This report provides a detailed analysis of the business environment of British Petroleum (BP), a major player in the oil and gas industry. It begins with an introduction to the concept of the business environment and its impact on organizational operations. The report then employs a PESTLE analysis to examine the macro-environmental factors influencing BP, including political, economic, social, technological, environmental, and legal factors. Following this, a Five Forces framework is used to assess the micro-environment and competitive dynamics within the industry. The analysis extends to BP's internal environment, evaluating its resources, skills, capabilities, and core competencies. Finally, a SWOT analysis is applied to assess BP's strengths, weaknesses, opportunities, and threats, aiding in effective decision-making. The report concludes with a summary of the findings and overall conclusions about BP's strategic position within the industry.