• Category:
  • Document type:
  • Level:
  • Page:
  • Words:

Situation Analysis

Tables of contents

Introduction 3

5 C Analysis 4

1. The company 4

2. Customers 4

3. Collaborators 5

4. Competitors 5

5. Climate 5

 Political and regulatory environment 5

 Economic environment 6

 Technological environment 6

 Social and cultural environment 6

Conclusion 6

References 8


Situation analysis is an act of collecting and evaluating all the factors that are influencing functions of an organization. Organizations are affected differently by the following factors. Some of these factors affecting the organizations comprised of technological, social, political and economic factors. In order to evaluate an organization efficiently, it is essential to consider internal and external factors such as such as the strengths of an organization, opportunities, weaknesses and the threats. The following diagrams summarize factors that are used to assess the situation of a company efficiently (Fiss at a,l 2013)situation anaylsis

The efficient framework which is commonly used to analyze the company is the 5 C Analysis. This tool isvery efficient because it considers all the factors that are likely to affect the company in different ways.

According to the Henry Fayol; a management scientist, it is possible to satisfy customers’ needs through understanding the external and the internal factors that are driving the company. These 5 C is elements that are vital in the environmental scan of a company. The elements can further be used for marketing decision primarily for companies that are operating in a very competitive environment.

5 C Analysis

The 5 C comprised of:

  • Customers

  • Competitors

  • Collaborations and

In assessing the company basing on these 5 C, it is critically essential to analyze the company in the following manner (Dunkerley and Salaman, 2013). 

  1. The companythis element will consider issues such as the image of the company in the market, the technology that is used by the company when manufacturing or when offering products and services to the customers. It is also essential to consider the goals and objective of the company. The company needs to formulate goals that benefit the company and at the same time benefiting the customers.

  2. Customers it is vital for a company to perform market research so that it can establish the size of the market to be covered. Marketers are always encouraged to carry out market segmentation so that the company’s resources focus on a market niche. Managers should also design ways of rewarding customers so that they can develop a strong relationship with them. This can be done through involvement of social corporate responsibility. The company needs to be part of the society by participating in the development of the social welfare of the society.

  3. Collaborators collaborators comprised of distributors, suppliers of the company and the alliances. Distributors are essential organs of the company because it ensures that the products are delivered in the appropriate time. In addition, suppliers help to supply products to the company. This ensures that the goods are always available for the customers no matter the situation. This is clearly seen in the supermarkets whereby stocks are always available.

  4. Competitors analysis of competitors is essential in retaining the market share of the company. The company needs to know what the competitors are doing. They need to know the competitors’ strategies and use it to benchmark themselves. It is easy for the company identify its strength and weakness ones they have analyzed the competitors.

  5. Climate the company’s climate or micro-environmental factors comprised of the following;

  • Political and regulatory environment – it is essential for the company to identify all the factors that affect the market such as government policies and regulations and adhere to them accordingly to avoid inconveniences.

  • Economic environment – these are issues that are mostly used by the monetary authorities in the country. They include operating interest rates, the level of inflation in the country and the business cycle. It is essential for the management of the company to know these market drivers so that they can apply for loan terms loans for expansion when the interest rates are lower.

  • Technological environment– it is vital for the company to adopt and implement machines that are efficient for delivering goods and services to the customers.

  • Social and cultural environment– the company needs to adopt the trend and the fashions that are relevant to the society. This helps the company to remain relevant in the society especially the target segment (Rothaermel, 2013). 

Company analyses help companies to identify their strength and opportunities in the market. The company analysis provides an opportunity for the company to gauge their performance and identify areas that need improvement. It is easier for the company to achieve their desired goals and objectives by carrying company analysis (Beyes and Steyaert, 2013).


In conclusion, company analysis is essential because it guides the company’s management in making decisions such as investment decisions, marketing decision and the financial decision. Furthermore, the analyses help the management in deciding the market segment to serve given a large market. Companies tend to make sound decisions when they practice company analysis.


Beyes, T., & Steyaert, C. (2013). Strangely Familiar: The Uncanny and Unsiting Organizational

Analysis. Organization Studies.

Dunkerley, D., & Salaman, G. (Eds.). (2013). The international yearbook of organization

studies. Routledge.

Fiss, P. C., Cambr, B., & Marx, A. (Eds.). (2013). Configurational Theory and Methods in

Organizational Research (Vol. 38). Emerald Group Publishing.

Rothaermel, F. T. (2013). Strategic Management: Concepts & Cases. McGraw-Hill Irwin.