An analysis of how actively the government regulates the market with their policies and how it would affect the production, distribution and sale of the goods and services. Economic Environment: An analysis of trends regarding macroeconomics, such as exchange rates and inflation rate, can prove to influence businesses. Social/cultural environment: An analysis interpreting the trends of society, which includes the study of demographics, education, culture etc. Technological analysis: An analysis of technology helps improve on old routines and suggest new methods for being cost efficient. To stay competitive and gain an advantage over competitors, businesses must sufficiently understand technological advances. SWOT A SWOT analysis is another method of situation analysis that examines the strengths and weaknesses of a company (internal environment) as well as the opportunities and threats within the market (external environment). A SWOT analysis looks at both current and future situations. The goal is to build on strengths as much as possible while reducing weaknesses. This analysis helps a company come up with a plan that keeps it prepared for a number of potential scenarios, as part of corporate planning or strategic planning Porter's five forces industry analysis Porter's model involves scanning the environment for threats from competitors and identifying problems early on to minimize threats imposed by competitors. This model can apply for any type of business, from small to larger sized businesses. Porter's model is not just for businesses, but can also be applied to a country to help gain insight into creating a competitive advantage in the global market. The ultimate purpose of Porter's five forces model is to help businesses compare and analyze their profitability and position with the industry against indirect and direct competition. References Strategic management Market research