Can you imagine a football game without the players? Or without the ball? On the other hand can you think of any business operating outside its «field», its environment. There are synonymous activities between businesses and its environment since they influence each other in many ways.
In a few words companies take an outside - inside view of their environment all the time. This is a continuous process in order to monitor the changing environment and keep their strategies up-dated in order to meet the best opportunities offered.
Managers faced with the need to analyse effectively the environment have to deal with a problem. The formulation of a strategy that is concerned with matching the capabilities of an organisation to its environment.
Two are the main parts that need to be analysed each time: