SITUATIONAL

ANALYSIS Q
Discuss the Scope of Situational Analysis in relation to
Business Strategy
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• 1.Loyce Ongwara 20s01aba058
6.Delphine Thairu18m01aps039
2.Annette Akinyi 18m01aps051
3.Marina Diella Arakaza 7.Precious Vivian Akoth
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5.Brian Njiriri 18s01ai009 education
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 What is situational analysis ?
• Situational analysis is an analysis of the internal and external factors of a
business that can impact its performance
• CONSIDERATIONS WITHIN A SITUATION ANALYSIS
• To be effective, situation analysis needs to be thorough. It should look at
your business from a variety of perspectives. .
• Here are some of the key perspectives that go into situation analysis. As you
perform situation analysis, you should consider:
• Product situation: enables one to determine their core products and 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:
•  : As you consider each of the
previous situations, you’ll likely
begin to identify your business’s
strengths and weaknesses, and
with those, opportunities and
threats. To formalize and
document this process, you
should conduct SWOT analysis
with your team.
•SWOT ANALYSIS
•When it comes to strategic analysis, SWOT
charts are key for this process. SWOT is an
acronym that stands for strengths,
weaknesses, opportunity, and threats. As you
perform SWOT analysis, you’ll think about
your business from each of those standpoints
and document your findings on a SWOT
chart—four quadrants corresponding to each
part of the acronym.
• 
 PESTEL
In PESTEL analysis, you consider how your business is impacted by each category of factors in
turn. Record your findings on a PESTEL chart.

 Political factors: This deals with how government policies or trading restrictions are impacting your business.
 Economic factors: This deals with how the economic recession or boom is affecting your business.
 Social factors: This deals with how social trends or the demographic of the market affects the business.
 Technological factors:  This deals with any legislation on new technology or technological advances are
impacting the organization.
 Environmental factors: This deals with how environmental regulations are affecting the organization
positively or negatively.
 Legal factors: How any legal changes in the law are affecting your organization falls under legal factor.
 5C situation analysis example
The 5Cs are company, customers, competitors, collaborators, and
climate. 

•Competitors :An analysis of your main competitors will help you

determine how your business measures up. Identifying and comparing
the competitive advantages of one company to another can help your
business adapt to compete more effectively. 
• 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.
• 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 market
•  
• 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 analysis which is mentioned above.
•  
 HOW TO CONDUCT SITUATIONAL
ANALYSIS
• STEP 1: IDENTIFY THE PROBLEM
• STEP 2: DEVELOP A PROBLEM STATEMENT
• STEP 3: DRAFT A SHARED VISION
• STEP 4: CONDUCT A DEST REVIEW
• STEP 5: DECIDE THE SCOPE OF THE REVIEW
• STEP 6: IDENTIFY THE RELEVANT INFORMATION
• STEP 7: REVIEW AND ORGANIZE THE DATA
• STEP 8: ANALYSE THE DATA AND SUMMARIZE THE FINDINGS
• STEP 9: FILL THE EXISTING GAPS
HOW TO CONDUCT SITUATIONAL ANALYSIS.docx
 The many purposes of a situation analysis in business

• An analysis can provide insight into where your business stands in the current market,
what is working, what can improve, and opportunities to capitalize on and grow. 
• Engages and motivates the team
• Set achievable business goals
• Reduces wastefulness
• Understand the full scope of problems
• Situational analysis helps develop a basis of understanding of the environment in which a plan
is delivered. It provides a common reference point for the planning process and prioritizes
actions