The aim of this paper was to carry out a strategic analysis of the general environment with an emphasis on the perspective of small business entities sin the bakery industry using the example of the Olimp bakery in Osijek. Applying the conceptual framework of the PESTEL analysis, the key components of the general environment were systematized, trends in the industry were identified, and their potential impact on the Olimp bakery industry was critically valued. The most prominent factors affecting the political, economic, social, technological, ecological and legal spheres are complex administration and bureaucracy, corruption and frequent changes in laws and regulations. At the same time, the challenging economic situation for Olimp means an increase in costs, which will require an increase in product prices. Such a situation is crucial for directing strategic thinking and creating strategies that will enable Olimp to adapt and reduce the consequences of an unfavourable economic environment. The strategies proposed for the management of the general environment of trades in the bakery industry are lobbying, influence on customers and/or suppliers, and the adoption and consistent implementation of the selected generic strategy. The prepared strategic analysis brings useful information for the company Olimp as well as for the entire bakery industry. Furthermore, the work is useful to businesses in general as it indicates the current state of the general environment that may affect other industries as well.