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AP Business with Personal Finance: SWOT Analysis Drill 27

Drill 27 ·

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About This Drill

AP Business with Personal Finance: SWOT Analysis Drill 27 is a practice drill. It contains 5 original questions created by Brian Stewart, a Barron's test prep author with over 20 years of tutoring experience.

A competitive-analysis drill in which a juice bar sorts factors into a SWOT framework and reads what they imply; it uses an invented company and original figures.

Passage

Verriden Juice Bar is a single-location smoothie and cold-press juice shop. Before deciding whether to expand, the owner lists four factors that affect the business and begins sorting them into a SWOT analysis. In SWOT, Strengths and Weaknesses are internal to the firm, while Opportunities and Threats come from outside the firm.

Verriden Juice Bar: Factors to Classify

FactorDescriptionInternal or external?
1. Strong repeat-customer baseA base of regular buyers the shop has built up over timeInternal
2. Only one blender stationLimits how fast the shop can serve at peak timesInternal
3. New gym opening next doorCould bring in health-focused foot trafficExternal
4. A national juice chain entering the cityA larger rival may open nearbyExternal

Questions in This Drill

  1. Q1. According to the table, how many of the four factors are internal to the firm?
  2. Q2. In a SWOT analysis, Factor 1, the strong repeat-customer base, belongs in which quadrant?
  3. Q3. Factor 2, having only one blender station that slows service at peak times, belongs in which SWOT quadrant?
  4. Q4. Why is Factor 4, the national juice chain entering the city, classified as a Threat rather than a Weakness?
  5. Q5. Taken together, the SWOT picture shows a repeat-customer Strength and a new-gym Opportunity alongside the rival-chain Threat. Which action does this picture best support?