Situation Analysis 5C is a comprehensive analysis of capturing all relevant information and factors (internal and external) that affect the present and future situation of the Organization. Using situation analysis organization collects information about their strengths and weaknesses, opportunities and threats.
Situation analysis in practice: Situation analysis is done mostly for strategic and marketing planning - the organization must first get to know the reality that decisions on the future direction not only based on impressions and suppositions. Its content is different, the most commonly used structure 5C (sometimes 4C or 7C).
- Company (enterprise) - analysis of the internal conditions of the organization, its resource and Product
- Customers (customers) - analysis of markets, customer segments
- Competitors (competition) - Analysis of competing organizations
- Collaborators (cooperating companies, people) - Analysis of the people with whom it is possible to establish cooperation
- Climate / Context (Macroeconomics factors external environment) - Analysis of other environmental conditions of the business operation (economic, political and other conditions)
Situational analysis contributes to a better awareness of the company resources, products, the prosperity, the market situation and possible future development directions. Therefore it helps significantly during strategic decision processes.Its importance increases if the environment or the markets are unstable and rapidly changing. Experienced executives conduct a situational analysis in a certain way constantly so that they are able to respond flexibly to any changes.
The result of situational analysis as a basis for creating strategies, plans or proposals of possible scenarios for the future conduct of the company.