The Situation Analysis has five areas: Perceptual Map, Demand Analysis, Capacity Analysis, Margin Analysis and Consumer Report. You can divide the areas any way you wish. Choose an analysis that interests you, or if you prefer, assign the tasks based on each team member’s functional area:

• The R&D Department can complete the Perceptual Map (new and revised products will not sell if they are not inside a segment circle)

• The Marketing Department can calculate the Demand Analysis (understanding current and future demand levels is crucial for accurate sales forecasting)

• The Production Department can do the Capacity Analysis (understanding the costs associated with purchasing new Capacity and Automation is extremely important)

• The Finance Department can look at the Margin Analysis (cash from operations is factored into the balance sheet)

• The R&D and Marketing Departments can complete the Consumer Report (poorly perceived products can be revised, priced more aggressively or promoted more heavily)

Once the analyses are completed, gather as a team and share the results. Overall, the Situation Analysis will give you an idea of where the market currently stands and where it will go.