This report provides an analysis of Zara's business environment, focusing on the interplay of internal and external factors. It examines the impact of political, economic, social, technological, environmental, and legal factors on Zara's operations. The report discusses Zara's strategies to mitigate the negative impacts of these factors, including its approach to import/export regulations, pricing, customer demands, technological advancements, and environmental concerns. The analysis covers Zara's internal strengths, such as its financial position, design capabilities, manufacturing processes, and supply chain management. Furthermore, the report highlights the importance of understanding the business environment and the tools and techniques used to minimize negative impacts and maximize opportunities for business growth and development. References from Dmitrijeva, et.al., (2020) and Fernández-Olmos and Ramírez-Alesón (2017) are included to support the findings.