feasibility study for a proposed corporate event | My Assignment Tutor

1Corporate EventManagementWeek 7.Presented by: Carlos Gomez2Learning Outcome 3: Assess theimportance of a feasibility study fora proposed corporate event“Related to P4, P5, M3 and D3: Review a range of different typesof corporate events and assess how they meet different strategicfocus and goalsTable of Content 3FEASIBILITY STUDY: PURPOSE AND RATIONALE FOR AFEASIBILITY ASSESSMENTEVENT LIFE CYCLE AND MARKET ASSESSMENTIDENTIFYING THE CLIENT OR CUSTOMER GROUPSAND STAKEHOLDERS, ASSESSMENT OF CUSTOMERREQUIREMENTS, AND MARKET ANALYSIS4FEASIBILITY STUDY: PURPOSE ANDRATIONALE FOR A FEASIBILITYASSESSMENTFeasibility Study 5An analysis of the viability of an idea.The feasibility studyfocuses on helpinganswer the essentialquestion of “shouldwe proceed with theproposed projectidea?“should we proceed with theproposed project idea?”Feasibility Study 6•  Feasibility studies can be used in many ways but primarily focuson proposed business ventures.•  Entrepreneurs and others with a business idea should conduct afeasibility study to determine the viability of their idea beforeproceeding with the development of a business.•  Determining early that a business idea will not work saves time,money and heartache later.FEASIBILITY STUDY 7A feasible business venture is one where the business will generateadequate cash-flow and profits, withstand the risks it will encounter,remain viable in the long-term and meet the goals of the founders.The venture can be either a start-up business, the purchase of anexisting business, an expansion of current business operations or anew enterprise for an existing business.FEASIBILITY STUDY 8A feasibility study is only one step in the business ideaassessment and business development processFEASIBILITY STUDY 9FEASIBILITYSTUDYEVALUATEALTERNATIVESPREFEASIBILITYSTUDYMARKETASSESSMENTRESULTS ANDCONCLUSIONSEvaluate Alternatives 10A feasibility study is usually conducted after producers havediscussed a series of business ideas or scenarios. The feasibilitystudy helps to “frame” and “flesh-out” specific business scenarios sothey can be studied in-depth.During this process the number of business alternatives underconsideration is usually quickly reduced.During the feasibility process you may investigate a variety of waysof organizing the business and positioning your product in themarketplace. It is like an exploratory journey and you may takeseveral paths before you reach your destination. Just because theinitial analysis is negative does not mean that the proposal does nothave merit. Sometimes limitations or flaws in the proposal can becorrected.Pre-Feasibility Study 11•  A pre-feasibility study may be conducted first to help sort outrelevant scenarios.•  Before proceeding with a full-blown feasibility study, you maywant to do some pre-feasibility analysis of your own.•  If you find out early-on that the proposed business idea is notfeasible, it will save you time and money.•  If the findings lead you to proceed with the feasibility study, yourwork may have resolved some basic issues.•  A consultant may help you with the pre-feasibility study, but youshould be involved.•  This is an opportunity for you to understand the issues ofbusiness development.Market Assessment 12•  A market assessment may be conducted that will help determinethe viability of a proposed product in the marketplace.•  The market assessment will help to identify opportunities in amarket or market segment.•  If no opportunities are found, there may be no reason to proceedwith a feasibility study.•  If opportunities are found, the market assessment can give focusand direction to the construction of business scenarios toinvestigate in the feasibility study.•  A market assessment will provide much of the information for themarketing feasibility section of the feasibility study.Results and Conclusions 13•  The conclusions of the feasibility study should outline in depththe various scenarios examined and the implications, strengthsand weaknesses of each.•  The project leaders need to study the feasibility study andchallenge its underlying assumptions.•  This is the time to be skeptical.•  Don’t expect one alternative to “jump off the page” as being thebest scenario. Feasibility studies do not suddenly becomepositive or negative.•  As you accumulate information and investigate alternatives,neither a positive nor negative outcome may emerge.Results and Conclusions 14The decision of whether to proceed is often not clear cut. Majorstumbling blocks may emerge that negate the project.Sometimes these weaknesses can be overcome.Rarely does the analysis come out overwhelmingly positive.The study will help you assess the trade off between the risks andrewards of moving forward with the business project.Remember, it is not the purpose of the feasibility study or the role ofthe consultant to decide whether or not to proceed with a businessidea. It is the role of the project leaders to make this decision, usinginformation from the feasibility study and input from consultants.15The go/no-go decision is one of themost critical in businessdevelopment.Once you have definitely decided topursue a business scenario, there isusually no turning back.The feasibility study will be a majorinformation source in making thisdecision.This indicates the importance of aproperly developed feasibility study.Go/No-Go DecisionIt is the point of no return.16THE BUSINESS PLAN PROVIDESA PLANNING FUNCTION. THEBUSINESS PLAN OUTLINES THEACTIONS NEEDED TO TAKE THEPROPOSAL FROM “IDEA” TO“REALITY.”Feasibility Study vs. Business PlanTHE FEASIBILITY STUDYPROVIDES AN INVESTIGATINGFUNCTION. IT ADDRESSES THEQUESTION OF “IS THIS A VIABLEBUSINESS VENTURE?”17The business plan deals withonly one alternative orscenario.Feasibility Study vs. Business PlanThe feasibility study outlinesand analyses severalalternatives or methods ofachieving business success.The feasibility study helps tonarrow the scope of theproject to identify the bestbusiness scenario(s).Feasibility Study vs. Business Plan 18The feasibility study helps tonarrow the scope of the projectto identify and define two orthree scenarios or alternatives.The person or businessconducting the feasibility studymay work with the group toidentify the “best” alternative fortheir situation. This becomes thebasis for the business plan.19The feasibility study is conducted before the business plan. Abusiness plan is prepared only after the business venture has beendeemed to be feasible.If a proposed business venture is considered to befeasible, a business plan is usually constructed next thatprovides a “roadmap” of how the business will becreated and developed.The business plan provides the “blueprint” for projectimplementation. If the venture is deemed not to be feasible, effortsmay be made to correct its deficiencies, other alternatives may beexplored, or the idea is dropped.Feasibility Study vs. Business PlanReasons Given Not to Do a Feasibility Study 20We know it’s feasible. An existing business is already doing it.Feasibility studies are just a way for consultants to make moneyWhy not just hire a general manager who can do the studyThe market analysis has already been done by othersReasons Given Not to Do a Feasibility Study 21Gives focus to the project and outline alternatives.Narrows business alternativesIdentifies reasons not to proceed.Provides quality information for decision making.Helps to attract equity investment.22ACTIVITY 1.23EVENT LIFE CYCLE AND MARKETASSESSMENTEvent Planning Life Cycle 24Before the event:Set the foundationfor successDuring your event:Control the chaosAfter your event:Reflect on theresultsEvent Planning Life Cycle 25BEFORE Step 1: Determine goals and objectivesStep 2: Put together a working budget and price youreventStep 3: Set the date and venueStep 4: Start your search for speakers, sponsors, andperformersStep 5: Visualize your sales lifecycleEvent Planning Life Cycle 26DURING Step 6: Don’t lose track of paperworkStep 7: Make sure you have enough staff onhandStep 8: Give attendees a seamlessexperienceEvent Planning Life Cycle 27AFTER Step 9: Poll your attendeesStep 10: Dive deeper into your conversionsStep 11: Track your ROIStep 12: Compare your results to your goals28Conducting Market ResearchMarket research does not have to behighly sophisticated, expensive orcomplicated. It can be a do-it-yourselfthing. The important thing is toensure the research gives youreliable information that you can usein building your business. Marketresearch provides information aboutthe market potential that provides thebasis for accurate sales forecastingand your marketing strategy.Market Assessment29Its basic components include:•  An estimate of the size orthe market for theproduct/service;•  Projected market share;•  Information about yourmarket; and•  Analysis of thecompetition.Market AssessmentMarket Research 30Market research involves activities designed to obtain data about themarket and falls into two main categories.•  Primary research involves collecting newdata through market surveys and otherfield research – specific studies that areconducted on behalf of your company.•  Secondary research involves gatheringpreexisting information that is useful toyour purposes from published sources.Information you gather goes into estimating the sales your companywill achieve during its first few years of operation.Primary Research 31OBSERVATIONObservation is also a common technique. You record what your customers donaturally. Through observation, market researchers determine howconsumers behave as they buy and use a product, or how they are influencedby some marketing strategy being used by the business.This method works very well in a retail environment. It is a useful technique tolearn how and then, perhaps, why customers purchase a product that is indirect competition with your product. If your product is already being sold, youmight watch how your customers act while purchasing your product.Primary Research 32QUALITATIVE DATAWhen businesses gather primary data, they often are gathering qualitativedata. Qualitative data is data that cannot be counted. It reveals the quality ofa subject’s experience or beliefs.Qualitative research is gathered by allowing customers to answer questions inan open-ended, unstructured manner.Customer preferences might be examples of qualitative data. Focus groups,one-on-one discussions or interviews can provide qualitative data.Primary Research 33QUANTITATIVE DATAQuantitative data describes things that can be measured andanalyzed with statistical analysis.These are expressed in numbers and reveal such things as thequantity of customers with a particular characteristic.How much do your customers earn each month? How old are they?How much do they spend each month on groceries?34IDENTIFYING THE CLIENT ORCUSTOMER GROUPS ANDSTAKEHOLDERS, ASSESSMENT OFCUSTOMER REQUIREMENTS, ANDMARKET ANALYSIS35CUSTOMER PROFILEThe place to start your primary research is with your customer. You may ask,“What information should I find out about my customer?” The answer is“everything.” The better you know and understand your customer’s wants,needs and desires, the better able you are to meet those needs with aproduct that sells.The goal of gathering and analyzing customer information is to prepare acustomer profile. This customer you expect to market your product orservices to is called your target customer and represents an average ortypical customer. It may be one profile of one customer group or severalprofiles covering several customer groups.Primary Research36Demographic vs. Psychographic Customer DataBusinesses gather demographic and pyschographic data in order to discovermore about their customers. Demographic data describes specificcharacteristics of an individual such as age, level of education, occupation,income, marital status and address.Psychographic (lifestyle) data describes an individual’s activities, interests,opinions and beliefs. This data give marketers insight into such things as howpotential customers live, make buying decisions or plan for the future.To illustrate the magnitude of demographic and pyschographic trends,consider the following psychographic trends that have directly impactedmarketing strategies today.Primary Research37Analyzing Your Market Potential•  Who is your target customer?•  What are the defining characteristics of your target customer?•  Who is your competition?•  What are your competitor(s)’ product(s)?•  What is your current trade area?•  What is your market size?•  What are your market trends?•  What is your market potential?•  What is your true production potential?Primary Research38REFERENCESResource Adapted from Marketing, Research and Analysis; NxLevel Training. Reprinted with permission, AgriculturalMarketing Resource Center, Iowa State University. Mary Holz-Clause, former co-director, Ag Marketing ResourceCenter, former associate vice president for ISU Extension and OutreachDr. Abbas Ghanbari Baghestan, Factors Influencing Media Choice for Interact with Their Students among Lectures ofTwo Academic Institutions. Department of Communication, Universiti Putra Malaysia

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