This report examines McDonald's business environment, analyzing both internal and external factors that influence its operations. It begins with an introduction to the business environment and its impact on businesses, using McDonald's as a case study. The report then explores the external environment, covering political, economic, social, technological, environmental, and legal factors (PESTEL analysis), highlighting both positive and negative influences. It also delves into the internal environment, utilizing a SWOT analysis to identify McDonald's strengths, weaknesses, opportunities, and threats. The analysis considers factors such as brand image, technological initiatives, employee satisfaction, supply chain issues, rebuilding brand image, online ordering, environmental concerns, competition, and legal regulations. The report concludes by summarizing the key findings and emphasizing the importance of strategic analysis in navigating the complexities of the business environment. References are provided to support the analysis.