FEASIBILITY STUDIES OUTLINE
LETTER OF TRANSMITTAL
PROJECT OVERVIEW
Name of the Enterprise
Products or Services (Main-line, Primary)
Allied Products and Services
Location (Main office address)
Location (other operations like plants, branches /
outlets, warehouse, etc.)
Descriptive Definition of the Project (summary
only; 1 or 2 short paragraphs)
Long-term Objectives
EXECUTIVE SUMMARY (Paragraph form; 1 to 3
pages long)
 Tell reader what the whole paper is about in one
glance
 Include important parts, features, facts
 Conclusion, recommendation
TABLE OF CONTENTS (with page numbers)
I. INTRODUCTION
A. Name of Enterprise (what is the name, why was
the name chosen)
B. Trademark (other trade name, logos, symbols,
slogans)
C. Products and Services
a. Primary products / services
b. Allied products / services
c. List brand-names, range of products,
description, etc.
D. Location
a. Main Office (registered business address;)
b. Other offices, branches, outlets, etc.
c. Other operations such as warehouses,
commissary, etc.
*justify and discuss how each location was chosen;
show maps;
E. Descriptive Definition of the Project
a. Business Concept
b. Technology Concept (discuss, introduce,
application, advantages / disadvantages)
c. Why is it feasible (or assumed to be), what led
to this study
F. Long-term Objectives
G. Mission / Vision Statement
H. Highlights of the Project
a. Main features
b. Unique, differentiating features
I. Success Factors (cite both internal and external
factors)
J. Feasibility Criteria (pre-set conditions or criteria
with specified minimum or maximum acceptable
values to judge feasibility of the project)
K. Major Assumptions (all significant assumptions
where you anchored your computation and
analysis on; certain rates, trends, expected
continuing pattern or behavior, etc.)
L. Summary Findings (List all significant findings
in each part of your paper)
M. Conclusion
II. ENVIRONMENTAL ANALYSIS
A. Economic Factors
B. Technological Factors
C. Governmental-Political-Legal Factors
D. Socio-Cultural-Societal Factors
*Scan Environment, Identify significant factors,
discuss, analyze impact and give recommendation.
Always look for both positive and negative factors.
III. INDUSTRY ANALYSIS
A. Industry Overview (Global and/or Local)
• Include industry composition, capacity, supply
and utilization (remember the value chain of
the industry)
B. Philippine Competitiveness (if Global)
C. Porter’s 5 Forces of Competition
a. Competition
• Include market segment, market thrust and
focus, features, strengths, other comparison;
analyze intensity of competition.
b. Threat of New Entrants (analyze level of threat
and barriers to entry)
c. Threat of Substitutes (analyze level of threat)
d. Suppliers (analyze supplier bargaining power
and leverage)
e. Consumers(analyze consumer bargaining
power and leverage)
IV. MARKET STUDY
A. Research Design and Methodology
a. Determining the Right Method
b. Method of Projection
B. Product Description (describe your product so
as to be able to compare with competing
products and substitutes)
C. Demand
D. Supply
E. Demand-Supply Analysis
F. Price Study (your competitors’ pricing; show
 price range and price elasticity) emergencies or breakdown)
G. Market Program (currently being used in the 2. Alternative Plans, Plan-B, Back-Up, Fall-
market) Back (changes to BM while minimizing cost
and utilizing existing assets, skills, etc.)
V. TECHNICAL STUDY 3. Exit Strategy (How do you get out of the
A. MANUFACTURING / SERVICE PROCESSES business while minimizing damage. If
a. System Flowchart you’re selling your business or assets, to
b. Program Flowchart whom, and justify)
c. Plant Size, capacity and Production Schedule
(cite minimum & maximum) VII. FINANCIAL STUDY
B. EQUIPMENT & FACILITIES A. Major Financial Assumptions
d. Machinery and Equipment B. Total Project Cost (Capitalization)
e. Plant Location a. Include cost on governmental requirements like
f. Plant Layout (with measurement) permits, licenses, etc.
g. Building and Facilities (list all renovations and b. Include incidental costs like stationeries,
construction to be done, show illustration) receipts, etc.
C. OPERATIONS / PRODUCTION c. Include 6 months operating cost
h. Raw Materials and Supplies (cite initial C. Detailed Financial Projections
inventory, monthly or daily consumption and a. Income Statement (5-years)
maintaining inventory;) b. Cash Flow
i. Utilities (separate fixed cost and variable cost; i. 5-year projection
be realistic) ii. monthly cash-flow projection for 2-years
j. Other consumables (like lubricants, etc.) c. Balance Sheet (5-years)
k. Maintenance D. Sensitivity Analysis
l. Waste Disposal (how and how much it will a. Worst-case Scenario
cost; also other alternative disposal plan) b. Most-Likely Scenario
m. Labor Requirements (include shifting if c. Best-case Scenario
applicable) *define significant variables first
n. Quality Control E. Computation of Profitability Ratios
o. Other forms of Control a. Internal Rate of Return (IRR)
b. Discounted Rate of Return (DCFRR)
VI. MANAGEMENT STUDY c. Return on Investment (ROI)
A. ORGANIZATIONAL PLAN d. Pay-back Period
1. Form of Ownership e. Break-even level
2. Organizational Structure & Design f. Profitability Ratios / Horizontal Analysis
3. Organizational Chart
4. Officers and Key Personnel VIII. RISK ASSESSMENT
B. STRATEGIES AND PROGRAMS A. Success Factors (Opportunities and Strengths)
1. Strategic-Corporate B. Risk Factors (Threats and weaknesses)
2. Sales & Marketing C. Analysis and Recommendation
3. Human Resource
4. Technology / I.T. APPENDICES
5. Finance & Admin • Acknowledgement
6. Operations • Bibliography
C. STRATEGY EVALUATION AND CONTROL • Directories (suppliers, resources, etc.)
1. Strategic-Corporate
• Spec sheets and cost quotation (this is required as
2. Sales & Marketing
basis for pricing)
3. Human Resource
4. Technology / I.T. • Research data and info (cite source and author)
5. Finance & Admin • List of figures, tables, graphs and charts (cite
6. Operations source and author)
D. OTHER STRATEGIES • Survey forms, interview questionnaires, etc.
1. Contingency Plans (preparation for • Glossary