--- title: "Project environment" subject: "ICT Project Management" chapter: 2 key: "semester_7/ict_project_management:project-environment" source: https://www.bctengineer.com/q/semester_7/ict_project_management/project-environment site: BCT Engineering --- # Project environment ICT Project Management · Chapter 2: Project Management Body of Knowledge - Asked in: year not given - Video: [Project Environments (Internal & External) || Project Management Concepts](https://www.youtube.com/watch?v=w8ly7LPsQMY) — Project Management & Leadership Concepts - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/ict_project_management/project-environment - Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-2 ## Question What do you mean by project environment? ## Short answer The project environment is the set of internal and external factors influencing a project. Internal factors include organisational structure, culture, policies, resources; external include economic, political, social, technological, market and natural conditions. PMBOK calls these enterprise environmental factors. ## Answer The **project environment** is the set of internal and external factors, conditions and forces surrounding a project that influence how it is planned, executed and succeeds. A project does not exist in isolation, so the manager must understand the environment. #### Components of the project environment 1. **Internal environment (inside the organisation)** - Organisational structure and culture, e.g. functional, matrix or projectized. - Policies, procedures and standards. - Available resources: people, funds, tools. - Management support and project governance. - Information systems and past project records (organisational process assets). 2. **External environment (outside)** - Economic conditions: inflation, exchange rates, funding. - Political and legal: government policy, laws, tax, licences. - Social and cultural factors, user attitudes. - Technological change: new platforms, standards. - Market and competitors, suppliers, customers. - Natural and physical factors: weather, location, disasters. 3. **Stakeholders**: sponsors, customers, users, team, vendors and government, each with their own interests. ```text +-------- External environment --------+ | Economy Law Society Technology | | +---- Organisation ----+ | | | Culture Structure | | | | +-- PROJECT --+ | | | +----------------------+ | +--------------------------------------+ ``` #### Why it matters - Defines constraints, assumptions and risks. - Shapes how the team is organised and communication works. - Changes in the environment can cause scope or schedule changes. PMBOK groups these as **enterprise environmental factors (EEFs)**, which are inputs to many planning processes. **Example:** A mobile payment app project in Nepal depends on Nepal Rastra Bank regulations, internet coverage and user trust in digital payment. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. The project environment is: A. Only the office where the team sits B. Only the project budget C. The list of tasks in the schedule D. Internal and external factors and forces around a project that influence its planning, execution and success Answer: D. A project does not exist in isolation; surrounding factors affect it. (Key point: Meaning) 2. Which is an internal environmental factor? A. Government tax policy B. Exchange rates C. Organisational structure and culture D. Weather Answer: C. Structure, culture, policies and resources are inside the organisation. (Key point: Internal factors) 3. Which is an external environmental factor? A. Company policies B. Laws and government regulation C. Past project records D. Management support Answer: B. Political and legal factors like laws are external. (Key point: External factors) 4. PMBOK groups these environment factors under the term: A. Enterprise environmental factors (EEFs) B. Work breakdown structure C. Organisational process assets only D. Critical path Answer: A. EEFs are inputs to many planning processes. (Key point: EEF term) ## Related in ICT Project Management - [Project development life cycle phases](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-development-life-cycle) — ICT Project Management, chapter 1 - [Project management body of knowledge](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Adefine-pmbok) — ICT Project Management, chapter 2 - [General management skills and project management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Ageneral-management-skill) — ICT Project Management, chapter 2 - [Project portfolio management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aportfolio-management) — ICT Project Management, chapter 3 - [Define project management](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Adefine-project-management) — ICT Project Management, chapter 4 - [Project life cycles in detail](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-life-cycles) — ICT Project Management, chapter 4 ## Related in other subjects - [Project environment and dynamic operation](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-environment-dynamic-example) — Project Engineering, chapter 1 - [Project operates in a dynamic environment](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Adynamic-environment-explain) — Project Engineering, chapter 1, asked 3× - [Classify project; characteristics; good environment](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aclassify-project-importance-environment) — Project Engineering, chapter 1 - [Project types and task environment elements](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-types-task-environment-elements) — Project Engineering, chapter 1