This report provides a comprehensive analysis of IKEA's business environment, encompassing both internal and external factors that influence its operations. It begins with an introduction to the concept of the business environment and its significance for organizational success. The report then delves into the different types of organizations, including public, private, and voluntary sectors, illustrating their purposes and legal structures with examples like the Crown Prosecution Service and Action for Children. It explores the size and scope of these organizations, specifically focusing on IKEA, and analyzes the relationships between various organizational functions such as human resources, production, marketing, and finance. Furthermore, the report identifies the positive and negative impacts of the macro environment on business operations. Finally, it includes an internal and external analysis of IKEA, examining how its strengths and weaknesses interact with external macro factors. The report concludes with a summary of findings and recommendations for IKEA's strategic development.