Will our business idea succeed? This is what a feasibility analysis tries to answer. Feasibility analysis is done with respect to product concept - does the idea appeal to people?; cost and price estimates - at what price point will the product appeal, and is this significantly higher than cost; and, finally, the manpower resources that a company has to pull the idea through.

The assignments for this week are given below:

1. Readings: Chapter 3 (Feasibility Analysis) and Secondary Reading on the Cereal Market (http://www.lavasurfer.com/cereal-analysis.html)

2. DQs (on Discussion board): Respond to DQ 1 and DQ2 for this week

3. Respond (comment) to other students' DQs. (2-3 sentences, agree or disagree, reason.)

Discussion Questions

1. You may have heard about ‘New Coke' that the Coca-Cola company developed as a response to the Pepsi Challenge which showed that more people preferred the Pepsi taste to Coke's taste. New Coke was developed based on a fair amount of market research investment. Why then did it fail?

2. One of your secondary readings for this module (http://www.lavasurfer.com/cereal-analysis.html) links to a 1997 analysis of the cereal industry. In 2002, Kellogg, the market leader in ready to eat cereals market, reported sales of 8.9 billion dollars. Would you recommend this industry to a new entrepreneur based on your reading of Chapter 3 on Industry Analysis? Why or why not?