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The definition of an environment can vary depending on what area you are considering. In general, it is the surroundings and influences on an item. In scientific terms, it is an ecosystem. But in Business the Environment is the combination of internal and external factors that influence a company’s operating situation. The business environment can include factors such as: clients and suppliers; its competition and owners; improvements in technology; laws and government activities; and market, social and economic trends. 1 The environment is consists of Micro level and Micro level.

All industries are operate within these two level. The Micro-environment (e. G. Our external customers, agents and suppliers.. ) influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. Micro-environment describes the relationship between firms and the driving forces that control this relationship, it’s a more local relationship. The Macro-environment includes all factors that can influence and organization, but that are out of their direct control (e. . Political forces, Economic forces, Socio-cultural forces, and Technological forces). A company does not generally influence any laws, it is continuously changing, and the company needs to be flexible to adapt. 2 From other side, The business itself can affect the environment either positively or negatively to a very large degree. How echo-friendly the employer is when it comes to using energy to heat and cool the building, to bring products into it, and to move waste from it has a major impact on the community and the planet. For example: Office buildings have a huge appetite for electricity to power lighting, air conditioning, computers, printers, and photocopiers. Equipment may be left on 24 hours a day, seven days a week, even when no one’s working. To get know more about environment, I will apply (STEP analysis) at McDonald’s company (the most likely company to me), the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries.

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A STEP analysis is used to identify the external forces affecting an organization . This is a simple analysis of an organization’s Political, Economical, Social and Technological environment. 4 Social Factor: focuses its attention on forces within society such as (demographics, values, lifestyle, age structure of population, class and income- structure of local population.

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