In the GNU-Make manual the How make Reads a Makefile https://www.gnu.org/software/make/manual/make.html#Reading-Makefiles sections says
GNU make does its work in two distinct phases. During the first phase it reads all the makefiles, included makefiles, etc. and internalizes all the variables and their values, implicit and explicit rules, and constructs a dependency graph of all the targets and their prerequisites. During the second phase, make uses these internal structures to determine what targets will need to be rebuilt and to invoke the rules necessary to do so.
I am not able to understand the difference b/w the two phases clearly. May be looking at an example will help understand. Are there any links or tutorials which clarifies what exactly happens in the first phase and second phase.