All organizations operate in an environment which effect most factors ranging from availability of skilled labor to prices of raw materials. Maintaining healthy business environment is very essential for organizations. For the same, it is important to consider the various environmental factors which impact the organization. It is obvious that an unhealthy environment in context to ambiance, hygiene, location, working culture, behavior pattern and many more will never lead to growth and success of businesses. Furthermore, it is also important to consider other environmental factors such as customer behavior, government regulatory and economic policies, strategies of competitors as well as opinion of public – impacting the success of the firm. Therefore, this environmental scan report will identify such important mentioned factors to further propose solutions to the various risks that they impose. For the same, we would consider the ‘Porter’s Five Forces of Competitive Position Analysis’ to conduct the micro-analysis framework for environmental factors affecting organizations. The competitive environment in which a product or a company works is well understood through this model developed by Michael Porter. Besides these factors, there are other external factors working on a growing firm. Each of them has certain implications and affects on different firms. These factors that we are talking about constitute of the macro-environment and are categorized into social, political, economic, technological, legal and ecological factors (Farooq, 2018). Understanding the external environment helps in effective utilization of opportunities and avoiding threats at the same time (Gartenstein, 2018). Extrenal Factors Which Impact OrganizationsThe external factors which impact organizations include competition, economic landscape, consumer choices and preferences, technological advancements as well as regulatory environment. The detailed explanation for the same is given below: (i) Competition: For determining success and growth of any organization, it is important to have a fair understanding of the companies that offer similar products / services – to suffice similar needs. In other words, while conducting a competitor analysis, it would be important to understand the targeted customer need and look for various possible ways in which the need could be addressed (Gartenstein, 2018). (ii) Economic Landscape: This factor in the environmental scan helps in understanding if the customers have enough economic power / money to spend on the products and whether or not they are in favor of doing so (Gartenstein, 2018). (iii) Consumer Choices and Preferences: For a detailed environment scan of business, it is important to understand how consumer choices and preferences impact functioning of firms. Therefore, knowing these trends, one could work towards developing innovative products and services in the benefit of customers. Such customers can further be influencers for the concerned products and services as they might encourage people in their network to try them too. (iv) Technological Advancements: these are variables which relate to availability and development of technology. Due to advancements made in the field of technology in various sectors, we can say that it hugely dictates the way things are done in businesses. (v) Regulatory Environment: All organizations and businesses work under strict laws and regulations. These determine what the organizations can do and what they cannot. This also includes various permits and licenses given to the organization for their functioning. Furthermore, the environmental factors can also be categorized into direct and indirect environmental factors. These are described as below: (i) Direct Environmental Factors: directly affect the operations of the organization. The included factors are suppliers, regulatory agencies, competitors, customers, labour unions and others. (ii) Indirect Environmental Factors: do not immediately affect operations of the organization. These include economic conditions, political development, events in foreign countries, socio-cultural factors, psychological factors, demographic factors, political factors and others. This mostly constitutes the macro-environment of firms .