The business environment term denotes institutions, external forces and factors that are beyond the business control and they affect the business enterprise functioning. These consist of suppliers, customers, government, competitors and the legal, social, technological and political factors etc. While some of the forces or factors may have direct impact over the business organization others may perform indirectly. Thus the business environment may be defined as the whole surroundings, which has indirect or direct bearing on the business functioning. It may be also defined as collection of external factors such as social, economic legal, technical, political and demographic factors, etc., that is uncontrollable in nature and affects the decisions of business of an organization (Pringle and Field, 2008).