Application Question #1

Application Questions

Question # 1

Kelly Myers, a friend of yours just told you an interesting story. She was at her parent’s house over the weekend and her father saw the book lying next to her backpack. He pick it up and read chapter 3. He told Kelly, “When you were growing up , I started and sold three successful businesses and never completed a feasibility analysis once. I wonder what the authors of your entrepreneurship book would say about that”. If you could advise Kelly about how to respond to her father, what would you tell her to say?

Answer: She may ask her father the following points

Existing Businesses

May be the product launched by the Kelly father is introduced in the existing market of which he knows about such as a new soap or a new cooking oil so there is no strictly need of doing the feasibility analysis.

Prior Knowledge

May be the father of Kelly have a prior knowledge of some product from some close friend or by visiting any industry where the product is manufactured. So this information is much helpful of doing the feasibility analysis. He may also know about the knowledge of product life cycle that what are the conditions and what we have to do.

Market Situation

He may be aware of the market for that product or business for which he is working. May be her father is a keen observer of the market of that product. He have a better command on the market situations. E.g  if he is going to launch a new soap he may have a market knowledge about how to produce and sell the product.

Importance of performing Feasibility Analysis

It is a validation to prove a project to perform or not.