Situation analysis

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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