Definition:
An initial assessment conducted to determine the viability of a proposed project, evaluating technical, economic, legal, and operational factors to inform decision-making.
Key Components:
- Technical Feasibility: Assessing whether the project can be executed with current technology and resources.
- Economic Feasibility: Analyzing cost-benefit aspects to ensure financial viability.
- Legal Feasibility: Ensuring compliance with laws and regulations.
- Operational Feasibility: Evaluating if the organization’s operational capabilities align with project requirements.
Use Cases/Industries:
- Renewable Energy Projects: Assessing the potential of new wind farms or solar installations.
- Infrastructure Development: Evaluating the construction of new pipelines or refineries.
Advantages:
- Informed Decision-Making: Provides a comprehensive analysis to guide project approval.
- Risk Mitigation: Identifies potential obstacles early in the project lifecycle.
Challenges:
- Resource Intensive: Requires significant time and expertise to conduct thorough assessments.
- Uncertainty Factors: Market fluctuations and technological changes can impact feasibility outcomes.
Related Terms:
Pre-Feasibility Study, Conceptual Analysis
Example:
Before initiating a large-scale solar power plant, a company conducts a feasibility study to evaluate site suitability, projected energy output, regulatory requirements, and financial returns.
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Synonyms:
Feasibility Analysis, Preliminary Feasibility Assessment
