Every organisation has to deals with business environment for its day to day operations. They should analyse the influences of factors in business environment.

Organisation scans the external environment, they must watch for potentially important environmental forces, assess their impact and influence, and adapt its direction and strategy as needed.

Situational Analysis forms an essential part of any business plan. Situational analysis provides the present situation of an organisation and list out the factors that should consider in order to achieve business goals.

The followings are the factors that should consider for situational analysis of an organisation.

• Environmental factors

• Opportunity and issue analysis

• Competitive situation:

• Distribution situation:

• Product situation: