277 International Journal of Academic Research in Accounting, Finance and Management Sciences Vol. 7, No.1, January 2017, pp. 277–290 E-ISSN: 2225-8329, P-ISSN: 2308-0337 © 2017 HRMARS www.hrmars.com Environmental Analysis and its Impact on the Competitive Capabilities of the Commercial Banks Operating in Jordan Sulieman Ibraheem Shelash AL-HAWARY 1 Ahmad Mousa AL-HAMWAN 2 1 Department of Business Administration, Faculty of Finance and Business Administration, Al al-Bayt University, P.O.BOX 130040, Mafraq 25113, Jordan, 1 E-mail: dr_sliman73@aabu.edu.jo, dr_sliman@yahoo.com 2 Al al-Bayt University, P.O.BOX 130040, Mafraq 25113, Jordan, E-mail: ahmed_badreen@yahoo.com Abstract The study aimed to measure the impact of Environmental analysis on the competitive Capabilities of the commercial banks operating in Jordan. The study population consisted of the general managers, and their assistant of the commercial banks operating in Jordan that amount (10) banks that estimated (93) managers. The Unit of Analysis included the whole population that estimated (93) managers. To achieve the objectives of the study, statistical analytical method was used through A questionnaire that used a major tool for data collection developed at the hands of elite researchers and writers in the field of management, which consisted of (51) items. A number of statistical tools and methods were used such as Mean, Standard Deviation, and Multiple Regression. After the analysis of the collected data and hypotheses, the result of the study showed that there was a significant impact of Environmental analysis represented by (strength, weakness, threats and opportunity) on the competitive Capabilities of the commercial banks operating in Jordan at level (   0.05). Based on the study results the researcher recommends the banks manager to concentrate on the study and analysis of information as one of the most important sources of competitiveness and to make interest how to reduce costs as reflected in the price of the service provided. Key words Environmental analysis, competitive capabilities, commercial banks, Jordan DOI: 10.6007/IJARAFMS/v7-i1/2701 URL: http://dx.doi.org/10.6007/IJARAFMS/v7-i1/2701 1. Introduction The steady developments in all areas paid business organizations to focus on strategic management, particularly with regard to environmental and strategic analysis, that forms the basis from which the organization can reach its goals, because of the information provided about the opportunities and threats in the external environment, the strengths and weaknesses of the internal environment. These factors have an effect on determining the appropriate strategic option which is one of the stages of the strategic management, which ends with determining the strategic paths which are important to the Organization to harmonize the strengths and weaknesses of the internal environment, opportunities and threats in the external environment. Competitive capacities and their development is the incentive factor that drives all toward tender and creativity, and achieve competitive advantage of superiority over competitors, leading to a higher rate of profit or return. Competitive capabilities play a big role in improving performance, as well as play a big role in achieving high standards of performance, and also at various levels concerning the financial performance of the organization and its processes, at various aspects of industrial and commercial activities, and service and reflection that naturally affects the customer satisfaction (Al-Doury, 2003). Developments in applications of strategic management and its effect in performance, particularly in the developed world, has pushed business organizations to analyze the internal and external environment elements, to enable them to determine the best strategic options available to them. As well as find out weaknesses and revitalized, and analysis of the external environment to learn to draw and exploit opportunities and challenges that may encounter, especially if those risks on the economies of developing countries, including Jordan, and it became necessary to enhance competitiveness in general, therefore, this study focused on linking environmental analysis elements to improve competitive capabilities in general, and commercial banks operating in Jordan especially, to clarify this important impact.