This report provides a comprehensive analysis of the business environment, focusing on the case of Tesco, a prominent UK-based multinational supermarket. It begins by defining and differentiating various organizational types, including public, private, and voluntary sectors, and explores their respective purposes. The report then examines the size and scope of organizations, categorizing them into micro, small-medium, and large enterprises. A key component involves analyzing the interrelation between different organizational functions and structures, such as divisional, network, and hierarchical structures, while also considering the complexities of transnational, international, and global organizational structures. Furthermore, the report delves into the impact of the macro environment on the retail sector, utilizing the PESTEL analysis to assess the political, economic, social, technological, environmental, and legal factors affecting businesses. The analysis includes both the positive and negative impacts of these factors, providing insights into how they influence the retail industry and specific companies like Tesco. The report concludes with an internal and external analysis of Tesco, identifying its strengths and weaknesses in relation to the macro environment.