1) what the teacher aims to achieve during the lesson - perhaps he wants the students to understand...for example he may design a lesson about adjectives.
2) the students - He would design one type of lesson for beginner students and a more difficult lesson for advanced students.
3) The situation - perhaps he is teaching in a modern school with a lot of resources, such as internet connection, overhead projector, etc. Or perhaps he is a poor school with nothing more than a blackboard.
All three of these components influence how a teacher will design a lesson.
The sentence is correct.