Thursday 17 February 2022

Internal & External Environment for Project

The project takes place surrounded by dynamic external and internal environments. For the successful implementation of projects, it is necessary to identify and take into account any possible action in relation to the project and its environment. The relationship between the project and the environments does not allow to draw a clear line between them. 


As a rule, the factors of the project's immediate environment include the areas of finance, sales, production, material support, infrastructure, as well as the management of the enterprise, since it determines the goals and basic requirements for the project, its implementation, management methods.

Given that the project is usually implemented in a particular environment, it should also be borne in mind the external factors in which it is implemented. Such factors are:

political - political stability; government support of the project; national manifestations; trade balance with participating countries; participation in alliances;

economic - the structure of the national economy; types of liability and property rights, including land; tariffs and taxes; insurance guarantees; inflation rate and currency stability; development of the banking system; sources of investment and capital investments; degree of freedom of entrepreneurship and economic independence; development of market infrastructure; price level; the state of markets: sales, investments, means of production, raw materials and products, labor, etc.;

social - conditions and standard of living; level of education; freedom of movement within the country and abroad; adequacy of labor legislation to social changes; prohibition of strike; health care and medicine; rest conditions; public organizations; mass media; attitude of the local population to the project;

legal – human rights; entrepreneurship rights; property rights; laws and regulations on the provision of guarantees and benefits;

scientific and technical — the level of development of fundamental and applied sciences, information technologies and computerization, industrial and industrial technologies; state of energy and transport systems; communication; communications;

cultural - the level of education; history; cultural traditions; religion; cultural needs of life support; work; rest; sports, etc.; the level of requirements for the quality of results and working conditions;

natural and ecological - natural climatic conditions: temperature, precipitation, humidity, winds, elevation above sea level, seismic, landscape and topography, etc.; natural resources; location and communication with transport networks; standards for the quality of airspace, water sources and ground cover; sanitary requirements for the environment; environmental legislation; characteristics of trends and state of ecological systems: air, water, soil;

 infrastructure means of transport, communications and communications, transportation of goods; communication networks and information systems; energy supply; utilities; raw materials and services; sales network, logistics, logistics; industrial infrastructure; service systems, etc.

The internal environment of the project is of paramount importance for the successful implementation of the project, since these factors contribute to or vice versa interfere with the achievement of the project goals. Consider the most significant of them:

economic conditions - related to the estimate and budget of the project, prices, taxes and tariffs, risk and insurance, incentives, benefits and other economic factors that operate inside the project and determine its main cost characteristics;

social conditions - are characterized by ensuring standard living conditions for project participants, the level of wages, the availability of utilities, the provision of social conditions (schools, kindergartens, medical care, conditions for rest, etc.); working conditions and safety, insurance and social security, etc.;

project management style - determines the psychological climate and atmosphere in the project team, affects its creative activity and efficiency;

organization of the project - determines the relationship between the main participants of the project, the distribution of rights, responsibilities and responsibilities and affects the success of the implementation of the plan. The project team is a "think tank", a motor and the executive body of the project, on which its progress and success depend;

methods and means of communication - determine the completeness, probability and efficiency of information exchange between interested project participants. In fact, this is the nervous system of the project, the degree of perfection of which determines its success.

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