Situation analysis provides the evidence required for strategic decisions. It evaluates the external environment, industry structure, competitors, customers, organizational capabilities, and current performance.
| Factor | Examples |
|---|---|
| Political | Government stability, taxation, trade policy, and public investment |
| Economic | Inflation, income, exchange rates, interest rates, and unemployment |
| Social | Demographics, values, education, lifestyle, and consumer attitudes |
| Technological | Automation, digital platforms, artificial intelligence, and innovation |
| Legal | Consumer protection, competition law, privacy, and employment law |
| Environmental | Climate, energy, sustainability, waste, and resource availability |
Internal analysis evaluates resources, capabilities, brand equity, people, systems, technology, finance, customer relationships, intellectual property, distribution, and operational performance.
SWOT summarizes internal strengths and weaknesses together with external opportunities and threats. A useful SWOT must lead to strategic implications rather than simply list observations.