STRATEGIC

MANAGEMENT TOOLS
USED TO ANALYZE THE
PHYSICAL
ENVIRONMENT
 STRATEGIC FACTORS OF THE PHYSICAL
ENVIRONMENT
One of the best procedures to analyze a company's environment is to determine the key elements
existing in that environment. These elements help in determining strategic factors that influence
the direction, growth, and success of a company. The following are the key elements of the
physical environment:
• Physical resources (eg, Raw materials, arable land, and availability of fresh water)
 • Climate (eg, Temperature and weather-related events such as floods and storms)

• Wildlife
OBJECTIVE OF THE
ANALYSIS
The objective of a physical environment analysis is to determine the possible
strategie factors that can reduce the negative or unfavorable impacts of the
expected changes on the physical environment of a company. At the same time, the
analysis aims to evaluate the impact of a company's activities on the physical
environment.