Page 105 - DMGT521_PROJECT_MANAGEMENT
P. 105

Project Management




                    Notes          7.2 Situational Analysis

                                   Situation  analysis is  a  method  managers  use  to  analyze  both  the  internal  and  external
                                   environments of an organization in order to understand the firm’s own capabilities, customers
                                   and business environment. As described by the American Marketing Association, a situation
                                   analysis is “the systematic collection and study of past and present data to identify trends, forces,
                                   and conditions with the potential to influence the performance of the business and the choice of
                                   appropriate strategies.” The situation analysis consists of several methods of analysis: The 5Cs
                                   Analysis, SWOT analysis and Porter five forces analysis. A marketing plan is created to guide
                                   businesses on how to  communicate the benefits of  their products  to the  needs of  potential
                                   customer. The situation analysis is the second step in the marketing plan and is a critical step in
                                   establishing a long term relationship with customers.

                                   7.2.1 Marketing  Plan


                                   1.  Introduction
                                   2.  Situation analysis
                                   3.  Objectives
                                   4.  Budgeting

                                   5.  Strategy
                                   6.  Execution
                                   7.  Evaluation
                                   The situation analysis looks  at both the macroenvironmental factors that affect many firms
                                   within the environment and the microenvironmental factors that specifically affect the  firm.
                                   The purpose of the situation analysis is to indicate to a company about the organizational and
                                   product  position, as well as  the overall  survival of  the business,  within  the  environment.
                                   Companies must be able  to provide a summary  of opportunities and problems that may  be
                                   encountered within the environment in order to gauge an understanding of their own capabilities
                                   within the market.


                                       !
                                     Caution A Marketing  Plan is created  to guide businesses  on how  to communicate  the
                                     benefits of their products to the needs of potential customer.

                                   7.2.2 5C Analysis


                                   While a situation analysis is often  referred to  as the  “3C analysis”, the extension to the 5C
                                   analysis has allowed businesses to gain more information on the internal, macroen-vironmental
                                   and micro-environmental factors within the environment. The 5C analysis is considered to be
                                   the most useful and common method in analyzing the market environment due to the extensive
                                   information it provides to a business.
                                   1.  Company: The analysis of the  company  allows  for the evaluation  of  the  company’s
                                       objectives, strategy and capabilities. These areas indicate to an organization about the
                                       strength of the business model or whether there are areas for improvement, as well as
                                       how well an organization will fit with the external environment.

                                       (a)  Goals & Objectives: An analysis on the mission of the business, the industry of the
                                            business and the stated goals required to achieve the mission.



          100                               LOVELY PROFESSIONAL UNIVERSITY
   100   101   102   103   104   105   106   107   108   109   110