Situation analysis Essay Example

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By definition, the word situation analysis is a leeway of programs which exist in an environment which is known as dynamic. Programmers will have to understand the situation better in order to help them design an educational response. This becomes a solid event when it comes to foundation making in a program. Hence, the more one comprehends about a situation, the better. Situation analysis will involve the analysis of the assets, examination of relevant research, knowledge and experimentation, and lastly problem diagnosis. Every industry or business has its specific period of carrying out a situation analysis program (Frankl & Rubik, 2000). For instance; UW-Extension carries its analysis after every four years. Program teams
and other individual faculty staffs are advised to engage in an ongoing basis at given dynamics of varying situations.

In this report, we are told that Peter Renovare, who has been a builder and a foreman for six whole years, has decided to partner with another fellow Brad in the essence of commencing their own business in a joint manner, specifically to build pergolas and decks. In this regard, we shall carry out a situation analysis in order to determine the extent within which the changing environment of the business will need to be factored in.


  1. The first account to discuss in this overview is the total size of the industry. This company will be started by two people or individuals, Peter Renovare and Brad. For the start, the company will be jointly run by these two friends. Thus, the type of the business will be best called a joint business. The number of competitors may vary depending on the location. In this case, since there are industries within the region where Peter has been working, it implies that, they will offer a lot of competition since they are crucial in terms of workers and even specialization.

We also expect that, the business of Peter and Brad be a small scale one unless they decide to expand it later. They will have to look for a strategic place in which their business will have to be located so as to make it easier for customers to easily locate them, in the view of making most of the turnovers per year (Ross& Tyler, 2012). When the turnovers are high, it means that, the type of production, and sales made per annum are moderate. In the future dates, when their business will have grown, the two should employ other people from or outside Australia to work with them as a way of creating an employment opportunity for the people who could otherwise never get employed.

  1. We have uncontrollable factors that affect the performance of the industry. For instance, the environmental threat in the sense that, the environment can have an adverse effect on the organization if no action is effected in advance. Another factor is that of pricing. Prices differ in many ways. Vertical pricing occurs when a manufacturer has full control of price in which the retailer charges, horizontal pricing occurs when manufacturers at the same level meet and decide on the price they charge customers. This is highly illegal and to some extent violates many laws within the industry. The last part is that of predatory pricing which happens when one of the businesspersons wants to drive the competitor out of business. In this case, he will charge a low price to customers compared to the competitor.

  2. The major competitors in this market will be those offering the same services as Peter and Brad. The company from which Peter has been working will be a substantial competitor among others. This company will have to invest more of its shares elsewhere so that to get financial security. They will need to look or search for the market from foreign nations and get more importers of their produce at the same looking at the domestic production. As earlier said, the location of this company will matter. Proximity from the main road and the time taken by customers to reach the industry are a vital area of concern. For prosperity purposes, the company needs to be strategically situated so as to make it easier for the customers easily reach there.

  3. Trends in the industry, affects many other things. For example, the way the industry will operate and grow will mainly be factored by its trends. The Government policy is one of the areas to look into. The Government may restrict selling of pergolas and decks at some quantity, this joint business will have to consider this all else they can get a total ban by the government not even selling (Lytras & Corti, 2012). Technology also should be utilized in the best way possible. Use of the digital world or equipment such as machines and other computerized gadgets should be applicable within the industry to ensure record keeping and easy work monitoring which will lead to transparency and accountability.

  4. Before thinking of starting a business, it is encouraged that one explores the market first. Peter has been working as a builder for six years and from my perception he understands the market extremely well. This might be the reason as to why he has made up his mind, with all this due experience he has, to start this business. First and foremost one should consider trends of making purchases, behavior of customers or consumers upon change of a certain factor for example price. If a slight adjustment in price, affects consumers more than proportionately, then we say that the price change is elastic. Distribution channels need to be defined clearly. The business should tell the customers how they will get their services transferred should they need them and this must be in the record to avoid any inconveniences.

  5. Target markets are the markets in which the manufactured products will be sold or intended to be sold. They are essentially the consumers of the products. This business of Peter and Brad should identify potential customers and create customer relations and loyalty to sell to them. This does not imply that exploring the market will be negative, no. They should identify a reasonable size of market with the right composition of individuals and of course with advantageous traits to sale the goods or services. The market can be segmented geographically, psychographically, behavioral segmentation, and demographically. The elements of segmentation include; Regions, population size, population density, growth rate, and climate. It also has things to do with age, gender, occupation, social class, and on the basis of income generation. There are also other variables like, product benefits, interests, usage rates, and opinions (Strydom, 2004).

  6. There are other factors, which can impact, on the industry either positive or negative. To highlight just a few; natural, demographic, political cultural economic, and technological factors.


From the above definition of segmentation of the market, we understand that the market can change in many ways: Geographically, distributional, media segmentation, price, time, psychographically, and many others. It will be appropriate to appreciate the fact that the business changes with the nature of the market and hence the appropriateness of revising the situation analysis to be in line with the changing world of business.


Frankl, P., & Rubik, F. (2000). Life cycle assessment in the industry and business: Adoption patterns, applications and implications. Berlin, Allemagne: Springer-Verlag.

Lytras, M. D., & Corti, I. N. (2012). Trends and effects of technology advancement in the knowledge society. Hershey, PA: Information Science Reference.

Ross, A., & Tyler, M. (2012). Predictable revenue: Turn your business into a sales machine with the $100 million best practices of West Hollywood, CA: Aaron Ross.

Strydom, J. (2004). Introduction to marketing. Cape Town, South Africa: Juta.