The situation analysis presents various elements that make up the microenvironment. Many questions need to be should be answered by the organization in the situation analysis. This will help create a report on the current situation of the organization and it's current market or the market it may be trying to penetrate.

The first set of questions should be asked to better define the market:

• How big is the current market?
• How fast is the current market growing?
• What are some of the trends that are affecting the current market?

The next set of questions asked are to better define the current organization:

• What is the product and or product line?
• What is the companies image in the market?
• How is the corporate culture?
• Name the current goal of the organization?

The third set of questions can help determine the customer base for the companies product line:

• What are the market segments?
• Where would the customer purchase the product?
• What are the products benefits to the customer?
• What would be the drive or motivation to purchase the product?

The last set of questions can help identify competitors:

• What is the competitive advantage in the current market?
• What is the companies positioning in the current market?
• What are some of the strengths and weaknesses of the competitors?