The document discusses business environment. It defines business environment as the set of conditions including economic, social, political, and institutional factors that have a direct or indirect impact on business operations. It notes that business environment consists of internal factors that are controllable by the business as well as external factors that are uncontrollable. Environmental analysis is the first step in strategic management to understand threats and opportunities posed by the business environment. The document further explains the different types of internal and external environment including micro and macro environment. It also provides details about SWOT analysis framework to analyze internal strengths and weaknesses and external opportunities and threats.