Content of FS

Contents of the PFS
I. Project Summary
a. Name of the Enterprise
i. Briefly explain the choice of name
b. Location
i. Pinpoint the location of the head office/project site
ii.Factors which affect the choice affect the choice of location
c. Descriptive definition of the project
i. Relation to national program
ii.Affinity to regional or sectoral studies
iii. Project potential and proponent
d. Long ranged objectives
i. Size, capacity, volume, worth, role in the industry and impact on the economy
e. Feasibility criteria
i. Most important guidelines used, Profitability, socio-economic environment
f. Highlights of the Project
i. History
ii.Project Timetable and status
iii. Nature of the industry
iv. Mode of financing
v.Investment costs
g. Major Assumptions used and summary of findings and conclusions
i. Market feasibility
ii.Technical feasibility
iii. Financial feasibility
iv. Socio-economic feasibility
v.Management feasibility
II. Market Study
a. Lifeblood of PFS
b. Profitability-Focal point
c. Demand-basic issue
d. Seeks to find:
i. Size, nature and growth of total demand
ii.Description and Price
iii. Supply situation and the nature of competition
iv. The difference factors affecting the market
v.The appropriate marketing program
e. Market Study Outline
i. Product Description
ii.Demand
iii. Supply
iv. Demand-Supply Analysis
v.Price Study
vi. Factors affecting the market
vii. Analysis of Research Data
viii. Marketing program
ix. Marketing Plan
A. Product Description
B. Demand
2. Macro Analysis-GNP growth rate of a GNP component
3. Micro Analysis
A. Price
B. Price substitutes/alternatives
C. Income
D. Population
x.Concepts in demand analysis
1. Price Elasticity- measures the responses of quantity demanded of a
particular product to variations in price
2. Income Elasticity- measures the response of quantity demanded of a
particular product to variations in income
C. Supply Situation
1.Who and where are the direct competitors
2.Determine the historical domestic supply
3.If there is a foreign market, determine the supply pattern
4.Evaluate supply growth patterns and project future supply
D. Demand-Supply Analysis
i. Compare the demand supply trends
ii.Determine the amount of demand unsatisfied
iii. Determine the share of the market
1. If the demand is fairly satisfied
a. Whether factors affecting the market may disrupt the equilibrium
so as to cause demand to grow faster than supply
b. Whether the qty of the product is such that may create additional
demand or cause a shift of a portion of the existing demand in its
favor.
E. Price study
1. Determine the Selling prices of all similar and substitute products
2. Look into the history of these prices (Range of fluctuations) established the factors that mostly
influence their fluctuation over time
3.Determine the responsiveness of demand to prices changes
4. Establish the selling price: market segment targeted operating cost and successes estimate
increases foreseen in the subsequent years.
F. Factors affecting the Market
1. Demand may be affected by population growth, income changes, taste, rural/urban developments,
prices of substitute and complimentary, marketing tools like advertising, promotions and credit policies
2. Supply may be influenced by the developments of substitute products, entry and exit of firms,
sources and cost of production factors, government policies, improve technology etc.
3. Prices may be affected by production costs price controls, inflation etc.
G. Analysis of Research Data
Data analysis and interpretation is one of the most critical phases of market research.
1. Descriptive analysis use mean, median and mode frequency distribution range and standard
deviation
2. Inferential analysis- tests the validity of the hypothesis and identifies standard errors
3.Difference Analysis- determine if differences exists between groups of respondents
4.Associative Analysis- determines the associations or relationships of variables
5. Predictive Analysis- forecasts based on the results of the survey.
H. Marketing Program- end product of the Market Study
1. Determine the types of mktg. programs prevalent and gauge their respective effectiveness
2. Draw up marketing plan: Defines the market, price, packaging, distribution network, sales
management mechanisms, advertising and promotion programs.
3. Ps- Product, price, place, promotions
4. Design the marketing organization and cost- the most ideal organization that allows maximum
efficiency at the lowest workforce level possible.
I. PARTS of a Marketing Plan

1. Introduction
2.General business condition
3. Competitive conditions
4.Market Research results
5.Sales and distribution plan
6. Advertising and Sales Promotion
7.Other related aspects: Production formulations packaging, legal clearance
8.Budget Summary
9.Profitability (Net income targets)
s
III. TECHNICAL STUDY

a. The Product
b. Site Development plan
c. Construction plan/process
d. Construction schedule
e. Materials and equipment Supplies
f. Utilities
g. Waste Disposal
h. Construction costs
i. Labor requirements
IV. FINANCIAL STUDY

1. Existing business practices in the industry may provide some valuable information and
insights on the ff.
a. Credit terms
b. Credit extensions
c. Bad debt allowances
d. Bad debt write-off
e. Quality related costs
f. Dividend policies
g. Sales discounts and refunds
h. Labor management compensation
i. Overhead accounts
j. Operating accounts
k. Absorption rate
l. Fixed-asset requirements
m. Method of depreciation and amortization
n. intangible asset pre-requisites.
V. SOCIO ECONOMIC STUDY

Show how a project can contribute to:
- The standard of living
- Enhanced community development
- Increase both foreign exchanges savings and reserves
- Aid in lowering of prices
- And increase local demand for local materials and labor
Impact of the project in terms of:
1. Employment and income, resulting in the improvement in the standards of living of its
employees and their families.
2. Taxes, since the increased revenues of local and national governments can then be used for
the development community
3.Supply of Housing observing the different possibilities of influencing prices and foreign
exchange balances
4.Demand for home grown to allow local produces to sell more materials
VI. ORGANIZATION AND MANAGEMENT STUDY

Formulations of goals
-Example
 Market Study- To acquire at least 10% market share

 Technical- Increase supply of Housing unit by 20% in the next two years
 Financial- A payback of 5 years, and ROI of 30% and a positive NPV of not less than
1.5, an IRR minimum of 12%
Characteristics of well-designed Goals and Objectives:
-Expressed in terms of results rather than actions
-Measurable and quantifiable
-Clear time frame
-Challenging and yet attainable
-Written down on paper
-Communication to all members of the organization and stakeholders.
Prepare and overall IMPLEMENTATION PLAN
A. BASIC Considerations
1. Purpose of the project must be reinstated
2.Consolidate all inputs from marketing, technical and financial, socio-economic and
environmental studies that are relevant to organization management
3. Design project organization chart
B. Forms of ownership
1. Single proprietorship
2. Partnership(general or limited)
3. Corporation(Small to large scale)
4.Cooperatives
C. Organizational Chart
Presented in a diagram which shows relationships, flow of authority
Includes:
All personnel from the management to the rank-and-file employees
D. Officers and Key Representatives
Names of Specific individuals
Necessary educational backgrounds, work experience and training, and net worth of each position
must be adequately described
E. Project Schedule
Different activities involved in the preparatory stage of the project- presented in a GANT chart.
Stating duration of an activity or a PERT network to establish the sequence to be followed for the
different activities.
Project Implementation needs to be planned well to ensure that:
-Tasks and Activities are done
-Schedules are met
-Human resources are properly deployed
-Financial Resources are properly spent
-Outputs are delivered
-Note: Some tools used in project implementation planning are used in designing. Example is
work breakdown structure, which is done to determine the project cost.
Project Implementation planning
In practice this consists of the following stages:
- Breaking the project down into tasks
-deciding how long each task will take and what resources it will require.
-deciding on the interdependency of tasks and a consequent logical order
-producing a plan so that it is possible to see how well the project is progressing generally this
means that there are milestones during the project where it can be seen whether the project is on target or
not.
Scheduling Tasks and Activities
The most usual way of doing this is to produce a Gantt chart, Gantt chart also referred to as a
project timeline are bar graphs that help plan and monitor project development or resource allocation on a
horizontal time scale.
VI. Environmental Study- Impact assessment
VIII. RECOMMENDATION
XI. ANNEXES
Final Note
One must evaluate the project as a whole. This is where qualitative insights come in. Such insights
become critical especially when some uncertainty is concluded from quantitative findings.
A project study in essence is a scientific and systematic approach to decision making. It is really a guide
not an imposition.

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Contents of the PFS

I. PARTS of a Marketing Plan

III. TECHNICAL STUDY

IV. FINANCIAL STUDY

V. SOCIO ECONOMIC STUDY

VI. ORGANIZATION AND MANAGEMENT STUDY

 Market Study- To acquire at least 10% market share

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