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What is Environmental Appraisal? What are the Stages Involved in Appraisal?

>> October 28, 2011


For finding business's available opportunities and risks, environmental appraisal is needed. Environmental appraisal means to analyze all the factors of business environments. Following are the main stages involved in environment appraisal.


1st Stage : Factors Affecting Environmental Appraisal

Following are the main factors affecting environmental appraisal

a) Factors relating to environment

We can not evaluate equally two organisation in same environment. we have to study every organisation's complexity and flexibility.

b) Factors relating to Organisation

Age of organisation will affect our environmental appraisal. We also see the organisation's size for doing business and its market type. What are the services and products, it is providing?

c) Factors Relating to Strategies

Policy makers  play  important role in appraisal. Age, education and experience of policy maker  will affect the environmental appraisal.

2nd Stage : Identification of Environmental Factors 

In second stage we have to identification of environmental factors on the basis of following issue

a) Critical Issues

b) High Priority Issues

c) Low Priority Issues

3rd Stage :  Structuring the Environmental Appraisal 

This is the third stage of environmental appraisal. In this stage, we create the structure of environmental appraisal. One side of structure will be our strengths and other side will be our weaknesses. By comparing both, we estimate our surviving power in the environment of business. 




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