Question 1

Mark is contemplating conducting a feasibility analysis for his social venture. He is unsure of the questions to ask and comes to you for advice. Based on your expertise in entrepreneurship, you would probably tell Mark to explore the following questions except:

A) What do you have to know about your customers, their needs, and this business?
B) What management style is appropriate in running the venture?
C) Might this concept be viable in other markets?
D) What is the potential for this business?

B

Accepted Answer

While management style is important for running any venture, it is not a question that specifically relates to feasibility. The other questions are relevant to determining if the venture is feasible.

Question 2

Which of the following is not a category of the social opportunity assessment tool?&#10;A) Social value potential.&#10;B) Market potential.&#10;C) SWOT analysis.&#10;D) Competitive advantage potential.

Accepted Answer

The social opportunity assessment tool has three main categories: social value potential, market potential, and competitive advantage potential. SWOT analysis is not a separate category, but rather a tool that can be used within the other categories to analyze strengths, weaknesses, opportunities, and threats for a particular social opportunity.

Question 3

Which of the following is a social opportunity evaluation tool?&#10;A) Five forces model.&#10;B) Social opportunity assessment tool.&#10;C) Benchmarking.&#10;D) PEST model.

Accepted Answer

The Social Opportunity Assessment tool is a specific tool designed to evaluate social opportunities, while the other options are general evaluation tools that do not specifically focus on social opportunities.

Question 4

Which of the following is not an opportunity evaluation tool?&#10;A) Quick screen model.&#10;B) Outside-in/Inside-out model.&#10;C) Five forces model.&#10;D) Bygrave and Zacharakis's model.

Accepted Answer

The five forces model is not an opportunity evaluation tool but instead, it is a framework for industry analysis developed by Michael Porter. The Quick screen model, outside-in/inside-out model, and Bygrave and Zacharakis's model are all commonly used tools for evaluating business opportunities.

Question 5

Jennifer is conducting a feasibility analysis. In doing so, she focuses on the attractiveness of the industry in which her new venture will operate as well as the attractiveness of the target market. This is consistent with the dimension ________ in a feasibility analysis.

A) Product/service feasibility.
B) Industry/target market feasibility.
C) Organizational feasibility.
D) Financial feasibility.

Accepted Answer

Industry/target market feasibility is one of the dimensions of a feasibility analysis that analyzes the attractiveness of the industry in which the new venture will operate as well as the attractiveness of the target market. Product/service feasibility analyzes the feasibility of the product or service offered by the venture. Organizational feasibility analyzes the capabilities of the management team of the venture. Financial feasibility analyzes the financial viability of the venture.

Question 6

George is wondering whether he will have the people needed to implement his idea of starting a social venture in Brazil. This is consistent with the dimension ________ in a feasibility analysis.&#10;A) Product/service feasibility.&#10;B) Industry/target market feasibility&#10;C) Organizational feasibility.&#10;D) Financial feasibility.

Accepted Answer

The concern of whether George will have the necessary resources (i.e. people) to start the social venture pertains to the organizational feasibility dimension of a feasibility analysis. This dimension evaluates if the entrepreneur (or team) has the necessary skills, experience, and resources to successfully launch and manage the business.

Question 7

Romeo is conducting a feasibility study. In this analysis, he wonders whether he will have the financial resources to start a social venture. He also wants to know whether similar ventures are financially sound and generate enough sales. This is consistent with the dimension __________ in a feasibility analysis.

A) Product/service feasibility.
B) Industry/target market feasibility.
C) Organizational feasibility.
D) Financial feasibility.

Accepted Answer

Financial feasibility involves analyzing the financial resources required to start and sustain the venture, as well as the potential revenue streams and profitability. In Romeo's case, he is specifically interested in the financial resources required to start the social venture and whether similar ventures are financially viable. Therefore, the best answer is D - Financial feasibility.

Question 8

Which component of the feasibility analysis requires that entrepreneurs assess product or service demand and desirability?&#10;A) Product/service feasibility.&#10;B) Industry/target market feasibility.&#10;C) Organizational feasibility.&#10;D) Financial feasibility.

Accepted Answer

The component of the feasibility analysis that require entrepreneurs to assess product or service demand and desirability is the product/service feasibility. This component assesses the demand for the product or service, the potential market share, the pricing strategy, and the overall attractiveness of the product or service.

Question 9

Robert has an excellent idea for a social venture. However, he would like to test his idea to see whether it could work in real-life. He wants to know whether he should go ahead with this idea. He is not sure what type of study he must conduct to address his concerns. You would probably tell Robert to ____________.

A) Write a business plan.
B) Develop a business model.
C) Conduct a feasibility analysis.
D) Scan the environment.

Accepted Answer

Conducting a feasibility analysis would allow Robert to test the viability of his social venture idea in the real world, and help him determine if it’s worth pursuing. A feasibility analysis can provide an insight into the market, competitors, target audience, cost, revenue, and potential risks involved in starting a social venture. Writing a business plan or developing a business model would come after conducting a feasibility analysis, once Robert is confident about his idea's viability. Scanning the environment is a broad term and may not specifically address Robert's concerns about his social venture, so it is less relevant.

Question 10

The following elements are outcomes of a feasibility analysis, except:&#10;A) Conduct a SWOT analysis.&#10;B) Pursue the current idea.&#10;C) Refine the current idea to improve its potential for success.&#10;D) Abandon the current idea.

Accepted Answer

A SWOT analysis is a tool used during the feasibility analysis process, not an outcome of it. The outcomes are decisions like pursuing, refining, or abandoning the idea.

Deck 7: Feasibility Analysis for Social Ventures