8 Components of External Enterprise Environmental Factors

external enterprise environmental factors

8 Components of External Enterprise Environmental Factors




External Enterprise Environmental factors refer to conditions not under the control of the project team that influences or constrain, or direct the project. These are factors outside the organization that can influence the project.


Here are some of the external enterprise environmental factors…

8 Components of External Enterprise Environmental Factors

#1 Market condition

These are factors that can influence the entire organization. They are based on the activities of your competitors. You cannot dictate what your competitors are going to do at any given time. You need to consider what your competitors are doing when you need to make business decisions.



There are many political and cultural climates that can influence your project. You will have to consider the political climate in the country such as unstable political environment, code of conduct of people in an organization as well as ethics and perception of people in the organization.



Another external enterprise environmental factors are the legal conditional that the organization will have to comply with. Take, for example, an organization is planning to construct a new branch office, they will have to file the necessary document with the government. Also, fulfilling legal requirements might also warrant the initiation of a new project.



Another external enterprise environmental factors that an organization need to consider are the commercial database. They have to consider statistics that are available in any organization. This might also include standardized cost estimating data, industry risk study information, as well as risk database among others.



Some of the established academic research that has been carried out in a specific area will also determine what project an organization will likely embark on. It will also determine the direction that the project will follow. This will also allow the organization to see some of the implications of not doing anything. Some of these include industrial studies, publications, and benchmarking results for a particular industry.



Another external enterprise environmental factors that can influence choices in a project includes a regulatory agency in your industry, agency regulations, and standards related to products, production environment, quality, and workmanship.



There is nothing that can be done when there is no financial wherewithal to support a project. When an organization is deciding on which project to embark on, they have to look at the capital that is required to execute the project from the beginning to the end. If they do not have the required capital, they might not consider such a project for execution.



There are some physical conditions that are likely to impact the success of a project. When you are embarking on a project, you need to consider the period of the year that you are in as well as other physical conditions and constraints that are likely to impact the project, The duration you will set when you are constructing road during rainy season will be longer than the period you set when the road will be constructed during dry season.





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8 Components of External Enterprise Environmental Factors 1

Adeniyi Salau PMP , CCNA R&S , CDMP, CEP, MOS, MCP, CSCU (Project 2016), Microsoft Certified Security and Networking Associate is a Google and Beingcert Certified Digital Marketer, Project Manager and SEO Expert of repute with about a decade of Blogging and online marketing experience. He is always ready to share his experience with others.

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