This report examines the business environment, focusing on different organizational types, including public, private, voluntary sectors, and legal structures, along with their respective purposes. It analyzes organizations based on size and scope, using TESCO as a case study to illustrate concepts. The report explores the interrelationship between various organizational functions such as production, marketing, and research, and how these functions are linked to organizational structure and objectives. It highlights the significance of understanding both internal and external factors in achieving company goals and emphasizes the importance of proper planning, execution, and adapting to the business environment to achieve objectives. The report concludes with a discussion on how these elements contribute to the overall success and smooth operation of a business.