International Business

Running head: INTERNATIONAL BUSINESS
International Business
Name of student
Name of University
Author note

1INTERNATIONAL BUSINESS
Table of Contents
Introduction................................................................................................................................3
International business issues/challenges....................................................................................3
Impacts of these issues...............................................................................................................4
Ways of addressing these issues................................................................................................5
Value chain process analysis..................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................7

2INTERNATIONAL BUSINESS
Introduction
The research is being done for the inclusion of various aspects related to the
management of international business for Aldi in Denmark. The research will focus on both
primary and secondary data collection along with the analysis of these data and information
for addressing the major issues related to international business management and at the same
time, determine how these issues can create negative impacts. The retail supermarket chain
named Aldi is a popular and established brand and Germany based discount supermarket
chain, which consists of more than 10,000 stores in over 20 countries and an overall turnover
of more than €50 billion (Aldi.dk 2019). The research will be done to discuss about the
challenges faced while managing international business.
With the management of globalisation, multinational companies like Aldi in Denmark
has managed direct foreign investments in the foreign countries to operate in different parts
of the world. The largest discount global retailer named Aldi in Denmark has aimed at
expanding business to survive the highly competitive environment and ensure that it does not
become vulnerable to issues while managing global business. There are various issues and
challenges such as the cultural differences, poor communication high tariff and export fees
along with inappropriate marketing strategies and procedures, which have created negative
effects and deteriorated the business functioning (Dunning 2013). The company shall need to
address the challenges and issues, furthermore overcome the problems that are faced by the
organisation.
International business issues/challenges
Cultural difference issues
Though there are multiple benefits of managing international business, still there have
been multiple issues and challenges as well that are associated with the business functioning.

3INTERNATIONAL BUSINESS
There are differences in cultures and backgrounds along with irrelevant skills and knowledge
about the marketing activities, which have further resulted in poor communication along with
inability to cope up with the global business management conveniently for Aldi. While
establishing business in the foreign countries, especially in UK, often the retail chain
supermarket in Denmark named Aldi may face issues while meeting the human resources’
requirements and this can affect the business’ ability to sustain in the competitive
marketplace of the foreign country (Shenkar, Luo and Chi, 2014). Inability to adopt the
culture of the foreign country can also contribute to poor business management and affect the
sales generation and revenue structure too largely.
The business organisation named Aldi in Denmark already has started international
business in the year 1990 due to the saturation of superstores during the process of
internationalisation. The theories and concepts of internationalisation are relate to the foreign
direct investments and also the licensing done to enter the foreign markets, which can be a
major issue as well. In spite of the barriers related to these, Aldi still managed to enter the
global markets in UK by dealing with the challenges resulting from high competition within
the supermarket industry, lower level of profit, fluctuations in economies of scale along with
scarcity of new stores and inability to adopt the foreign culture within quick time (Killing
2013). As stated by Verbeke (2013), there are various challenges and issues that are
associated with the management of international business management for Aldi in Denmark,
which are needed to be dealt with. This should result in creation of a perfect plan for
addressing the main challenges and issues needed to be overcome, furthermore use different
international business management theories and concepts to rectify those efficiently.
Issues related to distance