Economic feasibility is a kind of cost-benefit analysis of the examined project, which assesses whether it is possible to implement it. This term means the assessment and analysis of a project's potential to support the decision-making process by objectively and rationally identifying its strengths, weaknesses, opportunities and risks associated with it, the resources that will be needed to implement the project, and an assessment of its chances of success. It consists of market analysis, economic analysis, technical and strategic analysis.
Market analysis is a set of activities that aim at creating rational premises for making current decisions, which concern market service in all dimensions on the basis of conducted market research. It uses data obtained through market research. This analysis is defined as a momentary registration of the structure of market behavior at a specific time and place.
Economic analysis is a method of studying economic processes, which consists in considering the relationships between the various elements of these processes.
It can be used both to study economic phenomena and processes occurring on a scale of the whole economy (macroeconomic analysis), as well as phenomena and processes occurring within particular economic units and institutions (microeconomic analysis). Economic analysis makes it possible to make diagnoses, facilitates decision making, as well as facilitates rationalization of economic processes, both on a macro- and microeconomic scale. In economic analysis, mathematical methods are widely applied (e.g. marginal calculus and linear programming). Analysis is a way of scientific procedure, ordering and dividing the whole into components. The aim of the analysis is to examine the structure of the whole, to get to know the mechanism of connections between the components.
Activities related to the assessment of the company's activity are the subject of economic analysis. In the conditions of changing environment, technological and scientific development, making decisions concerning enterprise management requires fast and reliable information. Therefore, economic analysis and the financial analysis included in it have become particularly important. The economic analysis covers all economic phenomena occurring within the company and in its surroundings. Investigating factors involves dividing economic phenomena and processes into constituent elements, determining the causal-impact relationship between the elements, and drawing conclusions from the assessment.
Technical analysis (graph analysis) is a set of techniques aimed at forecasting future prices (exchange rates) of securities, currencies or raw materials based on the analysis of price formation in the past. The purpose of technical analysis is to determine the moments of purchase and sale of a given security, currency or raw material, which are beneficial from the investor's point of view . Forecasts are supported by numerous technical indicators and statistical analysis tools, such as moving average and standard deviation (volatility measure). In particular, data on changes in prices and turnover volumes on the market of a given security, currency or raw material are analyzed .
Strategic analysis is a set of activities that diagnose and forecast the organisation and its surroundings in a way that results in the formulation of an appropriate strategy and the construction and implementation of a specific strategic plan.
Strategic analysis means the right way of strategic thinking by people and organisations. Such analysis must be comprehensive and use qualitative and quantitative methods in the fields of economics, finance, marketing, econometrics, statistics, psychology, international relations, security and defence.