Introduction to Business Management

This document provides an introduction to business management and its significance in the retail industry. It covers topics such as Mintzberg's theory of management, pestle analysis, Porter's Five Forces, corporate responsibility, and Hofstede's dimensions. The document also discusses the competitive environment of the retail industry.

Introduction to business
management

TABLE OF CONTENT
INTRODUCTION.........................................................................................................................4
PART A...........................................................................................................................................5
Mintzberg’s theory of management.............................................................................................5
PART B...........................................................................................................................................7
Pestle analysis..............................................................................................................................7
Porter’s Five Forces.....................................................................................................................9
PART C.........................................................................................................................................11
Corporate responsibility.............................................................................................................11
Hofstede’s dimensions...............................................................................................................12
CONCLUSION............................................................................................................................13
REFERENCES............................................................................................................................14

INTRODUCTION
Introduction to business managent can be understood as widely important and one of the
most active force where wide focus builts on new syenrgy of working actions, working on new
fucntioanl innovation and competency fucntiaonl scope for higher efficinecy. Report explains
working structure of retail industry where there are various parameters for working and
anaysisng how are external factors impacting business development metrics within long run.
The report expalins retial indystry goals and innovation scope for gaining accurate new
fucntional paraigms for gaining accurate new fucntional profits and cnsuemr goodwill. The
report explains Mintzberg theory of management where there is wide detailed desciption of
various roles, and anslysis of how mangers can inflluence employees to work on better for
communicating wider vision and commitemnt among employes. Report explains pestle analysis
and porter force of analysis for new working development with comepetent strategies and

reflecive working paramaters. There is ansalysis of corporate responsibility and how business
ethics are wdiely important for gaining on new fucntioanl levels and wider innovative synergy
onto goals through whcih keen development works on.
PART A
Mintzberg’s theory of management
Management can be understood as process of achieving company goals through constant
planning, organising, leading and controlling human, physical, financial and informational
resources of company in effective and efficient manner.
The Mintzbergtheory of management is one of the most innovative theory which
recommends breaking down of management roles and responsibilities within company functional
levels, where organising workplace is widely important for company to function with wider
innovation business framework. Retail industry by using this theory of management will be able
to organise responsibilities within employees, organise workplace functional paradigmsfor
simplifying the various complex concepts for more effective working culture and motivating
working environment where all skills can be more advanced, developed with efficiency for
longer synergy of working hemisphere (Gaganis,Pasiouras and Voulgari,2019).
Retail industry will be able to develop stronger responsibilities among employees within
company working employees where they can be divided further into 10 categories which are as
follows
Interpersonal roles
 Figurehead- This role is responsible for figuring and working out vision among
employees and working segments for coordinating work jobs among various
departments.
 Leader- The leader has role for communicating vision, new goals and motivating
employees within teams which is actively responsible for further developing wider
business segments.

 Laison- This role enables to make contacts the vertical chain of command including
peers and stakeholders within companies and departments, which will enable to devlop
stronger functional trade relations with government and other trade organisations
representatives.
Informational roles
 Monitor: The monitoring role is widely focusing for developing new strength , vision
and continuous flow of working actions within business in company for wider technical
role at retail industry for communicative actions.
 Disseminator- Important for dividing working actions and new responsibilities
 Spokesperson- The role is widely important for communicating various role, new
working functional paradigms within various departments onto wider levels (Jevšenak,
2019).
Decisional roles:
 Entreprener- The role is widely known for developing new working parameters ,
motivating and communicating development working parameters for relative goals
completion through which retail industry will be able to work better.
 Disturbance handler- The role mainly focuses to remove chaos and functional hindrances
within employees and for working with new vision and wider technical roles onto which
retail industry will be able to yearn onto wider roles, new scope of coordination.
Thinking critically has wide positive impact for communicating the managers functional
duties and jobs to be done more effectively where it can be understood from the fact that it
enables managers for functioning with wider innovative perspectives for longer time
fundamentals. For example any retail company within competitive industry will be able to bring
on new scope of functional advancement when leaders and managers are conducting regular
meetings with their employees and teams for analysing their progress. Thinking critically also
enables managers to take immediate steps while business demands various innovative business
ideas to be developed among management and to yield creative diversion within employees
working actions.

Managers working accountability for taking into account of diverse interest of various
stakeholders can be understood as one if the most integral parameter in retail industry functional
parameters where wider changes from external business parameters are widely demanding
managers to take actions for gaining control onto stakeholders. The managers shall held
responsibility for various stakeholders working actions by taking into account their feedback,
indulging them into open sessions and also enabling them to communicate better. The manger
shall also actively bring before new ideas, innovation of new ideas and also for potentially
bringing motivation within their roles which will relatively enhance overall working culture at
companies within retail industry and also communicate wider objectives where company aims to
achieve within long run for improving commitment within the management.
PART B
Pestle analysis
The pestle analysis is one of the most important factor which shows external business
impact on business avenues within companies, for how new actions can be worked on for
yielding onto new working parameters for reflectively working on new avenues. The pestle
analysis is widely important for communicating new advanced levels of efficiency (Luiz, Ganson
and Wennmann, 2019)
 Political factors:Aldi in context with external factors has to focus onto political stability
paradigms where the Brexit political decision has been widely impacting UK business
scenario with high tarrifrates, increased tax rates which may widely impact on exports
into European countries widely for longer term functional levels. With brexit in operation
companies have to focus onto keeping equal and strong approach through which
external parameters such as higher taxes , may no impact widely and also for
productively developing equal growth.
 Economical factors: Retail industry within competitive world has to also focus onto how
economically the country is progressing , new functional regulations established among
business decisions, and for focusing onto how to grow within economy parameters as per
the changing economic conditions. Analysis of economic factors is strongly important for
gaining strong place within retail industry where there has been rapid competitive

changes coming on among business factors. Economic stability shall be actively kept in
mind within business for gaining accurate functional efficiency within wider industry
goals and for progression with relative advancement.
 Social factors: Social factors are dynamically changing within external factors where
customers look upon having wide range of innovation among products and also there are
various new brands entering within retail industry. (Goldberg and Christopher,2019).
Consumer preferences are competitively developing onto new ends with new demands
for innovation and stronger working skills where socially retail industry has to factorise
wider productive goals within operations. The retail industry shall actively focus for
working with new relative advanced social factors where new working efficiency are
highly demanded along with working for higher goodwill goals. The social factors are
rapidly becoming one of the most essential part within global business where quest to
work onto new functional levels have wide focus onto how new fashion goals are worked
on for gaining stronger synergy within functional parameters. The social factors also play
an active role for acknowledging how much rapid innovation is widely demanded within
business parameters, leveraging new relative advancement onto wider functional arenas
through which wider goals can be competitively achieved.
 Technical factors: The wider business profitability goals are strongly developed with
stronger progression in technical business development ,new working arenas and for
yielding onto best paradigms where there are wider business opportunities available for
Aldi to work on. External competition within this domain has been actively growing
within new brands, retail companies are developing use of new high tech machinery for
advanced production, marketing and promotional factors where there are also technical
factors which companies need to focus. (Ncube,Soonawalla, and Hausken, 2019)
 Legal factors: The legal factors are also strongly important for Aldi to focus within
market industry for actively bringing on new functional roles of wider efficiency and
continuous progression onto which retail industry is actively focusing for growing onto
new fundamental scope. UK legal business requirements for retail industry companies
also require various parameters to be adhered by brands which is one of the external
industry factor impacting long term growth.

 Environment factors: The environmental laws are collective terms encompassing
aspects of law which provides protection t to the environment resources within business
regulatory prerequisites. Legally companies shall focus onto maintain strong control
onto environmental factors so as to specifically keep control and development of natural
resources. Not compiling up with theses hinder goodwill productivity widely. The rapid
changing climate factors within business world also widely has been impacting business
development within business industry where Aldi has to yield wider focus onto bringing
on new environment friendly practices and functionally developing new scope onto
wider roles actively. Aldi shall bring on new developed eco friendly practices and grow
on within new business framework practices by developing new goals, synergy of
innovation and also focus onto CSR activities.
(A)Out of all the factors identified within external forces political factors and technology
factors are most important for Aldi as it has wide implications for the business in long run
perspectives. Aldi has to operate new decisions within political stability matrix for examining
new functional stability metric through which new goals can be developed with higher
synergy. Technology factor has been competitively growing within various paradigms within
retail industry, where there are various new innovation coming on within retail industry
companies for producing wider quality consumer products and services (Rofiq. and
Pramono, 2019).
(B) The company latest policies and business standards practices enable analysis of various
external factors where there is vast pace for development and analysis of how factoring
growth paradigms may impact company positively within long term. Aldi plans to take into
account the company policies in context of the various resources where the active
management has been widely aiming to reach on for stronger effective business metrics and
performance scenario. The company plans to integrate new innovation within machinery for
quality products and wider functional paradigms onto which wider business progression can
be achieved along with consumer enhanced goodwill within business world. The retail
industry is actively exploring onto new working paradigms for new yielding force of best
quality innovation and new expansion fundamentals. Aldi has stronger business productive

reflective synergy where main aim is to highly bring on new keen functional ethics and wider
innovative performance synergy of innovation (Fields and Atiku, 2019).
(C)The managers out of all many factors identified within Pestle analysis shall aim for
actively using on new monitoring techniques and functionally focusing onto wider business
broader perspectives where the further expansion opportunities are highly important for
company to focus onto. The selective procedure shall be built on higher yield parameters of
growth within new working aspects where focus shall be pertained onto how company is
facing competition within industry for global retaining synergy of consumer goodwill and
also profitability. Attending to most important factor within external environment is highly
important for company as it has wider parameters such as investments, strategic planning and
wider formulation of new perspectives lied on onto which active focus shall be given by
management. Aldi shall analyse new focus goals within external business factors where
there is wider competition developed for long stability in digital word and for exploring the
new scenarios (Draijer, 2020). The value of pestle if company business has limited choices
can be analysed onto the fact that negligence of external factors may widely impact for
reduced efficiency levels and also strop its working avenues within untapped business
arenas .
Porter’s Five Forces
The competitive environment of the retail industry in which Aldi operates in can be
effectively analysed by making use of the Porter’s Five Force model, which details the main
forces of the competitive environment of a business organisation:
Consumer’s Bargaining Power (High):The bargaining power of customers for the retail
industry of UK is high because should they grow unsatisfied or unhappy with the operation of a
single business in industry such as Aldi, they can easily switch to the many competitors within
the retail sector such as Sainsbury’s or Tesco, without facing many issues or challenges, in order
to conduct their retail operations (Wellner and Lakotta, 2020). Aldi can address this by placing
increased focus on their customer service operations, through which they would be able to gain
the long term loyalty of their customers.

Supplier’s Bargaining Power (Low): The bargaining power of suppliers is low within the UK’s
retail sectors. This is because of the large number of suppliers that operate in the retail sector,
with most of the suppliers providing services that are highly similar to one another. So in case
Aldi’s current suppliers increase their prices for the raw materials procured by Aldi, the business
organisation can simply choose to switch suppliers without facing too many challenges or issues.
Threat from Competition in Industry (High):The retail industry faces extreme threat from the
intense competition between various business organisations that operate in it. This is due to the
large number of business organisations operating in the retail markets of UK, all of whom
provide goods and services to the customers that are quite similar to one another. As all these
businesses also operate towards similar objectives of generating maximum amounts of profits,
Aldi faces extreme threat from the competition in the industry.
Threat from Substitutes (Moderate): The retail sector of UK faces moderate threat from the
alternative and substitutable products that are available to the customers from the external retail
markets of UK. This is because though many of the goods and products sold by businesses such
as Aldi within UK’s retail sector are highly imitable and substitutable by the readily available
products in the external retail markets, a significant portion of the goods manufactured by Aldi
are also diversified from the readily available market goods, making Aldi feel moderate threat
form substitutes (Lewis, 2017).
Threat from New Entrants (Low):The retail industry of UK also does not face any significant
threat from the new business organisation entering into it. This is because, entering into the retail
industry present several barriers to the new business organisation such as the high financial
investments required, creating supplier relations etc., and businesses such as Aldi having already
invested significantly into its operational infrastructure do not face any kind of significant threat
from the operations of new business organisation entering into the retail markets.
A competitor of Aldi known as Tesco has changed its business strategy to now
manufacture highly diversified and unique products as a direct result of the intense competition
within the retail industry, with this strategy allowing Tesco to gain a competitive advantage
against its industry competitors such as Aldi.

PART C
Corporate responsibility
The corporate responsibility is one of the most highly important business aspect where
the solid foundation of active management and structured efficiency goals of new board ethical
code of conduct shall be levied on. The responsible decision making and timely balanced
decision making along with transparency of various factors have strong focus onto vision where
Aldi needs to progressively work on. Respecting shareholders vision and new ideas within the
recognition of new functional perspectives hold strong importance within performance metrics
for enhanced performance objectives and for gaining stronger developed goals. Ethical
reporting , ethical code of conduct and committees forming are some of the main important
paradigms widely essential for Aldi to focus within corporate responsibility metrics for
developing new consumer goodwill and for gaining commitment among the stakeholders within
industry (Lamba, 2019)
(A) To promote and monitor ethical corporate responsibility Aldi focuses on growing within
stakeholders commitment metrics where within UK, Ireland there are more than 35,000
employees working within year of 2020, where human resources are the biggest asset for
programming diversity and innovation among business fucntioanl levels. Brand
promisess wider growth within vision perspective development, keenly focusing onto
new working scenarios where the motivation is widley focused onto new roles. Aldi also
cares widley about community of stakeholders, customers and commercial clients it
serves where the products qualityd shall be actively focused onto new reflective
paramaters. The sppliers also an inetgrlal part within communication for inetgrity
developmet, minimising eco hazards and strongly focusing onto goals for technical
development.There is mandatory compoent of terms and conditions for all our contracts
and business orders within international CR efforts and within entire gloabl expansion for
higher consumer advnacment. Promotion and monitoring of cooperate resposniiliteis
can be understood as one of the major component factor which enahances goodwill of
consumer market share, it is done by relatively keeping focus onto how communities of
stakeholders are working with comapny and able to work with management
(Grzegorczyk, 2019)

(B) The malpractice cases
 Accused of promoting racist product: The brand has been accused for favouring the
wants of Australia customers to know it puts the community and their wishes first ,
rapidly functioning onto racist and wider business ethics violation onto which it can be
understood that there has been large imperfections within structure of company business
cooperate governance (Ferracuti, Norscini,Placidi,2019) Tesco company has also found
guilty for less quality focus for consumer goods, services within stakeholders are also
widely needs to be improved further for gaining new working scenario.
 Non satisfactory products quality standards: Aldi has also been found with wrong quality
of foods served among stores where there have been lead found in food content, soared
quality metrics and also for serving wrong customer foods which has been widely
misleading business goals and consumer ethics (Rahma. and Aldi, 2020)
 They have been accused of spying on employees:The stakeholders such as management
and employees working within company have been found to be checked with cctv
cameras where Aldi is accused to falsify the brand domain ethics and how brand is
violating personal respect of employees working within. This can be understood as one
of the major disrespect of stakeholders respect onto major paradigms where it also
decreases employees motivation levels for gaining accurate metrics (Diers-Lawson,
Coope. and Tench, 2020)
Hofstede’s dimensions
There are 6 dimensions within Hofstede’s model defining culture which focuses onto
development of new company working culture goals for gaining stronger vision, satisfactory
performance levels and synergy of functional paradigms, Aldi will be able to develop stronger
working vision by using up theses new steps where there is wider functional opportunity hidden.
 Power distance index: This explains how much power shall be governed among
employees working parameters within functional paradigms for effective formulation of
goals within long run (Cross and Miller,2020). The power distance actively focuses onto
building parameters where people in societies exhibit large degree of power distance
accept higher order for place and justification within equalities of business functions.
For example: china and Saudi Arabia are countries with high power distance index ,

however in societies with low power distance people strive to equalise their powers and
demand equal power.
 Collectivism vs. Individualism: This explains collective business activities can b attained
when all employees are working together within industry fundamentals for creating
stronger effective performance metrics. Collectivism represents preference for tight knit
framework where countries are working with new communicative synergy of operations
and whereas individualism is considered to be foremost parameter where developed
countries such as USA consider themselves as individual.
 Uncertainty avoidance index: Countries with low uncertainty avoidance index are able to
maintain more relaxed attitude of business development , tolerance for ambiguity is also
accepted such as example chile, peru and argentina .
 Femininity vs Masculinity: Japan is considered to be very masculine country where the
south American countries such as Norway, Sweden are highly feminine . This can be
understood by the fact that how population are given Equal work opportunities which
shall be governed and functionally incorporated among nations.
 Short term vs long term orientation: High positive impact of various ethical functional
levels within cooperate new regulations, which will also benefit within long run
development. Asian countries are known for long term orientation where the dimensions
of working are for long term goals attainment and betterment of business functioning.
 Restraint vs indulgence: This can be understood wit the fact that indulgence can be
understood with the fact that where society allows relatively free basic and natural human
drives related to developed economic parameters and restraint stands for society that
suppresses gratification and business needs for regulating and has strict social norms
(Morrish and Jones,2020)
CONCLUSION
The report concludes development of business environment within functional paradigms
where retail industry has to actively face various micro and macro factors analysis for wider
development and stronger force onto how business can be enhanced onto new levels. The report

concludes retail company performance metrics are wide where there are various new value
aspects developed onto which new functional development shall be fundamentally formed ,
porter analysis is also done and explanation of new metrics onto which wider synergy of
innovation can be actively achieved within long run. Report also concludes corporate social
responsibility and governance of working within stakeholders, how malpractices are widely
profoundly impacting goodwill of brand within long run and for bringing on ethical performance
metrics (Odukomaiya, 2019). Report also concludes various measures and specific Hofstede
factors where there are various new fundamental operational goals industry must aim to achieve
for long term sustainability.
REFERENCES
Books and journals

Cross, F.B. and Miller, R.L., 2020. The legal environment of business: Text and cases. Cengage
Learning.
Diers-Lawson, A., Coope, K. and Tench, R., 2020. Why can CSR seem like putting lipstick on a
pig? Evaluating CSR authenticity by comparing practitioner and consumer
perspectives. Journal of Global Responsibility.
Draijer, C., 2020. Best practices of business simulation with SAP R/3. Journal of Information
Systems Education. 15(3). p.5.
Ferracuti, N., Norscini, C., Placidi, V., 2019. A business application of RTLS technology in
Intelligent Retail Environment: Defining the shopper's preferred path and its
segmentation. Journal of Retailing and Consumer Services, 47, pp.184-194.
Fields, Z. and Atiku, S.O., 2019. Collective Green Creativity and Eco-Innovation as Key Drivers
of Sustainable Business Solutions in Organizations. In Green Business: Concepts,
Methodologies, Tools, and Applications (pp. 415-439). IGI Global.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78,
pp.275-292.
Goldberg, K. and Christopher, K., 2019. Community Oriented Policing: Security in the Domestic
Counter Terrorism Environment. Journal of Business and Behavioral
Sciences, 31(1) pp.114-124.
Grzegorczyk, J., 2019. COMPANY'S CSR ACTIVITIES ADDRESSED TO ITS
CUSTOMERS. Acta Universitatis Nicolai Copernici. Zarządzanie. 46(3). pp.19-
28.
Jevšenak, S., 2019 c. The Millennials’ Effect: How Can Their Personal Values Shape the Future
Business Environment of Industry 4.0?. Našegospodarstvo/Our economy, 65(1),
pp.57-65.
Lamba, A., 2019. API Design Principles & Security Best Practices–Accelerate your business
without compromising security.
Lewis, R., 2017. Porter's Five Forces of competitive advantage.
Luiz, J.M., Ganson, B. and Wennmann, A., 2019. Business environment reforms in fragile and
conflict-affected states: From a transactions towards a systems approach. Journal
of International Business Policy, 2(3), pp.217-236.
Morrish, S.C. and Jones, R., 2020. Post-disaster business recovery: An entrepreneurial marketing
perspective. Journal of Business Research. 113. pp.83-92.
Ncube, M., Soonawalla, K. and Hausken, K., 2019. The links between business environment,
economic growth and social equity: a study of african countries. Journal of
African Business, pp.1-24.
Odukomaiya, F., 2019. BUSINESS IN AN INTERNATIONAL ENVIRONMENT.

Rahma, A. A. and Aldi, F., 2020. The Importance of Commissioners Board Diversity in CSR
Disclosures. International Journal of Economics Development Research
(IJEDR). 1(2). pp.136-149.
Rofiq, A. and Pramono, S., 2019. The role of strategic planning and flexibility in shaping SMEs
market orientation in turbulence business environment.
Wellner, S. and Lakotta, J., 2020. Porter's Five Forces in the German railway industry. Journal
of Rail Transport Planning & Management, p.100181.