What is the main purpose of conducting a feasibility study?

The main purpose of conducting a feasibility study is to assess the viability of a proposed project. This involves evaluating various aspects such as technical, economic, legal, operational, and scheduling considerations to determine whether the project can be successfully completed and will provide a satisfactory return on investment. The study helps to identify potential challenges and risks associated with the project, enabling stakeholders to make informed decisions about whether to move forward, modify, or abandon the proposed initiative.

While determining market demand (associated with another option) is a crucial component of project viability, it is only one aspect of the broader feasibility assessment. Evaluating employee performance and finalizing project budgets and timelines are important processes in project management but not the primary focus of a feasibility study. The study importantly synthesizes all relevant data to provide a holistic view of the project's potential success.