A feasibility study is a document written to show the justification of a proposed policy, product, service, or other charges in an organization. Prompted by ideas suggested in a proposal, it examines details such as costs, alternative and likely effects.
A feasibility study can be in-house (for decision makers in an organization) or external (requested by clients from outside the organization)
Characteristics of a Feasibility Study
1. A feasibility study is always solicited.
2. It always assumes one of these two patterns of organization:
a. An analysis of the advantages and disadvantages of one course of action, product or idea.
b. A comparison of two or more courses of action, product or idea.
3. It is always intended to help managers and other decision makers vote for or against an idea or select many other alternatives.
4. It usually helps the reader to make a decision.
5. It is often preceded by a proposal.
6. It saves capital, time and effort.