External Environment

External Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
External Environment is also known as general environment that refers to the outside influences
or factors which affects the operation of business. It includes elements that are related to those
dimensions that are out of control and include economy, political system and government
decisions within its preview. It also covers economic forces that includes elements like
employment statistics, wages and exchange rates. The project deals with pestle analysis on Aldi.
(Cepel and et. al., 2019)
MAIN BODY
Pestal Analysis
It is tool by which market players analyse on the external environment factors to
determine the macro marketing factors of an organisation. The tool helps notify the performance
and impact of organisation depending upon external terms.
Political Factors
These factors detriments the extent at which government intervenes through its policies in
the economy. In context to Aldi, there has been a positive impact the rise in prices of new
products after Brexit and various supermarkets will transfer these prices on the customers and
this had acted as an opportunity for the customers for shifting them for discounters like ALDI.
There has been negative impact, as the supermarket has faced the threat of weakening the value
of pound due to which there is a fall in its profit scale.
Economic Factors
These are the parameters upon which economic performance depends. It plays a crucial
role in indirect and direct long term impact of an organisation. In context to ALDI, there has
been a positive change as the customers demands have shifted to discounters because nowadays
they prefer convenience over prices. There has been negative impact as due to supermarket
discounting it has lead to cause deflation impact on Australian economy which the government
was trying to boost up. (Hrechyshkina and Samakhavets, 2019)
Social Factors