Business and Business Environment - Aldi Assignment

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Various types and purpose of organisation with legal structure...........................................1
P2 Size and scope of organisation...............................................................................................3
TASK 2............................................................................................................................................5
P3.Relationship between various organisational functions and link with organisational
objectives.....................................................................................................................................5
TASK 3............................................................................................................................................7
P4 Positive and negative impact macro environmental factor over business operations............7
TASK 4 ...........................................................................................................................................9
P5 Internal and external analysis of ALDI..................................................................................9
P6. Evaluate how strength and weakness interrelate with external macro factors....................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to the combination of various elements that are present in
internal as well as external environment of the company which influence how an organisation
operates(Boons, and Lüdeke-Freund, 2013). ALDI is an international brand which is
headquartered in Germany, have over 10,000 discount supermarket retail stores present in more
than 20 countries worldwide. This report contains a description about types of organisations
along with the legal structure, size and scope. It also explains the functional departments that are
present in enterprise, their inter relationship with other units and organisational structure used by
companies. In addition to this project also contains the uses of analytical tools such as PESTEL
and SWOT which assists ALDI in identifying several factors that are present outside the
organisation and what threat & opportunities they contain with them. These tools help ALDI in
formulating strategies that contribute company's effort toward the achievement of organisational
goal.
TASK 1
P1. Various types and purpose of organisation with legal structure
There are various type of companies that having different purpose and legal structure.
These enterprise are as follows:
Private organisation:
Business which is owned and managed by independent organisation or private individual
and not being controlled by the government agencies. The main aim of private firm is to
maximize their profit(Cavalcante, Kesting, and Ulhøi, 2011). ALDI is the supermarket chain
established in UK is an example of private enterprise.
Purpose: The main purpose of ALDI is to provide quality products at lower prices. Company
utilises a lean approach for its business activity to provide quality products to their customers at
competitive prices. ALDI identifies the needs and wants of customer and do not compromise
with quality of products.
Legal structure of private organisation:
 Partnership: It is the formal arrangement where two or more party combine together to
control and manage a business. In partnership, partners contribute capital, resources,
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skills to operate business actions to achieve common objective. Partners have unlimited
liability as they share profit and loss.
 Sole proprietorship: It is a type of business where an individual or person owns and
manage the company and they are personally responsible for their debts. Sole
proprietorship does not has separate legal entity from the owner. It is most simple type of
business because there is ease of setup with nominal cost(Commander, and Svejnar,
2011). Limited company: It is type of corporation which limits the amount of liability that
undertaken by the company's shareholder. The share capital is restricted by the
memorandum of association and it is incorporated into legally distinct body.
Public organisation: It is type of business which is owned, controlled and operated by
the government and it is exist to offer services for citizens. Public enterprise raise funds from
variety of methods that are fees, taxes and financial transfers from other levels of government.
Nation Health Service is the best suitable example of public organisation. This company offers
various services related to health such as dental treatment, optical care, emergency services,
primary care and many more.
Purpose: The main purpose of National Health Service is that good health care should be
available for all. Company provides various services related to health such as optical care, dental
treatment, primary and emergency care. It remains free to use for all United Kingdom residents.
Legal structure of public organisation:
 State government: This is a unit of government which makes and enforces law for a
state. The responsibilities and power of state government are managed by the state
constitution(Ebert, 2011). This is responsible for control trade within state and also
establish different regulations for local corporation.
 Central government: This is a political authority that governs and manages the entire
nation. Rules and regulations are developed for state as well as local government by the
central government. Local government: This have only control over a specific area or region and don no
enforce laws which affects the wider area. Local government manages the public
administration of cities, towns, districts of a country.
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