This report, prepared for a Business and Business Environment unit, examines various aspects of the business environment. It begins by defining the business environment and then delves into different organizational types (public, private, and voluntary), sizes (micro, small, and large), and scopes, using examples like Virgin Money, Tesco, and Cancer Research UK. The report then explores the interrelationship of business functions such as finance, marketing, human resources, and operations, highlighting their significance in achieving competitive advantage. Furthermore, the report analyzes the positive and negative impacts of the macro environment on businesses through a PESTEL analysis. Finally, it focuses on internal and external analysis, identifying strengths, weaknesses, and their interrelation with external factors. The report concludes by summarizing the key findings and emphasizing the interconnectedness of all elements within the business environment.