Feasibility Analysis
You have expressed interest in setting up a tourism venture (a tour business, accommodation, restaurant, or other such venture). Your friend is tired of hearing you talk about the idea. You have already researched the market and are convinced that there is an unsatiied and significant demand for the services or produ cts you intend to provide. Howev er, you have never been involved in running a business and are unsure of your ability to operate the business successfully. You want to start this business from scratch and are not interested in a franchise because you do not want to limit the scope of activities you can undertake, Your friend has advised that you investigate the operations of the business to assess its feasibility. Write an operations report covering the following.
Adescription of the specific industry in which the business will operate, identifying current and future trends and justifying the opportunity that you intend to pursue. Present the key driving forces and key success factors for the industry. Driving forces refer to external factors with significant impact on performance in an industry and indude but are not limited to: increasing household income, rising number of retired baby boomers with time and money to spend, a desire to see the world, reducing cost of air travel and so on.
A description of your products/services such as meals and drinks, accommodation.tours and so on. Describe the components of each product/service line and the benefits to customers. Explain how your pro ductsFserv ices will be differentiated from those of your competitors.
Present your operations plan which should cover the following
The operations objectives explaining how they tie in with the competitive advantages you intend to pursue.
The proposed location this must be justified, stating the adv antages and disadv antages.
How the premises will be acquired (purchased, built, or leased). An estimate of the cost must be presented and the selected acquisition option justified.
The service or production process; use a flow chart to illustrate and explain the various stages of production and/or service delivery.
A graphical illustration of the layout, with explanations asto how it relates to the production / service process and will enhance production efficiency.
The facilities (plant and equipment) required for operations should be listed, For each item in the listthe method of acquisition must be explained and an estimate of cost provided. For leased items the estimated annual cost of the lease must be specified. Plans for expanding facilities to meet anticipated growth within the first five years of operations should be explained.
The processes to be followed for maintenance of the facilities must be presented.
The materials and suppliesrequired and suppliers or sub-contractors to be used are to be provided. The criteria for selection of suppliers or sub-contractors must be explained. Contracts or agreements to be established with them and associated costs, such as transportation, must be stated.
The inventory management system, covering ordering times, safety stock levels, minimum and maximum inventory levels as well as measures to ensure safe storage of inventory should be discussed Strategies for managing any seasonal
variations in demand are to be presented A discussion of all relevant regulatory and legal issues associated with the business, including state, federal, or local regulatory requirements and steps to be taken to ensure compliance. Licences, zoning permits, health permits and environmental approvals necessary to begin operations should be addressed aswell as any pending regulatory changesthat could affect the nature of the business and its timing.
Number of employeeequired, specifying the positionsfor which they will be employed as well as the terms of employment (eg full time, part-time, casual). Identify the recruitment sources for each position What training will be provided
for each position and how will you assess performanceof employees?
Present and justify the remuneration package for each position including
superannuation contributions.
What legal requirements are associated with employees and what steps will you take to ensure compliance?
From the information presented, explain the technical feasibility of the idea and your ability to operate the business. Technical feasibility assesses whether the business will have the facilities and resources to provide the goods or services at reasonable costs.