International Journal of Commerce and Management Research 43 International Journal of Commerce and Management Research ISSN: 2455-1627; Impact Factor: RJIF 5.22 Received: 11-01-2019; Accepted: 14-02-2019 www.managejournal.com Volume 5; Issue 2; March 2019; Page No. 43-48 Company situation analysis and attainment of competitiveness in a dejected economy Dr. William Phiri 1* , Chansa Albert 2 , Euphrasia Ng’andwe 3 , Mainza A Malambo 4 , Pukeni C Pride 5 1-5 The University of Zambia, Institute of Distance Education, Lusaka, Zambia Abstract It should be acknowledged that Patricia Kakompe, Clement Machayi, Sampa Rita Seketa, Clement A. Wamuwi, Moyo Ceaser and Elizabeth Ndhlovu are part of the authorship of this article. Building a successful competitive strategy requires a business to magnify its strengths and overcome or compensate for its weaknesses. Company situation analysis is inward looking and focus is on the internal environment. It is an important element in assessing an organizational overall situation and includes the identification of strengths and weaknesses in the internal environment. Strengths are positive internal factors that a company can draw on to accomplish its mission, goals and objectives. They might include special skills of knowledge a positive public image or superior product. Weaknesses are negative internal factors that inhibit a company’s ability to accomplish its goals and objectives. Lack of capital or shortage of skilled labor are some of the examples. Company situation analysis can be tackled from a number of different perspectives including; Cultural, Financial, Research and Development (R&D), Production, Marketing and Resourcing Perspectives. It is an application to strategy formulation, and its incorporation into strategic management and development links analytical tools such as SWOT analysis and Porter’s Value Chain to resource based planning. This article therefore, presents a critical review of company situation analysis. Keywords: strategy, company situation analysis, SWOT and value chain 1. Introduction The key to building a successful strategy is using the company’s underlying strengths as its foundation and matching them against competitor’s weaknesses. Situation analysis is a starting point for developing a strategy. Before we can develop strategies for the future we need to understand the present. Situational analysis is a process we use to gain understanding and insight into our present situation. According to David (2011) [4] . all organizations have their strengths and weaknesses in the functional areas of a business. He states that internal strengths and weaknesses, coupled with external opportunities and threats and a clear statement of mission, provide the basis for establishing objectives and strategies. David further notes that strategies are designed in part to improve a firm’s weaknesses, turning them into strengths and maybe into distinctive competencies. A firm’s strengths that cannot be easily matched or imitated by competitors are called distinctive competencies. Building competitive advantage involves taking advantage of distinctive competencies. Thus company situation analysis is a process which aims to disclose all opportunities (capacity) and the risks inherent in the environment and assess the competitiveness of company's resources and existing market position. This analysis gives owners of a company a realistic perspective of their businesses, pointing out foundations on which they can build future strengths and obstacles that they must remove for the business to progress (Scarborough, 2014) [8] . In return it helps companies to determine the best way to move from the current position to a desired one. 1.1 The Process of performing an Internal Company Situation Analysis The process of performing an internal company audit in most cases parallels the process of performing an external audit (David, 2011) [4] Company situation analysis requires gathering and assimilating pertinent information about the firm’s management style, culture, finance and accounting, production, research and development, marketing and resourcing perspectives (Cole, 1997) [3] . As such, key factors in the areas outlined should be prioritized. (Ibid) [3] , identifies the following key organizational components when conducting an internal company situation analysis. 1.1.1 Organizational Culture Cole (1997) [3] refers to organizational culture as dominate values at work in an organization. Corporate culture usually includes dominant management style active in the organization, relations with customers and employees, attitudes towards quality safety, and ethical issues. Cole, suggests that culture plays different and critical roles in the life cycle of organizations. For example, at birth culture acts as the glue of the organization, holding the organization together. During mid-life the dominant culture begins to weaken and is subject to change, at maturity, culture can either be transformed in an evolutionary way, or subject to revolution in which former ways are swept away, and new culture develops. Most importantly, culture is reflected in the overall mission statement of the organization as it reflects on what an organization really believes in or wants to achieve and in the organizational ethos’ which are clearly understood by management and staff. Therefore, its importance in the process of strategy formulation and implementation should be emphasized. Ignoring this concept, may impact negatively on the success of strategy implementation. 1.1.2 Management Style Pits and Lei (2006) [5] refers to management style as, the different methods used by managers in managing an organization. Success or failure may amount to poor