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Business Environment of Aldi

   

Added on  2020-10-23

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Business and BusinessEnvironment
Business Environment of Aldi_1

Table of Contents
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From: Management Accounting OfficerTo,General Manager, AldiSubject: Explanation of different types of organisations and the growth of the internationalbusiness environment.INTRODUCTIONBusiness environment is a sum total of all persons, organisation and other outside factorsthat control a business and affect overall performance of a firm. It is a accumulation of allintrinsic and extrinsic factors which influence business activities. It includes employees, supplier,customers etc. This report is based on ALDI is a private company which is a retail industry. It islocated in UK and it deals in food, beverage and household goods. Business environment isessentially required in every organisation to analyse the factors that affect its performance. Thisreport covers, different types of organisation with their purpose, legal structure, vision, missionand scope etc. Apart from this, SWOT analysis and PESTLE analysis with positive and negativeimpact on ALDI is also discussed. At last, there is a discussion about interrelationship of variousfunctions with link to the organisational structure.TASK1P1. Types, Purpose and legal structure of different Organisation There are different types of organisations, which are as follows:-Public OrganisationPublic organisations are under controlled by government. It is the the part of economywhich raises national income and GDP from public revenues like taxation system and composedpublic services. For example- National Health Service. It is a public health service in UK whichprovide all encompassing range of health services (Aithal, 2016).PurposeMain purpose of public company is to provide services to general public and distributeincome and wealth by rising the structure of society. National Health Service build a strong socioeconomic infrastructure by providing health services.1
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Legal structureLocal Government- It include both municipal and country government structure. Localgovernment is an administrative body of a small geographic area like town, city etc. State government- It is a unit of government that implement laws for state. It isresponsible to identify problem and local need of a state.Central Government- A political authority that governs whole country is known ascentral government. It maintain national security and international delicacy.National Health Service is comes under state government because it is identify causes of diseaseand find solution.Private OrganisationIt is a part of country's economy which is run by an individual or a group. There is a fewrestriction of government on private enterprises. ALDI is private firm which deals in food,beverage and household goods (Cai and Yang, 2014).PurposeMain purpose of private firm is to earn maximum profit. ALDI select a correctorganisation structure to improve quality and productivity.Legal StructurePartnership- It is an agreement between two or more persons who engaged in a businessto achieve a common objective. They share profit and loss and burden of ownership.Sole proprietorship- In this structure, a single person or an individual can run a business.Owners can start their business by register their name and secure licence.Limited company- In this type of structure, there is a limited number of members and it isa form of incorporation which control the amount of liability. It includes public limited aswell as private limited.Multinational Corporation- MNC owns and control production of goods and service intwo or more countries. Its head office in one country and branches in different countries.Global Company- These companies are market their product in many countries withsame brand name. Corporate office is responsible for global strategy (BusinessEnvironment, 2018).2
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