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PESTEL and SWOT Analysis of ALDI

   

Added on  2020-12-24

13 Pages4255 Words365 Views
Business and the BusinessEnvironment

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................4P1 Covered in PPT.................................................................................................................4P2 Covered in PPT.................................................................................................................4TASK 2............................................................................................................................................4P3 Covered in PPT.................................................................................................................4TASK 3............................................................................................................................................4P4 Positive and negative impact of macro environment upon business operations...............4TASK 4............................................................................................................................................6P5 Overall analysis of ALDI..................................................................................................6P6 Interrelation of Strength and weakness with external macro factors................................9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTION The Business environment is a kind of an organisation which operates to run a single unitof business at a particular place is known as business environment. These aspects can highlyinfluence the current working ability of the person so it is important to read all those aspects asthey helps in the effective growth of business. ALDI is undertaken for accomplishment of thisproject, it is a private company originated from the Germany works in the retail sector and haslarge supermarket chains in 20 different countries. This report shows the understanding ofpublic, private and voluntary organisation. To explain the concept of the environment analysisand the difference among three type of business are also done which clears the perspectiveregarding the size of business and the overall effectiveness of the business can be evaluatedthrough the PESTEL and SWOT analysis (Wetherly, 2014). TASK 1P1 Covered in PPTP2 Covered in PPTTASK 2 P3 Covered in PPTTASK 3 P4 Positive and negative impact of macro environment upon business operationsPESTEL analysis is a tool used by company to analyse and monitor the macro-environmental factors affecting the operations of an organisation. PESTEL analysis of AlbrechtDiscount (ALDI) is as follows:-Political Factors-These factors analyse the extent to which government influences anorganisation or certain industry. ALDI operates in a global environment having many stores inUK. So, company's performance is highly influenced by the political conditions of country,including European Union.Positive: Political conditions of UK are stable implying that the policies of country willremain constant which will favour the growth of ALDI in present and future scenario.

Negative: If in future, political conditions of UK become unstable, it may affect ALDIadversely. Moreover, a change in tax laws and tariff laws can cause a threat to theexistence of the organisation. Also, increasing digital transformation in ALDI maydemand for change in policies of government. So, to deal with these challenges, companymust have an action plan so that these factors do not hamper the operations oforganisation.Economic Factors-These factorshave a significant influence on how an organisationoperates and also its profitability. Such factors are economic growth, exchange rates, inflation,interest rates, disposable income of consumers. The economic environment has a great impact onhow Aldi conducts business operations.Positive: When economy is at recovery stage, people have to plan their budget as theirdisposable income is less and cost of living is rising. Also an effect of Brexit, prices inUK have risen and pound has dropped. Thus, people will choose discount supermarketAldi to save money.Negative: High unemployment levels decreases the demand for many goods adverselyimpacting the demand for producing such goods. To tackle this, company can promotethe use of labour intensive technology so that unemployment of country can be tackled.By this, company can also gain brand image for itself by working for improving thestandards of people.Social Factors-These factors determine the demographic characteristics, customs, normsand values of the community within which organization operates. Such factors includepopulation growth rate, age distribution, income distribution, health consciousness, lifestyleattitudes and cultural barriers. Aldi is largely affected by change in trends of people as it affectsthe demand of its products.Positive: Aldi is the highest paying supermarket in UK after giving its staff members arise in pay in order to overtake its competitors in terms of wages paid. This implies betterliving standards for the employees which means benefiting society as a whole. Also, by2020, Aldi targets at teaching healthy eating habits to 1.2 million children in UK throughtheir 'Get Set to Eat Fresh' Initiative(Chi, 2014)Negative: Changing trends in buying habits of consumers can play a vital role in makingthem decide from where they want to do shopping. This can affect the demand of

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