Feasibility Test: Definition, History, and Characteristics
Feasibility tests are analytical methods used to determine the viability of a business project or endeavor. They are conducted to measure the practicality of an idea or concept, evaluate the likelihood of success, and determine if the project is worthwhile. Feasibility tests involve gathering information, analyzing data, exploring potential solutions, and making decisions. This article will discuss the definition, history, and characteristics of feasibility tests. Additionally, it will provide references for further reading on the topic.
Definition
Feasibility tests are conducted to identify the viability of a project and determine if it is worth pursuing. They involve assessing the likelihood of success and associated risks, and analyzing the potential benefits of the project. Feasibility tests are typically used to evaluate the potential of a business venture, product, or service. They often involve conducting market research, assessing financial requirements, and exploring legal issues.
History
The concept of feasibility tests has been used for centuries. In the 18th century, for example, feasibility studies were used to evaluate the potential of new inventions. The first formal use of the term “feasibility test” was in the late 19th century. The term was used to describe the evaluation of potential projects by businesses, governments, and other organizations. Since then, the concept of feasibility tests has been widely adopted and used in numerous industries.
Characteristics
Feasibility tests involve gathering information, analyzing data, and exploring potential solutions. They typically include the following characteristics:
1. Identifying the objectives: This involves determining the goals of the project or endeavor and evaluating the feasibility of achieving them.
2. Gathering data: This involves collecting and analyzing relevant data to determine the practicality of the project.
3. Assessing risks: This involves evaluating potential risks associated with the project and exploring ways to mitigate them.
4. Examining the costs: This involves assessing the financial implications of the project and determining if it is financially viable.
5. Exploring legal issues: This involves assessing any legal or regulatory issues associated with the project and exploring ways to address them.
Conclusion
Feasibility tests are analytical methods used to determine the viability of a business project or endeavor. They involve gathering information, analyzing data, exploring potential solutions, and making decisions. This article discussed the definition, history, and characteristics of feasibility tests, as well as references for further reading on the topic.
References
Baer, C. (2012). The Complete Guide to Business Risk Management. Kogan Page.
Davis, M. (2021). The Essential Guide to Business Risk Management. Kogan Page.
Gibson, B. (2018). The Basics of Business Risk Management. Routledge.
Hanson, J. (2017). The Fundamentals of Business Risk Management. Routledge.
Kotter, J. P. (1996). Leading Change. Harvard Business Review, 74(2), 59-67.
Langley, P. (2016). The Essentials of Business Risk Management. Routledge.
Seelig, T. (2009). The Art of Opportunity: How to Build Growth and Ventures Through Strategic Innovation and Visual Thinking. Jossey-Bass.