This report provides a detailed analysis of the business environment, focusing on Tesco PLC as a case study. It explores different types of organizations, including public, private, and voluntary sectors, examining their purposes, legal structures, size, and scope. The report delves into the interrelationship between various organizational functions such as marketing, finance, HR, and IT, and how these functions contribute to achieving organizational objectives. Furthermore, it analyzes the positive and negative impacts of macro-environmental factors, using PESTLE analysis to assess the influence of political, economic, social, technological, legal, and environmental factors on Tesco PLC. The report highlights the significance of understanding the external environment for business success and provides insights into how organizations like Tesco adapt to and manage these factors.