The environment where project emerges, grows and terminates is called project environment. In other words, the factors or forces which influences the project activities and its ability to achieve the defined project objectives is known as project environment. Each project procures inputs from environment, processes them to convert into customized output and delivers again to the environment. Thus project cannot existed in vacuum. It operated in association with its environment. Project environment creates the situation of strength & weakness and opportunity & threats (SWOT).
Environment is ever changing phenomena, the degree of risk and uncertainty are mostly associated with the environment. The main cause of project failure is also the absence of adaptability to its environment. Therefore the project must adopt to its environment to achieve the objectives effectively.
Project environment can be classified into three group;
- Internal Environment
- Task Environment
- External Environment
1. Internal Environment
It is also known as controllable environment. It consist of a forces which are within direct control of project manager. It determines the strength and weakness of a project. The main forces of internal environment are as follows:
- Objective
- Constraints
- Resources
- Structure
2. Task Environment
It is also known as operating environment. It is made up of stakeholder of project. Their interest are affected by project and project is also affected by them. The different elements of task environment are interrelated and mutually complementary factors for the project because project resources that is inputs are procured from the task environment and outputs are again delivered to task environment. However, it is not within the control of project but it directly influences the project and its functions. The elements of task environment are as follows:
- Customers
- Contractors
- Consultants
- Suppliers
- Competitors
- Financiers
- Government
- Special interest group etc.
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