the arrangement of one's environment
Original Dramatica Definition
Situation describes the ins, outs, and practical considerations of the environment in which a character finds himself. Throughout a story, the situation may evolve or may remain constant, depending upon the essence of the message and the nature of the plot. Since it is limited to the practical, Situation can only be measured and/or interpreted though Reason.
syn. how things stand rationally, a reasoned evaluation of environment, arranged context, environmental state, surroundings, predicament