Decision-making in any area of your business should be done after a situation analysis. It should be the first step in project planning or in setting up of any new initiative. Show
In this post we will discuss what is a situation analysis, and help you understand the concept further by explaining how to do a situation analysis . What is a Situation Analysis?It is basically the process of critically evaluating the internal and external conditions
that affect an organization, which is done prior to a new initiative or project. It provides the knowledge to identify the current opportunities and challenges to your organization, service or product. This in turn helps with devising a strategy to move forward from your current situation to your desired situation. Importance:
Steps to Conduct A Situation AnalysisBy completing them, you will be able to get a thorough understanding of the conditions surrounding your organization. Conduct a Customer AnalysisDo thorough research on your target market to understand the demographics, locations, trends, interests, challenges etc. A customer profile can help you
organize the information properly. An in-depth customer analysis will help you discern market trends, customer behavior and needs and device effective strategies to reach them effectively. Consider the Product and Product Distribution SituationExamine your current products and services and their ability to cater to the needs of your customers. If you have distributors, you should also analyze them in terms of distribution channels, the needs of
distributors, type and size of distributors and also the various benefits received by the distributors and the company itself. Analyze the Competitive AdvantageIn or to determine your competitive advantage, you need to identify your core competitors, their product positioning, their strengths and weaknesses. Here’s
how to conduct an effective competitor analysis with the help of some handy visual tools. Scan Your EnvironmentInvestigate how internal factors such as available resources, skills of employees etc. and external factors such as economic and political trends, can affect the performance of your organization. The PESTLE analysis as well as the SWOT analysis can serve as
useful environmental scanning tools. At the end of a proper environmental scan you will be able to identify the opportunities and challenges in the face of new development. Situation Analysis ToolsSWOT AnalysisThe SWOT analysis is a tool that can be used to scan the internal and external environment of an organization. It helps identify strengths you can
take advantage of and weaknesses you can take action on, as well as opportunities and threats for success. The SWOT analysis is also frequently used to assess the same factors about the organizations, products and services of your competitors. PESTLE AnalysisThe
PESTLE analysis is another environmental scanning techniques that help provide insight into the external situation of an organization from many different angles. It focuses on political, economic, social, technological, legal and environmental factors. Political factors – impact of government policies, trading policies or elections Economic factors – impact of economic trends, taxes, or import/export ratios Social factors – impact of demographics, lifestyles, or ethnic issues Technological factors – impact of advancing technology or technology legislations Legal factors – impact of employment laws or health and safety regulations Environmental factors – impact of climate change or environmental regulations More Resources STEEPLE analysis is a strategic management method that is used to examine the external factors affecting the growth and performance of an organization. It is a variant of the popular PESTLE analysis. Porter’s Five ForcesPorter’s five forces technique is used to analyze the competitive environment. It looks at the following areas that may affect an organization’s competitive position,
Analyzing these factors help understand the power of competition in the industry/ market and how profitable it is to compete in it. 5 C AnalysisThis tool helps assess the organizational environment from 5 different areas that may affect your
marketing decisions.
VRIO AnalysisThe VRIO analysis is another tool that can be used to evaluate the resources of a company such as financial resources, human resources etc. It Stands for Value, Rareness, Imitability, Organization. Learn how to use the VRIO analysis and get more templates with this resources on VRIO analysis examples. What’s Your Approach to Conducting a Situation Analysis?We’ve covered what
is a situation analysis, how to perform one with helpful tools that you can use along with editable templates. If you have any other tips, please do share them with us in the comment section below. What is typically the step after conducting a competitive analysis during site selection?Which of the following is typically the step after conducting a competitive analysis during site selection? Define present trade area.
Which of the following is a reason for consumers to have privacy concerns regarding cookies?Which of the following is a reason for consumers to have privacy concerns regarding cookies? Customers cannot realize the amount of information being collected without their knowledge.
Which of the following is true of the benefits offered by Internet shopping?Which of the following is true of the benefits offered by Internet shopping? Customers can get information that is useful across channels. Current retailers are using catalog channels for: building a brand image and driving traffic to stores.
What is the combination of retailers to satisfy customer needs and influence their purchase decision?The combination of factors retailers use to satisfy customer needs and influence their purchase decisions is called the firm's: retail mix.
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