This report discusses the positive and negative impacts of the macro environment on businesses, using the case of Tesco PLC. It explores the concept of business environment analysis and its role in decision making. The report also delves into the internal and external analysis of Tesco to identify its strengths and weaknesses. Additionally, it explains how these strengths and weaknesses interrelate with external macro factors. The report concludes by emphasizing the importance of considering the business environment when making strategic decisions.