This report provides a detailed analysis of Telstra Corporation Limited's business environment. It begins with an introduction outlining the importance of environmental factors in strategic decision-making. The report then analyzes Telstra's operations, including its services, history, and key personnel, followed by an external environment analysis using PESTEL and Porter's Five Forces frameworks to identify key factors affecting the company. The analysis covers political, economic, social, technological, environmental, and legal factors, along with competitive forces, highlighting their impact on Telstra's profitability and market position. The report also examines the losses suffered by Telstra, pinpointing specific events that contributed to these losses based on the external analysis. Furthermore, the report explores potential growth opportunities for Telstra and concludes with strategic recommendations for the company's management, focusing on how Telstra can overcome future losses and sustain growth in the competitive telecommunications market. References are included to support the analysis.