Global Business Environment: PESTLE Analysis of ALDI

This report provides a PESTLE analysis of ALDI, a German family owned supermarket chain, in the global business environment. It examines the political, economic, social, technological, legal, and environmental factors that impact ALDI's operations and identifies opportunities and threats.

Global Business Environment
Portfolio

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment is categorised as combination of all the business
environment of overall countries that may impact operations of a business and the process of
decision making. This analysis is essential for the business so as to find out market competencies
and opportunities. The company taken in this report is ALDI, which is a German family owned
supermarket chain having headquarter in Essen, Germany and operating their business in 20
countries with 10000 stores all around (Adekola and Sergi, 2016).
TASK
PESTLE analysis
PESTLE is a framework which is used by businesses in order to recognise all those macro
environmental factors which influence the business operations. The PESTLE analysis of ALDI is
as under:
Political factors: These factors includes fiscal policies, trade tariffs and tax policy of a country
which may impact the operations of a business.
Opportunities: Due to Brexit, Britain opted to get separated from EU but ALDI is
putting FDI In UK so this factor is creating opportunities to them.
Threats: As due to political vulnerabilities, political instability is existed in UK so this is
creating conflicts from other nations.
Economical factors: These factors includes purchasing power of customer, inflation rate and
GDP rate of a country which play a major role in business operations of ALDI.

Opportunities: As after Brexit the rate of pound sterling has decreasing due to which
inflation has been increased, so by supplying discounted products ALDI is enhancing their
profits.
Threats: Buying power of customer has diminished as after Brexit, so this has created
threat for ALDI.
Social factors: These factors includes taste and preferences, lifestyle and emerging needs of the
customers and that demographic region where business is operating (Hooper, 2016).
Opportunities: As sue to innovative needs of customers ALDI is having opportunity to
expand in the market with introduction of new products which can satisfy demand of customers.
Threats: As now a days customers are tend towards healthy habits and healthy foods so
that they avoid packaged food, this is a market threat for ALDI.
Technological factors: These factors involves adaptation of all those technological
advancements which can impact the operation of business.
Opportunities: By adaptation of new technological advanced tool, the operation has
become more efficient and less in complexity which is providing opportunities to ADLI in order
to get market competitive edge (Kasemsap, 2016).
Threats: ALDI do not have online delivery system in UK which is causing them loss in
market share.
Legal factors: These factors are associated with all those legislative laws which are required to
be adhered in order to have efficient working style. These laws includes contract law,
employment laws and many forth.
Opportunities: All the employment laws are strictly followed by companies of UK
which create trust among employees and customer as well.
Threats: ALDI is having so many aligation related to pressurising their employees for
working more than 35 hours continuously which created negative image in the market.
Environmental factors: These factors includes the effect of environmental change in the
operation of ALDI and affect on environment by operations of ALDI.
Opportunities: ALDI is working to reduce carbon emission which is providing them
higher efficiency over their business.
Threats: ALDI is having high usage of plastic due to which it is providing hazards to
environment, so this is a threat for them.

CONCLUSION
Global business environment is complex in nature so as to deal with this the manager is
supposed to analyse all macro environmental factors with the assistance of PESTLE analysis
through which all the competencies can be identified and long term sustainability can be attained
so as to earn high profits and customer satisfaction (Oyedele, 2016).
REFERENCES
Books and journals
Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural perspective.
Routledge.
Hooper, M.J., 2016. The global business handbook: The eight dimensions of international
management. CRC Press.
Kasemsap, K., 2016. Creating product innovation strategies through knowledge management in
global business. In Civil and Environmental Engineering: Concepts, Methodologies,
Tools, and Applications (pp. 1-26). IGI Global.
Oyedele, A., 2016. Emerging market global business model innovation. Journal of Research in
Marketing and Entrepreneurship.
Online
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