The Situation Analysis Is A Systematic Collection And Evaluation Of Past And Present Economical, Political, Social, Essay

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The situation analysis is a systematic collection and evaluation of past and present economical, political, social, and technological data (Business Dictionary). This information is directed at the identification of internal and external forces that may influence the organization’s performance and choice of strategies. Also, this analysis is an assessment of the organization’s current and future strengths, weaknesses, opportunities, and threats.
General Environment The component of business external environments, the general environment represents the forces that exist outside of the company that have the potential to indirectly affect it in some way. Although businesses cannot control what takes place within the general environment, evaluations of the general environment can allow businesses the opportunity to predict changes and also to identify future opportunities. The dimensions are grouped into seven environmental segments: demographics, economics, political/legal, sociocultural, technological, global, and physical (Hitt, Ireland, & Hoskisson, 2015). Demographic Trend The demographic segment is concerned with a population’s size, age structure, geographic, distribution, ethnic mix, and income distribution. Demographic segments are commonly analyzed on a global basis because of their potential effects across countries’ borders and because many firms compete in global markets (Hitt, et al., 2015). This segment reflects that the baby boomers could offer more

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