Situation analysis refers to methods that managers use to analyze an organization's internal and external environment to understand its capabilities. The analysis includes examining the organization's strengths and weaknesses (internal analysis) as well as opportunities and threats (external analysis). The internal analysis focuses on factors like corporate objectives, resources, operations, and financial position to identify strengths and weaknesses. The external analysis considers opportunities and threats from outside factors such as market trends, competitors, and the economic environment.

1. Situation Analysis
Dr. Gopal Thapa
Tribhuvan University

2. Situation Analysis
 Situation analysis refers to a collection of methods
that managers use to analyze an organization's
internal and external environment to understand
the organization's capabilities, customers, and
business environment.
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3. Scope of Situation Analysis
 Internal analysis
 Strength
 Weakness
 External analysis
 Opportunity
 Threats
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4. Scope of Situation Analysis
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5. Scope of Situation Analysis
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6. Internal Analysis
 The internal analysis is a thorough knowledge and
understanding of the strengths and weaknesses within an
organization.
 These factors are seen in company culture and image,
organizational structure, staff, operational efficiency and
capacity, brand awareness, financial resources, etc.
 Strengths are positive attributes, which can be tangible or
intangible, and are within the control of the organization.
 Weaknesses are factors that may hinder the achievement of
the desired goal.
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7. Internal Analysis is focused on:
 Corporate objectives
 Size and power of company
 Resources
 The way the organization is operated: procedure
and practices
 Stakeholders’ expectation
 Position in market place
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8. Areas of Internal Analysis
 Financial position
 Product position
 Marketing capabilities
 Research and development capabilities
 Organizational structure
 Human resources
 Facilities and equipment
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9. Process of Internal Analysis
 Strategic Intent Identification (To know and study vision,
mission and goals of the firm)
 Strength and weakness analysis (Resource audit)
 Analysis of competencies (Unique resources and core
competencies)
 Finding the strategic advantages
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10. External Analysis
 Opportunities and threats are measured as part of an
external analysis.
 Both can occur when things happen in the external
environment that may require a change within the business.
 These external changes can be attributed but not limited to
market trends, suppliers, partners, customers, competitors,
new technology and economic environment.
 Opportunities present themselves as attractive factors that
can propel or positively influence the organization in some
way.
 Threats are external factors that could place the
organization’s goal at risk.
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