Professional Documents
Culture Documents
On
Project
Feasibility
Study
1
A project Feasibility Study On The
Basis of Consultancy Firm
Prepared for:
Prepared by:
Imran Hossain
ID: 062200043
Eastern University
House#15/2, Road# 3
Dhanmondi R/A, Dhaka 1205
Ph: 9676031-5
2
Date of submission: 28/01/2010
December 28, 2010
Dear Sir,
Here is a feasibility study report on “ABC consultancy firm”. The report is
done as a part of our project management course. This were you assigned us
on your regular class.
We thank you for giving us the opportunity to work on this report. We truly
appreciate this task. We have gained much valuable experience while
working on this report, and sincerely hope that it will be up to your
expectations.
Kindly accept the report and oblige thereby. Thanking you again.
Yours’ sincerely,
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---------------------
Imran Hossain
ID: 062200043
Acknowledgement
We are grateful to our course instructor Dr. A.K.M Saiful Majid for
write this report. The study is very useful and practical base. Again we
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Executive summary
The proposed name of the consulting firm will be “ABC consultancy firm”.
follows the company act. 1994 (Origin- 1938 British act). The memorandum
of the article and memorandum of the association has been already prepared
project into five aspects. The marketing feasibility study suggests that the
has been achieved. We find all the tool s which has been very important for
operating a consultancy firm project. For the financial aspect we go for the
cash flow, balance sheet, NPV and etc. The proposed project authorized
capital TK. 15, 00, and 00,000. There are five promoters of ABC consulting
firm and there liabilities will be limited by the registered deed. All the
promoters are highly qualified and experienced. According to the report the
there were no dues to the promoters. The proposed consulting firm will
calculation and estimation already done. ABC consulting firm will offer unique
and latest consulting services toward the customer. The target customer
service and price will offer. Different types of promotional tools and
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technique will maintain to attract customer. The proposed slogan “Solved
Feasibility study on
Consultancy Firm
1.0 Introduction
1.1 Origin
As part of our academic course curriculum, Dr. A. K. M. Saiful Majid sir of
the project from investment point of views that whether the project is
and expectation. For that reason, there are so many opportunities to satisfy
a formal Business Plan. In addition to serve this purpose it tries to find out-
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1.3 Scope of the Study
Throughout the study we mainly try to cover all the possible aspects of a
consultancy firm. The basic concept of the study is making any investment
1.4 Limitation
It is difficult to include all the information for feasibility study in this short
time. Be side I don’t get any expertise opinion from this particular area
1.5 Methodology
• Most of the relevant data and information has taken from market
consultancy firm.
proposed project.
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2.0 Management aspect
2.1 Legal form of business
The proposed name of the consultancy firm will be ABC consultancy firm.
follows the company act. 1994 (Origin- 1938 British act). The memorandum
of the article and memorandum of the association has been already prepared
Issues Descriptions
Name
ABC CONSULTANCY FIRM
Head Office - House-60 A. Road 7A,
Dhanmondi R/A
Tel - 8117462, Fax: 8652036
Email – info@abc.bd.com
Website –
http://www.abcconsultants.com
Form Partnership Business
Mission "To solve unsolved problems
innovatively"
Tentative Date of Registration December, 2009.
Tentative Date of Project activity January, 2010
Start.
Tentative Date of Project activity February, 2010
Completed.
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Tentative Date of Start Operation. April, 2010
2.2 Promoters
The ABC consultancy firm has a 5 partner. The governing body personals are
smoothly as all of them have long term and deep experience in this kind of
There are five promoters of ABC consultant firm promoters name and other
e
Imran Hossain 38 BBA & MBA from Oxford University.
company.
Lutfozzam Babor 37 Masters in Finance and Accounting from Dhaka
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Dhaka. He worked in a reputed consultancy firm.
Tarek zia 33 Masters in social science from Dhaka
57 Gulshan, university.
Taka
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1. Md. S. Islam Sarkar Tk. 5,25,00,000
2. Md. G. Mohiuddin Tk. 3,00,00,000
3. Shafiul Azam Tk. 3,00,00,000
4. MD. A Zaman Sikder Tk. 2,25,00,000
Tk. 1,50,00,000
Total Tk. 15,00,00,000
head. The organization chart of the proposed ABC Consultancy firm is given
below:-
MD
organization will select the key personnel for the proposed consultancy firm.
below in a table:-
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Proposed Proposed salary Key responsibility Key
Designation qualification
BBA and MBA.
by1500
Head of 25,000/- MBA/Masters
Develop and deliver
Financial to30,000/- in finance
accurate sales
others 3000 And related
forecast in line with
every year salary experience is
business objectives.
will increase by required.
Control costs to
1200
ensure that
expenditure is being
budgets
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Head of 25000/- to Manage and coordinate MBA major in
competitors information
1200 subordinates
performance. Reporting
will increase by
1200
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2.6 The lawyer, Banker and Auditors
The promoters have chosen banker, lawyer and auditors of the consultancy
firm. The name and position of the lawyer, bankers and the auditors are
Types Name
Legal Advisor Barrister Fazle Nur Tapos
Chartered Accountant
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3.1 The Marketing Mix and the Four P’s application
The “Four P’s” include product, promotion, place and price. Product/ Service
is what are you going to produce to satisfy a consumer’s wants and needs.
Promotion is how you are going to advertise and promote your product. Place
is where are you going to sell your product/service and how are you going to
distribute your product. Price/Service Charge is what price you are going to
Services
1) The core services –what is the customers really subscribing? The core
service refers to the use, benefit, or problem solving service that the
serves as the medium for receiving core product benefits: quality of service
features.
consumer put the actual services to sustained use and after-sale service.
Service strategy:
ABC consultancy firm is service based company and our specialty is that ABC
consultancy firm’s service is unique in the field. We promise people that our
service will be more reliable than the other service providers. If there is
any problems occur in our service we assure that that won’t let that for long.
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Promotion
Promotion may be defined as any two-way communication for the purpose of
needs, goals, ideas, and feedback. This is marketing in the pure sense of the
term. How are you going to sell your product and whom are you going to sell
it to? Promotion should not be considered the last step in the marketing
process. In fact it should be one of the first steps (if not the first step)
providers. For promoting our business we’ll apply the following promotional
tools:
Promotional Strategy:
To grave more customers the firm will uses different promotional strategy:
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Advertising
According to the law of branding advertising should be an effective
defensive technique and the budget should be like a defense budget from
the competition. Advertising will help ABC to keep remind of its customers
mind. ABC will go with different print media advertising such as daily
assurance that new potential contact lists are current and accurate.
advertising
Public relation
A better brand can not be established without effective public relation.
B&S will arrange several campaigns such award giving. Through this sort of
activities we will try to make aware and give message about the importance
Slogan
“Solve unsolved problems innovatively”
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Place
This is the third step of marketing mix. This stage determine about the
Price
In case of service the price depends on the quality of service & the service
availability rate. Pricing can be several types some of those are bellow:
Prices that do not take the entire marketing mix into account
As mentioned above, some prices do not take the entire marketing mix into
account, with some service providers pricing their service based on their
Pricing Factors
While it is important to consider serving costs to determine if the price is in
the right estimated, you should take other factors into account as you
Quality of Services
Competitors' Prices
Costs
By following the above factor related with pricing we have set the price for
our services.
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Pricing Strategy
Pricing/Service charge strategy we will follow that is services provide cost
+ markup. ABC consultancy firm’s point of view it is the most accepted and
easiest way to calculate the price. Moreover, ABC consultancy firm’s mark up
Internal factors
effort
Financial .2 5 1
resources
Instruments .15 4 .6
Management .2 3 .6
competency
Customer service .05 4 .2
Total 1 3.6
External factors
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Factors Weight Rating Score
Market size .3 5 1.5
Market .1 4 .4
competition
Political issues .1 4 .4
Government .1 4 .4
Manpower .1 3 .3
availability
Customer loyalty .2 3 .6
Technology .1 4 .4
Social & cultural .1 3 .3
issues
Total 1 4. 3
From the above internal and external factors score help to identify the
firm’s position in the market. GE matrix show the firm position below:
Internal Factors
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5 1
Investmen Selective
t AB
C
Growth Growth Selectivity
From this matrix we
Selective Harvest
External
can easilyFactors
identify
Growth Or
our own position in
Selectivity Divest
the market. We are
Harvest Harvest
in selective growth
Or Or
quadrant means the
Selectivity Divest Divest
Firm condition and
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potentiality is very good but ABC consultancy firm’s own position is not good.
We are new in the market so we need to take more strategy and investment.
For determining the target market & the market size we have define our
Individual Customer
Corporate customer
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3.4 Competitive Environments
This industry is now growing stage in our country so there is a huge
from others. ABC consultancy firm plans to advertise through newspaper and
lift let. Later on we use radio media. ABC has numerous creative ideas that
will make ABC best in corporate world. It may happen within two or three
consultancy firm are not maintaining service standard. So they can not
satisfy the customers. ABC consultancy firm is full of latest and modern
PEST analysis
Politics Economical
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Political environment is too Unemployment rate is high
influenced by politicization
Government decision
of government
Social Technological
SWOT analysis
Strength Weakness
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Qualified and experienced New in market
Affordable cost
Opportunity Threats
condition
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The Proposed firm will start its business operation in Dhaka initially but with
the success of this area the business will expand all over country.
the promoters of the business. The head office will be leased for 15 year
14400 Sq/ft & 7200 Sq/ft. there is 4 storied building in Dhanmondi & 3
This is a service oriented business for these business lots of equipments are
not required. Massive setups of equipments are obvious for this business
operation. Both the buildings have some facility for our business those are:
(Dhanmondi)
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Well communication system
some equipment & machines for its operation. Those lists are given bellow:
Installation of instruments
It is a service firm. There are no complex equipments. So no need to worry
about high installation cost. On the other hand for our light machinery like
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Power
Gas
Telephone Connection
For maintaining any office the above utilities are require. The places we have
chosen for our office all the places are occupied of these utilities.
are given
The entire ABC firm infrastructure will be maintenance and repair by the
supplier at a free of cost for two years. On these issues we have a written
contract with supplier. On the other hand computer and other accessories
like printer, scanner etc has respectively three and one years warranty. So
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Safety & Hygienic Provisions
As the operating building will be full of equipments & electrical parts there
is huge chance of fire of other accident for that the promoters will take the
necessary actions. There will be 15 first Aid boxes in two office 4 Fire
There are five toilets in each floor of the buildings. There are separate
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TK.20,00,00,000. the promoters of the company will pay up Tk.15, 00,
00,000 as their investment Rest of the amount (5,00, 00,000) will take as
loan. The loan amount will be pay able in 20 years at annual interest rate of
12.50%.
TK
Imran Hossain 35% 6,25,00,000
Abdul Jolil 20% 4,00,00,000
Lutfozzam Babor 20% 4,00,00,000
Tarek zia 15% 3,25,00,000
Arafat Rahman Coco 10% 2,50,00,000
Total 20,00,00,000
Finance will be
borrowed
1. Imran Hossain Self+ Tk.1,00,00,000 Tk. 5,25,00,000
Bank loan
2. Abdul Jolil Self+ Tk.1,00,00,000 Tk. 3,00,00,000
Bank loan
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3. Lutfozzam Babor Self+ Tk.1,00,00,000 Tk. 3,00,00,000
Bank loan
4. Tarek zia Self+ Tk.1,00,00,000 Tk. 2,25,00,000
Bank loan
5. Arafat Rahman Coco Self+ Tk.1,00,00,000 Tk. 1,50,00,000
Bank loan
Financial Plan
The funds required for the project consists of 75% equity which
5,00,00,000
The source of such loans will be commercial banks. The tax rate is
40%.
been made on accounts that are believed to most drive the income
for 2006-2008.
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Operating Expenses
Research Development - - -
Selling General and
330,052 255,238 178,572
Administrative
Non Recurring - - 22,972
Others 18,824 10,615 11,175
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
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Net Income 125,435 92,121 42,024
The following table outlines ABC's projected balance sheets for fiscal years
2006-2008.
Assets
Current Assets
Cash And Cash Equivalents 191,842 360,463 91,923
Short Term Investments - - -
Net Receivables 332,888 282,373 186,767
Inventory - - -
Other Current Assets 27,724 18,691 16,259
Total Current Assets 552,454 661,527 294,949
Long Term Investments 56,500 70,800 47,673
Property Plant and Equipment 78,575 67,843 51,326
Goodwill 1,151,388 940,878 885,711
Intangible Assets 189,304 84,673 77,711
Accumulated Amortization - - -
Other Assets 59,948 32,903 33,786
Deferred Long Term Asset Charges - - -
Total Assets 2,088,169 1,858,624 1,391,156
Liabilities
Current Liabilities
Accounts Payable 273,011 217,425 171,542
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Short/Current Long Term Debt 150,898 157,772 6,917
Other Current Liabilities - 5,865 -
Total Current Liabilities 423,909 381,062 178,459
Long Term Debt 418,592 415,653 565,332
Other Liabilities 45,037 9,956 7,052
Deferred Long Term Liability Charges 76,804 79,703 75,213
Minority Interest - - -
Negative Goodwill - - -
Total Liabilities 964,342 886,374 826,056
Stockholders' Equity
Miss Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 509 490 419
Retained Earnings 486,493 361,058 268,937
Treasury Stock - - -
Capital Surplus 717,158 601,637 294,350
Other Stockholder Equity (80,333) 9,065 1,394
Total Stockholder Equity 1,123,827 972,250 565,100
Projected Cash Flow
This table show our cash flow and cash balance projections.
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Changes In Other Operating Activities 4,094 (1,771) 7,796
Total Cash Flow From Operating
199,852 77,953 63,966
Activities
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures (35,674) (36,422) (30,359)
Investments - - -
Other Cash flows from Investing
(340,838) (31,761) (267,026)
Activities
Total Cash Flows From Investing
(376,512) (68,183) (297,385)
Activities
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid - - -
Sale Purchase of Stock 20,562 250,395 (13,159)
Net Borrowings (11,019) (7,945) 180,805
Other Cash Flows from Financing
10,708 17,986 2,118
Activities
Total Cash Flows From Financing
20,251 260,436 169,764
Activities
Effect Of Exchange Rate Changes (12,212) (1,666) 2,195
Change In Cash and Cash Equivalents ($168,621) $268,540 ($61,460)
risky. ABC consulting firm has a plan against risk. ABC consulting firm will
save risk purpose 15% from sales revenue. ABC Consulting firm thinks it will
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ABC consulting firm thinks it can face some problem. There is a chance to
copy the strategy in the market. On the other hand, every business has some
risk. To start it needs huge amount of money. To collect the money and
interest rate is risky for ABC consulting firm. Every business has a
Contingency Plan
ABC consulting firm will prepare trademark and logo. The service will be
different and creative. ABC consulting firm will take every types of
authority from the relevant sector. Tax identification number and it will be
organized with trade license by the power of Business sector of Dhaka City
Corporation. So, ABC consulting firm will get the legal authority from the
Insurance Plan
ABC consulting firm will be organized by Insurance Plan to reduce the risk.
ABC consulting firm will open an insurance file for Business Purpose in
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6.0 Socioeconomic Aspect
Employment generation impact
In ABC consulting firm, we will create working scope for the people. That
Contribution to GDP
The project if feasible and implement would definitely contribute to GDP by
working in here workers will find salary and give tax, vat etc. So that nation
forward linkage.
people which are really interested to take service from here. That is the
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Benefit of the society
The society will be benefited by the project because this project is about
service. It will create also some job opportunity for some people, which can
be a very good sign for our society. It will also take part and contribution
7.0 Conclusion
It is a profitable business project for our country. This project will also
create some job opportunities for jobless people. It will take part to our
national GDP. Every kind of consulting related services are providing from
this consultancy firm. We divide our full project into five aspects. The
marketing feasibility study suggests that the project will be a success from
marketing aspect. From the industry, SWOT, PEST and competitor analysis,
the service offerings have been worked out. The target customers have
been identified and project differentiation has been achieved. We find all
the tool s which has been very important for operating a consultancy firm
project. For the financial aspect we go for the cash flow, balance sheet, NPV
and etc. All the technical tools are involved in here.We can say that, as a
consultancy firm business is so much profitable. Now a day the people in our
country are very interested about the service. So they want to get such
type of service from any company. From this report we can see that the all
aspects are positive for the business. So we can say that our project is a
profitable project.
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8.0 Bibliography
www.abcconsulting.com
http://finance.yahoo.com/q/is?s=FCN
www.niir.org
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