CFD Strategic Planning & Analysis 2

Question 1

A floral design studio is conducting a SWOT analysis. Which of the following belongs in the 'Threats' category?

Accepted Answer

A new wholesale flower market opening nearby

Answer

A new wholesale competitor entering the local market is an external threat that could erode pricing power or customer share.

Question 2

When performing a competitive analysis for a floral shop, which metric is MOST useful for benchmarking market positioning?

Accepted Answer

Average transaction value per customer

Answer

Average transaction value helps benchmark pricing strategy and customer spend relative to the competition.

Question 3

A floral designer wants to expand into corporate event florals. What is the FIRST step in strategic planning for this expansion?

Accepted Answer

Conduct a market needs assessment for corporate clients

Answer

A market needs assessment identifies whether demand exists and what corporate clients require before committing resources.

Question 4

Which financial document is most critical for assessing the long-term viability of a floral business expansion plan?

Accepted Answer

A multi-year cash flow projection

Answer

A multi-year cash flow projection reveals whether the business can sustain operations and debt service over the expansion period.

Question 5

A florist identifies that 70% of revenue comes from 15% of customers. This finding best supports which strategic action?

Accepted Answer

Developing a loyalty or VIP program targeting high-value customers

Answer

The 80/20 principle suggests focusing retention efforts on the high-value segment to protect the majority of revenue.

(CFD) Certified Floral Designer Practice Test