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Business Organisations and Environments in a Global Context

   

Added on  2020-06-04

13 Pages2118 Words222 Views
Business Organisations andEnvironments in a GlobalContext

Table of ContentsINTRODUCTION...........................................................................................................................1BACKGROUND INFORMATION OF LIDL................................................................................1BUSINESS ENVIRONMENT........................................................................................................4APPLICATION OF ANALYTICAL APPROACHES...................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONIf an organisation wants to expand their business in some other nation then, it is requiredfor them to examine their surroundings in an adequate way as it can affect their business eitherdirectly or indirectly (Ferraro and Briody, 2017). Present assignment is associated with problemswhich have to be examined by LIDL. These types of troubles need to be taken into underconsideration while opening a new store in Greece. These difficulties will be related tomanagement of staff members, competition and risk of expansion along with unfamiliar marketand many more. There are some techniques which can be utilized by the manager to determineissues such as PESTLE analysis and Porter's five forces which are going to be discussed in thisassignment.BACKGROUND INFORMATION OF LIDLThis organisation was established in the year 1930 as a small grocery store. Their firstoutlet was established in 1973 and at present, they are operating business on a large level. In1990, they were selling their goods in Germany only but now, they are providing their productsand services across the world (Kirton and Trebilcock, 2017). In the UK, they opened their store in 1995 and after two years, they had more than 550outlets over there. Their vision is that they want to cater high quality items to their clients at alower value. They render their products to people at discounted price. Now, they are going toexpand their business in Greece also and therefore, they have to analyse business environment inan effective and efficient manner. LIDL is providing variety of items to their users such as fruits,vegetables, bakery, flowers, wines, beers, frozen items and many more. Size and financial performance of LIDL: In 2015 – 16, income of company was almost£120 million and approximately, 50000 workers are working with them. Operating revenue offirm was near £300 million during the year 2016. As they are going to expand their business inGreece; therefore, they will improve their market share as well as profits (Del Giudice,Carayannis and Maggioni, 2017). This will assist them to taking benefits from their competitorsacross world. 1

From the above mentioned data, it has been interpreted that there are various supermarketstores which are operating their business in country. It has been seen that market share of LIDLis increasing rapidly as they are providing quality products at reasonable rates. As compared tothem, ALDI’s market share is less i.e. 17.6. It is the foremost competitor of LIDL. Apart fromthis, market share of Tesco and ASDA is going down which will provide direct impact on theirreputation (Murray, Skene and Haynes, 2017). 2Illustration 1: Market share of supermarkets(Source: Jefford, 2017)

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