Business Glossary

examination of the internal strengths (S), weaknesses (W), external opportunities (O), and threats (T) affecting an organization. Also called SWOT Analysis, a situational analysis is a basic element of the marketing plan and is used to make projections for the proposed marketing activities. Typically the analysis seeks to answer two general questions: Where is the organization now? and, In what direction is the organization headed? Factors studied in order to answer these questions are the social and political developments impacting on marketing strategy, competitors, technological advances, and other industry developments that may affect the marketing plan.