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2Assignment Title: Lemons, Laws, and Lemonade: Understanding the Business EnvironmentScenario: You’re

January 30, 2025

Assignment Title: Lemons, Laws, and Lemonade: Understanding the Business Environment

Scenario: You’re ready to open your lemonade stand on a bustling street corner. However, the lemonade business isn’t as simple as it seems – you face regulations, potential competitors, and the uncertainties of running a small business.

Assignment Task:

Write a short report (approximately 1,000 words) to address the business environment around a lemonade stand. Consider the following areas of focus and research:

·
Local Regulations:

· Research the permits, health code requirements, and other local ordinances a lemonade stand must abide by (zoning, safety, business licenses, etc.).

· Do these regulations act as barriers to entry? Discuss how they might protect the community and/or limit potential competitors.

·
The Competitive Landscape:

· Analyze how the perfectly competitive model applies to the lemonade stand market. Consider ease of entry/exit, standardized product, and lack of price control.

· Conduct a brief competitor analysis (even if just informal observations of other lemonade stands or substitute sellers). Are there ways for your stand to slightly differentiate itself while maintaining the characteristics of a competitive market?

·
External Influences:

· Identify external factors that can heavily influence the success of a lemonade stand that are outside of your direct control (weather, special events nearby, foot traffic, etc.).

· Research resources for small businesses in your community. Identify any potential support or training that might help you manage the uncertainties of your business venture.

Additional Prompts

· Include a works cited section in an appropriate format (MLA, APA, etc.) to list your research sources.

· Consider incorporating images, if suitable, such as an example of a required business permit application for your location.

Objectives:

This assignment aims to develop the following skills:

· Researching rules and regulations affecting small businesses.

· Understanding the competitive dynamics of a specific market.

· Recognizing external factors that influence business success.

· Identifying resources and support for small businesses and entrepreneurs.

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