An environment can be defined as anything which surrounds a system. Therefore, the business environment is anything which surrounds the business organisation. It affects the decisions, strategies, processes and performance of the business. The internal environment consists of different types of stakeholders - customers, employees, suppliers, board of directors and creditors. The external environment consists of factors which are beyond the control of the business (STEP) - Social, Technological, Ecological and Political.

• definition - http://en.wikipedia.org/wiki/Business_environment
• picture - http://telecollege.dcccd.edu