Influence and Impact of Macro Environment on Lidl Company and Their Strategies

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1-................................................................................................................................................3
Influence and impact of macro environment on Lidl Company and their strategies...................3
LO 2.................................................................................................................................................6
Internal environment and abilities of organization......................................................................6
LO 3.................................................................................................................................................9
Porter’s five forces model in context of Lidl...............................................................................9
LO 4...............................................................................................................................................11
Theories, models and concepts as well as devise used for strategic planning for company......11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business strategy is companies working plan for achieving their vision, mission,
competing successfully, prioritizing objectives and optimizing financial performance with their
effective business model. It consider as powerful tool used to help firms for gaining their
business aims. It aid to create clear vision and milestone for overall company. It is really very
essential that all workers within an organization have defined aims and are following guidance,
direction and mission of business. It can be said that by creating effective business strategy
organizations can create competitive advantages.
The current study is based on Lidl firm operating their business across UK with skilled
and talented applicants. This report explains influence and impact of macro environment on
company and their strategies. Internal environment and abilities of firm using suitable framework
and justify Porter’s five forces model impact on organization. Furthermore, this study will
examine range of concepts, interpret, models and theories and devise strategic planning for
company.
LO 1-
Influence and impact of macro environment on Lidl Company and their strategies
Lidl is a German international discount supermarket chain in Neckarsulm, Germany
which operates its business over 10,000 outlets across Europe. It has a range of high quality
products and fresh food items offer every day to millions of consumers. The vision of this
company is to enhance living standards of consumers by offering quality goods at market leading
value whilst assuring buyer’s satisfaction is at heat of everything they do. Along with this,
organization mission is to offer everyone (Employees) the best work place where they can feel
safe and works hard. Lidl work hard to achieve their set objectives mention below-
 To assure value by constantly optimizing and innovating efficient procedure and also
assure market leading quality.
 To work with shareholders in sustainable relationships.
 To contribute and support positively to local communities.

To achieve all these objectives company has to create and apply effective strategies, but
before this act they had to conduct external environmental analysis by using appropriate tools or
frameworks.
PESTEL analysis-
Political factor-
Political stability or instability, tax policy and trade restrictions impact on organizations
strategies and business practices (Enroth, 2017). In context of Lidl, Brexit affects overall
business performance negatively, it can influence firm as it sources huge proportion more over
70 percent of their products in United Kingdom. It impact business expansion strategy of firm
into US where they can gain attention of more people towards purchasing quality food products.
Above factor create trade barriers between UK and US companies which is not suitable for them.
Economic factor-
Unemployment rate is one of the economic factors that impact on Lidl employment
strategies and marketing plan for hiring new applicants (Johnes, 2019). UK unemployment rate
fall to 3.9% in three months in 2020. Government put pressure on big companies like Lidl to hire
local people it impact on company employment planning and procedure positively. It gives the
biggest chance to firm for hiring top most applicants from talent pool. Management had to
change their existing plans and recruitment strategies that may be take time but put positive
impact.
Social factor-
Consumer preference change is one of the biggest social factors that directly impact on
production and marketing strategies of Lidl negatively. Organization faces challenge to gain
attention of consumers and satisfy their needs (Kunc and Križan, 2018). In recent time, people
drive more towards using organic products that is good for health, they buy products according
to preference. It put pressure on company to store all items according to consumer’s needs and
requirements that is tough to do because individual preference get change accordant to market
trend.