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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