The nature of the environment determines the framework within which the organization conducts its activities. The environment sets legal, technical-technological, socio-cultural and other limitations to the organizations.

Business is affected by different factors which collectively form the business environment. These include economic, social, legal, technological and political factors. Business environment is therefore, the total of all external forces, which affect the organization and the business operations (Kotler &Armstrong 2004).

The external business environment consists of economic, political and legal, demographic, social, competitive, global, and technological sectors. Businesses today must deal with the unique preferences of different generations, each of which requires different marketing approaches and different goods and services.

The external environment is represented by a set of institutions and external forces that influence survival and/or progression of the organization. It directly or indirectly influence the objectives, plans, procedures, activities and results, playing an important role in the organization.