This report provides a PESTEL analysis of the business environment, focusing on Iceland and the United Kingdom. The analysis examines the political stability, economic factors like GDP and unemployment, and social aspects including customer expectations and market competition. It also considers technological advancements and the need for companies like Iceland to innovate. Environmental concerns, such as the use of hydrocarbon fuels and fertilizers, are addressed, along with the legal framework impacting business operations. The report emphasizes the importance of adapting to changes in the external environment and adhering to legal regulations to ensure business growth and customer loyalty. References include academic journals and online resources that support the analysis.