Environment is conceptually broad term and numerous authors have given their definitions of the environment. According to Buble (2005), the business environment can be defined as the overall occurrences and factors within and outside the business, which directly and indirectly affect its performance, behavior and development. Business is an open sistem that is influenced by environmental factors. The business environment is divided into the internal and external environment. The external business environment denotes all the factors outside the business which indirectly affect the business. The external business environment can be further divided into the general or macro business environment and task environment. Industrial environment is an additional segment oft he external environment. Porter's Five Forces Framework was developed by Michael E. Porter. Porter's Five Forces Framework is considered the best and the most commonly used instrument for assessing the competition of a business. Internal business environment consist of all the factors that are within the business and that affect the business directly, as the business affects them. Business environment is a source of resources, but also a source of uncertainty. The environment can be stable, risky and uncertain. The experts agree that a completely stable and passive business environment does not exist. Following methods are used when analyzing the business environment: business environment analysis, competition analysis and business-interested parties analysis. When analyzing the general environment, the following methods are used: general environment analysis, ETOP analysis, vulnerability analysis, and analysis and evaluation of technology. SWOT analysis is widely used when analyzing the internal business environment.