Environment means surrounding objects. The environment of any organization depends on the conditions, effects that are happening around it. Business environment is dynamic, multifaceted and ever changing. Nothing is permanent in business. The effects of environment on any business are very far reaching.

                     Just an environment of an area is called what the things are surrounded by it , business environment is that which surrounds a business. It totally affects a business. Since a business is influenced by its environment, it is necessary for a company to administer its environment carefully. There are upcoming changes in the business environment and they can happen at any time. Thus, it becomes essential to control especially the external environment which is totally uncontrollable. Just as a human being takes decisions on the basis of his surrounding environment for e.g.: parents, peer group, role models, health, attitude, status etc. business environment can be understood better, once it is divided into its various components.

                                                           The surrounding of the environment of man can be splitted into two:-

Internal and External environment

Just as success or failure of an individual depends on his innate and inherent capability, the survival or success of any firm depends on its innate strengths. The extent to which the organization strives in the environment depends on the manner how it corresponds and manages with the different elements in the environment.

The company’s division in internal and external environment helps us to understand the complete environment in an easier way. Organizations do not function in isolation; they are managed by the two environments. The environmental factors vary from country to country and from organization to organization. In today’s business environment skills and dexterity is required in managing the environment of the business.

The internal factors are totally under the control of the business. They hold a major part in influencing the decisions of the business and also in the success of the business.

The external factors are by and large not under the control of the business. If a business has to make changes in their it has to be understood in long perspective to make a business successful.

Now, business environment is becoming a discipline and is taught an important subject in management courses.