Situation analysis

What is a situation analysis? 

We can define a situation analysis as a systematic assessment of a company's current situation, based on internal and external factors. The analysis is a tool that provides insight into the company's position in the market, as well as the threats and opportunities it may encounter. Furthermore, the analysis provides a broad insight into the internal working conditions of the company. These conditions include a range of factors such as working environment, management structure, working hours, policies and reward systems. An example of a situation analysis is The SWOT analysis. It is a more targeted analysis that identifies specific factors. A situation analysis can often be prepared at the same time as a competitor analysisto create a solid foundation for a future strategic plan.

Why is situational analysis important for your business?

Preparing a situational analysis can be a valuable asset for your business, these are some of the positive results that can be achieved:

• The analysis gives you a broad understanding of the current situation of your company. This gives management a clear understanding of your company's position.
• It also provides a solid foundation for further strategic decisions, and will be an aid to the decision-makers in the company.
• Furthermore, the analysis identifies potential areas of opportunity and threats. Here, the company can be prepared for the threats and take advantage of the opportunities they have in the market.
• The analysis will provide insights into working conditions that will further have a significant impact on employee well-being, engagement and productivity.

In summary 

In short, a situation analysis is a thorough analysis of a company's current situation. A situation analysis provides a good basis for future strategic decisions.