| Course | MKT 431 Small Business Marketing (MKT/431) |
|---|---|
| Week | 2 |
| Paper type | Small business opportunity evaluation |
| Length | about 1,008 words, 4 double-spaced pages plus title page and references |
| Format | APA 7 student paper |
| School | University of Phoenix |
| Program | BS in Business |
| Updated | October 2026 |
Free sample paper for MKT 431 Week 2
E-Bikes, Guided Rides or a Second Shop: Evaluating Growth Opportunities for a Small Bike Business
[Student Name]
University of Phoenix
MKT/431: Small Business Marketing
Week 2 Assignment
[Instructor Name]
[Date]
Iron Horse Cycles, its options and all estimates are composites written for a model paper.
Iron Horse Cycles, the composite Chattanooga bike shop, earns about $1.6 million a year. Last week's customer analysis ranked serious riders and e-bike owners as the shop's most valuable groups and that tourists, while worth little individually, drive online reviews. The owners have five growth ideas and about $120,000 available to invest over the next two years. A small business with five good ideas and money for two must decide not only what to do but what to leave for later. This paper evaluates the options and recommends a plan.
Market Scan
Chattanooga has grown steadily, with new residents drawn by outdoor recreation and remote work. The city promotes cycling through riverfront paths, mountain bike trails on nearby ridges and a bike share system. Tourism brings more than three million visitors a year. Nationally, e-bike sales have grown rapidly, while traditional bike sales rose sharply in 2020 and then fell back. Online sellers continue to compete on price, especially for parts and accessories.
Strengths and Limits
The shop's strengths are expert staff, a strong service department, relationships with clubs and a location near the Riverwalk. Its limits are a small team, a cramped service area and modest cash.
The Growth Grid
Ansoff (1957) proposed a grid that classifies growth options by whether products and markets are existing or new. Selling more existing products to current markets is penetration, the lowest-risk path. Taking existing products to new markets is market development. Offering new products to current markets is product development. New products in new markets is diversification, the riskiest.
Entrepreneurial Marketing
Morris et al. (2002) described entrepreneurial marketing as proactively identifying and exploiting opportunities to acquire and keep customers through innovation, calculated risk taking and creative use of resources. For Iron Horse, this means looking for opportunities that build on what the shop already does well, using partners and existing assets to stretch limited money.
Small Firm Strategy
Covin and Slevin (1989) studied small manufacturing firms and found that an entrepreneurial strategic posture was associated with higher performance in hostile environments, while more conservative postures performed better in benign ones. Iron Horse's environment, with intense online price competition, is somewhat hostile, which supports a proactive, innovative approach balanced by careful risk control.
Evaluation Criteria
Five criteria fit a small shop's situation. Demand asks whether enough customers want the offering. Fit asks whether it uses the shop's skills, customers and location. Cost asks how much cash it requires up front. Risk asks how much could be lost if it fails and how uncertain the estimates are. Payback asks how quickly the investment returns its cost. Each criterion carries equal weight here, though an owner short on cash might weight cost and payback more heavily.
Option One: E-Bike Expansion
Expanding e-bike inventory, adding demo bikes and certifying mechanics to service more brands is penetration and product development combined. Cost is about $45,000 for inventory, training and tools. Estimated added gross profit is $60,000 a year, with payback in under a year. It fits the most valuable growing group.
Option Two: Guided Rides
Offering two-hour guided e-bike and city tours for tourists is market development using existing rental bikes. Cost is about $15,000 for marketing, insurance and guide training. Estimated added gross profit is $35,000 a year. It also produces positive reviews.
Option Three: Mobile Repair Van
A van offering repairs at homes and offices is product development for commuters and families. Cost is about $55,000 for a van and tools. Estimated added gross profit is $30,000 a year, with payback in about two years.
Option Four: Second Location
A shop in a growing suburb is market development with high cost, about $180,000 including lease, build-out and inventory, more than the available funds. Payback would take three to four years.
Option Five: Online Parts Store
Selling parts online is diversification into a market dominated by large retailers with lower prices. Cost is about $25,000 for a website and inventory, with uncertain returns.
Scoring the Options
Each option was scored from one to five on demand, fit, cost, risk and payback. E-bike expansion scored 23 of 25, guided rides 21, the repair van 17, the online store 11 and the second location 10.
Why the Second Location Waits
The second location scored poorly not because it is a bad idea but because it is the wrong idea now. It would require more cash than the owners have, borrowing at current interest rates and a second manager the shop does not yet have. It would also split the owners' attention just as e-bike service grows. If e-bike expansion and guided rides succeed, the extra cash and a trained assistant manager could make a second shop feasible in three years.
Owner Time
Time is as scarce as money. Dana Webb manages sales and rentals; Marcus Webb runs service. Guided rides fall under Dana and e-bike service under Marcus, so each owner takes on one new initiative rather than both taking on everything.
Recommendation
Iron Horse will pursue e-bike expansion and guided rides in year one, investing about $60,000. The repair van will follow in year two if the first two meet targets. The second location will wait until cash and management capacity allow. The online store will be dropped, since it competes where the shop is weakest.
Checkpoints
E-bike expansion should add at least $40,000 in gross profit in the first year. Guided rides should book at least 600 riders in the first season. If either falls short, the owners will adjust before investing in the van.
Risks
E-bike demand could slow, guided ride bookings depend on tourism and weather and staff time is limited. Hiring one part-time guide and one mechanic reduces strain.
Conclusion
Iron Horse has more ideas than resources. A market scan, a growth grid, research on entrepreneurial marketing and small firm strategy and a scoring table point to e-bike expansion and guided rides first, a repair van next and holding the second location and online store.
References
Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113-124.
Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75-87. https://doi.org/10.1002/smj.4250100107
Morris, M. H., Schindehutte, M., & LaForge, R. W. (2002). Entrepreneurial marketing: A construct for integrating emerging entrepreneurship and marketing perspectives. Journal of Marketing Theory and Practice, 10(4), 1-19. https://doi.org/10.1080/10696679.2002.11501922
What the MKT 431 Week 2 instructions ask
The second MKT 431 assignment usually asks students to identify and evaluate growth opportunities for a small business. Common requirements include scanning the market for trends, generating options for growth, classifying them using a framework such as a product and market grid, evaluating each against criteria such as market size, fit, cost and risk and recommending which to pursue. Some prompts ask for a SWOT analysis or a feasibility check. Use local and industry data, support the evaluation with research on small business strategy and cite sources in APA style. A scoring table makes comparisons clear. Show the numbers behind each recommendation, because small firms can rarely afford to pursue every idea at once.
How this MKT 431 Week 2 example is built
A Chattanooga bike shop has more ideas than money, and the paper evaluates five: expanding e-bike sales and service, guided rides for tourists, a mobile repair van, a second location in a growing suburb and an online parts store. Using a product and market grid, it classifies each as penetration, market development, product development or diversification. Research on entrepreneurial marketing and small firm strategy supports options that build on existing strengths. A scoring table rates each on demand, fit, cost, risk and payback. The paper recommends e-bike expansion and guided rides first, a repair van in year two and holding the second location until cash allows, while dropping the online store.
MKT 431 Week 2 grading rubric: where the points go
Strong opportunity papers generate realistic options and evaluate them with clear criteria and numbers. Instructors credit a useful market scan, correct use of a growth framework, criteria tied to the business's strengths and limits, estimates of cost and return and a recommendation that sequences opportunities sensibly. Explaining why some options are rejected or delayed demonstrates sound thinking. Faculty also want peer-reviewed work on small firm strategy and entrepreneurial marketing, local data and connections to the customer analysis from Week 1. Checkpoints that let the owner stop a weak option are a plus. A scoring table and a short timeline help, as do organized sections and careful citations that support the reasoning.
MKT 431 Week 2 help: mistakes to avoid
Students often list growth ideas without evaluating them. Use criteria and numbers. Another frequent gap is ignoring the owner's limited time and cash; small businesses must choose. Students also skip the market scan. Look at local population, tourism, competitors and industry trends. Classify options with a framework so the risk level is clear. Estimate start-up costs, revenue and payback for every option, even rough ones. Explain why some options wait. Connect choices to the most valuable customers identified earlier. Use research on small firm strategy to support the level of risk you accept. Finally, set checkpoints so the owner can stop an option that is not working before it drains the business.
Related MKT 431 sample papers
Other MKT 431 week samples
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- MKT 431 Week 3: Value and a Value Proposition
- MKT 431 Week 4: Pricing Strategy
- MKT 431 Week 5: Advertising and Customer Loyalty
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MKT 431 Week 2 questions, answered
What does MKT 431 Week 2 usually cover?
It usually covers evaluating growth opportunities: scanning the market, generating options, classifying them with a growth framework, evaluating them against criteria and recommending which to pursue.
Where can I find a free MKT 431 Week 2 sample paper?
A complete evaluation of five growth ideas for a Chattanooga bike shop is on this page; writers can also prepare one for your business.
What is the product and market growth grid?
A framework that classifies growth options as market penetration, market development, product development or diversification, depending on whether products and markets are existing or new.
How should a small business choose among growth options?
By comparing options on demand, fit with strengths, cost, risk and payback, then pursuing the best few in sequence with checkpoints.
What is entrepreneurial marketing?
A marketing approach that emphasizes proactively finding and exploiting opportunities, innovation, risk management and creative use of limited resources.
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