This research is aimed at analyzing the situation and studying the feasibility of
the project, creation of a small company that produces tomato paste in the district of
Ambatondrazaka-Madagascar. The tool used to analyze the situation is SWOT matrix
and the aspects taken into consideration in the project feasibility analysis are technical
and technological, market and marketing, managerial, financial, socio-economic, and
environmental aspects. The situation analysis highlighted that there are six opportunities
and two strengths that lead into the creation of the company. However, some
alternatives such as working closely with farmers, through the establishment of
contracts, building good relationship with regional and central governments, training the
company’s manager and personnel, and finding places for tomato cultivation during the
raining season should be applied by the company to overcome the situation’s
weaknesses and threats. Based on the technical and technological, managerial, financial,
socio-economic, and environmental analysis, the creation of the company is feasible.
The sensitivity analysis highlighted that the project cannot resist to the increase by 10%
of the fresh tomato price, decrease by 10% of the company’s total production, and both
increase by 10% of the fresh tomato price and decrease by 10% of the company’s total
production, simultaneously. The socio-economic analysis pointed out that the existence
of the company will increase the local and regional economy. The environmental
analysis highlighted that the pollution caused by the company can be avoided or
reduced. However, the market and marketing analysis pointed out that the capacity of
the local and regional markets is low. Hence, The Company should apply correctly the
proposed marketing strategy that is expected to increase its local and regional sales.
Keywords: Ambatondrazaka, potential feasibility study, project, tomato paste, small
company.