Question

6. Barry McGuire wants to purchase a dry-cleaning firm. Barry has head of the SWOT analysis and wants to use this methodology to dete whether he should purchase the business. He found the following info tion. The dry cleaner is located in a busy shopping center and currently does all the deaning on the premises. It has three commercial account that make up 20 percent of its business. The population in the local areas growing by approximately 6 percent per year. Located across the street in another shopping center is a price-cutting dry cleaner that advertises her ily in the local area. With the exception of this shopping center and the property across the street, all property in this area is zoned residential Met of the residents in this area are professional people who wear is to work The shop has an asumable lease, and the lease has a fixed rental fee for the next 5 years. Barry has had 5 years of experience in the dry-cleaning ness and would run the shop full time. Based on this information, pero SWOT analysis

subject should be accounting for entrepreneurship

Answer 1

Strengths:

• Barry has five years of experience in the dry cleaning business and as he will run the shop full time his experience will come in handy to develop and implement the businesses’ strategy in an optimal manner.
• The dry cleaner is located in a busy shopping center and as such it has geographical advantage and getting customers will not be a problem.
• The property is zoned as residential and so competition will be limited in future as well.
• Fixed rental fee for the next five years gives cost control as well as cost visibility

Weaknesses:

• It derives a big chunk of its revenue from three commercial accounts and this poses business risks.

Opportunities:

• Business opportunities will grow with the 6% increasing population.
• Business opportunities will grow as most of the residents in the area are professionals and hence demand for dry cleaning can be increased substantially by proper positioning of the business.

Threats:

• There is the threat of increased competition from the price-cutting dry cleaner that is present across the street.
• Any change in zoning laws/provisions can dilute the business advantage.