Dr.

Jordan LeBel & Harold Simpkins

Module 3
Conducting Your Situation Analysis
By the end of this module, you will
Appreciate the importance and benefits of conducting a thorough situation analysis
Know the key components of a situation analysis
Know how to get started on your personal situation and SWOT analyses and, in the
process, to discover your strengths, weaknesses, opportunities and threats.

spotlight: you as an you as a you as an you as a so now On the Check it out mind map
Kirsten McCrea entrepreneur professional artist job seeker what? bookshelf

2012 KnowledgeOne Inc. lebel/simpkins. All rights reserved.

 Module 3
Conducting Your Situation Analysis

Mind Map by Britta Heintzen

Module 3
Conducting Your Situation Analysis 2

What do you do when conventional
wisdom tells you that you cant
make a career out of what you love
to do? You persevere and you prove
your critics wrong, just as Kirsten
McCrea is doing. Kirsten completed
her Bachelor of Fine Arts degree
at Concordia University with Great
Distinction in Studio Arts, and
soon came to the conclusion that,
in reality, being an artist means
running your own business, and that
it requires organization and other
special skills.
So Kirsten set out to conduct her
Spotlight ON own situation analysis. Reading
countless careers in the arts books
helped her to realize that the field
of illustration was best suited to her
talents and ambitions, and that it
Kirsten McCrea was also a promising way to pay the
bills. She soon began to believe that
Artist & Illustrator,
being an artist was a realistic career
Director of Papirmasse choice after all, and shifted her
thinking from asking if she could do
it to how she was going to achieve
her goals. She now firmly believes
that no matter what field youre
interested in, researching that field
should be an on-going activity which
can yield tremendous benefits.
Kirsten worked a variety of jobs to
save money to launch her career
and to sustain herself through
the difficult first six months. She
has now been a full-time artist for
two and half years. In December
2008, she started Papirmasse, an
Conducting Your Situation Analysis
art subscription service that every
month sends an original art print
from an up-and-coming artist
to over 350 people all over the
world (currently to 14 countries)
for the affordable price of $5 per
month ($10 overseas). Kirsten
admits that starting Papirmasse
changed how people viewed her:
I went from being just another
painter to being someone who was
organizing something. The fact
that Papirmasse is a unique idea has
served as a conversation starter, and
has, in turn, enabled Kirsten to stand
out. Papirmasse also threw open the
doors to meeting new people in her
chosen field, who then opened the
doors to many new opportunities for
Kirsten.
Although things moved quickly
(only two weeks lapsed between
the time Kirsten got the idea
and when she received 1,000
prints for future distribution),
running Papirmasse wasnt
without challenges, especially
during the first year. Kirsten
soon found out that managing
a print subscription service
is actually quite complicated.
While she knew nothing about
maintaining a subscription list,
or offset lithograph printing, or
even what DPI or CMYK meant,
Kirsten is a quick learner and
continued to research the field
and its dynamics, threats and
opportunities. Fortunately, Kirsten
Module 3
possesses a strong work ethic;
her self-imposed discipline helps
her to meet deadlines and keep
her customers satisfied. You can
visit the striking and original
culmination of Kirstens hard work
at www.papirmasse.com.
We asked Kirsten what advice shed
like to share with readers of MY 2.0.
Here are her answers:
1. Dont feel rushed to get yourself
out there if you dont have the work
to back it up. Make sure you have
enough content before you unveil
a website or distribute promotional
materials.
2. Dont skip classes, and do
take advantage of every learning
opportunity. If your department has
special equipment, use it! You will
likely not have access to equipment
like that again.
3. Almost every opportunity you
will have will come from knowing
someone. So get out there and
meet as many people as possible.
Get to know the movers and shakers
in your field, the people who are
organizing events and making things
happen. Go to events, be genuine,
be nice, and ask lots of questions.
Module 3
Conducting Your Situation Analysis 3

Imagine yourself in the following
situation. After watching more
back-to-back episodes of Iron Chef,
Ricardo, and Chef at Home on the
Food Network than you care to
remember, and after devouring
Anthony Bourdains Kitchen
Confidential, you wonder aloud to
yourself: This cooking business
looks pretty cool. Id love to open
my own restaurant! How hard could
it be?
Then, serendipitously, one day you
notice an empty storefront available
for rent in one of the citys hippest
neighbourhoods. The location is
perfect for the restaurant of your
dreams: an upscale Asia-meets-
France-meets-California culinary
fusion extravaganza. A phone
call later, you find out from the
owner that the space is available
immediately, and that the rent is
$9,500 per month. Although that
seems a bit high to you, you notice
that on the same block another
restaurant appears to be doing
quite wellthough, as you are quick
to notice by looking at its menu,
its concept is nowhere nearly as
unique and exciting as yours will be.
After some negotiation, youre able
to get the monthly rent down to
$8,500. You convince your closest
friends and relatives to each put up
$15,000, and after recruiting enough
investors and securing a line of
credit from your bank, you decide
to jump in and sign a two-year
lease agreement, with an option to
renew for two more years. The next
morning youre calling suppliers,
hiring an interior decorator, and
recruiting staff to help you launch
what you believe will be a run-away
success.
What you thought was going to take
three months of renovations and
planning ends up taking twice as
long. It seems that every day some
detail requires more of your time
and attention than you thought, not
to mention more of your money.
Your cash reserves are starting to
run low, as is your energy level. The
72-hour work weeks youve been
putting in for the last six months
are beginning to take their toll. But
finally, opening day arrives, and you
can almost hear the sound of the
cash register ringing non-stop. For
the first two weeks, although your
dining room isnt exactly filled to
capacity, business appears to be
good. Then your first review comes
in: some random food blogger
describes your menu as unfocused
and criticizes the service as slow
and inattentive, and is further
appalled by the $120 bill for two,
before taxes. Not too concerned
(Who reads blogs anyway?, you
think to yourself), you still get 20 to
25 customers per night, on average.
But that barely pays the bills and
they sure are piling up quickly. To
entice more customers to try your
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Conducting Your Situation Analysis
new restaurant, you decide to run
an ad in the local newspaper with a
free appetizer coupon. Much to your
dismay, that tactic draws in very
few new customers. Three months
later, youre down to about 15
customers per night and now youre
really bleeding money. Finally, just
one week short of your six-month
anniversary, with no significant
increase in customer traffic, your line
of credit exhausted, and impatient
investors breathing down your neck,
you decide to throw in the proverbial
towel and shut down, narrowly
avoiding personal bankruptcy. This
scenario is far from fiction, and is
sadly a very common reality for
many ambitious but ill-prepared
people.
Lets take a brief look at how a
thorough analysis of the situation
would have prepared you to handle
the unexpected surprises and
bumps in the road. Starting broadly,
perhaps your research would
have revealed some key indicators
about the state of the economy,
which in turn might have led you
to reconsider your high price point.
Focusing on the unique state of
the restaurant industry, you might
have found out, for instance, that
the fast casual segmentso called
because it blends elements of
fast food concepts with attributes
of casual diningwas the fastest
growing segment, and that it offered
more opportunities for success than
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Conducting Your Situation Analysis 4

Myth
At the end of the day, the
only way that I can figure
out if a particular field is
of interest to me is to get
a job in that field.
Reality Check
Getting a job in a particular
fieldto test if it is a
good fitcomes with
both the highest levels of
commitment and risk. You
can determine if youd
like to work in a particular
field by talking to people
already working in it, by
arranging information
only interviews with
selected employers, and
by discussing your interest
in it with people whose
opinions you respect. If
youre still unsure about
your choice, the process
of conducting a situation
analysis can help you
determine if it is a good fit
for you.
the upscale segment in which you
competed. Had you investigated
the competitive landscape more
closely, you might have discovered
that the other restaurant on your
block had been family-owned and
operated for more than 20 years, its
owners having bought the building
long ago and thus, being free of rent
payments, were able to keep their
prices down and accessible to more
customers.
Had you researched what it takes
to compete and succeed in the
foodservice businessmaybe by
talking to some seasoned local
restaurateursyou might have
learned about the importance
of signature menu items, dishes
that uniquely differentiate your
restaurant and entice potential
customers to visit, and motivate
existing ones to return frequently.
Had you done more research on
promotions, you might have found
out that ads (such as the one you
ran) with free offers are inconsistent
with the upscale brand image you
desired. Finally, your research might
have led you to uncover the typical
cost structure for restaurants in
your category, and, using some
simple industry rules of thumb and
an Excel spreadsheet, you might
have figured out that your $8,500
monthly rent (and other expenses)
actually required you to serve no
fewer than 34 customers each and
every night just to break even
Conducting Your Situation Analysis
that point where you cover your
costs and begin to turn a profit,
small as it may be. Naturally, in
hindsight many things look much
clearer, but a thorough situation
analysis would have improved
your ability to anticipate some of
these obstacles and develop plans
and contingencies before they
mushroomed into insurmountable
challenges.
In Module 2, you learned about
marketing planning and you had
the opportunity to investigate some
new self-knowledge. With that
newly acquired knowledge, and
having learned about the benefits
of marketing planning, you might be
eager and tempted to jump ahead
and set some goals for yourself. Or
perhaps you even have some clear
goals in mind already. Before you
establish and commit to your goals
however, well cover the steps of
conducting a thorough situation
analysis. If you already have some
clear personal goals, keep them in
mind and youll quickly see how a
systematic and disciplined approach
to conducting a thorough situation
analysis will help you clarify and fine
tune those goals. If you dont have
any specific goals, or your goals
are vague at best, then the process
of researching your desired field
or industry will almost certainly
help you articulate clearer goals to
anchor your planning process and
motivate you to achieve them.
Module 3
SITUATION ANALYSIS:
WHAT IS IT FOR?
WHAT DOES IT INCLUDE?
The point of a situation analysis
is not to bog you down in a sea
of information, or to scare you
from pursing your dreams and
personal goalsquite the contrary.
The fundamental reason for
conducting a situation analysis is
for you to acquire a comprehensive
understanding of the marketing
environment youll be competing
in. A situation analysis prepares you
to enter a field by helping you to
understand its dynamics, the key
factors influencing the players within
it, and how these can influence your
progress on the path to success. A
thorough situation analysis helps to
minimize the potential for failure,
and to maximize the potential for
success to be derived from your
well-made marketing plan. Thats
why gathering information and
analyzing the situation are the first
steps in creating a marketing plan.
In other words, a situation analysis
helps you figure out what youre
really getting yourself into.
To conduct a thorough situation
analysis, you need a framework to
organize and make sense of what,
as youll soon see, can otherwise
quickly become a vast amount of
unmanageable information. Exhibit
3.1 illustrates the key components
usually included in a situation
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Conducting Your Situation Analysis 5

analysis. As is shown in Exhibit 3.1, a
situation analysis typically proceeds
from two levels: an analysis of the
micro-environment and an analysis
of the macro-environment.
One useful way to get started is to
begin with the immediate or micro-
environment of the field or industry
youve chosen to work in, and to
examine its competitive dynamics,
as well as the characteristics of
the customers and employers
who will ultimately influence the
success of your marketing plan.
Once this level of analysis is
completed, you can then step back
and analyze the macro or broad
external environment in which your
chosen field or industry is situated.
Finally, to bring all this together,
the knowledge gathered from the
analysis of the micro- and macro-
environments leads to what is
termed a SWOT analysiswhich
stands for Strengths, Weaknesses,
Opportunities and Threats. By
understanding your industry, its
dynamics and customers, and the
broader environmental factors
at play, youll ultimately be able
to align the elements of your
marketing mix (the four Ps) to
better serve your target market and
thus develop an advantage over
your competitors.
While we recommend that you
start with a micro-level analysis, its
important to note that a situation
1. Porter, Michael. (1985/1998). Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press.
Exhibit 3.1 Components of a Situation Analysis
analysis does not necessarily
proceed in a linear, orderly fashion.
That is, you are likely to shift back
and forth between micro- and
macro-level perspectives, enriching
your analysis and sharpening your
focus as you come up with new
and useful information. You may,
for instance, begin to analyze your
chosen industry, which may trigger
questions of a macro-environmental
nature, or lead you to appreciate
macro-level factors. Conversely,
your macro-level observations may
lead you to appreciate unforeseen
micro-level phenomena. This back
and forth, iterative process is par for
the course since both micro- and
macro-environments dont exist
independently of each other.
MICRO ENVIRONMENT: YOUR
CHOSEN FIELD OR INDUSTRY
Your micro environment is the
immediate field or industry in
which you would like to work.
It will represent your day to
day reality. This section of your
situation analysis typically includes
Conducting Your Situation Analysis
an analysis of your chosen field
or industry, an analysis of your
competition, and a big picture
overview of your eventual target
markets needs and buying or hiring
patterns.
Industry Analysis
This section has two main goals.
The first goal is for you to develop
an understanding of the structure
and forces involved in your chosen
industry or field. The second is to
help you understand how revenues
and profits are generated in that
industry, so that youll be able to
assess later as to whether a career in
that industry can help you support
yourself and meet your personal
pricing and financial goals.
One particularly useful framework
to help you understand the
structure and dynamics of your
chosen industry or field is Michael
Porters five forces model. In what
became a landmark article, in 1979,
Porter argued that companies and
managers often did not have a
clear understanding of the nature
Conducting Your Situation Analysis
Module 3
of the competition they faced
and the drivers of profitability in
their industries. He proposed that
industries could be analyzed by
looking at five forces that shape
competition and profitability within
them.1
These five forces are:
1. The threat of new entrants
How difficult (or easy) is it for
a new competitor to enter the
industry? What are the barriers that
might prevent a new competitor
(like you!) from entering it? If it is
generally easy to enter the industry,
then many new competitors might
be expected to enter it, resulting
in increased demand and prices
for the raw materials required in
that industry and, as a result of
increased competition, lower prices
to consumers. If you are a job
seeker looking to find employment
with large organizations, then new
entrants might be graduates about
to enter the job market in the same
industry that youve chosen. Here,
its not enough to merely consider
the level of threat of new entrants.
You also need to consider the
factors that might either motivate
or deter new entrants from entering
the industry. For instance, the pace
at which your industry or market
is growing may create the threat
of numerous new entrants. In a
growing industry, more people may
be attracted by its opportunities,
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6

whereas a stagnating or low growth
industry may be less likely to attract
new entrants.
2. Power of suppliers
To what extent do suppliers have
the ability to influence the cost,
availability, and the quality of
materials needed in your chosen
industry or field? Some suppliers
can have considerable bargaining
power, often because they own
proprietary technology or products
that cannot be found anywhere else.
If youre a job seeker, youll in fact
be a supplier to potential employers.
If there is strong demand for your
skills and a limited number of other
people with these skills, youll have
considerably more bargaining power
than someone seeking employment
in a field in which demand is weak
and with many people having the
same skill level as they do.
3. Power of buyers
To what extent do customers or
employers in the industry have the
ability to keep prices or salaries
down or switch to another company
or potential employee? A number
of factors can increase the power
of buyers. A product, including you
as a potential employee, that is very
different from competitors typically
reduces the power of buyers. If
a single buyer represents a high
percentage of a firms business,
that buyer will have more power. If
the quality of the product is critical
to buyers, they will be less price
sensitive, even willing to pay a
premium.
4. Substitution
Can buyers or employers substitute
another good, service or person
for yours? If buyers or employers
can easily and quickly switch to
another type of
product (or person)
for a comparable never
level of quality or
performance, then assume that
substitution poses
a very real threat. your product
When you attempt
to see the world will live on
through the eyes of
your potential clients and succeed
or employers, you
begin to understand forever in its
that there are many
ways they can solve original form
their problems and
satisfy their needs. Assessing the
level of substitution leads you to
consider the level of competition
broadly. Going back to our opening
scenario and your hypothetical
restaurant dream, for example,
assessing the level of substitution
would have led you to consider not
only how your potential customers
might fulfil their need for food (by
cooking at home, for example) but
also their need for entertainment
(such as going out to movies, where
one can simultaneously satisfy ones
hunger). This could have led you to
Conducting Your Situation Analysis
widen your competitive analysis and
anticipate the offensive tactics of
a broader set of competitors, from
supermarkets to movie theatres, all
seeking to get a share of consumers
food and/or entertainment budgets.
If you dont see how movie theatres
constitute competition in this case,
maybe this statistic will change your
mind: the average
movie theatre draws
around 70% of its
profits from the
sales of snacks and
beverages.
5. Rivalry amongst
competitors
The first four forces
influence how
much rivalry there
will be amongst
competitors.
How would you
characterize the
relationship between competitors
including other people applying
for the same jobs that youre going
after? Friendly competition or cut-
throat-well-do-whatever-it-takes-to-
win competition? This is a function
of the previous four forces and
also of the number of competitors,
as well as the size and growth of
the market. In a market thats not
growing, competitors must survive
by stealing customers from other
firms, while holding on to their
current customers. The identity and
strength of different brands can also
Module 3
be a factor here. In a competitive
industry with strong brands, leaders
will focus on protecting their brands
identities. Think of the on-going
battle between Coke and Pepsi.
Assessing these five forces widens
your perspective of the competitive
landscape. All too often, people
tend to define competition narrowly
and thus overlook or underestimate
potential competitive threats. As
you begin to define and research
your chosen industry, you need to
safeguard against what Professor
Theodore Levittpublishing in 1960
in the Harvard Business Review
called marketing myopia. In what
has now become a classic article,
Professor Levitt examined what
happens to industries that fail to
grow and adapt to changes in
their environment because of a
limited view of their market. For
example, Levitt argued that the
decline of the railway industry was
due to companies in that industry
assuming that they were in the
railroad business rather than the
transportation business. These
companies were product-oriented
rather than customer-oriented, and
did not see the proverbial writing
on the wall: massive changes came
in both consumers needs and in
transportation opportunities in the
form of passenger airlines. Such
short-sightedness can cause one
to miss opportunities otherwise in
plain sight. To safeguard against
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Conducting Your Situation Analysis 7

this, never assume that your product
(including yourself, if youre selling
a service) will live on and succeed
forever in its original form. Youll
need to adapt. Well address
the importance of continuously
updating and improving your
product in Module 8.
The former Chairman and Chief
Executive Officer of General Electric,
Jack Welch, had an interesting way
to safeguard himself and his key
advisors against marketing myopia.
In his best-selling book Winning,
he explains how, when a division
of GE attained over 30% share of a
market it was operating in, he and
his team would redefine that market
by expanding it, such that GE would
only hold a 10% market share. This,
Welch argued, avoided complacency
and energized his senior staff and
275,000 employees to both regain
and increase sales and market
shares in a now-larger market.
Welchs success with this approach
reminds us that one important way
you can safeguard against marketing
myopia is to think broadly and as
far as is practically possible into the
future.
At this point, you may already have
a fairly clear idea of your areas of
interest or the field you wish to
enter. Most entrepreneurs have
specific products in mind that they
would like to market, and may
already be producing or distributing
them. Those who want to work as
professionals probably already know
if they want to be a lawyer, doctor,
accountant, architect, psychologist,
engineer, or university professor.
People wanting to pursue a career
in the arts most likely have chosen
whether to be an actor, comedian,
dancer, painter, sculptor, writer,
musician, photographer, director,
or producer. With this in mind, here
are some questions that should
be addressed to get your industry
analysis underway.:
You as an
Entrepreneur
What market(s) and
industry(ies) will your product be
competing in? How large is your
industry in terms of units sold or
total cash revenue per year? Has
the industry been growing, and, if
so, at what rate? What are the likely
trends in the foreseeable future? If
your product will be sold through
intermediaries such as retailers, how
many of them are there, and what is
their buying behaviour? What power
structure is in place in your industry
between those intermediaries and
your competitors? For example, big
box stores such as Walmart and
Home Depot usually have most of
the power in their relationships with
suppliers.
You as a Professional
What is the size of the
professional field you
Conducting Your Situation Analysis
wish to enter in terms of the
number of practitioners? What
is the income range earned by
professionals in your field? Do you
plan to be independent or join a
group practice, or to practice in a
corporate or government setting?
During the past three yearsand
projecting out to the next five
yearswhat will demand be for the
services you will provide? What
key factors will drive that demand?
What fees are typically charged by
professionals in this field? How are
these fees determined? What factors
may justify higher fees? What new
skills and knowledge will be in
demand in your field in the near- to
medium-term future?
You as an Artist
What sector of the arts
world will you be making
work in (e.g., design, film, the
performing arts, writing, painting,
sculpture)? Approximately what
Conducting Your Situation Analysis
Module 3
have sales levels or trends been in
this sector for the past three years,
and what are they likely to be five
years from now? What factors drive
demand and prices in that sector? In
most sectors of the arts world, the
number of artists and the supply of
their works far exceed the demand.
What is the structure of the industry
in your fieldmany producers/
few customers, many producers/
many customers, few producers/
many customers, or few producers/
few customers? Will your art be
sold through intermediaries such as
galleries, publishers, theatres, stores,
or clubs? How many of these venues
are there? What might motivate
them to distribute your product?
You as a job seeker
For those planning to
become employees of a
business or other organization, your
industry analysis may take a slightly
different route. First, there are many
Module 3
8

of you who dont have a clear idea
of what type of job or the kinds of
organizations that you would like
to work for. You can use this step of
the analysis to investigate various
employment alternatives, and then
narrow down your options to the
ones most appealing to you. Second,
those of you who have a fairly clear
notion of where you would like to
work can use this step to validate
your career choice and to learn more
about the industries, companies and
other organizations that interest
you. Here are some questions you
can use to guide you through this
stage of your analysis: What field
do you think youd ultimately like
to work in? Which companies and
other organizations are in this field?
How many of them are there in the
geographical areas that you would
like to work in? What are their major
challenges? What are the growth
trends in this field? How many new
employees are hired in a typical
year? How many people typically
compete for these positions? How
do employers recruit new employees
(e.g., through advertising, job fairs,
consultants, internal postings,
career centres, recommendations,
or online)? What characteristics
and skills are being demanded by
employers?
Dealing with these questions may
seem daunting, but getting the
answers to them may be easier
than you think. In addition to the
resources provided at the end of
this module, here are some other
information sources and information
gathering techniques that can help
you in your quest for answers:
Local, national and international
government agencies
Local business associations such
as the chamber of
talking about
commerce in your
area
Industry and
professional your ideas,
associations
Local and national dreams, and
media outlets such
as newspapers and ambitions is
television stations
Business and Industry a good way
trade publications
such as Fortune, to get the
Forbes, Advertising
Age, Marketing word out
Magazine, Profit, Fast
Company, and Business 2.0
Telephone directories such as the
Yellow Pages. A fine arts student
previously enrolled in our Marketing
Yourself course wanted to get an
estimate of the size of the market
for portrait painters, since she was
interested in portraiture as a career
option. She did a search in the
Montral Yellow Pages for Portrait
Painters and telephoned all six who
were listed. Based on the answers
to the questions she asked them
about the number of paintings they
sold and the prices they charged,
she concluded that the market was
Conducting Your Situation Analysis
indeed large enough to support
her entry into it. Moreover, she also
got a good indication of the pricing
structure in that field and who her
major competitors would be.
Formal and informal surveys with
potential employers and customers
People you know and people who
know people you
know. Ask friends,
relatives, former
employers, teachers,
and schoolmates for
information about
the industry or
market that youre
interested in. If these
people cant provide
you with answers, its
almost certain that
one or more of them
knows someone who
can help you. Talking
about your ideas,
dreams, and ambitions is a good
way to get the word out. Youd be
pleasantly surprised where help
might come from as a result of
doing this.
Competitive Analysis
The second step in analyzing your
immediate or micro-environment
is to examine the competitive
landscape. The fundamental reason
why you need to do this is that if
youre going to outperform your
competitors, you need to know what
they are good at, as well as how
they can be surpassed. Your analysis
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of the competitive factors in the
field youll be entering should focus
on the answers to the following
questions:
Who are your competitors? Here
you need to think about your direct
competitors, namely, people or
organizations that market products
similar to yours. But you also need
to think broadly to consider who
your indirect competitors may be.
For example, if you will be creating
and selling sculptures, your indirect
competitors could be manufacturers
or retailers of decorative home
accessories. If you wish to be a tax
accountant, your competition is not
only all other tax accountants, but
also do-it-yourself tax software.
Thinking broadly can lead you to
redefine your market or industry,
and can uncover opportunities you
might otherwise have overlooked.
What is the structure or
organizational type of your
main competitors? Are they
independents? Franchised
operations? Large national or
multinational organizations or
divisions thereof? This will give
you a sense of your competitors
resources, and their ability/agility
to response to changes in the
environment.
Which competitor(s) have the
strongest influence on the market or
industry?
Module 3
Conducting Your Situation Analysis 9

On what basis does each of
your main competitors primarily
compete? Product quality? Price?
Location? Promotion? Service?
Variety or product selection?
How do they typically react to
threats and opportunities?
What are your competitors major
strengths? Their major weaknesses?
What does your target market
think/believe about your
competitors? What is the reputation
of your competitors? This answer
will require some research, but the
effort will be more than worth it!
How does your product stack up
against the competition? Which
of your products key features or
benefits can be used to differentiate
yours in the eyes of your market?
(Remember that you are the product
to your potential employers when
youre selling a service.)
Customer Analysis
As you may recall from Module
1, a key feature of a marketing
orientation is a focus on customers
needs. Therefore, it should come
as no surprise that an important
step in your situation analysis is
a customer analysis. In Module 5,
well discuss how to segment your
market, and offer you various tools
and resources to help paint a more
complete picture of your customers
Conducting Your Situation Analysis
and potential employers, and to help
you put yourself in their shoesto
think and feel as they do. At this
point, though, what you need to do
is start thinking about where your
sales, fees or jobsrevenue in all
its shapes and formswill come
from. Who will your customers or
employers be? What are their needs,
broadly speaking? How do they go
about satisfying their needs? Your
answers to these questions will go a
long way to helping you develop a
deep understanding of your market
and the opportunities within it. As
difficult as it may first appear, it is
important to quantify your answers
to these questions, as their answers
can point you towards your future
success. Answer the following
questions as thoroughly as possible:
Who are your customers or
potential employers? Approximately
how many people are there who
might potentially be interested in
you or your goods or services? If you
are seeking work with companies
or non-profit organizations, who
are they? How many are there in
your field? This estimate will likely
change as you focus more precisely
on your potential customers, but for
now, develop a sense of who your
customers will be and how many
there might be out there.
How will they approach the process
of buying your product or hiring
you as an employee, for example?
Module 3
Typically, customers need to first
recognize that they need or want
your product. How does this happen?
Can you influence this step in the
process? Next, customers usually
look for alternative ways to satisfy
their needs. Which of your potential
competitors do they think of first?
Do they buy the first alternative they
think of, or do they have a reason to
keep searching? If customers only
consider one product (or are loyal
to an existing one), how might you
interrupt or disrupt their decision
process or purchase habit and get
your product or yourself noticed and
considered? Or, if customers consider
more than one alternative, how
does yours fare in this process? How
might you influence the outcome
of the comparison? Typically,
during this comparison shopping
process, customers seek advice from
colleagues, friends, or people in the
know, also referred to as opinion
leaders. Who are the opinion leaders
in your field of interest? Making
sure that these people know of your
product and speak well of it can
have an enormous impact on your
marketing efforts. Finally, when
customers have chosen to buy your
product (or hire you) they still need
to locate and get access to it, and
then make the final purchase (or
hiring) arrangements. What can you
do to facilitate this process? What are
the key sources of information about
you/your product in this decision
process?
Module 3
Conducting Your Situation Analysis 10

Where do customers typically
buy your product? When do
they typically purchase? Why do
customers buy this product? What
functional and/or psychological
benefits does your product provide
to customers? Alternatively, you may
want to ask the reverse question:
why dont they buy your product(s)?
What do customers do with your
product? This may seem like a
strange question, but you need to
consider how customers use and
interact with your good or service
in a real world context. This could
lead you to ideas for improving your
product, or for promoting different
uses for it, thereby expanding your
total market size. For example,
learning that their customers used
their baking soda for purposes other
than baking led Arm & Hammer
to develop various products using
baking soda such as toothpaste and
carpet and room deodorizers.
MACRO ENVIRONMENT:
THE BIG PICTURE
Once you have begun to identify
your desired markets and industry,
you need to take a step back and
look at the broader environment
in which your industry operates.
Its critical for you to develop a big
picture understanding of the factors
that affect the success of players in
your chosen field. These macro-level
factors in the marketing environment
can influence the decisions and
actions that youll be setting out in
your marketing plan, as well as those
of your competitors. For the most
part, these factors are uncontrollable,
meaning that you, as the marketer,
have little or no influence over them.
However, because they can represent
opportunities and threats to your
success, you need to be aware of
them and their implications on
your marketing decisions. Various
aspects of the macro environment
can change rather quickly, even
overnight. For instance, prior to
the events that unfolded in Egypt
in late 2010 and 2011, how many
people would ever have anticipated
a change of regime in that country?
Or watching the first images of the
devastating tsunami in Japan, how
many people fully anticipated and
comprehended the impact it might
have around the world? Even stable
economic super powers, such as the
United States, can lose their credit
ratings, thus creating ripple effects
throughout the world. While no one
can fully anticipate such dramatic
unfoldings, staying abreast and
prepared to deal with changes in
the macro-environment can make
the difference between success and
failure.
To analyze the macro environment,
marketers typically break it down
into the following components or
dimensions: demographic, economic,
Module 3
Conducting Your Situation Analysis
political and legal, sociocultural,
technological, and natural. Lets
examine what each of these entails.
Demographic Environment
Demography is the study of human
populations in terms of their size,
growth, gender, marital status,
geographic location, age, ethnic
background, occupation, and
education. Demographic forces
can exert powerful influences on
product and employment markets.
Consider, for example, one of the
most important demographic
shifts in recent history: the massive
entry of women into the workforce,
starting in the 1940s with World
War II, and continuing well into
the 1960s and 70s. This shift
created unprecedented demands
for goods and services designed
to meet womens nascent and
growing needs for convenience.
Dry cleaning, packaged cake mixes,
disposable diapers, automatic
clothes washers and dryers, and
ready-to-eat packaged foods are just
some of the products that enjoyed
unprecedented growth because of
this demographic shift. On the other
hand, sales of products that were
relatively inconvenient to use went
into steep decline. Examples include
laundry starch, cloth diapers, sewing
machines, and even orangesthe
latter because of the introduction of
frozen orange juice. These examples
illustrate the profound impact that
demographic shifts and changes
Module 3
Conducting Your Situation Analysis 11

can have on a variety of industries.
Demographic information is often
easily available free of charge, as
most governments, via census data,
track the demographic changes and
trends within their countries. If youre
interested in global demographic
trends, or if you plan to operate on
a global level, then depending on
your field of interest, you should
familiarize yourself with the various
publications (many of which are free
and online) from organizations such
as the World Trade Organization,
the World Health Organization, and
the United Nations and its many
agencies and programs, just to name
just a few.
The following are three of the most
prominent demographic trends
in North America in 2012: 1) aging
of the population, 2) changing
ethnic mix, and 3) decreasing
household size and changing family
composition.
Aging of the population. After
the Second World War, as young
men and women returned home
to the United States, Canada and
other countries such as Australia
and started families, the number
of births increased markedly. This
period, between 1946 and 1964,
became known as the baby boom,
and it created one of the largest
generational cohorts in western
history. In the years following the
baby boom, the birth rate fell sharply.
2. According to Health Canadas Changing Fertility Patterns. Health Policy Research Bulletin. No. 10, 2005.
Conducting Your Situation Analysis
The average number of children
a Canadian woman would have in
her lifetime was almost 4 in the late
1950s (consider, by comparison, that
it was 7 in 1871). By the mid 2000s,
this number had fallen to 1.52. And
while this number is inching back up
a bit again currently, it is still below
the generational replacement level
of 2.1, the rate needed to replace
the countrys population in the
absence of immigration (hence why
welcoming immigrants is vital to the
countrys economy and demographic
renewal). Thus, much fewer people
were born between 1965 and 1978
(known as Generation X) and
between 1979 and 1994 (known as
Generation Y) than there are baby
boomers.
Today, early baby boomers are
in their 60s and the preceding
generation, known as the Silent
Generation, is living longer thanks to
medical advances and improvements
in living conditions. As a result,
people 65 years and older now
account for more than 13% of
the Canadian population. This is
not an isolated phenomenon: the
same is true of all G8 countries.
For instance, in Japan, 20% of the
population is now 65 years or older.
Not surprisingly, the median age in
Canada, which was 25 in 1966, is now
over 39 years. This rise in the median
age indicates that the countrys
population is growing older, and this
has numerous implications for labour,
Conducting Your Situation Analysis
Module 3
the economy, and for social and
health care services. Baby boomers
want to remain active, and many
of them dont want toor cannot
afford toretire. Many provinces,
including Qubec and Ontario, have
now banned mandatory retirement.
Increasingly, baby boomers dont
consider 65 as a magic number
that should force them out of
work. In their teens, baby boomers
used to distrust authority and the
establishment. Their rallying cry was
Dont trust anyone over 30. Today,
60 is the new 40 has become
the new rallying cry of aging baby
boomers.
What is a cohort? A generational
cohort is defined as a group of
people who experience similar
events within a period of time. The
fact that these people experienced
similar events (such as kindergarten,
high school or significant historical
eventsthink of the moon landing,
or the fall of the Berlin wall) shapes
their collective psyche, ambitions,
and attitude towards many
phenomena.
What is a median? Simply put, the
median is the middle value in a list
of numbers, where half the values
are above, and half are below. So a
median age of 37 in Canada means
that half the population is older than
37, while the other half is younger
than 37.
Module 3
12
 Module 3
Conducting Your Situation Analysis

Approximately 25 years after the population is growing older, retiring, will occur in unprecedented numbers, they admit immigrants in increasing
start of the baby boom, baby and wants to enjoy their golden what do you think the fallout will be numbers. For example, it should
boomers themselves began to have years. On the other hand, a very large for your chosen field or industry? come as no surprise then that the
children, such that from 1979 to 1994 cohort of young consumers are now majority of people now living in
many countries, including Canada coming into their own and creating AARP (www.aarp.org) and CARP Toronto were not born in Canada.
and the United States, experienced a a life for themselves, with needs, (www.carp.ca) are, respectively, the
baby boom echo. Recently, the oldest desires and consumption patterns American Association of Retired The influx of immigration is changing
of the echo boomers (also known very different from their elders. People and its Canadian equivalent. the demographic composition
as Millennials, or Generation Y) have Take a quick glance at their website, of many western countries. Just
begun to have children of their own, Table 3.1 highlights some aspects and you will surely observe that one or two generations ago, the
creating a gently increasing number of these generational cohorts aging people now seem to wish predominant culture of these
of births. Although the net result of relevant for marketing planning. to remain active throughout their countries was European and Judeo-
these demographic shifts is that the This aging phenomenon has broad golden years. Notice also how these Christian. This is no longer the
population overall is growing older, and deep implications on markets organizations are now recruiting case. Demographic data confirms
the current reality is that two major and employment opportunities. members in their 50s. that Asians represent the fastest
younger cohorts are now shaping the Beyond increasing demand for more growing ethnic group in Canada.
marketing environment. On the one healthcare facilities, and the fact that Zoomer Magazine (www.zoomermag. In the United States, Hispanics are
hand, a significant proportion of the the retirement of senior executives com) is entirely devoted to the the largest ethnic group. Suddenly,
baby boomer demographic and speaking a second language, such
lifestyle. Notice how marketers are as Mandarin or Spanish, can be a
Silent Generation Baby Boomers Generation X Generation Y targeting this active segment of the tremendous asset and indeed a
Born between Born between Born between Born between population. Take a look at the articles competitive advantage if you or
1925 and 1945 1946 and 1964 1965 and 1978 1979 and 1994 and news features on their website your organization intends to do
to get a sense of what matters to business with those who speak these
Want to remain Seek convenience; Like excitement; Like to be a star;
active; require want to remain prefer hip want personalized aging individuals. languages as their mother tongues.
products and active and healthy; products; like products; heavy People of African, Middle Eastern,
services adapted prefer personalized to indulge internet and social South American and Caribbean
to certain physical products and themselves; media users; are
limitations. services that media-hungry and beginning to
Changing Ethnic Mix. In several origins also constitute an increasing
appeal to Internet-savvy. trade up moving North American and European proportion of the demographic
Many are moving their ego and from less to more countries, there are actually more composition of many countries,
into assisted living recognizes their More likely to own expensive product deaths than births every year. So not including Canada and the United
communities that accomplishments. a home (and still versions.
provide services paying for it). Some only are the populations of these States.
and entertainment Finished paying off becoming parents, Most still renting, countries getting older, theyre also
adapted to their their home, now many still single not owning a shrinking. Since the governments These ethnic groups are of interest
age limitations. buying second or and postponing home. Can be fickle
Succession retirement home parenthood. in terms of brand of these countries, as well as other to marketers for many reasons,
planning is (e.g., timeshare Entering the peak loyalty. Also called countries with low population not the least of which is their
becoming critical condos). phase of their Echo boomers growth, do not want to expose their sheer size and sales potential. For
for many. careers. and Millennials.
citizens to the negative economic example, think of recently landed
consequences that can result from Asian immigrants likely to have
Table 3.1 Important Demographic Groups and Some Key Characteristics a declining or stagnant population, left loved ones behind. These new

Module 3
Conducting Your Situation Analysis 13

immigrants need to call home and
keep in contact with friends and
family, which creates a significant
opportunity for telecommunication
service providers. Other industries
benefit as well, since these
immigrants also bring with them
their rich cultural heritage, creating
new marketing opportunities.
Take a trip through Chinatown
and some of the other ethnic
neighbourhoods in your city and
witness how the Chinese and other
ethnicities eat and shop differently.
Importantly, this demographic
shift also influences the tastes and
preferences of native residents,
creating numerous additional
marketing opportunities. Consider
the expanding international food
selection at your local grocery store.
Mexican, Chinese, Thai, and Indian
foods are occupying more and more
shelf space. These foods are popular,
and not just with immigrants from
their respective countries, but also
with Canadian-born local residents.
Food is merely one domain where
differences may exist. How is the
changing ethnic composition
influencing the markets you wish to
enter? How might this, for example,
affect the qualifications required to
work in your chosen field?
Decreasing household size and
changing family composition. The
number of people per household
is declining worldwide. In 1966,
there were almost four family
members per Canadian household,
while today there are barely three.
Among the factors underlying the
decrease in household size is the
fact that the marriage rate is falling.
This has resulted in an increase in
the number of single people, and
consequently an increase in the
number of households occupied by
one person. Additionally, both men
and women are marrying later in
life. During the 1970s, the median
age for a first marriage for Canadian
women was 22. In 2012, its 32. Not
Conducting Your Situation Analysis
only are women delaying marriage,
but many are also postponing
motherhood, and, in some cases, for
good (resulting in the lower number
of children women have on average,
as discussed earlier). We also need
to account for the increase in the
divorce rate: its estimated that 30
percent of marriages in Canada and
44 percent of those in the United
States end in divorce. More singles
live alone, and currently broken,
or otherwise reconstituted families,
are creating opportunities in the
marketing environment. For instance,
while population growth has been
sluggish, demand for houses,
apartments, and condominiums has
been relatively strong. So too has
demand for household products and
home dcor. Observing customers,
particularly young singles and
couples, at IKEA will prove this
point. Likewise, the food industry
had to adapt to this demographic
shift by providing more options in
prepared foods and individual, pre-
portioned packaged foods. The
restaurant industry has not escaped
this massive demographic shift
either. While there has been a steady
increase in the frequency of eating
out, more and more restaurant
meals are eaten off-premises, being
delivered or taken-out (have you
seen many singles eating out?). And
these are just a few examples. What
are the likely consequences of these
demographic shifts in your chosen
industry?
Module 3
Economic Environment
The next issue in your analysis of the
macro environment is to consider
economic factors influencing the
buying or hiring power of people and
organizations in the industry or field
you wish to enter. Many economic
indicators are regularly published
by regulatory and governmental
agencies, such as Statistics Canada,
the Bank of Canada, the U.S.
Federal Reserve Board, and the
U.S. Department of Commerce. The
latest macroeconomic indicators for
Canada can be found on the front
page of www.statcan.gc.ca.
The key economic factors that
influence buying and hiring power
include:
Gross domestic product. The GDP is
the total value of goods and services
produced in a country annually.
Usually, the higher the GDP per
capita, the greater the buying power
of the countrys citizens and hiring
power of its organizations.
Inflation. This refers to a general rise
in prices for goods and services such
as food, clothing, housing, furniture,
and transportation. For example,
a theoretical basket of goods at
the grocery store that would have
cost $100.00 in 2000 cost $115.66
in 2006, representing an average
annual rate of inflation of 2.45
percent. That same basket would
cost over $130 today. If wages dont
Module 3
Conducting Your Situation Analysis 14

increase at the same rate as these
prices, then buying power falls, as
people divert a larger proportion of
their income toward basic needs, and
consequently have less discretionary
income to spend on other things.
Certain factorsfor example, natural
disasters and political turmoil
can create an inflationary push
across many industries. Consider,
for example, increases in the price
of gasoline and the uncertainty
that hit financial markets after the
tsunami that devastated parts of
Japan. These phenomena translate
into a general increase in the prices
of many goods and servicesas
well as salariesas producers and
distributors pass rising costs on to
customers.
Recession. This is a period of
relative economic inactivity during
which income, production (usually
measured as the Gross Domestic
Product), business profits, and
investments fall sharply, while
unemployment and bankruptcies
increase. Recessionary periods
shrink buying and hiring power,
which, in turn, reduces demand for
people, goods and services.
Real income is income adjusted for
inflation over time. Real income has
been rising steadily in many parts of
the world.
Disposable income refers to income
that is left after taxes have been paid.
Discretionary income is what
remains of disposable income
after paying for basic necessities
such as food, clothing, housing
and transportation. Discretionary
income has not been increasing to
the same extent as real income in
most western countries, curtailing
the growth of consumers buying
power. With stable or decreasing
discretionary income, many
consumers have begun to rely on
credit in order to continue to afford
luxuries, entertainment, and other
goods and services such as home
renovations. As a result, the level of
debt accumulated by the average
household has generally increased.
In Canada, for example, the ratio
of household debt to disposable
income reached the highest yet on
record in 2010, standing at 148.1%, a
6.7% increase over the previous year.
This is even higher than the same
ratio in the United States (which,
in 2010, stood at 147.2%). Not
surprisingly, personal bankruptcies
have also been increasing steadily
since the early 1990s.
Employment and unemployment.
Unemployed people are those who
do not have jobs and are actively
looking for them. The higher a
countrys unemployment level,
the lower the buying power of its
people.
Which of these economic factors
will have an effect on the market for
Conducting Your Situation Analysis
your product or service (yourself)?
What do you believe that the effects
will be?
Political and Legal
Environments
The success of your marketing plan
can be heavily influenced by the
political and legal environments,
which include the general political
climate as well as specific laws and
regulations imposed by different
authorities at various levels (i.e.,
international, national, provincial
and municipal). It also includes
codes of ethics and conduct set
out by professional and industry
associations. Consumer groups can
also influence the political-legal
environment by drawing attention to
a specific industry or company, and
by exerting pressure on law makers
to enact new legislation. For example,
pressure from consumer groups led
the government of Qubec to ban
advertising to children under the age
of 13.
The political and legal environments
should be analyzed at the appropriate
level or jurisdiction. If you plan to
open a restaurant, say, in Calgary,
youll not be very concerned with
international trade agreements,
but you will care about provincial
regulations regarding food safety and
employee relations, about municipal
bylaws concerning signage, parking
lot size, occupancy permits, and
other building and design issues.
Conducting Your Situation Analysis
Module 3
However, if you plan to buy or sell
goods internationally, then trade
agreements or treaties (like the North
American Free Trade Agreement:
NAFTA) between countries can
have a significant impact on your
marketing plan. As with every aspect
of the marketing environment, laws
and regulations can change, and you
must stay informed of these changes
and their impact on your industry and
marketing decisions. For instance,
Business
regulations
are an
important
component
of the legal
environment
when Canada and the United
States lifted their quotas on textiles
imported from China on January 1,
2005, many weaving mills across
Canada, particularly in Qubec, went
out of business, and employment in
the textile industry plummeted. Or
consider the fairly recent outbreaks of
listeriosis in cheeses and deli meats in
Canada. These events have not only
made consumers more aware of food
safety issues, but have also triggered
Module 3
15

important changes in companies
(Maple Leaf comes to mind!) health
and safety procedures as well as new
regulations, notably at the Canadian
Food Inspection Agency. One
important development has been a
renewed emphasis on traceability, the
ability to trace the origin of specific
foods.
Business regulations are an
important component of the legal
environment, which, if you plan to
be an entrepreneur, professional,
or an artist, you must pay special
attention to. These are typically
designed to protect companies from
unfair competitive practices, protect
consumers from unscrupulous or
unethical business practices, and
protect society and vulnerable
groups therein (e.g. children).
National and provincial authorities
have laws and regulations covering
various aspects of business conduct,
such as advertising practices,
consumer protection, environmental
protection, competitive-pricing
practices, tax collection and
payment, and product safety, to
name just a few. In addition to these,
there are also various laws and
regulations pertaining to the rights
and responsibilities of employees and
employers. While youre not expected
to know every labour law by heart
(unless it relates to your chosen
field!), if youre an entrepreneur,
professional, or artist who plans to
employ others, then you need to
familiarize yourself with the nature
and scope of labour regulations in
your jurisdiction. Contravening any
of the laws and regulations in your
chosen industry can have serious
implications, as ignorance of the law
is never an acceptable defence.
As a job seeker, if youre thinking
of working in a foreign country,
you should make yourself aware
of the laws and regulations
regarding employment and labour
issues in each country that youre
considering. Pay particular attention
to immigration and residency laws, as
well as to tax regulations.
Exhibit 3.2 Advertising Standards
In 2003, this billboard and a series of
similar ads for Terra Footwears work
boots were pulled after complaints
spearheaded by a group calling
Conducting Your Situation Analysis
itself Women in Workbootswere
filed with Advertising Standards
Canada (www.adstandards.com), a
non-profit industry self-regulatory
body. Complaints centered on
the objectification and sexual
exploitation of women. Consumer
groups, even labour unions such as
the Canadian Auto Workers (one of
the largest trade unions in Canada,
with over 250,000 members) and
the Manitoba Labour Federation
threatened to boycott the brand,
as did retailers, such as Walmart,
where the boots were being sold.
This illustrates the impact that
regulatory bodies can have, as well as
the importance of paying attention
to cultural values and taboos. The
company ended up removing more
than 600 billboards across Canada.
Module 3
To get started on researching the
political and legal environments, visit
the websites of Industry Canada and
the Ministry of Human Resources (see
insert below) to begin to familiarize
yourself with the laws and regulations
in place in your chosen field.
Industry Canada offers a wealth of
resources and information for those
seeking to do business abroad or with
international partners. Additionally,
its Office of Consumer Affairs is
mandated to protect and promote
the interests of Canadian consumers.
Learn more at www.ic.gc.ca
Human Resources and Skills
Development Canada offers help
and advice on a variety of topics,
including, for instance, labour
relations, workplace health and safety,
and labour law: www.hrsdc.gc.ca
The current political and legal
environments also reflect the ongoing
concerns of a society. Remember the
financial demise of Nortel? The fall
from grace of Enron and WorldCom
executives in the United States, who
brazenly misappropriated millions of
dollars of investors money? Whether
in response to pressure groups or
corporate scandals, companies
and regulatory bodies are placing
new emphasis on ethics and sound
corporate governance. In an attempt
to prevent further scandals and
the misappropriation of funds by
Module 3
Conducting Your Situation Analysis 16

Learn more about the Canadian
Business Corporation Act at
www.justice.gc.ca.
Canadian Securities Administrators/
Autorits canadiennes en valeurs
mobilires. http://www.securities-
administrators.ca/
For more information on corporate
governance, visit
The Institute of Corporate
Directors at www.icd.ca
The Institute for the governance
of public and private
organizations at www.igopp.ca
The Canadian Institute of Chartered
Accountants also publishes various
documents outlining rules of
governance. Check out its various
publications at
www.cica.ca/research-and-guidance
Canadian Business Ethics Research
Network www.cbern.ca
www.ethix.org is a publication of the
Center for Integrity in Business in the
School of Business and Economics
(Seattle Pacific University).
corporate executives, countries such
as the United States have instituted
laws and regulations intended to
improve corporate governance. In
the United States, for example, the
Sarbanes-Oxley Act, passed in 2002,
was designed to improve the accuracy
and reliability of corporate disclosures
and restore investors confidence in
such financial information. In Canada,
the Canadian Business Corporation
Act and the National Securities
Administrations set out laws and
regulations that govern business
practices, focusing on publicly
traded corporations and their impact
on financial markets and investor
confidence.
In addition to these laws and
regulations, many professional
associations and industries have
established codes of ethics. While
disregarding such codes may not
have direct legal implications, it
may get you banned or barred from
professional associations, or fined by
an industry body. Make sure to be
aware of, and adhere to, any code of
ethics and conduct which may have
been adopted and is widely endorsed
in your chosen field.
Sociocultural Environment
If youve traveled to different
countries, youve surely detected
that, beyond obvious differences
in food and clothing, people vary
greatly in terms of what they value
and the social behaviours deemed
Conducting Your Situation Analysis
acceptable. For instance, in Japan,
the collective well-being, meaning
not embarrassing others where at all
possible and saving face (pride), are
important. In Mexico, family values
and religious rituals are very much
part of everyday life. Norwegians can
appear shy and reserved, but are still
friendly and hospitable, while citizens
of France place more importance on
hierarchy and protocol. The point
is that, without yielding to cultural
stereotypes, understanding the
defining features of the sociocultural
environment and scanning whats
happening in the society and culture
at large will provide useful guidance
for creating your marketing plan.
The sociocultural environment of
any given place includes peoples
beliefs, values, views, and opinions,
as well as the various social norms,
customs, codified behaviours and
rituals that dictate or indicate what is
deemed appropriate and acceptable
in terms of personal comportment
and business conduct. To keep
their fingers on the pulse of the
sociocultural environment, marketers
typically examine the views and
values underlying the behaviours
of people within a given society,
typically through surveys and other
research tools.
Your analysis of the sociocultural
environment should be conducted at
the appropriate level. For example, if
you plan to move to, or do business
in, another country, then you need to
Conducting Your Situation Analysis
Module 3
assess the values and norms in that
country that can potentially have an
influence your success. One useful
tool is the framework developed by
Dutch researcher and psychologist
Geert Hofstede (www.geert-hofstede.
com). In the late 1960s, while working
for IBM, Hofstede wanted to explore
the differences and similarities
between countries. He gathered and
analyzed data from over 100,000
participants in 50 different nations.
His work enabled him to identify four
cross-cultural dimensions that can be
used to understand and differentiate
cultures.
They are: 1) Power distance (the
extent to which people place
distance between each other
based on individual power), 2)
Individualism (the extent to which
people are motivated by values and
display behaviours that place the
individual, rather than the group
or collective, at the forefront of
decisions), 3) Masculinity (refers
to the distribution of gender
roles in a society, and the extent
to which people demonstrate
more assertive and competitive
behaviours versus more nurturing
and cooperative behaviours linked
to femininity), and 4) Uncertainty
avoidance (the extent to which a
society is tolerant of uncertainty).
In a later work, Hofstede added a
the fifth dimension of Temporal
orientation: long term oriented
countries are motivated by values
Module 3
17

such as thrift and perseverance
(short term pain for long term gain,
in the vernacular), whereas short
term oriented ones focus more on
tradition and social obligations.
Many countries have been rated
and ranked using Hofstedes cross-
cultural dimensions, which provides
us roughly with a big picture
appreciation of the way people in
each country think and behave.
Although Hofstedes dimensions
were intended to guide between-
country comparisons, they can
be used as a way to gauge the
dominant values and behaviours
prevalent in a society.
When we begin to look more
closely at specific regions, it can
be extremely productive and
useful to consider peoples views.
For instance, while Hofstedes
dimensions may reveal useful
insights about a country (for
instance, that Canada is low
in power distance, high in
individualism, and has a short term
orientation), these may not readily
apply across all regions within that
same country. If youve traveled
across Canada, the United States,
or other countries, youve likely
detected important differences
between people within the same
country, perhaps even within
regions, and certainly between rural
and urban areas of any one country.
Therefore, as you contemplate
the sociocultural environment of
a region that might interest you,
understanding its peoples views on
various issues may help you identify
threats and opportunities.
Here are some typical views that
may lead to insight:
Views of oneself: How do the
people of a region view themselves?
What emphasis do they place on
immediate self-gratification and
personal well-being versus more
thrifty, prudent and conservative
behaviours? For instance, many
people who move to or visit Qubec
often find that its citizens have a
certain joie de vivre, and consider
themselves bon vivants, with a
different attitude towards leisure
time and work-life/personal-life
balance than in other Canadian
provinces.
Views of organizations: How do
the people of a region vary in their
attitudes towards government, trade
unions, big corporations, the media?
Are these organizations liked or
mistrusted? Think, for instance, of
the rising dislike in North America
for petroleum companies that are
reporting record-breaking profits,
while consumers are paying ever-
increasing prices at the gas pump.
Views of others and society: To
what extent do people seek to
involve themselves in society as
opposed to trying to escape or
Module 3
Conducting Your Situation Analysis
withdraw from it? To what extent
do people trust and see good in
each other, and attempt to improve
society? To what extend does the
greater or common social good
prevail in decision making?
Views of nature: To what extent do
the people of a country respect and
wish to preserve nature, while living
in harmony within it, versus seeking
to control and exploit it?
And finally, as you explore your
sociocultural environment, you may
want to consider the existence of
subcultures, or subgroups whose
members share beliefs, values, and
preferences that may be distinct
from the general population.
Subcultures may be defined on the
basis of geography, such as the
urban versus suburban subcultures,
or on the basis of age such as the
teenager subculture, or any other
basis, such as lifestyle, that may
be relevant to your particular field
or industry. These groups within
groups can also lead you to explore
niche marketing further: a small yet
distinct market (a niche) that is
well-served can be a boon for any
marketer, and groups with common
interests may turn out to have
modules spread across the globe.
Technological Environment
The technological environment
includes both technologies and the
forces that create them, thereby
Module 3
Conducting Your Situation Analysis 18

giving birth to new products and
market opportunities. Technology
will likely be the fastest changing,
and perhaps the most impactful,
aspect of the macro environment in
which you will operate. Its not an
overstatement to say that technology
is one of the most powerful forces
influencing our lives, and its impacts
are profound and far reaching. It is
also a certainty that technology will
continue to dramatically affect every
aspect of our lives, including how we
entertain, inform, heal, educate, and
employ ourselvesas well as how
we communicate with each other!
This will single-handedly result in
most of you having multiple career
changes as new technology will
hurt certain industries and favour
others, thus forcing individuals to
adapt and change. On one hand,
it will eliminate markets and jobs
think of the gloomy prospects for
photographic film and music CDs,
photo-processing technicians, and
music store managers. On the other
hand, it will create an unprecedented
number of opportunities for
entrepreneurs, professionals,
artists, and employeesthink of the
bright prospects for video gaming,
intellectual property lawyers, music
producers, special effects artists
for movies, and software/hardware
engineers. Those who get stuck in a
myopic mindset (see Module 2) and
ignore the impact, opportunities and
threats of technology will likely suffer
as a result.
In scanning the technological
environment, pay close attention
to those aspects that matter the
most in your specific field, and
understand how these will affect
the market youll be entering.
What role is technology playing
in your field? What factors are
driving technological advances?
What threats and opportunities will
technology create? How can you
prepare to face those threats and
opportunities? As with each aspect
of the macro-environment, you
need to monitor trends and ongoing
changes in technology.
Here are some current trends that
deserve mention:
Pace of technological change.
Technology feeds on itself and
enables new ideas and new
technologies to be created at an
ever faster rate. This fact is strongly
related to Moores law, named
after the co-founder of computer
hardware giant Intel. The law
describes a trend in computing
hardware whereby the number of
transistors that can be put on an
integrated circuit doubles every
18 to 24 months, at the same price
point. This law, or rather the reality
it describes, has fuelled rapid
advances in electronic devices,
enabling greater processing speed
and memory capacity for computers,
as well as higher resolution
digital cameras with much more
Conducting Your Situation Analysis
accurate and representative image
fidelity. The rate of technological
innovation and change has created
unprecedented new opportunities,
new applications, and even
entirely new markets. For example,
smart phones gave birth almost
immediately to other industries and
applications. Think, for instance,
of the various accessories now
on sale for your smart phone.
Or think of applications like QR
(quick response) codesposted
everywhere from magazine ads
to the sides of buildingsthat
now enable consumers to access
a wealth of product information
rapidly, thereby creating new ways
to communicate with consumers.
At the same time, it seems that
consumers are more and more
receptive to new technologies.
Module 3
Consider, for instance, that it
took more than 45 years for the
telephone to enter 50% of American
households in the first half of the
20th century. By contrast, colour
television, which began commercial
broadcasting in 1953, penetrated
over 70% of households in a little
more than 20 years. Mobile phones
moved exponentially even faster,
taking less than 20 years to enter
90% of households.
Growing encroachment on our work
and private lives. With accelerating
adoption by consumers, technology
has now entered many facets
of our private and professional
lives. Things like cell phones for
children, paperless airline tickets,
touch screen ordering systems at
restaurants, self-checkout kiosks
at grocery stores, personal video
recorders and virtual hard drives,
not to mention the countless
technological devices we use at
work, are a normal part of life. 4 GB
USB thumb drives are now available
for the price of a few floppy disks
a decade or two ago. Given the
omnipresence of technology, it is
easy to forget that, not so long ago,
only a small minority of homes had
internet access, only high-income
business people owned cellular
phones, the most popular games
were board games like Monopoly,
and invasive surgery was the only
way to examine certain parts of
the human body. Technology has
Module 3
Conducting Your Situation Analysis 19

changed all that and more. In fact,
it is difficult to find an aspect of our
lives that hasnt been influenced by
technologyso much so that we
take it for granted, and have become
immune to its ever expanding role
in and impact on our lives. While
technology has undoubtedly
enhanced many aspects of our lives,
this has come at a price. Emerging
research suggests that depression,
stress, anti-social and even violent
behaviour, as well as insomnia are
frequently associated with the
increasing amount of time people
spend on computers, e-readers and
cell phones, particularly adolescents.
Interface with other dimensions
of the macro environment. The
increasing ubiquity of technology
impacts other dimensions of the
macro environment, and changes in
the macro environment can affect
the technological environment.
Of noteworthy importance in the
technological environment are
evolving laws, regulations, cultural
attitudes and opinions towards
various aspects of technology and
its impact on our lives. In terms
of the political-legal environment,
regulations have been put in place
and more are being contemplated
in many jurisdictionsto protect
consumers privacy and safeguard
them from impersonation, identity
theft, and intimidation. Some
regulations are a result of changing
views and attitudes. For instance,
the National Do Not Call List was
created after public opinion about
disruptive telemarketers forced
lawmakers to act. Likewise, many
restaurants, gyms, and movie
theatres have either banned cell
phones or routinely remind their
patrons to limit their use as a
courtesy to others, in part because
of evolving unfavourable attitudes
towards their public use, and
the disruptions created by these
devices.
To find out more about rules and
regulations on privacy, visit the blog
of the Privacy Commissioner of
Canada at www.blog.privcom.gc.ca
Natural Environment
Natural disasters and headline-
grabbing phenomena (think of
global warming) have increased
awareness and the importance of
preserving our natural environment,
which is, ultimately, a finite resource.
Here, were talking about natural
resources and aspects of the
environment (e.g., weather) that
can have an impact on your field
of interest, and on which you or
your business can have an impact.
Increasingly, businesses and
consumers alike are becoming more
aware of, and sensitive to, their
natural surroundings. Now it may
be that the natural environment
has little or no impact on your
marketing plan, but identifying
Conducting Your Situation Analysis
those natural resources, or aspects
of the natural environment, that
may influence your success can
lead you to proactively develop
ways to be less vulnerable to their
influence, or even trigger business
ideas. For instance, the fast growing
popularity of ride- and car-sharing
services (such as Communauto in
Montral) is in no small measure
due to the rising cost of fuel. An
entire business, Montrals Bixi
rental bike kiosks, sprung from this
market as well, and has now been
franchised. Or if youve purchased
a plane ticket recently, perhaps
you were offered carbon offsets to
purchase to offset the greenhouse
gases produced by your flight. As
various resources around the world
become scarce, paying attention to
the natural environment will become
increasingly critical.
Information and
Intelligence Gathering
Dont be overwhelmed by the
questions that weve have included
as part of the situation analysis.
Theyre meant to stimulate
your thinking and highlight the
importance of conducting a
thorough examination of your
chosen field. However, getting
the appropriate answers to
these questions requires reliable
information. This is the perfect
opportunity to make you aware
of an important issue. There
is a difference between data,
Module 3
information, and what is often
referred to as competitive or
market intelligence. The distinction
may appear subtle at first, but it is
significant.
Data constitute the facts and
figures you need to collect. From
these you can extract information.
For example, lets say you want to
determine which geographic region
is hot in your chosen field. Well, if
you have no idea whatsoever, and
you cant find the answer, then you
could create an Excel spreadsheet
that lists all your competitors or
major players in your field on the
left-hand column, and then list
the location of each competitors
headquarters or major places of
business in the column to the right.
The entries in your spreadsheet
are your data. Now say you fill 20
lines of datayou are still no closer
to answering your initial question.
You still need to summarize the
data, looking for patterns and
exceptionsconnecting the dots.
You might, for instance, realize when
looking at your 20 lines of data
(using the sort or pivot table
function comes in handy!) that 15
out of the 20 (or 75 percent) of
your competitors are located in the
same geographic area. The facts
and figures that you have listed
have just been transformed into
information. You still need to turn
this information into intelligence
and figure out what it means for
Module 3
Conducting Your Situation Analysis 20

Myth your marketing plan. Why are
those competitors concentrated in
When asked what my the same area? What historical or
weaknesses are, its best political factors have contributed
to avoid talking about to this situation? How could this
any real shortcomings influence your decisions?
and instead offer
weaknesses disguised as Competitive or market intelligence
strengths such as Im a is the ongoing gathering of
perfectionist or I tend information and the search
to take on more work for patterns with the objective
than most anyone else. of predicting, anticipating, or
improving reaction times to changes
in the market. To stay up-to-date
Reality Check with changes in the marketing
Employers will see through environment, many companies have
shallow and evasive established market intelligence
answers. They know that departments. They typically focus
everyone has weaknesses their efforts on finding answers to
and theyre interested the following questions: 1) What are
in hearing which ones customers current needs, how are
you reveal, and what you they being met, and by whom? 2)
intend to do about them. What will customers needs be in the
future? 3) What are competitors up
to? The goal of market intelligence
is to find out about changes in the
marketing environment so that
appropriate decisions can be made
and actions taken before your
competitors make them. Market
intelligence should always keep you
one step ahead.
Establishing the sources through
which you can stay abreast of
changes in the environment is
crucial and can save you a great
deal of time. As you perform initial
research as part of your situation
analysis, ask yourself how you can
Conducting Your Situation Analysis
set up information sources and
pathways to help you monitor, on an
ongoing basis, what is happening
in your environment. Saving useful
websites to your list of favourites
(CTRL+D in most browsers) is one
possible mechanism. Other useful
means include subscribing to
industry or professional newsletters,
initiating and maintaining regular
contacts with people in the know,
attending trade shows, conferences,
or webinars in your domain, and
even observing and talking with your
competitors.
What other methods can you
think about that will keep you
routinely fed relevant and important
information about your markets and
industry? How can you keep your
ear to the ground and stay attuned
to changes in your environment?
YOUR SWOT ANALYSIS
We began this module with a
discussion of situation analysis, and
provided a number of questions
to spark your thinking. If the
preparation of your marketing plan
has followed the steps weve gone
over so far, it should now be at
a critical juncture. Your situation
analysis has been completed and
youre thinking about setting your
objectives and determining the
strategies youll use to achieve
these goals. The link between the
completion of your situation analysis
and objective setting is a called
Module 3
a SWOT analysisan assessment
of your strengths, weaknesses,
opportunities, and threats. Its
purpose is to help you achieve a
strategic fit between your resources
and capabilities and the external
demands and possibilities within
your chosen field. Strengths and
weaknesses are often qualified as
internal, meaning that they relate
to you. Opportunities and threats,
on the other hand, relate to the
external environment. Conducting
a SWOT analysis honestly and
thoroughly is the first step towards
leveraging your strengths and
opportunities, and to finding ways to
address and contain or eliminate the
vulnerabilities and constraints that
weaknesses and threats represent.
Lets examine how each of the
SWOT analysis elements can be
addressed.
Strengths
Strengths are those factors that
make an organization or individual
more competitive than others in the
marketplace. In effect, strengths are
the resources and capabilities that
can be used to attain performance
objectives. An example of a
companys strength could be that
it can develop new products and
bring them to market faster than its
competitors. For example, Gillette
has made a conscious decision
to invest heavily in new product
innovation, and therefore introduces
dramatically new products every two
Module 3
Conducting Your Situation Analysis 21

or three years, a competency that
other players in that industry have
had difficulty replicating. Individual
strengths can include being a team
player, having specialized skills or
knowledge, being fluent in several
languages, and possessing a strong
entrepreneurial spirit. In assessing
your own strengths, try to determine
which one(s) provide you with a
unique, distinctive advantage that
may be difficult to reproduce.
A rich source of insight about your
personal strengths as they relate
to the field youve chosen to enter
can be uncovered by analysing
your results of the various self-
assessment tests discussed in
Module 2.
Weaknesses
Weaknesses are limitations that
could keep organizations and
individuals from achieving their
objectives and thus make them
vulnerable. Identifying and analyzing
weaknesses is crucial because this
will guide the decision as to whether
to correct the weakness or to
adapt to it. Consider the case of an
independent sporting goods retailer
who wishes to expand. Her analysis
of the market and competition
clearly indicates that the big box
stores are taking an ever-increasing
share of the market in mid- to
large-size cities at the expense of
independents. Relative to them, she
has a number of major weaknesses,
including being a smaller outlet,
limited financial resources, less
product selection, and weak buying
power from key suppliers such as
Nike and Adidas. The latter limitation
means that her retail prices will have
to be higher than the big box stores
in order to cover her higher costs.
Given her resources, correcting
the weaknesses does not seem like
a viable alternative. Ignoring the
weaknesses will almost certainly
lead to ever-decreasing sales
and probably bankruptcy. If she
chooses to adapt to her companys
weaknesses, this could lead to her
deciding to locate stores in smaller
cities and towns, ones that do not
have populations big enough to
support a big box store, but can
support her more modestly sized
outlets.
With individuals, especially recent
graduates, a common weakness
arises when, in order to enter a
particular industry, they need
previous experience in it. To many,
this is perceived as a classic chicken-
and-egg situation. (How can I get
industry experience when no one
in the industry will hire me in the
first place?) This could lead them
to conclude that their lack of
experience doesnt qualify them
for a job in this industry, and to
choose another one that doesnt
require experience. Alternately, they
could decide to try to remedy this
weakness by getting experience in
a related industry as a step towards
Conducting Your Situation Analysis
getting a job in their chosen field. If
they discovered this weakness one
or two years prior to graduation,
they could try to secure part-time,
seasonal, or volunteer work in this
industry as a means of getting
experiencethe proverbial foot in
the doorand later move to the
industry that truly attracts them. The
point is that many weaknesses can
be corrected in time, and genuine
efforts to do so can, at times,
influence employers evaluations
and decisions. For example, say you
lack experience with a particular
software; working with it in your
spare time, and taking a tutorial or
course can demonstrate that you are
committed to learning it.
Opportunities
Opportunities are any relevant
circumstances that can enable
you to take advantage of your
strengths and/or foster superior
performance. Opportunities are not
internal and you dont necessarily
control them, but by being aware
of them, you can maximize your
chances of being on the right side
of the street at the right time. The
number of opportunities open to
organizations and individuals is
infinite. The resources available to
exploit them are very limited. The
focus here should be on identifying
and analyzing those opportunities
that match your resources and
basic goals. (We will discuss goals
and objectives in the next module.)
Conducting Your Situation Analysis
Module 3
Keep in mind that opportunities
can be created by any and all of
the environmental factors that
were covered earlier in this module.
For instance, if your basic goal is
to be a self-supporting musician,
say, a keyboard player, you could
look at recent trends and changes
in musical tastes to try to identify
new or existing markets not yet
being satisfied. Should your goal
be to work for a company in the
pharmaceutical industry as a
salesperson, for example, you should
research what the emerging trends
are in the industry, particularly those
in the areas of technology and
legislation, and assess how these
trends can support the demand for
what you have to offer (i.e., your
knowledge, skills, and personal
characteristics) and, as much as
you possibly can, enhance your
competitive position.
Threats
As is the case with opportunities,
threats are external to the
organization and the individual,
and can come from any of the
environmental factors discussed
earlier. Threats include any
unfavourable current or potential
changes in the organizations or
individuals environment that could
damage its ability to perform and
compete. Threats can also be any
change that suddenly turns one
of your weaknesses into a liability,
making it impossible to adapt to it.
Module 3
22

On the economic front, for example,
if interest rates were forecast to
increase significantly, this would be
a threat to organizations in the real
estate industry. If rates did indeed
go up, the cost of mortgages and
home ownership would escalate,
thereby reducing demand for houses
and all of the services associated
with the sale of homes, including
those offered by real estate agents,
banks, title attorneys, and moving
companies.
Demographic shifts can result in
threats. Consider that for the past
three decades in North America, the
number of first marriages has been
steadily declining. This represents
a major threat to companies in
the wedding industry, including
dress manufacturers, tuxedo rental
companies, and catering facilities
as well as to individuals working
in it, such as wedding planners,
photographers, and caterers.
Competitors must always be
regarded as threats for both the
immediate and longer-term future.
Thats why a thorough analysis of
existing and expected competition
is essential. Relative to you or your
product, what are your strengths,
and how can these be used to your
disadvantage? What is the nature
and scope of the threats that your
competitors represent? Remember,
as with all threats, the greater
the extent to which you expect
competitive threats, as opposed to
being surprised by them, the more
effective your response is likely to be.
Finally, threats can lurk in the
technological, political, and legal
environments. Think of the effects
that file sharing has had on the
recorded music industry, or that
anti-smoking legislation is having
on the tobacco industry, or that
intellectual property laws and their
enforcement has on the designer
brand name fashion industry,
particularly where counterfeiting is
concerned.
How marketing-savvy
have you become?
1. Why is a situation analysis so
important to the marketing
planning process?
2. Identify three key demographic
trends that could have a powerful
influence on demand for your
product in the next five years.
What leads you to believe that this
will be the case?
3. What is the difference between
data, information, and intelligence?
Why is it important to gather
market intelligence?
4. Give two examples of recent
technological changes in your
chosen field and demonstrate
how they have influenced the way
Module 3
Conducting Your Situation Analysis
customers in your field go about On the bookshelf
buying or hiring. These books are suggested
for your reading pleasure
NOW WHAT? and to complement your learning
Using the marketing plan experience.
template provided at the
end of this module as a roadmap, Competitive Strategy: Techniques for
you now have what you need to Analyzing Industries and Competitors,
complete your self-assessment by Michael Porter (1980/1998),
and your situation analysis. With The Free Press.
this in place, the next step in This book provides detailed step by
preparing your marketing plan is step tips and techniques for doing
to set objectives for yourself or your industry and competitive
your business. These objectives will analysis.
ultimately lay the groundwork for
the strategies and tactics that youll Competitive Advantage:
be using to put your marketing plan Creating and Sustaining Superior
into action. Marketing objectives and Performance,
goal setting are the key topics that by Michael Porter (1985/1998),
well cover in the next module. The Free Press.
Check it out
These websites and online resources are intended to complement your learning
experience and to address specific topics and concepts covered in this module.
www.cultureby.com is the website of Grant McCracken, a trained
anthropologist who has worked for leading companies.
His blog is an inspiring source of information on socio-
cultural matters.
www.bloomberg.com for industry and economic news
Module 3
Conducting Your Situation Analysis 23

SITUATION ANALYSIS MARKET AND INDUSTRY ANALYSIS
TEMPLATE a) Briefly define and describe (2
sentences) the field or area you
I wish to be: have chosen.
an entrepreneur b) How large is the market
a professional represented by the area in which
an artist you would like to work? In a
a job seeker typical year, how large in terms
of dollars spent (i.e., sales) is this
In the field of market? Is the marketing growing
or shrinking? How many people
______________________________ are employed in this market?
How many new employees,
entrepreneurs, professionals, and/
or artists enter this market in a
typical year? Who are the key
organizations/individuals, if any,
that exert high levels of control in
that area?
c) Describe the competitive
forces in your chosen field:
How significant is the threat of
new entrants? How would you
assess the power of suppliers? Of
buyers? Of employers? What is
the threat of substitution? What
relationships and rivalry exist
between competitors?
d) What are the particular regions
countries, provinces, states,
citieswhere the markets are
stronger and more promising?
Be as detailed and precise as
possible.
SITUATION ANALYSIS TEMPLATE
Conducting Your Situation Analysis
COMPETITIVE ANALYSIS
a) Against whom will you be
competing to get interviews,
offers, and sales? Be as complete
and thorough as possible.
b) Identify your direct competitors
and describe them in terms of
their strengths relative to yours.
Do the same for your indirect
competitors.
c) What are your competitors
skills, education levels, grades,
personality characteristics,
and network memberships. If
you will be selling goods or
services, identify and describe
your competitors product
quality, pricing, promotion, and
distribution activities.
d) How is your product perceived
by potential customers and
employers relative to your
competitors products?
Conducting Your Situation Analysis
Module 3
CUSTOMER ANALYSIS
In Lesson 5 on Segmentation, youll
have a chance (and additional
knowledge) to complete this
customer analysis, but for now, you
need to briefly describe customer
behaviour in your market. How
do your potential customers or
clients go about hiring new people
or buying the goods and services
that you offer? When and where do
they hire or buy? What benefits do
they seek? If you are selling goods
or services, what is the decision-
making process that your prime
prospects go through when it comes
to buying your product?
If you are a job-seeker, describe
potential employers in the fields
you would like to work in terms
of industry size, hiring behaviour
(i.e., how they go about recruiting
new employees, in what numbers
and when), skills, knowledge, and
other key characteristics sought
in employees. What are the salary
ranges for the types of jobs youre
interested in?
You will have a chance, and
additional knowledge, to complete
this analysis after Module 5.
Module 3
24

ENVIRONMENTAL ANALYSIS
Identify the key factors in each of
the following areas that will affect
the performance of the industry,
market, or field that you plan to
enter.
demographics
economic environment
political and legal environments
socio-cultural environment
technological environment
natural environment
SITUATION ANALYSIS TEMPLATE
Module 3
Conducting Your Situation Analysis
SWOT ANALYSIS
a) Which strengths do you possess To be leveraged Develop contingencies to deal with
that will make you attractive to
STRENGTHS WEAKNESSES
potential employers, customers,
and/or clients in your selected 1. 1.
INTERNAL
market? These strengths should
now be evidenced in the results of 2. 2.
your self-assessment tests.
b) Which weaknesses will you need 3. 3.
to address as you move to the
4. 4.
next step of setting your personal
marketing objectives?
c) What are the key opportunities OPPORTUNITIES THREATS
that you should explore as they 1. 1.
EXTERNAL
relate to the area(s) in which you
would like to work? 2. 2.
d) What threats do you need to be
aware of and address prior to 3. 3.
establishing your objectives?
4. 4.
Prior to performing your SWOT
analysis, its a good idea to revisit
the results of your self-assessment
tests. List the tests and the scores
you obtained and then summarize,
in a short paragraph, what these
results say about you and what you
have learned about yourself. Write
this paragraph such that someone
who doesnt know you, such as an
interviewer or recruiter, can get a
sense of what your personality is
like by reading it. Summarizing the
results of your tests will help you to
identify and articulate your strengths
and weaknesses. Once youve done
this, fill in the template on the right.
Module 3
Conducting Your Situation Analysis 25