The business environment will always dictate the success or failure of a firm in the market, depending on how management handles it. The business environment is always categorized into an external and internal business environment. These two business environments are very important in shaping the performance of a firm in the market. This research will analyze the business environment of a small auto-wash business unit, which also specializes in quick lube oil change. This research will analyze the external environment in which this firm operates. The research will also analyze the internal environment of this firm that has enabled it to stay a step ahead of other competitors in the market. The researcher will use SWOT analysis as a tool for analyzing both the internal and external environment of this firm. Strength                    Weaknesses                    Good Strategy               Poor Structures               Processes and systems       Inadequate Resources          Clearly stated Goals        Changing Culture              Strategic capabilities      Emerging technologies         Innovations                 Intellectual property         Good Leadership                                           Opportunities               Threats                       Economic growth             Legal and regulatory measures Innovation among employees  Global threats                Social factors              Environmental concerns        Technological advancements  Competitive of the market      Economic, legal, and regulatory forces and trends As was stated before, the external environment of a firm plays an important role in ensuring that a firm achieves its objectives in the market. When analyzing the external factors, one of the most important factors to look at is the economic environment. According to Pahl (2007), the economic status of the market will always dictate the buying trend. When the economy experiences some growth, this would mean that people would have higher purchasing power. This scholar says that the rise in per capita income in a country will always increase the purchasing power of the public. This explains the reason why recession always has negative consequences on firms. The major market for this firm is the middle class who own personal cars. This group makes the biggest market share for this firm. Any economic growth of people in this segment will always have direct positive sales on this firm. A business unit cannot operate in an environment that lacks laws and regulatory policies that guide its players in the market. This business operates in a market that does not have very strict regulatory policies in this country. This is because the law does not capture it into a specific industry that can enhance clear regulation. However, it is always considered a responsibility of the energy regulatory authority to monitor operations of firms in this sector. This is because there is a general assumption that these services are always conducted within a petrol station. One of the main regulatory policies that the government has been keen to make firms in this sector observe is the qualification of the individuals who are responsible for changing the lube. This i