Ch 2A Quiz

Which 3 characteristics help identify a business opportunity?

• Price

• Quality

• Size

• Branding

• Selection

Answer explanation

There are several characteristics that identify a business opportunity.  If one or more of these characteristics are lacking in a market area, an opportunity could exist.

1. Price

2. Quality

3. Selection

4. Location

5. Service

The first thing a business owner should do before adding another service or product is determine if there is a demand.  The best way to do this is to ask the customers/clients.

A photographer wants to do a SWOT Analysis with the characteristics identified. Which Characteristic would be Strength in the Analysis?

• Large gallery of stock photos.

• Working alone, no skilled help.

• Increase in weddings expected as COVID restrictions ease.

• COVID pandemic restritions disallow large family gatherings.

Answer explanation

A photographer wants to do a SWOT Analysis with the characteristics identified. Which Characteristic would be Weakness in the Analysis?

• Large gallery of stock photos.

• Working alone, no skilled help.

• Increase in weddings expected as COVID restrictions ease.

• COVID pandemic restritions disallow large family gatherings.

Answer explanation

A photographer wants to do a SWOT Analysis with the characteristics identified. Which Characteristic would be an Opportunity in the Analysis?

• Large gallery of stock photos.

• Working alone, no skilled help.

• Increase in weddings expected as COVID restrictions ease.

• COVID pandemic restritions disallow large family gatherings.

Answer explanation

A photographer wants to do a SWOT Analysis with the characteristics identified. Which Characteristic would be Threat in the Analysis?

• Large gallery of stock photos.

• Working alone, no skilled help.

• Increase in weddings expected as COVID restrictions ease.

• COVID pandemic restritions disallow large family gatherings.

Answer explanation

Strengths – are successful characteristics of the business. Essentially, acting upon your business’ strengths consists of “do more of what you are already good at”.

Weaknesses – Acting on weaknesses identified in a SWOT analysis can be challenging but often necessary to grow business.

Opportunities – identified in you SWOT analysis is by far the most actionable, and that’s by design. By identifying opportunities, the business should have a ready-made list of new goals to reach. 

Threats – Anticipating and mitigating the Threats identified in your SWOT analysis may be the most difficult challenge, primarily because threats are typically external factors. For example, economic uncertainty is virtually impossible to fully mitigate. 

A rancher is preparing to retire.  He is considering selling half of his land and giving the other half to his children.  He hears that development for a ski resort was just approved on land adjacent to his property.  Which viable business opportunity does the retiring rancher foresee?

• An increase in land value.

• A decrease in local home sales.

• A decrease in land value.

• An increase in cattle sales.

Answer explanation

Acting on __________ identified in a SWOT Analysis can be challenging but often necessary to grow business. 

__________ identified in a SWOT Analysis are new actions a business should implement. 

Opportunities identified in a SWOT analysis are not meant to be actionable.

• True

• False

_________ is using your company's strengths and opportunities to maximum advantage.