Situation

Situation analysis refers to a collection of methods that managers use to analyze an organization's 

1. internal and 
2. external environment 

to understand the organization's 

1. capabilities, 
2. customers, and 
3. business environment.

The situation analysis consists of several methods of analysis: The 

1. 5Cs Analysis, 
2. SWOT analysis and 
3. Porter five forces analysis. 

The situation analysis is the second step in the marketing plan and is a critical step in establishing a long term relationship with customers.