This article focus to Discuss on External Environment. Here discuss External Environment in terms of managerial environment. All outside factors which will affect an organization constitute the external environment. The external environment is broken down into two parts: directly interactive and Indirectly interactive. Directly interactive is the environment posseses an immediate and firsthand impact upon the organization. A new competitor entering the marketplace is an example. Indirectly interactive is the environment incorporates a secondary and more distant effect upon the organization.