Question 1 When Theo Chocolate’s managers meet to develop the company’s strategy, one of the first things they do is a SWOT analysis. Which of the following would be an opportunity for Theo? Check all that apply.

A. Joe Whinney pitches Theo Chocolate to an angel investor, who sees the company as a great opportunity and doubles its capitalization.
B. Theo is featured as one of Oprah Winfrey’s “Favorite Things List” in ”6 New Chocolate Bars We’re Crazy About” on Oprah. com.
C. Analysis of customer data allows Theo Chocolate to predict with great accuracy which flavors of chocolate bars will sell the most at which time of year and produce accordingly.
D. Theo partners with Ben Affleck’s Eastern Congo Initiative to launch a chocolate bar line, where a part of the proceeds are donated to help Congolese farmers and their families.
Question 2
Theo Chocolate is considering opening a cooking school which will teach students techniques for working with chocolate and recipes that feature Theo chocolate as an ingredient. This would be an example of:

A. Differentiation
B. Vertical integration
C. Unrelated diversification
D. Related diversification

Question 3
Theo Chocolate is just one of many high-end chocolate manufacturers today. They compete against brands such as Scharffen Berger, Valrhona, and Godiva. This means that it is easy for customers to choose a different chocolate, passing up the opportunity to buy a Theo Chocolate confection. This problem illustrates which of Porter’s five industry forces?

A. Bargaining power of buyers
B. Threat of new entrants
C. Threat of substitute products
D. Bargaining power of suppliers