Every organization works in an environment consisting of several forces these forces provide both opportunities and threats In order to take the best possible from the environment, it must define itself, that is, what kind of company it is, or what kind of business it is in. This relates the organization with its environment. For example, the following descriptions provide the kind of company each is or the business it is in.
Modern ‘Food Industries Limited: manufacturing and marketing of nutritional foods to the public.
India Photographic Company Limited: a quality-oriented photographic system appealing to the consumer who desires instant photography. Such a definition of the company in relation to its environment provides a clear thinking for the type of efforts the company should make so that it achieves its objectives. The failure to define the nature of the company based on its objectives and environment leads to confusion about the way in which the company wants to move.
