Situation Analysis
a. General Environmental Analysis (Opportunities and Threats) – only focus on
trends that are relevant to the case within these seven segments (a discussion of
every segment may not be necessary – it depends on the individual case):


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i. Technological trends
1. Information technology
2. Database technology
3. Telecommunications technology
4. Computerized design and manufacturing technology
5. Any other disruptive technological development


ii. Demographic trends
1. Regional changes due to migration
2. Changing ethnic nature of a population
3. Aging of a population
4. Any strategically relevant demographic trends


iii. Economic trends
1. Interest rates
2. Inflation rates
3. Exchange rates
4. Trade deficits
5. Budget deficits


iv. Political/legal trends
1. Antitrust enforcement
2. Tax policy changes
3. Environmental protection laws
4. Extent of regulation/deregulation
5. Privatization


v. Sociocultural trends
1. Women in the workforce
2. Awareness of health and fitness issues
3. Concern for corporate social responsibility
4. Concern for customers and other stakeholders


vi. Global trends
1. Currency exchange rates
2. Free-trade agreements
3. Trade deficits


vii. Physical environment trends
1. Environmental sustainability
2. Corporate social responsibility
3. Renewable energy
4. Goals of zero waste
5. Ecosystem impact of food and energy production






b. Industry analysis – discuss each of Porter’s Five Forces in order to make a
determination about the case company’s industry’s attractiveness
i. Industry rivalry
ii. Threat of new entrants
iii. Threat of substitutes
iv. Power of suppliers
v. Power of buyers

c. Competitor analysis – for this section select one of the company’s competitors
and briefly remark on the following depending on the information presented in
the case:
i. Current strategies
ii. Strategic intent
iii. Strategic mission
iv. Capabilities, core competencies
v. Competitive response profile


d. Internal analysis – describe the internal environment of the company (Strengths
and Weaknesses)
i. Resources
1. Describe both the tangible and intangible resources the focal
company has that relate to the core business or product.


ii. Value Chain Analysis
1. Describe the focal company’s value chain within the core business
discussed in the case
2. Discuss strengths identified in your value chain analysis
3. Discuss weaknesses identified in your value chain analysis
4. Focus on describing what you find, not prescribing fixes


iii. Functional Analysis
1. For the problem presented in the case, what functional activities
will you focus on? For example, if the focal company is a
technology company then an analysis of its R&D function might
be necessary. If the focal company is market driven, then a focus
on its marketing functional activities might be appropriate.
2. Discuss strengths you identify in your functional analysis.
3. Discuss weaknesses you identify in your functional analysis.
4. Again, your focus should be on describing.
5. Discuss how the focal company compares to its key competitor
using data provided in the case that are related to your identified
strengths and weaknesses.

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