Question

Maya opened a bakery in a seaside resort town. She was positive she had the perfect location as plenty of hotels and inns were within walking distance of her storefront. She planned to use her grandmother's recipes and only the finest ingredients for her upscale resort customers. During her first week of business, she was disappointed with lackluster sales. When she drove past the regular breakfast-style restaurants and even the nearby Starbucks, she noticed they were rather bustling. Maya most likelya. did not publicize in the appropriate places.b. underestimated the competition.c. should have considered weather conditions before assuming that her business would be vibrant.d. did not consider that small businesses never get the name recognition in resort towns that largerbusinesses and franchises realize

Answer 1

Answer:

B) underestimated the competition.

Explanation:

Maya is trying to pursue a dream of having her own bakery in a vibrant seaside resort town and thought that by using her grandmother's recipes, her business would be a success. But in order for a business to be successful, it takes more than just a great product (or great cookies, muffins, etc.).

The first thing you need to do is analyze the external environment and what other products are offered by your competition. That way you will be able to determine the opportunities or threats to you new venture. E.g. since the town hosts several upscale and expensive resorts, the clients are wealthy and that market attracts good chefs. I'm not sure if they hand out Michelin stars to bakeries, but if you have very good products offered by your competition, then you must work twice as hard.