International Classification of Financial Reporting

Running Head: INTRODUCTION OF BUSINESS
INTRODUCTION OF BUSINESS
Name of the Student
Name of the University
Author Note

1INTRODUCTION TO BUSINESS
Executive Summary
The responsibilities and roles of organization are foundation of the successful business. The
role of business leader is for ensuring that roles and responsibilities of entity are defined well
so that every division and departments fits together as whole. Hence, this report aims to
discuss department roles, teamwork, financial management and financial reporting. This
report concludes that Aldi UK is following all the essentials of good organization for
achieving goals and objective. It reports their financial statement at the end of each financial
year.

2INTRODUCTION TO BUSINESS
Table of Contents
Introduction................................................................................................................................3
Company’s Background.........................................................................................................3
Discussion..................................................................................................................................3
Role and Importance of Department......................................................................................3
Teamwork and Its Importance...............................................................................................4
Financial Management and Its Importance............................................................................5
Reporting and its Purposes for Organization.........................................................................5
Conclusion..................................................................................................................................6
Reference....................................................................................................................................7

3INTRODUCTION TO BUSINESS
Introduction
The departments of organization performs their duties or functions for their
companies, for instance marketing, accounting and production. The employees are the
members of team that works together for further organizational goals using their particular
talents and skills (Lock and Seele 2016). Therefore, this report aims to discuss importance
and role of the departments, teamwork and its importance, financial management and its
management and reporting and its processes for organization.
Company’s Background
Aldi is the common brand name of the two German family-owned discounted chains
of supermarket that is having approx. 10,000 stores in almost 20 countries and it has
estimated the combined turnover of around 50billions. This chain of supermarket was
founded in year 1946 by the two brothers, Theo Albrecht and Karl, when both of them have
taken over store of the mother in Essen (Aldi.co.uk. 2020).
Discussion
Role and Importance of Department
Marketing Department
The department of marketing help in playing key role in the promotions of business
and organizational mission. This department serves as the entity’s face in producing as well
as coordinating all the materials that represent the business. In case of Aldi UK, job of the
marketing department is reaching out to customers, prospects, investors, customers and
community and customers, while creating overarching the image that shows positive light of
company (Fleming et al. 2016).
Finance Department

4INTRODUCTION TO BUSINESS
) Finance is the life blood for any organization and it is key ingredient towards
successful business. The success and performance of any entity depends upon the way
finance is being handled. In case of Aldi UK, the finance department of company is
responsible for acquiring the funds for entity, managing the funds as well as planning for
funds expenditure on the different assets.
Human Resource Department
The human resource department’s role has gone from traditional hire and fire to the
in-depth position that focus on company’s other aspects such as looking after the employee
engagement. In case of Aldi UK, the HR department of company is responsible for creation,
implementation as well as overseeing the policies in between management team and
employees of company (Lock and Seele 2016).
Teamwork and Its Importance
Teamwork is defined as team member’s ability for working together, anticipating and
meeting demands of each other, communicate effectively and inspiring confidence that
results in the coordinated collective action. The environment of teamwork helps in promoting
atmosphere, which fosters loyalty and friendship. These close relationship helps in
motivating employees and align them for working harder, supportive and cooperate each
other. The examples of this are as follows:
 In Aldi UK, each team member contributes and each of the contributor plays their
own strengths of individual. They collaborate, brainstorm and communicate on
everything. The team of company uses each other as the sounding board and there is
no ignorance and criticism of any idea.

5INTRODUCTION TO BUSINESS
 The second example is rotation of leadership on some of the projects. It gives chances
to the different people for testing their skills of leadership. This collaboration and
exposure level results in strong teamwork at the company (Hustedt and Danken 2017)
Financial Management and Its Importance
Financial management is described as dealing with as well as analyzing investments
and money for business or person for helping to make the decisions of business, for instance
company’s accounting department. The financial management is vital skill of every manager
and business owner. Every decision taken by the owner has financial impact on the entity and
the owner of business has to make decisions in the context of operations of the company
(Karpoff, Lee and Martin 2014).
Reporting and its Purposes for Organization
Financial reporting is defined as communication of the financial information such as
financial statements to users of financial statement such as creditors and investors. It is
mandatory for all listed companies for issuing financial statements. The major purpose of the
financial reporting is for providing information about the financial performance, position and
changes in the financial position of entity, which is beneficial for wider ranges of the users in
making the economic decisions (Nobes 2014). Following are the financial reports prepared
by company:
Balance Sheet
Balance sheet is financial statement, which helps in reporting liabilities, assets and
equity of shareholders at particular point of time and it helps in providing basis for
calculating rates of return and in evaluating the capital structure. Aldi UK prepares balance
sheet statement at the end of each financial year and report and discloses it to their users.
Profit & loss Account

6INTRODUCTION TO BUSINESS
The P/L statement or the income statement is financial statement, which helps in
summarizing incurred expenses, costs and revenue during specified period. The company
Aldi UK prepares income statement at the end of each financial year and report and discloses
it to their users (Aldi.co.uk. 2020).
Conclusion
Hence, this report concludes that organizational departments such s finance,
marketing and HR, perform their duties and functions for company. Further, teamwork is
important as it helps the employees for working together, which they can achieve more than
working alone. Moreover, financial management is important practice as it deals with
effective dealing with firm’s financial resources for achieving goals of business. Lastly,
financial reporting has the main purpose to communicate the financial results and information
with their users.

7INTRODUCTION TO BUSINESS
Reference
Aldi.co.uk. 2020. ALDI UK | Homepage. [online] Available at: https://www.aldi.co.uk/
[Accessed 21 Jan. 2020].
Fleming, S.S., Goldman, A.W., Correli, S.J. and Taylor, C.J., 2016. Settling in: The role of
individual and departmental tactics in the development of new faculty networks. The Journal
of Higher Education, 87(4), pp.544-572.
Hustedt, T. and Danken, T., 2017. Institutional logics in inter‐departmental coordination:
Why actors agree on a joint policy output. Public Administration, 95(3), pp.730-743.
Karpoff, J.M., Lee, D.S. and Martin, G.S., 2014. The consequences to managers for financial
misrepresentation. In Accounting and Regulation (pp. 339-375). Springer, New York, NY.
Lock, I. and Seele, P., 2016. CSR governance and departmental organization: A typology of
best practices. Corporate Governance: The International Journal of Business in Society.
Nobes, C., 2014. International classification of financial reporting. Routledge.