According to whom, business environment is defined as total of all things external to firms and industries which effect their organization and Operations

Market environment and business environment are marketing terms that refer to factors and forces that affect a firm's ability to build and maintain successful customer relationships. (Source: Wikipedia)

Typical parts of a business's environment are: Employees, customers needs and expectations, supply and demand, management, clients, suppliers, owners, activities by government, innovation in technology, social trends, market trends, economic changes, etc.