Enterprise Environmental Factors Explained With Examples


Most project is highly interrelated and influenced by two aspects, namely Enterprise Environmental Factors (EEF) and Organization Process Assets (OPA). In this article, we will first find out more about what Enterprise Environmental Factors (EEF) is. This article will also provide several examples for more enlightenment on this subject.

As the name suggests, ‘Environmental’ may refer to anything that is connected to natural causes that may impact humans’ daily life and activities. We have no control over natural causes. However, there are ways for us to adapt regardless of what nature brings us so that we could survive in this world. The same concept is applied in business as well.

In simpler words, enterprise environmental could be defined as the state of the enterprise or organization that influences business analysis. It may be the factor that influences the conduct, success, and flow of the business operating in an organization. Enterprise environmental factors are something nobody can control no matter what position they are. It is an inevitable cause that may positively or negatively influence the organization, project, product, and outcome. In most cases, enterprise environmental factors negatively impact the project, constraining the success and flow.

In this article, we will look into several examples of Enterprise Environmental Factors (EEFs) that play an important role in the success of a project or product. Before looking at the examples, let’s dive deeper into the importance of identifying EEFs and the impact it may bring to your project success.

Importance of EEFs and Impact

It is fundamental to be able to distinguish the difference between Enterprise Environmental Factors with its counterpart Organizational Process Assets. In simpler words, EEF refers to what to consider in our project. OPA on the other hand is the process utilized to execute the project.

To be a good project manager, it is important to be able to understand and answer questions circulating enterprise environmental factors (EEF). This is because it is one of the most crucial aspects emphasized in all project processes and management. It is an important input to most processes and business analysis.

Being aware of the potential EEF that may affect your project beforehand is crucial for project planning. Doing this allows you to anticipate any problems that may arise while processing the project. Thus, you may be able to counter the issues smoothly. Failure to do so may slow down the pace of your project or worst, failing the whole outcome altogether.

Hence, it is essential to be prepared to adapt well with the inevitable circumstances in the business world. This will help you to manage well within these examples of environmental factors to produce the best quality for your project.

Enterprise environmental factors may come as external or internal to the organizations involved. Let’s have a look at the examples from each category.



Click Here to download 3000+ Project Management Documents: Complete Library of Project Management Templates, Processes, Plans, Checklists, Forms, Tools, Presentation Slides and Infographics. Suitable For All Industries.



1. External Factors

The factors that are external to the organization refer to factors that are not revolving around the said organization.

  • Marketplace Condition

One of the external factors is the marketplace. The market is a huge platform and there are many branches related to the market alone. This may include the position in the market, potential competitors, customers, brand awareness, and many more. This is something beyond your company’s control.

This factor may influence product success in terms of the pace, duration, and the segregation of business analytics processes that are vital in developing the said product. Be sure the keep the marketplace conditions in check to adapt your project accordingly.

  • Political Factor

This is another factor that should be meticulously considered. Not only the state of your local politics, if you plan on widening your business to the international level, make sure to consider their political climate. Disruption or changes in politics may affect your business.

  • Social and Cultural Influences

Another factor that is beyond the control of an organization is the influence on society and culture. The culture of a community may hugely influence the acceptance of the said product. Examples of social and cultural factors are the politics, ethics, and norms of the community that are the target user of the product.

Aside from the target customers’ social and culture, always consider the norms of your other stakeholders as well. They are also part of the people involved in your project success hence consideration for them is really needed to secure success.

  • Expectations

Meeting the expectations of the stakeholders is another concerning external factors. The examples drawn from this aspect are the customer representation, levels of service, organizational politics and culture, and so forth.

Stakeholders may have little to most control over the product. Their expectations and needs matter hence the product ought to adhere to their opinions. This will affect the formality of the business analysis as well as the pattern of stakeholders’ collaboration.

  • Risk Appetite

Aside from the expectations of the stakeholders, the risk appetite from the stakeholders’ perspective needs to be considered. How much are they willing to take the risk for a project? This may avoid any dispute from happening after you have conducted a business process.

  • Government Regulations and Restrictions

Different nations may establish different kinds of laws about business. Legal restrictions may refer to local, laws and regulations on security, data protection, business conduct, employment, and many more. Does your project manager have control over this? The answer is no, hence it is one of the examples of EEF. When producing a product, be sure to comply with the regulations and laws established by the government. If you intend to export it to the international level, make sure to study the regulations of the other countries as well.

  • Contractual Restrictions

Contractual restrictions on the other hand refer to the partnership built with other parties. For instance, supplier, collaborator, employees, and many more.

Contractual restrictions may affect the storage, accessibility, and audit requirements needed for documentation. It may also influence the execution and filing of business analysis.

  • Industry Standards

Several organizations are responsible for establishing standards that are expected from an organization. One of the examples is the Project Management Institute (PMI), an organization at an international level which provides expectations and standard in conducting business analysis.

The standard set by these organizations helps to determine the current position of your business analysis, either it adheres to the requirements or needs to be further improved.

  • Academic Research

Aside from the factors related to government and community, another example that falls under external enterprise environmental factors is academic research-related information. You may want to consider previous studies related to your project or products. Doing this may provide insights that may help a lot in your project success. The other examples include publications, benchmarking, and many more.

  • Commercial Databases

The commercial database should be put into consideration in your business. This may provide you references on existing and previous information especially on cost estimation data, risk information, and risk databases. This may ease the operation processes of your business while improving your commercial values.

  • Financial Factor

Aside from considering your organizations’ finance, it is equally important to look into external financial conditions as well. For instance, currency exchange rates, interest rates, and so forth. By considering this factor, it may help a lot in monitoring your financial standing especially if you intend to broaden your business abroad. 

  • Environmental Elements

The last example of an external factor that is totally outside of your control is physical environmental. The examples in this are weather, working conditions, geographical conditions, construction sites, and many more. Taking this into consideration may limit your processes and guarantee achievable success for your project.

Internal Factors

Another category of EEF is the factors that are internal to the organization.

  • Organizational Culture and Administration

The project manager has no power over the hierarchy of your organization as well as the culture dwelling in it. Thus, this factor falls under EEF.

The culture, structure, and administration of your organization will affect your project management. Hence it is crucial to consider this factor so that your project is aligned with the goals of your company. Be familiar with the management of your company to ensure compatibilities between your product with the organization itself.

The more specific instances under this example are the organizations’ mission, vision, norms, ethics, beliefs, hierarchy, values, history, and so forth.

The prior business analysis used on previous products could also shape the current analysis happening in the organization.

  • Expectations

Yes, expectations from stakeholders may be the external as well as internal to the organization. Just as we all know; stakeholders comprise of all parties that are related to the product hence they could come from the organization themselves or outsider.

Just like any other examples stated before, expectations and risk appetite could affect the business analysis efforts. The collaboration with stakeholders is not excepted.

  • Geographical Factor

The example under this factor is the location of the factory. The distribution of geographical location may have effects on business analysis and operation.

  • Existing Facilities and Resources

What are the tools utilized by your business company? The examples under this factor are cloud-based computing, shared systems, virtual team, and many more.

  • Market Research

Research may help a lot in business analytics. One of the methods of market research is by gaining feedbacks from customers. Another way is by experimenting with the product that is delivered. This may provide insights on what to be improved on or innovated from the previous product.

  • Architecture and Infrastructure

The infrastructure and architecture of the enterprise is also a vital point in influencing business analysis. Enterprise architecture refers to all the components of technology used in operating the enterprise. Business architecture on the other hand is the structures, functions, processes, location, and any other components needed in a business.

Infrastructure, on the contrary, is the tangible tools and components in operation. The examples are facilities, equipment, hardware, and many more.

  • Available Technology Software

Business analysis may be affected by the availability of the tools. For instance, management tools, conferencing tools, analytic tools, modeling tools, and so forth.

  • Resource Policies and Availability

When planning your business operations, consider the existing contractors, collaborators, and the limitations that may come together with them. Would they be able to provide the necessary materials in accomplishing your business goals?

  • Financial Standing

That aside, consider your financial standing as well. Is your company’s budget stable? Bear in mind to always consider the revenue of your company as well as the budget that may be affected by your product.

  • Employees’ Expertise

When considering the internal factors of your organization, the employee is one of the things to be paid attention to. Look into their capabilities and competencies. If you established ambitious goals but you are lacking in the skills and expertise among employees, it may lead you towards failure.

Hence, it is very important to align your business processes with the current state of your employees’ competencies. If you strive to boost up their level, you may consider providing coaching so that it could directly influence your business analysis.

  • Security Policies

Another thing that should be considered is related to data security. What are the protocols that you will bring in protecting your customers’ or stakeholders’ confidential and personal data? What is the level of accessibility that is previously used or that you are planning to use? All of this is another example under the category of internal enterprise environmental factors.

Conclusion

When managing a business organization, being influenced by enterprise environmental factors (EEFs) is inseparable. EEFs are responsible for giving you a controlled organization environment to complete your project. It is crucial to note these influences since they have an impact on most business processes and management. It also aids in the process of business analysis. EEFs could positively improve management options. However, it could also negatively affect your project success.

EEFs provide the guidelines for managing your project. The EEFs in your project planning is subject to changes depending on your project progress.

It is highly emphasized that you have no control over these EEF mentioned? So, how do project managers avoid any negative impacts from these factors? With great planning and analysis, you may be able to cope with any factors that may influence your project. Be thorough with your planning and business analysis. Great planning may minimize loss and obstacles that may hinder your business processes.

Meta description: This article will elaborate on Enterprise Environmental Factor (EEF), one of the factors in influencing the success of a project. Examples for both internal and external are provided.

Recent Posts