This report provides a comprehensive analysis of IKEA's business environment, examining its organizational structure, functions, and legal framework. The report begins with an introduction to the business environment and its importance for companies like IKEA, which is a private retail company specializing in furniture. It then delves into the types and purposes of organizations, differentiating between public, private, and voluntary sectors, with a focus on IKEA as a private entity. The report explores the size and scope of IKEA, NHS, and Oxfam, highlighting their respective missions and operations. It also examines the interrelationship between various organizational functions, such as human resource management, marketing, finance, and production, and how these functions contribute to achieving organizational objectives. Furthermore, the report analyzes the positive and negative impacts of the macro environment on IKEA's business operations, including political, economic, social, technological, environmental, and legal factors. The report concludes with an internal and external analysis of IKEA, identifying its strengths and weaknesses and how these relate to external macro factors. References are provided for further reading.