for Analysis and Discussion
• Resourcing and Directing Additional Marketing Activity
• Analysing and Dealing with Tariff and Quota Questions
• Case Example for Analysis and Discussion
• Case Study for Group Work

DAY 4

The Financial Dimension of Analysis

• Critical Appraisal – risk adjusted DCF and NPV considerations
• Evaluation of Alternative Mechanisms for Securing Finance
• Case Example for Analysis and Discussion
• Financial Evaluation – additionality, displacement, opportunity cost
• The Choice and the Decision – Accept, Modify / Reconsider, Reject
• Case Example for Analysis and Discussion
• Case Study

DAY 5

 Leadership and Management in Feasibility Analysis

• Designing and Writing the Feasibility Report
• Appointing and Empowering the Project Leaders
• Identifying and Engaging All Stakeholders
• Case Study
• Presenting the Feasibility Report – internally and externally
• Gaining Top Management Support and Project Visibility
• Your Personal Action Plan for the Next Stage
• Summary and Overview of the Whole Seminar