INTRODUCTION

The popular saying that goes, 'no man is an island', does not only apply to humans but can also be attributed to the business world. In order to remain active and competitive, an organisation needs to take into account, not only internal processes but also look into consideration its external environment. Factors such as competitors,new rules and regulations,changing marketplace, changing workforce and other related factors that have direct impact on the existence of the business must be seen as a crucial factor to the organisation.

A business environment encompasses those factors outside the normal business activities of an organisation but directly affects its decisions and is uncontrollable by the organisation. A change in consumer's taste will likely result in a shift in demand of a product such as fashion.

IMPORTANCE OF BUSINESS ENVIRONMENT

The importance of analysing an organisation's business environment cannot be more emphasized. Most businesses operate in an environment and whatever occurs in that environment also affect the business. The major importance can be seen in the following :

1. Detection of opportunities and threats: A business that is able to identify potential opportunities will normally have the upper hand as being the first mover and early detection of threats will act as a warning signal of dangers ahead.
2. Coping with changes: With huge changes occurring in the society, there is need for business managers to be aware of these changes and develop the best strategies with which to handle the changes.
3. Performance Efficiency: Businesses that monitor their immediate environment closely and adapt fast to its changes will likely record successes than those who do not.

TYPES OF BUSINESS ENVIRONMENT

Every business operates in a micro environment and a macro environment.
A micro environment of a business