The document discusses the different environmental factors that affect businesses. It describes the internal environment, which includes a company's operations, distribution channels, competitors, publics, and suppliers. The external environment is larger and includes demographic, political/legal, economic, socio-cultural, technological, and natural factors outside a company's control that can still influence its success or failure. The external environment incorporates factors like customer demographics, existing laws and regulations, economic conditions, social and cultural values, technological advances, and natural environment issues. Understanding both the internal and external environments is important for companies.