Business and the Business Environment: A Comprehensive Analysis of ALDI

This report provides a comprehensive analysis of the business environment, focusing on the retail giant ALDI. It explores different types of organizations, their legal structures, and the relationship between organizational functions. The report also examines the impact of macro-environmental factors on ALDI's operations using PESTLE analysis and analyzes the company's strengths and weaknesses through SWOT analysis. This in-depth study provides valuable insights into the complexities of the business environment and its influence on organizational decision-making.

BUSINESS AND THE BUSINESS ENVIRONMENT
1

Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.......................................................................................................................4
P2 Explain the size and scope of a range of different types of organisations..............................9
M1 Analyse how the structure, size and scope of different organisation link to the business
objectives and product and services offered by your chosen organisation................................11
Task 2.............................................................................................................................................12
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure......................................................................................12
M2 Analyse the advantages and disadvantages of the interrelationships between organisational
functions and the impact that they can have on organisational structure...................................14
D1 Critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions.......................................................15
Task 3.............................................................................................................................................16
P4 Identify the positive and negative impact the macro environment has on the business
operations of your chosen organisation. You should support your answer by specific examples
from your chosen organisation...................................................................................................16
M3 Apply the PESTLE model appropriately to support a detailed analysis of the macro
environment that affects the operations of your chosen organisation........................................18
Task 4.............................................................................................................................................20
P5 Conduct an internal and external analysis of your chosen organisation in order to identify
its strengths and weaknesses......................................................................................................20
P6 Explain how strengths and weaknesses interrelate with external macro factors..................21
2

M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making by your chosen organisation.........................................................................................23
D2 Critically evaluate the impact that both micro and macro factors have upon the business
objectives and decision-making of your chosen organisation...................................................25
Conclusion.....................................................................................................................................26
References......................................................................................................................................27
3

Introduction
This report will help in understanding the purpose of different sort of organisations, as well as
their legal structure. The size and scope of different organization type will also describe in this
report. This will also help in understanding about the relationship which is in between the
different functions of organisation which has the link in between the product as well as services
and objectives of the business. This report will also help in knowing about the positive as well as
negative impact which the microenvironment is having on the operations of business with the
help of using PESTLE analysis. With the help of SWOT analysis, the internal, as well as external
analysis of the company, will be identified in this report that will also help in identifying the
strength as well as weaknesses. It will also explain the way through which the strength and
weakness are interrelated with the macro factors.
4

Task 1
Introduction
This report will help in knowing about different types as well as the purpose of different types of
organisation and the legal structure of the company will also be explained in this task. This task
will also help the reader to understand the size and scope of the different organisation.
P1 Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures
Source: (By author)
Private organisation- Private companies carry out the business to earn the profit and it is
considered as the renowned company. ALDI is a retail company which takes care of the fashion
so that more customers can attract towards the company. This will help the company to earn the
profit. It is the multinational retail company which deals in various sort of fashion material for
customers. It has various stores at different places in the world (Islam, 2016). ALDI has properly
maintained its brand image in the market area by making avail of the quality product to the
5
Private
organisation
Voluntary
organisation
Public
organisation

customers. The company takes care of all these things so that it can increase the profit of the
company.
The legal structure of ALDI
Source: Cleavercraver.com (2018)
Public organisation- These are the organisation which is being carried out by the government
bodies. These organisations carry out the business for benefiting the general public of the nation.
Child support agency is a public organisation which is being carried out for benefiting the
children those are in ill and those who require medical treatment. These organisations do not take
any sort of charges with the families as because the government carries out the organisations like
this for the required people. The government provides funds to this organisation so that it can
provide benefit to the needed people.
The legal structure of Child support agency
6

Source: hello (2018)
Voluntary organisation- a Voluntary organisation is an organisation which is carried out by
some group of people to provide services to the general people, etc. The organisations like
cancer research are operated by the group of people so that they can provide help to the people
those are suffering from the cancer issues (Knutsen, 2013). The entire voluntary organisation
works differently. These organisations collect funds by charity firms, government, and there will
be some of the other sponsors who provide the fund to these organisations to carry out their
activities
.
The legal structure of cancer research
7

Source: antibiotic research. (2017)
The organisations carry out their activities in a different manner and the purpose of the
organisations is different such as:
Organisation Purpose
Private organisation It carries out its activities to attain profit.
Provide better and attractive offers to the
customers.
For example- ALDI provides various ranges
of fashion products to its customers so that
sales can increase and company could get
profit.
Public Organisation To avail benefit to the general public.
Carry out the passion of the services.
It also takes care of the needs and wants of the
public (Mishra, 2013).
For example- The Child support agency
provide services, especially to the children.
This organisation carries out its activities to
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provide benefit to the public.
Voluntary Organisation The main objective of the organisation is to
give proper and required support to the people,
especially the poor people.
This organisation is carried out to have a
development of the society.
For example- Cancer research is that
organisation which carries out the operation to
provide proper benefit to the people those are
suffering from the cancer issues.
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P2 Explain the size and scope of a range of different types of organisations
Private organisation
It is analysed that the Aldi mainly owns the various number of a store at different places in the
world. It is considered that the company is growing in a continuous manner as well as it is
having the good brand image in the market area (Arellano-Gault, et. al., 2013). The number of
customers is attracting towards the company as it provides good quality products at affordable
price.
Size and scope of Aldi
 Aldi has approximately 7600 stores in different places in the world
 Employees working in Aldi are approximately 30,000
 It provides various sort products as well as services to the customers.
Public Organisation
The public organisations have a wide range of scope as it has operations of sustainability which
is followed by the company. It is seen that the government involvement is basically included in
it. It is considered that the scale of Child support agency is very wide as well it helps in
enhancing the database of the customers as well it helps in funding by the public (Shehu and
Mahmood, 2014).
Size and scope of Child support agency
 It is public funded
 Employees are not fixed; it is depended as per the need.
 It provides the services at different places
Voluntary Organisation
Cancer research is a voluntary company which provides precautions to the people for the cancer
issues. The scope of the organisation is very wide in nature. These organisations get fund
through different sponsors (Arellano-Gault, et. al., 2013). These sorts of organisation basically
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deal with the welfare provider to the people so that the community can get better. These
organisations are very much concern about the society.
Size and scope of cancer research
 The main purpose of the organisation is to promote the well-being of the society.
 This is ruined with the help of charity which it gets from different sponsors.
 It provides its services through worldwide
 There is no accurate number of people those are working in this organisation.
 The number of people works in a group to provide welfare services to the society.
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M1 Analyse how the structure, size, and scope of different organisation link to the business
objectives and product and services offered by your chosen organisation.
The structure, scope, and size of a different organisation are basically linked to the goals of the
business organisation. If the organisations have a good organizational structure that only the
organization set up the huge target as objectives. If the organisation has few numbers of
employees working in the company as well they even do not have that much of knowledge in
them regarding the roles as well as responsibilities which they have to perform in the company
then it can affect the company in carrying out the organisational objectives (Saxton, et. al.,
2012). Some of the organizations like Aldi invest according to its organizational size and set the
target huge. It is considered that each and every organisation has some of the common goals or
objectives according to which it carries out its functions the profits are earned according to the
objectives which it has. The entire organisation like private, public, voluntary set their objectives
as per the scope of their business. Aldi set their size and scope as per the products as well as
services which it provides to the customers. Aldi will set its target large as because it provides
good quality products and services to the customers as because the company set the target as per
its products and services as well as size, scope, structure in which it deals with.
Conclusion
This task helped in knowing about the different types of organisation structure. This also helped
the reader to understand the size and scope of the different organisation and their legal structure.
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Task 2
Introduction
This task will help the reader to understand the relationship which is in between the different
organizational functions as well it also help in understanding about the linkage in between
objectives as well as structure. This task will also help in understanding the advantages as well as
the disadvantages of having interrelation in between the functions of the organisation as well the
impact which can have on the structure of an organisation.
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
The production department of the business is responsible to produce products and service in best
possible manner. It works by taking care of the needs and requirement of the customers so that
no customer can face the situation of unavailability of the products and services. According to
Halibozek, et. al., (2017), the production department is basically linked with the marketing
department. As because as much as sales will get increased by marketing, it will create pressure
on the production department to increase their production. The marketing department works to
provide the products and services to the customers beyond time (Halibozek, et. al., 2017).
The accounts team works in managing the product and loss of the business by maintaining the
balance- sheet, ledger and etc. The accounts department works very hard in finding out the
annual revenue and annual expenses of the business. The accounts department is somehow
linked to the financial department. As because the accounts department finds out all the expenses
or revenues on the basis of budget sheet. After looking at the budget sheet, it gets easier for
accounts department to find out the actual situation of profit & loss. The financial department
works for preparing the budget sheet of the business. It provides the actual data and resources
which has been using in the organisation to products better products. As same it finds out the
wastages as well. All these departments are interrelated with the organizational functions which
help in achieving the objectives and goals of the business with maintained structure.This is how
other departments are also looked at the organisational objectives and structure as well.
13

M2 Analyse the advantages and disadvantages of the interrelationships between
organisational functions and the impact that they can have on organisational structure.
Advantages
 It is considered that having interrelation in between the different organisational functions can
help the company to properly maintain the support.
 It also grows the effectiveness of the company (Saxton, et. al., 2012).
 Appropriate execution of the activities as well as work
 Accurate research is being carried out with the help of different sources.
Disadvantages
 Each and every people of different branch know about the roles as well as responsibilities of the
other department people so that can also be harmful to others as it can harm the people.
 Conflict gets raised among the people
 Lack of knowledge
 Incorrect research can result in getting unfinished information.
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D1 Critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions.
The business structures and the interrelationships in between of various organizational functions
affect the success of the business in both negative and positive manner. It helps in increasing the
productivity and profitability of the business but many of the times it becomes the reasons for
conflict in between of different associations.Many of the times it helps in boosting up the morale
of the employees and business. As works get divided as per the specification of the employees, it
helps in presenting the efficiency and effectiveness in business. It is considered that each and
every function of the organisation is unique in their own manner. All the functions of the
organisation are different from each other but then also they are interlinked with each of them.
The functions are very much interrelated with each other as to carry out the organisational
activities in an accurate manner.
Conclusion
From the above task the relationship among the functions which the company is carrying out by
the company. This task also helped in understanding the objectives as well as the structure which
has the link in between the different organisation functions. This task also helped in knowing
about the advantages as well as disadvantages which is among the interrelation among the
functions of the organization.
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Task 3
Introduction
This task will help the reader to know about the positive as well as negative impact which can
have on the macro environment which has on the operations of the business on Aldi. This task
will help in knowing about the Pestle analysis model which is basically appropriate for the
company to analyse their macro environment.
P4 Identify the positive and negative impact the macro environment has on the business
operations of your chosen organisation. You should support your answer by specific
examples from your chosen organisation
The external factors have various positive and negative impacts on the business operations. All
the different factors such as political, legal, technological and social factors influence the
business operations of ALDI business.
(Source: BY Author)
 Positive & Negative impacts of Political Factors- The political factors impacts both positively
and negatively on the business environment. Many of the times the political issues become the
reasons of failure of the business. The time when the rules and regulations get changed regularly,
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Technolog
ical
Legal
Environm
ental
Political
Economic
Social

it affects the business environment negatively. As increased tax rates change the mind of the
customers for buying that products and services.
 Positive & Negative impacts of Economic Factors- According to Boyd, et. al., (2017), the
good economic condition leads the business to reach on top by achieving all the objectives and
goals of ALDI. On the other hand, the down situation or bad situation of an economy of the
country takes the business backward. It does not let the business to get success in any manner.
This is how it affects the business operations in such a negative manner.
 Positive & Negative impacts of Social Factors- Increasing the efficiency of current trends and
fashion helps in increasing the effectiveness of the business. Get updated with the current market
is the best way to increase the profitability of the business. Wherein lacking behind with it
impacts the business operations negatively.
 Positive & Negative impacts of Technological Factors-Technology plays a vital role in the
success of the business. Being updated with the new technology helps in increasing the demand
for the products and services. Lack of knowledge for using the technologies impacts the business
operations in the negative manner (Boyd, et. al., 2017).
 Positive & Negative impacts of Legal Factors- The laws are very helpful in maintaining the
efficiency of the business with goodwill. But many of the times the rules and regulation affect
the business negatively, as it creates the situation of bounding and working under the rules &
regulation by following them.
 Positive & Negative impacts of Environmental Factors- The positive environment of the
business helps in taking the business on top. It helps in getting some new and innovative ideas to
perform into the target market, wherein negative environment affect the business operations in
such a bad manner.

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M3 Apply the PESTLE model appropriately to support a detailed analysis of the macro
environment that affects the operations of your chosen organisation
In order to maintain the microenvironment of the business, PESTLE is the most important tool.
The PESTLE Model for supporting the detailed analysis of the microenvironment is described
below-
Political
The political environment has the great impact on the function of the
ALDI. Many of the times the rules, regulations, and policies affect
very highly in both negative and positive manner. For example, if the
tax rate will get increased for any kind of products and services of
ALDI, it will reduce the demands of those.
Economic
According to Boyd, et. al., (2017), the performance of any kind of
business directly depends on the performance of the economic
situation of the country. If in case there will be any rise in the inflation
in the economy, the buyer's power of consumers will get the increase
in. (Boyd, et. al., 2017).
Social
The social cultures such as demographic situation, cultural trends,
population’s analytics and etc. also affect the social environment of
the ALDI. In order to get success regularly, it is very important to take
care customer's needs and requirement in the perfect manner, as
because it gets changed on the regular basis.
Technological
In order to avoid failure of the association and avoiding the situation
of dissatisfaction of the customers, it is very important to get updated
with the new technologies. Otherwise business has to face the situation
of loss.
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Legal
According to Schaltegger, et. al., (2017), for avoiding the situations of
conflicts the organisation should follow the legal rules and regulations
announced by the government of the country. For example, various
changes in the safety standards, consumer laws, labor laws and etc.
have the negative impact on functions of ALDI (Schaltegger, et. al.,
2017).
Environment
Preventing the environment for running the successful business is very
necessary. The resources which affect the population in a negative
manner. It is important to check the production on the regular basis so
that positive results can come up.
Conclusion
From the above task, it is being analysed about the positive as well as negative impact which
would have on the macro environment of the company. This task carried out the pestle analyses
of the Aldi Company as to understand about the macro environment of the company.
19

Task 4
Introduction
In this report, the analysis of internal and external environment of ALDI has been discussed. The
relationship of strength and weakness of the business with the macro environment has also
discussed.
P5 Conduct an internal and external analysis of your chosen organisation in order to
identify its strengths and weaknesses
Internal Analysis - In order to identify the strength and weakness of the organisation the
internal analysis has been described below-
The strong bonding in between of employees and positive environment helps the business to
reach on top. The trained and qualified employees get considers the strength of ALDI. Aldi has
to increase the prices of some products such as groceries and etc. which gets considers as the
weakness of this business. Lack of resources for increasing the productivity of the business is
also known as the weakness of ALDI. Aldi has been announced as being on top, as the best
service provider in the world which is the opportunity of this business. All these things which are
related to the business also influence the decision-making process in terms of growth and
success. The positive situation of the business helps the decision-making process in expanding
the business at the great level, wherein the bad situation impacts the decision making in a
negative manner.
External Analysis- The external analysis of Aldi business for identifying the strength and
weakness has discussed below-
The external analysis of the business gets considers as the outside environment of the business.
By knowing the current trends, fashion, needs, and requirement of the customers, it gets easier to
run the business in the positive manner. As same completing the demands of the customers by
using the new technologies helps in becoming the strength of the business. Lacking behind with
the ideas and thoughts for attracting the customers, not completing their needs and requirement
beyond time from which they get dissatisfies, gets considers as the weakness of the ALDI
20

business. Introducing the innovative and creative products and services to the customers with
current market trends helps in increasing the better opportunities of the business. It leads the
business to reach the top. All these factors influence the decision making of the business in an
effective manner. The positive external environment of the business helps in expansion of the
business globally. On the other hand, the negative environment affects the growth of the business
and it becomes very hard to take any further decisions for increasing the profitability of the
business.
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P6 Explain how strengths and weaknesses interrelate with external macro factors
The external factors such as political, legal, economic, social, environmental, all these are
interrelated with the strength and weakness of the business. The positive environment of the
country, perfect economic situation, being strong socially and etc. all these factors helps the
business in a positive manner to increase productivity and profitability. On the other hand, a
negative situation of all these factors affects the growth of the business in a negative manner.
According to Halibozek, et. al., (2017), everyone knows that the political environment of the
country impacts the business environment negatively and positively. The positive situation of
political helps in building up the successful business empire. It works as the strength of the
business. The regulations, rules, policies of the business gets changed regularly as per the
government's instructions which sometimes become the reason of dissatisfaction of the
customers and business leads to the failure of it. An increased price with the taxes reduces the
demand for the products and services into the target market which gets considers as the weakness
of the business. The economic situation of the country is the main cause of the success or failure
of the business (Halibozek, et. al., 2017).
Strong command on economic of the country takes the business on top with efficiency. On the
other hand, the changes in the economies of the country take the business at the lower level. It is
responsible for decreasing the interest of the customers from the products and services they are
using. The social environment like current trends, completing the demands of the customers at
the real-time helps in strengthens the business to reach on top. The legal rules and regulation
sometimes affect the business in a negative manner and sometimes it sports the business
environment in such a great manner. The positive environment of the country or the business is
the main reasons for the success of the business at the other hand the negative environment
becomes the weakness of the business and organisation cannot run for longer time.
22

M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making by your chosen organisation
SWOT analysis is one of the best techniques for identifying the key areas of business. It explains
the strengths and weaknesses of the business as below-
Strength Weakness Opportunity Threats
According to
Halibozek, et. al.,
(2017), completing
the needs and
requirement of the
customer’s in an
efficient manner is
very important. The
satisfied & happy
customers of ALDI
Supermarket
considers as the most
important part of the
business. The
customers feel perfect
in terms of safety,
security, and quality
by using the products
of ALDI Supermarket
which is the strength
of the business
(Halibozek, et. al.,
2017).
In order to run the
business for longer, it
is very important to
examine the issues of
the business and to
resolve them
completely. The
reason for decreasing
sales and profitability
becomes the weakness
of the business. It is
important to identify
the reasons for it so
that the perfect
solution can come up.
The weakness of the
business leads the
organisation to the
failure or situation of
loss.
According to Epstein,
et. al., (2017), the
organisation should
work more for the
better opportunities &
expand the business at
the higher level. For
example- Introducing
some new innovations
and creation with
technologies to the
customers, for
attracting them
towards the business.
By making customers
satisfied & happy,
increasing the shares
of the company into
the target market and
etc. (Epstein, et. al.,
2017). Expanding the
business with more
new products gets
Identifying the threats
in the perfect manner
is also very important
to reduce the chances
of risk, threats, and
failure of the business.
The association
should conduct the
regular check-up for
the activities of the
business so that each
and every issue can
get analysed. The
competitors in the
market are also
considered s the threat
to the business. The
threats of the business
influence the decision
making of the
business in such a
negative manner.
23

considered as the
opportunities for the
business.
24

D2 Critically evaluate the impact that both micro and macro factors have upon the
business objectives and decision-making of your chosen organisation
It is very well known that the micro-economies mostly involve the different factors of
availability of the resources. As same it also includes the usage which impacts the businesses and
individuals as well. According to Epstein, et. al., (2017), the customers, competitions,
employees, shareholders, suppliers, media and etc. are the part of micro factors. The
microenvironment helps the decision making of the business by providing some innovative and
creative ways to perform with. It helps in attracting the customers towards the business. The
microenvironmental factors help in understanding the needs and requirement of the customers
and to fulfill them in a best possible manner (Epstein, et. al., 2017).
According to Kew, et. al., (2017), the economic situations of the business affects the
environment of the business in most efficient manner. As same, the production of the business
and decision making of the consumers also gets affected by it in both negative and positive
manner. Not using the updated technologies impact the business negatively. Some of the legal
rules and regulations which is not necessary to follow also affect the business in a negative
manner (Kew, et. al., 2017).
Conclusion
The SWOT analysis has been conducted to analysis that how strength, weakness opportunities,
and threats influence the decision making of ALDI. The impact of micro and, macro factors have
also evaluated in this report.
25

Conclusion
This also helped in understanding about the relationship which is in between the different
functions of organisation which has the link in between the product as well as services and
objectives of the business. This report also helped in knowing about the positive as well as
negative impact which the microenvironment is having on the operations of business with the
help of using PESTLE analysis. With the help of SWOT analysis, the internal, as well as external
analysis of the company had identified in this report that also helped in identifying the strength
as well as weaknesses. It had also explained the way through which the strength and weakness
are interrelated with the macro factors.
26

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