Project environment analysis is a process of analyzing the external and internal factors that can affect the success of a project. It involves identifying, assessing, and managing risks associated with the project’s environment. This includes both physical and social elements such as political, economic, technological, legal, and cultural factors.
The purpose of project environment analysis is to identify potential risks that could impact the project’s success. By understanding these risks, project managers can develop strategies to mitigate them or take advantage of opportunities they present.
Project environment analysis should be conducted at the beginning of a project. The first step is to identify all relevant stakeholders and their interests in the project. This includes customers, suppliers, partners, competitors, government agencies, and other organizations.
Next, it is important to analyze the external environment by looking at political, economic, technological, legal, and cultural factors. This will help identify potential risks and opportunities associated with the project. Finally, it is important to assess the internal environment by looking at organizational resources and capabilities.