Organisations operate in two distinct environments - the internal environment and the external environment. This unit considers the external environment, whereby decisions, issues and matters beyond the control of the organisation may slightly or severely impact on the organisation's ability to achieve it aims and objectives. These external influences may provide opportunities or may threaten the organisation.

Businesses must attempt to recognise and understand all aspects of the external business environment, although there will always be issues beyond their sight or control (such as the global financial crisis!) A STEEPLE framework is used to identify, organise and analyse the external environment. This tool investigates the Social, Technological, Economic, Environmental, Political, Legal and Ethical issues that may impact the business.