PMP lesson · Business Environment · The world around the project · lesson 1 of 2 · about 6 minutes
The external environment: markets, economy, politics and weather
All approachesFree preview
Goal: After this lesson you can scan the external environment (PESTLE), turn external changes into risks or issues, and respond through the right channels.
1The situation
The world kept changing
Halfway through the robot cell programme, the exchange rate moved 8% against the currency of the servo supplier. A new import tariff added 18% to the conveyor components. The only gearbox supplier is in a region where unrest is growing. And a competitor's product launch has cut the customer's demand forecast in half.
None of this was caused by the project. All of it affects the project.
2Scan the environment
A PESTLE scan reviews political, economic, social, technological, legal and environmental factors. Do it at the start, and keep monitoring.
Monitor
Continuously
External conditions change during the project.
Assess
Risk or issue
Probability and impact; update the risk register.
Escalate
When needed
Business-case or funding impacts go to the sponsor.
External change → reassess (don't rely on old ratings or a supplier's “business as usual”), plan a proportionate response, and use specialists (finance, legal) and governance where needed.
A simple checklist for what could change around the project.
4How it looks on the exam
Exam-style question 1. The sole supplier of custom gearboxes is in a region where political unrest has recently escalated, with reports of border closures. Deliveries are due in four months, and the supplier says it is 'business as usual'. What should the project manager do?
A. Rely on the supplier's assurance
B. Cancel the contract immediately
C. Treat it as a new risk: assess probability and impact, consider responses such as qualifying an alternative supplier or buffer stock, and monitor closely
D. Wait until the delivery date approaches
Show the answer and the decode
Answer: C.
In simple English
External political risk to a key supplier.
What is the question really asking?
The right response.
Key words / trigger
“political unrest … sole supplier”
PMP logic
New external risks are analysed and given timely, proportionate responses.
Why the wrong answer looks attractive
Trusting the supplier seems reasonable, but it can't control border closures.
5Remember this
Your memory card
Scan with PESTLE; keep monitoring
External change → reassess risks; plan proportionate responses
Use specialists (finance, legal) and governance where needed