Influence of environment:

1.       Opportunity: an event in the environment that may be favourable to a company may be suitably exploited by it for the overall benefit of the organization. A business opportunity may arrive due to changes in the tax structure, natural or climatic changes, changes in the competitions product designs change in some regulation, etc.

2.       Threat: some event in an environment may create situations where the profit margin of a company may be reduced or its very existence may be threatened. Emergence of stiff competition, due to new products and design, brain drain of the technical expertise due to lucrative offers from competitions, etc, are some of the examples of threats.

3.       Strength: certain companies have internet strengths that they build over the year viz. Research and development based information, trained manpower, distribution network, widespread infrastructure etc. which enable them to be highly competitive and to create a niche for the company in a highly competitive environment due to these core competencies.

4.       Weakness: some companies have inherent weaknesses, limitations or constraints, which prove to be strategically disadvantages. Some companies may depend solely on a single source for raw material or they may be doing only seasonal business and if a season is not favourable; their profits run into rough weather.