what is the scope of situational analysis in relation to business analysis?

1. What is situational analysis ?

Situational analysis is an analysis of the internal and external factors of a business that
can impact its performance.

Situational analysis considers the following: -

Product situation
enables one to determine their core products nd any secondary or supporting services or products
that you sell and how each relates to your core clients' needs.

Competitive situation.
enables one to analyze their main competitors and determine their competitive advantages
against them

Distribution situation
enables one to determine how they get their products to the market

Environmental factors.
consider PESTEL political, economical, social, technological and legal factors

Opportunity and issue analysis.

SWOT analysis to determine strength, weaknesses, opportunities and threats in the business.
situation analysis can include other methods of analysis such as the 5C analysis and porters 5
analysis

the five C’s analysis include:-

 Company – it involves evaluation of the company's objectives, strategy, and capabilities.

These indicate to an organization the strength of the business model, whether there are
areas for improvement, and how well an organization fits the macroenvironment.

 Competitors – it takes into consideration the competitors position within the industry and the
potential threat it may pose to other businesses. It analyzes a competitor's current and
potential nature and capabilities so they can prepare against competition
  Customers – it considers demographics, advertising that is most suitable for the
demographic market size and potential growth, customer wants and needs, motivation to buy
the product, distribution channels, quantity and frequency of purchase, income level of
customers
 Collaborators – collaborators include

Agencies: Agencies are the middlemen of the business world.

Suppliers: they provide raw materials that are required to make products. Different types of
Suppliers include manufacturers, wholesalers, merchants, franchisors, importers and
exporters, independent crafts people and drop shippers. Each category of suppliers can
bring a different skill and experience to the company.

Distributors: they enable one to get their goods to the markey

Partnerships: Business partners would share assets and liabilities, allowing for a new
source of capital and skills

 Climate – it enables one to fully understand the business climate and environment, many
factors that can affect the business must be researched and understood. This analysis on
the climate is also known as PESTEL anlysis which is mentioned above.

Porter's five forces industry analysis

this model involves scanning the environment for threats from competitors and identifying problems
early on to minimize threats imposed by competitors.it helps businesses compare and analyze their
profitability and position with the industry against indirect and direct competition.
The image above from the Business to You webpage shows a good representation of the porters
five forces analysis.