For Many Sport Facility Managers in the Public Setting, Pool

For many sport facility managers in the public setting, pool maintenance and operation have become prohibitive and as a result pools may be closed and demolished, operate on a limited bases, or be replaced entirely by water spray features that are more efficient and cost effective. This is an example of considerations that impact which step of the strategic management process?

A) Step 1: Establishing the organization's direction.
B) Step 2: Analyzing the situation - comparing the organization to its environment.
C) Step 3: Developing strategy.
D) Step 4: Implementing strategy.