Conduct a SWOT analysis, making a list of potential strengths, weaknesses, opportunities, and threats connected with Katy's idea.

To answer 4.2, Katy can mitigate potential threats and weaknesses by implementing the following strategies:

• Mitigating Weaknesses:

  • Limited Production Capacity: Katy can create a production schedule to efficiently manage her time between school and making products. She could also focus on batch production to increase output and, if demand grows, consider training a friend to help with simpler tasks.
  • Lack of Business Experience: She can seek advice from her parents or other experienced adults on pricing, marketing, and customer service. Starting small will allow her to learn through practical experience and refine her business skills.

• Mitigating Threats:

  • Competition: Katy can differentiate her products by emphasizing their unique handmade quality and offering customization options. Building strong customer relationships and providing excellent service will also foster loyalty.
  • Changing Trends: She should monitor market trends among her target audience (learners) and be prepared to adapt her product range or designs. Expanding to other products, like earrings, can also diversify her offerings.
  • Material Price Fluctuations: Katy can leverage her parents' help to purchase materials in bulk when prices are favorable, securing lower costs. She should also research multiple suppliers to ensure she always gets the most cost-effective materials.