ABSTRACT
This chapter discusses the need to analyze the situation confronting your healthcare organization and to identify any assumptions on which the strategic plan will be based. We will first discuss the need to assess the environment within which the HCO operates to understand the nature of external influences. Next, the role of internal analysis of the situation within the healthcare organization will be addressed. It is critical that all attributes (whether strengths or weaknesses) of the organization be understood as well as features of its external environment (consisting of opportunities and threats) in order to establish appropriate assumptions on which to develop plans. Consequently, this step in strategic planning is critical to the success of the process.
