Environmental analysis is the process of assessing the various external factors that can impact an organization or project. This includes examining elements such as economic conditions, political stability, social trends, and technological advancements. By understanding these factors, businesses can make informed decisions and develop strategies that align with their environment. Additionally, environmental analysis often involves evaluating regulatory requirements and market dynamics. This helps organizations identify opportunities and threats in their surroundings. By conducting a thorough analysis, companies can better position themselves to adapt to changes and enhance their overall performance.