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PROJECT
ENVIRONMENT
SE 132

WHAT ARE THE FACTORS THAT IMPACT

A PROJECT?
Topic Outline
INTRODUCTION TO PROJECT ENVIRONMENT
PROJECT ENVIRONMENT
I
COMPONENTS OF PROJECT ENVIRONMENT

METHODS OF PROJECT ENVIRONMENT ANALYSIS

SWOT ANALYSIS
II PESTLE ANALYSIS
SUSTAINABILITY
17 SUSTAINABLE DEVELOPMENT GOALS

Introduction to
Project
Environement
WHAT IS PROJECT ENVIRONMENT?
 Project Environment

The Project Environment or Project Context

are the factors which can be external or
internal to the organization that is responsible
for the project's management and execution.

Moreover, Project Environment represents a

connection, where the project is processed. It
impacts the project and is, therefore,
conditioned
Components of Project Environment

Internal Environment
Refers to all the factors that come from within
your project.

External Environment
A project’s external environment consists of
the factors that exist outside of the
organization.
Internal Environment

The Internal Environment in which a project is

developed consists of the factors that are
internal to the organization, but outside the
project itself.

Internal influences include the organization’s

management, the project team, internal
departments (technical and financial) and
possibly the shareholders.
External Environment
The External Project Environment is made up of
all the factors that are not under the direct
control of your organization

The External Factors making up this environment

are the client or customer, various external
consultants, contractors, suppliers,
competitors, politicians, national and local
government agencies, public utilities, pressure
groups, the end users and even the general
public.
 The Project
Environment
Diagram
 Methods of
Project Environment
Analysis
HOW TO DETERMINE THE PROJECT ENVIRONMENT?
 Methods of Project
Environment Analysis

SWOT Analysis
(Strengths, Weaknesses, Oppurtunities and
Threats)

PESTLE Analysis
Political, Economic, Social, Technical, Legal,
Environmental
 SWOT Analysis

The SWOT Analysis is a framework for identifying

and analysing the internal and external factors
that can have an impact on the viability of a project,
product, place or person.

The analysis is credited to Albert Humphrey, who

tested the approach in 1960s and 1970s at the
Stanford Research Institute.
 SWOT Analysis

The SWOT Analysis is a framework for identifying

and analysing the internal and external factors
that can have an impact on the viability of a project,
product, place or person.

The analysis is credited to Albert Humphrey, who

tested the approach in 1960s and 1970s at the
Stanford Research Institute.
 SWOT Analysis
A SWOT analysis examines four elements:

• Strengths – internal attributes and resources that

support a successful outcome.

• Weaknesses – internal attributes and resources

that work against a successful outcome.

• Opportunities – external factors the project can

capitalise on or use to its advantage.

• Threats – external factors that could jeopardise

the project.
 SWOT Analysis

A SWOT analysis helps you:

build on strengths (S)

minimise weakness (W)
seize opportunities (O)
counteract threats (T)
SWOT Analysis
 PESTLE Analysis

PESTLE or PEST analysis is a tool used by

companies to track the environment in which they
are operating or are planning to launch a new
project.

A PESTLE analysis studies the key external factors

(Political, Economic, Sociological, Technological,
Legal and Environmental) that influence an
organisation
PESTLE Analysis
SWOT Analysis
vs
PESTLE Analysis

SWOT Analysis
vs
PESTLE Analysis

 Sample SWOT Analysis

on
IEC and SWMP in Campo Islam

S W O T
(Strengths) (Weaknesses) (Opportunities) (Threats)

Capability of Budgetary Introduce and Lack of interest to

reaching out and Constraints and educate first-hand realize the Solid
garnering direct Inefficient information Waste
insight from the engagement from regarding the RA Management Plan;
community the community 9003 and Solid as well as no
Waste change in attitude
Management of the community
members
Sample SWOT Analysis
of
Coca-Cola Company
 SOCIAL TECHNICAL

ECONOMIC LEGAL

POLITICAL ENVIRONMENTAL

PESTLE ANALYSIS
Two Types of Politics:
Internal Politics

External Politics
 INTERNAL POLITICS

- the stakeholders relationship to the project can vary from the very supportive to downright
antagonistic, but depending on their field of influence, they must be considered and
managed.

- the fact that project relies on clients, consultants, contractors (with their numerous
subcontractors), material and devices, suppliers, statutory authorities, and the end uses, all
of which may have their own agenda and preference, gives some idea of the potential
political problems may occur.
How to Navigate Internal Politics as a Project Manager
-Written by Lindsay Curtis

Foster Good Working Relationships

Look at All Sides of Conflict
Avoid Complicating the Situation
Remind Everyone That You’re In This Together
Look at the Positives of Politics
 EXTERNAL POLITICS
there are the external Politics, over which neither the sponsor project manager may
have much, if any control. any project that has ramifications is potentially subjected
to disruption due to the national or international political situation.

National
-In the middle of the project, the government may change and impose laws and regulations.
International
- For overseas construction contracts in countries with inherently unstable economies or
governments, sudden coups or revolutions may require the whole construction to evacuate
at short notice.
The economy is a broad subject, and there
are a lot of complex structures. However, at
a high-level, there are particular elements,
which have a direct impact—for example,
interest rates, monetary policy and resulting
inflation, consumer saving’s rate and
competition.
Internal economics is essential to ensure the viability of a
project and the soundness of the business case. Unless
there is a net gain, such as prestige, environmental,
social service or national security considerations, it is
important to use financial models and accountancy
techniques to ensure economic viability.

The decision to abort a project at any stage after the

design stage is not taken lightly, but once the economic
argument has been lost, it may be a better option. An
example of this is the mothballing of an odd-fired power

INTERNAL
station when the price of fuel oil rose above the level at
which power generation was no longer economic. It is
not uncommon for projects to be shelved when the cost
of financing the work has to be increased and the
resulting interest payments exceed the foreseeable
revenues. ECONOMICS
 EXTERNAL External economics, often related to the
political climate, can have a serious influence
on the project such as higher interest or
ECONOMICS exchange rates, and additional taxes on
labour, materials or the end product, can
affect the viability of a project.
Changes to fiscal and interest movements
must be monitored to ensure representations
can be made to government or the project can
be curtailed. Other factors that can affect a
project include tariff barriers, interstate taxes,
temporary embargoes, shipping restrictions,
and special licences.
 Social factors include cultural norms and expectations, health consciousness,
population growth rates, age distribution, career attitudes, health, and safety. Projects
may change various management strategies to adapt to these social trends.

Determining social factors is crucial to evaluate the lifestyle and culture of

the people as it has a direct impact on how, when and where they engage with the
project. This allows the project manager to shape the construction environment by
influencing opportunities for employment and skill-building. Encouraging investment,
creating buildings and spaces that connect communities, profit-making and improving
society by understanding lifestyle choices.
 Technical factors mean the innovations and developments in
technologies. These factors impact an organization’s operations or
projects. That may affect advances in efficiency in all facets of the
workplace, workforce preparedness, marketing and sales, and
general ease of communications within the society.
 Alternatives to be considered may include:
Should in-house or external design,
manufacture or installation be used?
Should existing facilities be used or
should new ones be acquired?
Should one’s own management team
be used or should specialist project
managers be appointed?
Should existing components (or
documents) be incorporated?
What is the anticipated life of the end
product (deliverable) and how soon
must it be updated?
Are materials available on a long-term
basis and what alternatives can be
substituted?
What is the nature and size of the
market and can this market be
expanded?
•Legal Factors include changes in legislations, industry
regulations, licenses and permits, contractual laws, employment
and consumer protection laws, discrimination law and health and
safety law.
•Legal factors include specific laws related to how citizens can
interact, the rights citizens have with businesses and the
government, how local government relates to national
government, and how the legal system is structured.
Environmental factors are all those that have
to do with the physical environment and the
general standards for environmental
protection.
 Some of the environmental aspects of a project have already
been alluded to under “Social”, from which it became apparent
that environmental-impact assessments are highly desirable
where they are not already mandatory.
The location of the project clearly has an enormous influence
on the cost and completion time.
 SUSTAINABILITY
A process of change in which the exploitation of
resources, the direction of investments, the orientation of
technological development and institutional change are
all in harmony and enhance both current and future
potential to meet human needs and aspirations.
 Project sustainability involves both individual and organizational
responsibility to ensure that outputs, outcomes and benefits are
sustainable over life cycles and during their creation, disposal and
decommissioning. Building sustainability into the vision at the very
start of the project – if sustainability is planned in as a key requirement
from the outset, it can’t be traded or forgotten.

Sustainability is relevant across all areas of project-based working.

Sustainability is a challenging concept for many project based
organizations but it is something project professionals are thinking
about more than before.
 Sustainable development is an approach to economic growth and
development that seeks to meet the needs of the present without
compromising the ability of future generations to meet their own
needs. It aims to balance environmental, social, and economic
concerns in order to achieve a healthy and prosperous society that
can continue into the future.

Project management must make greater efforts to address each

project’s social and environmental impacts so that the world we live in
and that we are borrowing from future generations can regenerate
and be sustained.
 Sustainable project management means implementing projects
that will serve to support future generations and society in social,
economic and environmental benefits.

Sustainability improves the quality of our lives, protects our

ecosystem and preserves natural resources for future generations. In
the corporate world, sustainability is associated with an organization's
holistic approach, taking into account everything, from
manufacturing to logistics to customer service.
 Sample
PESTLE Analysis
of
UBER
https://sdgs.un.org/goals
 A sustainably managed environment is a
prerequisite for socio-economic development
and poverty reduction. The natural environment
supplies ecosystem goods and services that
provide income, support job creation, poverty
alleviation, contribute to safety nets and reduce
inequity. Economic growth projects had a
slightly lower proportion of such beneficiaries
than poverty reduction projects. Projects to
promote human development and improve the
status of women had a significant.
 Achieve food security and improve nutrition
and promote sustainable agriculture. Hunger is
the leading cause of death in the world. Our
planet has provided us with tremendous
resources, but unequal access and inefficient
handling leaves millions of people
malnourished.
 Enhancing employee wellness while working in
the competitive project-driven space can be a
challenge for managers. A clean environment is
essential for human health and well-being.

Being a good healthcare project manager takes

some specific skills, including the ability to approach
and react to problems. Wellbeing includes physical
health, mental health, and emotional health as well
as more complex thing satisfactions such as and
engagement levels.
 Education related projects can be better planned
and executed with proper utilization of features within
these tools. Web-based tools allow better
communication and collaboration among people.

Project management in the high education

sector is not only about writing schedules, but it can
also be anything from lesson and curriculum planning,
to working on a new building or campus.
 Gender inequality is a problem that impacts
on all sectors. No company, organization or
country is immune from the challenges that a lack
of gender diversity brings.

Gender analysis provides an insight into

patterns of participation, behavior, involvement
and activities of women and men, considering a
diversity of socio-economic, political and cultural
structures. It therefore provides an answer to how
gender issues should be addressed in the project.
 Ensure availability and sustainable
management of water and sanitation for all
Ensure access to affordable, reliable,
sustainable and modern energy for all
Promote sustained, inclusive and sustainable
economic growth, full and productive
employment and decent work for all
 Build resilient infrastructure, promote
inclusive and sustainable industrialization
and foster innovation
Reduce inequality within and among countries
 Make cities and human settlements
inclusive, safe, resilient and sustainable
Ensure sustainable consumption and
production patterns
Take urgent action to combat climate
change and its impacts
Conserve and sustainably use the oceans,
seas and marine resources for sustainable
development.
 Protect, restore and promote sustainable use of
terrestrial ecosystems, sustainably manage forests,
combat desertification, and halt and reverse land
degradation and halt biodiversity loss
Promote peaceful and inclusive societies
for sustainable development, provide
access to justice for all and build
effective, accountable and inclusive
institutions at all levels
Strengthen the means of implementation
and revitalize the Global Partnership for
Sustainable Development
Please raise a hand if you have additional questions
 End of
Presentation
THANK YOU!