This report provides an analysis of the macro-environmental factors affecting Wesfarmers Limited, a major Australian company. It begins with an executive summary and an introduction that outlines the scope of the report. The core of the report involves the identification and analysis of various macro-environmental factors including political, economic, social, technological, environmental, and legal factors, using the PESTEL analysis framework. The report discusses how these factors influence Wesfarmers' operations, market position, and profitability. Furthermore, it identifies key challenges faced by Wesfarmers due to these environmental factors, such as increased competition, cultural differences, shifting consumer demands, economic fluctuations, and regulatory pressures. The report then proposes potential solutions to mitigate these challenges, including product innovation, customer relationship management, market analysis, and strategic adaptations. Finally, the report concludes by emphasizing the significance of understanding the business environment for organizational success, highlighting the importance of the PESTEL analysis in evaluating and responding to external influences.