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E. Project Feasibility analysis
1. Variables
The variables used in this research are grouped based on the aspects of the project feasibility analysis as follows:
a. Technical and Technological analysis According to Hasan,
et al.
2012, the technical and technological analysis variables comprise:
-
Project location and project duration;
- Project production capacity;
- Raw materials, by taking into account their source, their distribution,
and their supply capacity The analysis includes both primary and secondary data and the collection methods used for the primary data
are interview and questionnaires. -
Buildings and infrastructures required; -
Machines and technologies required; and -
Human resources skills required;
b. Market and Marketing analysis According to Diane,
et al.
2006, the Market and Marketing analysis includes variables, but not limited to, such as:
- Market demand and market supply, and the gap between them;
- Existing competitors, by taking into account their product prices,
product qualities, and production scales The data are collected from tomato paste sellers, tomato paste importers and government
workers, through interviews and questionnaires; and -
The marketing strategy applied.
c. Managerial analysis According to Peni,
et al.
2011, the managerial analysis has variables such as:
- Project planning: project implementation planning, management
level planning, work program planning, and -
Project organizing: department separation, and work distribution. perpustakaan.uns.ac.id
commit to user
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d. Financial analysis According to Xiao and Pieter 2010, the financial analysis comprises
variables such as: -
Funds source; -
Project’s operating cost; -
Project’s operating revenue; and -
Project’s operating profit.
e. Socio-Economic analysis
The Socio-Economic aspect analyzes the positive impacts of the project towards communities Glen and Burton, 1997. Therefore, this aspect
takes into consideration variables such as job opportunities, increase of the local
and regional communities’ incomes, increase of the local and regional governments’ incomes, and increase of the local and regional
GDP.
f. Environmental analysis According to Burhanuddin 2006, the environmental analysis should
