Final answer:
In Phase 2 of the international planning process, situation analysis is conducted to assess the market and understand the various internal and external factors that can influence a company's success in a foreign market.
Step-by-step explanation:
In Phase 2 of the international planning process, situation analysis is carried out. Situation analysis is a comprehensive study that includes understanding the internal and external factors that affect a company's ability to enter and succeed in a foreign market. It can involve an evaluation of the political, economic, social, and technological environment, often referred to as a PEST analysis. This phase assesses the market to establish a clear understanding of the opportunities and threats present in the international landscape. It is critical for making informed strategic decisions, particularly in the dynamic realm of international business.