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Business organisations and environment in a global context

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Added on  2021-01-02

Business organisations and environment in a global context

   Added on 2021-01-02

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Business organisations andenvironments in a globalcontext
Business organisations and environment in a global context_1
Table of ContentsINTRODUCTION...........................................................................................................................1Background information on Aldi................................................................................................1Discussion on the business environment of Belgium.................................................................2Appropriate analytical approaches along with its applications, uses and examples...................3CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................9
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INTRODUCTIONGlobal business environment can be defined as the societal and task environment of anorganisation, which is influenced by the global forces. These global forces include global labourmarket, economical forces, technological forces and global competition, legal and politicalforces, etc. Aldi is one of the most common brand in retail sector with around 10000 storesoperating at a global level. The company was founded around 73 years ago in the year 1946 withits headquarter in Germany. This report will take into consideration that Aldi is planning toexpand its current operations in the Belgium with respect to its foreign direct investmentdecision. Apart from that, background information of the company as well as country would alsobe discussed in detail. Furthermore, application and use of appropriate analytical approach alongwith data and examples would be discussed.Background information on AldiAldi is a private company in retail sector, which has been founded by Karl and TheoAlbrecht, both were the real brothers(Voigt, Buliga and Michl, 2017). The company deals invariety of products such as it deal in food, beverage, household essentials, sanitary products andmuch more. The company deals through its discount supermarket chains spread over in the entireworld and is owned by a German family. Roots of the company were established years ago that is in the year 1913 by the motherof the founders of the company in the form of a small store in a suburb of Essen. Within fewyears, that is by the mid of 1946, both the Albrecht brothers were able to open a retail outletnearby and within 4 years from this, they were the owners of 13 stores. Aldi was advertised as a'cheapest food source' and this was the major reason behind the rapid growth of the company. Moreover, within 20 years company was able to establish its roots in international marketwith its first international store in Netherlands and then it went on expanding its operations inother countries as well and currently the company has 10000 stores operating at the global level.But currently, the company is taking decision on acquiring foreign direct investment with theobjective of expanding its operations in Belgium(Boyer and et.al., 2018).Aldi runs its stores under the two names. One is Nord and the other one is Sud. Both hasa different logo. Both the stores of the group run very smoothly towards the attainment of theirobjectives. Aldi Nord comprises of around 35 branches with around 2500 stores particularly in1
Business organisations and environment in a global context_3
its home country. While on the other hand, Aldi Sud comprises of 31 branches with around 1600stores.Store layout of Aldi stores are very attractive. They have beautiful interior along withwonderful infrastructure. All the items in the stores are properly displayed with their discountprices and specialized items such as food, toilet papers, beverages and other household items.The company even produces and sells own brand products which helps the company in earninghuge profits. The company even uses the practice of avoiding price tags to display prices ratherthey use barcodes.But the company even faced lot of controversies which has hindered the company fromachieving its objectives efficiently(Winkler, 2016). The reputation of the company was spoiledas the company was viewed as selling cheap goods at low prices. This in turn resulted indecrease in the sales of the company because people avoided purchasing products from Aldi as itbad for their status.Discussion on the business environment of BelgiumBusiness environment of Belgium is very flexible, which in turn makes it an attractivedestination for investors to make foreign direct investment. Thus, in order to attract foreign directinvestment, government of Belgium has given ease in starting the operations in theeconomy(Hamilton and Webster, 2018). The country has very minimum entry barriers which inturn reduces the complexities in the working of business operations because of lack ofgovernment restrictions on carrying out its business activities smoothly. This has helped thegovernment of Belgium in attracting huge amount of foreign direct investment which would playa vital role in the development of economy as a whole. Even the geographical location of the country is very favourable for the growth of thebusiness organisations because of easy availability of raw material and at affordable prices. Thisin turn would help the business firm in earning greater profit margins as the cost of producing thegoods would be less.Moreover, Belgium is the world's third largest globalised economy which in turn offershuge benefits to the foreign investors. The economy of the country is such that, it provides highlyaccommodating economic, political and social environment which plays a major role forachieving the objectives of the company smoothly.2
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