Political and Legal Risks Impacting ALDI Australia's Business

This report examines the political and legal risks impacting ALDI Australia, a major supermarket chain operating in Australia. It begins with a company background, highlighting ALDI's global presence and revenue. The core of the report focuses on how international business factors, both external and internal, affect the company's growth. It delves into political risks, including how changes in government and policy can affect ALDI. The report differentiates between macro and micro political risks. Furthermore, the report assesses legal risks, particularly the challenges arising from the differences between Australian common law and the German code laws that ALDI may be accustomed to. It concludes by emphasizing the importance of understanding and managing these international business risks for sustained success. The report uses references from academic journals and online sources to support its analysis.

International Business
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Company background:................................................................................................................1
Impact of international business on the company: .....................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
The project is all about political and legal risk that are associated with the ALDI
Australia company which is stores supermarket that is operated in Australia. The project consist
of various factors and all related aspects which make more impact on the growth and
development of that particular company (Lewis, 2010). It will be important to identified and
overcome those risks that are making huge impact to the company.
Company background:
Aldi is the common retail private company which is operated in major part of Australia
and other countries. It is founded in 23 June 1913 it operated in more than 10,366 locations of
different areas of various countries. The most important products served by this company is food,
beverage, sanitary and other household goods. In 2010 53 million of the total revenue is being
generated by the company. It has more than 10,000 stores in 18 other countries.
Impact of international business on the company:
Australian businesses and other part of organisation are recently facing an many factors
which are related with the international businesses. There are both external and internal factors
of business which impact more on the growth and development of the company. These factors
are impact with various risk factors that are associated with the stormy regulation and skilled
labour deficit. Australia is become on of the huge performer of advanced economies in recent
past. Its economic situations are more challenging and strong in relation to cultural and
institutional place to do business for the British company. Risk are those uncertainty of results
which are related with certain events. As business are facing so many types of business risks that
are arises in every day basis (Wild, Wild and Han, 2014). There are manly two of the major risks
of external environment which affect the business performance. Some of them are:
Political risk: According to the political risk which is the hazard that decision related to
the growth of business is more effect because of negative reactions. It is mostly affect those
company which is operated in more than one countries like in case of ALDI pvt Ltd. There are
two important political associated group that are having a sincere opportunity of forming
government in Australia and both of them believe in social democracy. Because of new parties
elected during the countries which can made huge impact over the company as they can not
introduce any kind of new plan regarding there products and services. Political risks can be
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varies from various ranges from war and other corruption and those changes which are made as
per tax regulation set by the company. It is that international risks which might be classified into
various ways, methods and mode in which it take place. Political risks can be classified into two
parts:
 Macro risk: It occurs at the time when a better change in the political system of the
country in which finance in being needed.
 Micro risk: It is said to be that risk which is associated with those limited factors of
international investment which are needed to establishment new projects of the company.
Legal risk: In Australia there is a common law which is said to be legal system which is
associated with English laws (Welch and et. al., 2011). It is mostly challenging for Aldi since it
is operated as German company and at that time they are using code laws. In other words these
are that risks which are arising from failure to follow with statutory or regulatory rules and
regulations. Legal governance and risk management and other compliances are a set of those
complex procedures, rules an systems that are used by the corporate legal administrative
department to adopt and implement those changes that are related with the business problems.
The role of general counsel and legal department is varies continuously. It is done to
protect the values and other assets of ALDI company (The 'big five' risks facing Australian
business in 2015). Some of the type so legal risks are associated with the business and other that
are related with legal matters, assets, compliances those are having more adverse affect on the
businesses. In above mentioned any risks those are having legal implication are covered under
typical legal risks that are fall under those department which are associated with that legal
systems.
CONCLUSION
From above mentioned project essay it has been concluded that international business
risk are the most important aspect for any business concern those are operating at outside the
home country. Mainly two of the external factors like political and legal risks are the major one
which impact the business performance of a company.
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REFERENCES
Books and Journals:
Lewis, R.D., 2010. When cultures collide. Nicholas Brealey Publishing.
Wild, J.J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.
Welch, C and et. al., 2011. Theorising from case studies: Towards a pluralist future for
international business research. Journal of International Business Studies.42(5). pp.740-
762.
Online
The 'big five' risks facing Australian business in 2015. 2017. [Online]. Available through:
<http://blog.protecht.com.au/the-big-five-risks-facing-australian-business-in-2015>.
[Accessed on 23rd August 2017].
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