Interaction Between an Organization and Its Energy Environment?

PEST Analysis
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jahan dehghani

Interaction Between an Organization and Its Energy Environment?

I read a text about organizational-environmental interaction and it has named factors affecting the interaction such as: social, economical, political, legal, etc.
But at the end of these factors, it was written: other factors such as labor supply and energy environment.
What does energy environment mean?


Jaap de Jonge
Editor, Netherlands

Energy Environment Analysis of a Firm

The "energy environment" is part of the external environment of a firm. There are many ways in which the energy environment could influence the strategic position of a firm. Especially if it is consuming a lot of energy. Just consider that each firm is competing with others who could be located in another energy environment.
Some examples:
- Is there enough energy available?
- Is the supply reliable (uninterrupted)?
- What are the costs (compared to other regions/countries)?
- Are these costs increasing?
- Are these costs fluctuating?
- Is the energy clean (green)?
- There are many more.
You might consider all of these elements under the P, E, S, or T categories of PEST analysis. Or create a separate category if it is very important for the company at hand.


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