At the start of the planning process you should always analyse the situation that the organisation is in. This will give you the best information for making decisions about future goals.
A situation analysis includes as a minimum the following two steps:
Step 1. Study the strategic goals of the organisation, especially the goal(s) that set the amount of profit that the organisation is trying to achieve. These goals should be supported by strategies about how they are going to be achieved.
Step 2. Study the environment, both external and internal . You may find it useful to do what is known as a SWOT analysis, which is an analysis of the organisation’s Strengths and Weaknesses (internal environment) and Opportunities and Threats (external environment).