Business environment consists of all those factors that have a bearing on the business just as the survival and the success of individual depend upon his inmate capability to cope with the environment and the extent to which the environment is addictive to the development of the an individual the survival and success of a business from depend upon innate strength resources at command, including physical resources, financial resources, human resources, skill and organisations and its adaptability to the environment and the extent to which environment is favourable to the development of the organisation. the survival and success of a firm thus depend on two set of factors, viz , the internal factor and external factor However the term business environment often referred to the external factor
Any meaningful organisation has certain mission objective and goal and strategy to achieve them formulation of strategies if sometime defined as establishing a proper firm environment but indeed the mission objective goal themselves should be based on an assessment of the external environment and the organisational factor.
the external environment has broadly two components, viz business opportunity and threat to business organisation. Similarly the organisation environment has two component strength and weakness of the organisation does a strategy formulation is properly fitting the organisational factor against the opportunity and threat in the external environment.
A SWOT analysis therefore is one of the first step in the strategic management process to a large extent is a dependent pressure depend on inter alia the environmental dynamics..
