This report provides an environmental analysis of the fashion industry, focusing on Burberry as a case study. It begins with an introduction to the global business environment and the importance of environmental analysis. The main body analyzes changes in the global business environment, particularly within the fashion industry, including the adoption of organic fibers and sustainable practices. It applies various environmental models, such as Porter's Diamond Model, Porter's Five Forces, and PESTEL analysis, to assess Burberry's competitive position and the external factors influencing its operations. The report then discusses Burberry's competitive advantages, including its brand positioning and stakeholder relationships, and offers recommendations for maintaining its competitive edge through brand awareness, social media engagement, technological investments, and sustainable practices. The conclusion emphasizes the importance of addressing environmental concerns within the fashion industry and the strategies Burberry can employ to mitigate its impact and maintain profitability.