Mgt 401 Final Exam Essay

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GRADED A Q#1: How may an entrepreneur determine a business venture’s success? Explain components of conducting a feasibility analysis. What element do you feel is most important? Provide examples to support your rationale. A business venture’s success is determined by the planning put into the process; a balanced execution of the process; the smooth running of the process and the financial prospect or accruement of the venture. In short, a feasibility study is the definition of a problem or opportunity to be studied. It starts with an idea that must take into consideration the pros and cons of the project with plans on how to circumvent the cons as much as possible. A good feasibility study will have the following components: 1. Scope or Description of the Business which looks at the product or services to be offered and how they will be delivered 2. An analysis to define and understand the method and implementation of the system or product 3. A market feasibility that includes a description of the industry, present market, competition, sales projection, potential buyers and future market 4. There needs to be a plan as to how the product should be delivered; where the product is located; the technological needs of the project; the materials needed for the project and the labor needed for the project 5. Of a fact, the course of action to satisfy the requirements of the of the product must be put in place 6. An evaluation that examines the cost effectiveness of the project must be an integral part of the project I believe that all the components listed are very important, however, I cannot overemphasized the importance of beginning with a good understanding of the product and the services to be offered and how the product will be distributed. If a person starts any business before counting the cost; knowing the product to be offered; looking at the

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