This report provides a comprehensive analysis of the business environment, focusing on the Arcadia Group, a British multinational high-street clothing retailer. The report begins with an introduction to the concept of business and its environment, followed by an examination of the macro-environmental factors using the PESTEL framework, including political, economic, social, technological, legal, and environmental factors and their positive and negative impacts on the business. The report then delves into an internal and external analysis of the organization, highlighting its strengths, weaknesses, opportunities, and threats using a SWOT analysis. Furthermore, it explores the interrelationships between the internal strengths and weaknesses with external macro factors. The report concludes by summarizing the key findings and insights gained from the analysis, emphasizing how the external environment influences the business's objectives and decision-making processes. The report also touches on the legal and technological factors and their impact on the company.