 This phase is about comprehensively understanding the organization from possible factors that effect its functioning, impinge upon its
effectiveness and efficiency, and influences its future direction.According to Ackoff, in the past, situation analysis consisted of identifying the individual problems confronting an organization and classifying these problems as threats and opportunities, prioritizing them, and then focusing the planning in a way that reflected the priorities set on these elements.By the 1970s, planners began to realize that reality does not consist of sets of independent problems, but a system of interacting problems.