It is the company's resources, capabilities, and operations. This analysis helps you identify the strengths and weaknesses of the firm. They are generally activities and events beyond your immediate control. They show you the opportunities and threats which might affect your business. The first item to be accomplished is the development or refinement of the mission statement.
Many firms find it is necessary to revise the mission statement that was drafted earlier.
The next step is to determine the goals and strategic direction of the firm. Since strategic planning is primarily long-range future planning, most goals will be those which are to be achieved more than one year into the future. Priorities must be determined as it might not be possible to achieve all the goals the company plans. Once goals are agreed upon, it is necessary to establish strategies and tactics to achieve those goals. Strategies are specific actions or activities needed to accomplish goals.