environmental (adjective, en-vi-ron-ment-al, \ ɪnˌvaɪrənˈment̬əl \) analysis (noun, anal-y-sis, \ əˈnæləsɪs \)
Definition: is a systematic process of identifying the business’s environmental factors (both internal and external), defining their impact on the company, and developing a strategy either to reduce their impact or to take advantage of them. In other words, an environmental analysis is a way to examine and understand all internal and external factors that might influence your business. These factors may be political, social, economic, technological, environmental, legal, human resources, etc. An environmental analysis serves to help business owners learn to adjust their strategic business operations to those environmental factors, use the opportunities those factors may present, and minimize the potential threats they might impose.
In a Sentence:
- One of the most important steps of every environmental analysis is identifying all of the factors that might influence the performance of our business, including the internal working environment.
- Forecasting the impact of various factors is probably the most difficult step of conducting the environmental analysis.
- A proper and thorough environmental analysis will help us set the direction of our company’s future development.
Synonyms and related words: internal environment, external environment, micro environment, macro environment, environmental analysis report, environmental framework