The Situation Analysis
The situation analysis, or environmental audit, examines what is happening currently in the various environments in which an organization operates. It consists of an external audit—an analysis of the market, competition, and environmental factors—to determine potential opportunities and threats to the organization. The situation analysis also consists of an internal marketing audit—a review of the business’s marketing, financial, manufacturing, and human resource capabilities—to determine potential strengths or weaknesses. This chapter discusses what to include in the external and internal audits.
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