Theme of this final thesis is "Influence of the marketing environment on differentiation strategy in international marketing“. This thesis has the form of case study based on leading Croatian bakery industry - Mlinar. The fact that Mlinar expanded to international markets of Slovenia, Hungary, Slovakia, Germany, Australia and Saudi Arabia made Mlinar a perfect candidate to become the theme of this thesis. In the first part of the thesis there is the introduction which introduces us to company Mlinar, its history and current affairs, following introduction there is methodology. Theoretical explanation of the cultural, social, economic, political, legal and technological environment along with theoretical explanation of differential and standardized marketing strategy follows. The next phase of the thesis is the case study. It consist of interviews with executive directors, database of Mlinar and secondary sources which helped to describe procedures and steps of expand. The markets that were mentioned before are each described throughout five environments with main focus on cultural, social, economic, political and legal environments, while due to specifics of company and its activities technological environment is less included. Along with description of environments, the other very important decision is explained - the decision of strategy. The thesis ends with conclusion about the specific situations that include Mlinar and with the general conclusion of connection between environments and marketing strategies.