CFD Strategic Planning & Analysis 3

Question 1

Which pricing strategy involves setting prices based on the perceived value to the customer rather than the cost of goods?

Accepted Answer

Value-based pricing

Answer

Value-based pricing sets prices according to what customers believe the product or service is worth, often yielding higher margins.

Question 2

A floral designer is analyzing seasonal demand cycles. Which quarter typically requires the most proactive inventory and staffing strategy in the US?

Accepted Answer

Q2 (April–June)

Answer

Q2 includes Mother's Day, prom season, Memorial Day, and the start of wedding season, creating peak demand across multiple customer segments.

Question 3

What does a break-even analysis tell a floral business owner?

Accepted Answer

The point at which total revenue equals total costs, resulting in zero profit or loss

Answer

Break-even analysis identifies the exact sales volume needed to cover all fixed and variable costs before generating profit.

Question 4

A floral shop owner wants to reduce dependence on a single supplier. This is an example of which strategic risk management approach?

Accepted Answer

Supply chain diversification

Answer

Supply chain diversification reduces the risk of disruption by spreading procurement across multiple vendors.

Question 5

When analyzing a competitor's strengths, a floral business owner notices they offer same-day delivery. The best strategic response is to:

Accepted Answer

Assess whether same-day delivery aligns with your target market and financials before acting

Answer

Strategic responses to competitor moves must be evaluated against your own capabilities, costs, and customer priorities before implementation.

(CFD) Certified Floral Designer Practice Test