Final answer:
The business environment is structured in layers similar to Earth's atmosphere: the internal environment, micro environment, and macro environment, each affecting a company's operations.
Step-by-step explanation:
The layers of the business environment can be compared to the various layers of Earth's atmosphere such as the troposphere, stratosphere, mesosphere, thermosphere, and exosphere. Similarly, the business environment comprises different levels that include the internal environment, the micro environment, and the macro environment. These layers interact with one another and affect the operations of a business.
- The internal environment refers to factors within the company itself, such as employees, company culture, and management.
- The micro environment consists of players close to the business that influence its ability to serve its customers, like suppliers, competitors, and customers.
- The macro environment includes the broader forces affecting the business, such as socio-cultural, technological, economic, environmental, and political factors (STEEP).
Understanding these layers is crucial for businesses to thrive and adeptly navigate their industry's landscape.