Positive Impact of Globalisation on Marketing Functions of ALDI

Research Project

CHAPTER 1: INTRODUCTION
Overview of research
Globalisation define as the collection and combination of activity in the international
economic system which lead towards increasing interconnection of international system. It is
particularly common which includes business markets such as primary market, wealth and credit
market and insurance markets, commodity markets. Globalisation has been grown due to
advancement in transportation and communication technology (Baylis, Smith and Owens, 2017).
With the enhancement in global interactions, it will assist in increasing growth and success level.
This will describes the way nation and people of the world communicate with each other. There
are various things which have being globalised as people come into contact. Globalisation
directly affect both standard of life and quality of life. The report is based on ALDI which is
multinational grocery company and they are mainly deal with variety of goods and services to
their customers. In this assignment, it will describe research aims and objectives in order to
complete project. Literature review is used for analysing different authors and scholars views
regarding research topic.
Background of the study
ALDI is one of the international organisation which is large supermarket chains with over
10,000 stores in all around 20 nations. It is estimated combined turnover is more than 50 billion.
They are able to offer high quality based products and services at lower cost. The company is
operated and regulated in 35 individual regional companies with about 2500 stores in western,
northern and eastern Germany.
Significance of study
The research is important because this will assist in analysing positive impact of
economic, cultural and ethical aspects on globalisation on different marketing functions. This
will help them in expanding business operations and its functions in another country for gaining
high income and profitability (Kotler and et. al., 2015). It can be useful for maintaining and
managing marketing functions in the context of food retail industry. Along with this, the topic is
important because ALDI can easily examine various aspect in the form of cultural, economic and
ethical impact on marketing functions.

Research Aim
Aim: “To analyse the positive economic, cultural and ethical impact of globalization on
marketing functions of the food retail industry”. A case study based on ALDI.
Research Objectives
Objectives:
 To understand the concept of globalisation.
 To evaluate the positive economic cultural and ethical aspects of globalisation in food
retail industry.
 To identify the benefits of globalization while expanding business operations and
functions in emerging market place.
 Recommend different strategies through ALDI can easily operate business in
international market.
Research Questions
Questions:
 What is the concept of globalisation ?
 What is the positive economic cultural and ethical aspects of globalisation in food retail
industry ?
 What are the benefits of globalization while expanding business operations and functions
in emerging market place ?
 What are the different strategies through ALDI can easily operate business in
international market ?
CHAPTER 2: LITERATURE REVIEW
A literature review report about the publicised information and collection in appropriate
subject field and there are various authors which are giving their opinions on specific theme. It is
the simple summary of sources but it is mainly use particular organisational structure and it will
combine both summary and analyse brief concepts (Miletzki and Broten, 2017). This is academic
material that includes actual cognition of findings and theoretical contribution to particular topic.
Literature review is the secondary sources and methods which does not report new and original
work. This is based on academic research field. It can be used for recognising and identifying
various authors and scholars regarding specific investigation theme.

1. Concept of Globalisation
Globalisation is a procedure in which goods, services, technology, and information can
freely move from one country to another. It is the process by which a person can start trading
at international scale. This term means combination of different societies and economies which
take place through cross country flow of technology, data, informations and many more.
Globalisation connects different people to various things (Coccia, 2015). Globalisation is a
process by which different business organisations, governments and people interact with each
other at international level. It helps the business organisation to enhance its performance at
marketplace by its expansion in different country. It is also said that the concept of
globalisation has enlarge number of opportunities for various organisations by which they
can maximise and enhance their performance as well as profitability level.
It is not beneficial for the companies only but it has also improved living standards
and lifestyle of people. This concept is common among those people who are very
passionate about expansion of their business in foreign countries. Such people desire to
maximise their overall profitability by managing their operations and sales in cross border
countries. Globalisation create new market for business expansion (Hair And et. al., 2017).
It has also been evaluated that business organisations and concerns can attract more
customers at international level by providing them creative and innovative goods and
services. With the help of globalised market, business organisations can buy cheap raw
material and reduce their cost of production. As a result, it will increase the overall
profitability of a company.
2. To understand the positive economic cultural and ethical aspects of globalisation in food
retail industry.
According to the view of ( Zajda, 2015) positive economic cultural of globalisation in
retail industry is that, the company who want to expand their business at global scale are having
very stable economic cultural. As, in the context of ALDI, the organisation want to expand their
business in UK, and the economic culture of UK is very stable and by this ALDI can attract large
number of customers, and enhance their customer base. By expanding the retail business in UK,
Aldi can expand their employment opportunities, as in developing countries employment rate has
been increased. Along with this, the existence of an international market has encouraged
competition an impacted consumer prices in a positive way. ALDI is one of the biggest super

market chain in the world, they use to provide their products and services in different parts of
the world.
Now they are planning to expand their business in UK, so that they can enlarge their
chain of super market. But there are several factors, which can influence the performance of an
organisation when they are globalising their business. The economic conditions of UK is very
much stable, and they allow ample number of businesses and organisations that they come and
invest in their business environment ( Sigala, 2017). ALDI can get a good economic condition in
UK, which will help them in attracting huge number of customers. This also lead the
organisation in getting a strong start in new nation, as people there love to spend on new
products and services. By getting a strong start, it become very easy for an organisation like
ALDI to make loyal customers from their beginning, by which a good customer base can get
prepared for them.
3. To identify the benefits of globalization while expanding business operations and functions in
emerging market place.
As per the view of ( Moulaert, 2016) When an organisation expand their business
operations and functions in existing market then the major benefit is the employment
opportunities, as globalization rises more and more companies set their business at global scale.
In this way, the opportunities for employment increases. As ALDI expand their business, they
can get more highly and skilled employees. Along with this, with the increase in globalization, it
becomes easier for the people to go in different countries for better education. This result in
integration of culture. The increase in free trade has opened the opportunities for the investors to
invest their money in developed countries. The flow of information is faster from one part of the
world to the other, as this result in the world being tied together. By the increase in globalisation,
the important information is being shared between the group of individuals very quickly. As the
globalisation is rising day by day, people are accessing the best quality of goods and services in
all over the world. The companies have to try to provide better quality goods or products to their
customers and they has the liberty of choosing the product whichever is suitable for them
according to their needs and requirement. By this the people of UK can wear the clothes which
are made in India and on the other hand the Indians can have the products of Germany. As the
globalisation is increasing and the competition is also rising, so the producers have to decrease
their prices of products in order to remain in the market. This has become beneficial for the