LD7164 International Financial and Contractual Management Assignment Sample 2023
Introduction
The execution of a project is complex and thus involves a variety of steps. It is important to assess several factors before investing as well as during the investment. Moreover, it is also essential to ensure that time is efficiently maintained so that the project can become available to the public by being completed on time. The following section will outline the feasibility concepts and decisions to be considered during various stages of a project.
Critical evaluation of the feasibility concepts before the project
There are several aspects to a project which need to be efficiently assessed before the investment is being made. In the given case, three separate parameters had been used to ensure whether the investment would be a viable option for the given project. The parameters were financial sustainability, cost benefits, and the macro environment. Each of these three aspects is vital to be considered while investing. In this case, the project considered was the Urban Transportation Project in Mumbai, India with collaboration from two other entities namely, Indian Railways, MMRDA, and the state government.
It is important to have a thorough understanding of the macro-economic environment that involves the political and social aspects, along with technical and legal issues. According to Zhankaziev et al. (2018), each of these factors needs to be considered to ensure that the project will be completed without any hindrance from these factors. Similarly, financial sustainability is important as it helps outline whether the total cost of the project can be managed throughout the length of its development. It is also important to ensure that the budget of the project is maintained and that no contributors back out. Moreover, the cost benefits ratio is important to consider as it helps outline whether the benefits exceed the cost. The project is only feasible for investment when benefits provided through the project exceeds the cost making it viable for investment. Thus, each of these factors is an important consideration to be analyzed before any investment is made.
Critical evaluation of the feasibility concepts during the project
Decision-making is an important task to consider when a project is in progress as it involves considering several aspects of a project to ensure that it is completed within the stipulated time. The feasibility techniques that are considered for this given project are economic, technological, and environmental (Choi and Choi, 2021). The reason that these techniques are important is that it helps in the proper determination of the outcomes and objectives of the project. The economic feasibility of a project is important because it aims to outline whether the project will be able to be completed as per the provided budget and expenses. The success of this factor highlights that the techniques considered to make budget decisions have been feasible and successful in this given case.
Technical feasibility is dependent upon consideration from the stakeholders and management regarding the implementation of techniques and how they will be utilized. Furthermore, it also considers whether the technology that has been implemented will work in favor of the project once it is completed. As opined by Anees et al. (2018), through this process it becomes easier for the management to bring changes provided the technology may not be feasible. Lastly, the case of environmental feasibility considers the sustainability options which have been considered to ensure that the project does not add negatively to the environment. Moreover, environmental feasibility also includes maintaining transparency in the business to ensure the stakeholders and collaborators of the processes being used within the project and that they are harming the environment.
Furthermore, legal feasibility is also an important aspect to consider as it is the role of the managers of the project to make sure that the project maintains all legal aspects. It is important to see that the project meets all the requirements of benefiting the public through this project by maintaining all rules and regulations.
Critical evaluation of the feasibility concepts after the project
The techniques that will be considered in the post-project phase consist of Return on Investment (ROI) techniques spread across three major aspects namely Return on Asset (RoA), Return on Capital Employed (ROCE), and Return on Shareholder’s Equity (ROSE). Each of these techniques has a unique role to play when it comes to measuring the effectiveness of the project. Through the use of these techniques, managers, and sponsors can understand the return on their assets and how it impacts the results of the project. It helps in outlining the budget considered for the project and whether it was able to be completed within the stipulated cost (Syed Alwee et al. 2019). The use of these techniques is also used to analyze whether the project will be able to contribute towards the development of the masses as originally considered in the pre-production phase.
It is through the use of these techniques that advisors and professionals review the project and give advice regarding the changes that are needed to be made to ensure the success of the project in the long run. Moreover, the feasibility of the project is important to be considered as it is important to find whether the project will help in contributing positively to the city of Mumbai. In this case, the Mumbai Urban Transportation Project (MUTP) needs to understand if all the pre-project requirements have been adequately met. Moreover, it is also important for the transportation project to be effective once it is released to be used by the masses. According to Wang et al. (2019), the project needs to be able to maintain all feasibility aspects and also prove its effectiveness. It is only after the fulfillment of all these criteria that the success of the project can be assessed.
Conclusion
It can be therefore concluded that the maintenance of the different techniques is important as it helps ensure the success of the project and its completion within the given timeline and budget. Feasibility is another important concern as it helps outline the effectiveness of the project. Thus, in the given case, the success of the transportation project is dependent upon the techniques and feasibility aspects considered for the project.
References
Anees, M., Hussain, S.M., Khan, K. and Abbas, A.T., 2018. Factors Affecting the Need for Feasibility Analysis (For Local Construction Projects). Sir Syed University Research Journal of Engineering & Technology, 8(1), pp.5-5. Available at: http://mail.sirsyeduniversity.edu.pk/ar/journals/1/articles/35/submission/35-1-23-1-2-20181219.pdf
Choi, J. and Choi, J., 2021. Technical feasibility study model of aged apartment renovation applying analytic hierarchy process. Journal of Civil Engineering and Management, pp.1-12. Available at: https://journals.vgtu.lt/index.php/JCEM/article/download/16013/10928/
Fu, C. and Lama, S., 2021. BIM and Design Briefing Integration: Feasibility Study and Conceptual System Framework Development. Journal of Construction Research, 2(2). Available at: https://www.s-p.sg/index.php/jcr-b/article/viewFile/2960/2783
Syed Alwee, S.N.A., Salehudin, N., Mohamed Sabli, N.A., Isnaini Janipha, N.A. and Maisham, M., 2019. The importance of information in the preparation of feasibility study for construction development. Voice of Academia (VOA), 14(1), pp.64-73. Available at: https://ir.uitm.edu.my/id/eprint/32724/1/32724.pdf
Wang, Z.L., Shen, H.C. and Zuo, J., 2019. Risks in prefabricated buildings in China: importance-performance analysis approach. Sustainability, 11(12), p.3450. Available at: https://www.mdpi.com/2071-1050/11/12/3450/pdf
Zakia, Z., Safriani, M., Radianica, N. and Ikhwali, M.F., 2022. Economic Feasibility Study on The Development of Irrigation Channels. International Journal of Engineering, Science and Information Technology, 2(1), pp.131-138. Available at: http://www.ijesty.org/index.php/ijesty/article/download/217/172
Zhankaziev, S., Gavrilyuk, M., Morozov, D. and Zabudsky, A., 2018. Scientific and methodological approaches to the development of a feasibility study for intelligent transportation systems. Transportation research procedia, 36, pp.841-847. Available at: https://www.sciencedirect.com/science/article/pii/S2352146518304186/pdf?md5=f2e866b8bc267c9ec955a3654dd31b9c&pid=1-s2.0-S2352146518304186-main.pdf
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