Impact of Globalization on Multinational Companies: A Study on ALDI Group

RESEARCH PROJECT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Research topic.............................................................................................................................1
Research background..................................................................................................................1
Overview of company ALDI......................................................................................................2
Aim and Objective......................................................................................................................2
Research questions......................................................................................................................3
Rationale.....................................................................................................................................3
LITERATURE REVIEW................................................................................................................3
RESEARCH METHODOLOGY.....................................................................................................5
DATA ANALYSIS..........................................................................................................................8
Reflection and effectiveness of research methods.........................................................................14
Lessons learnt and alternative research methodology as well As recommendation......................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Globalization increased at large scale across the globe. With passage of time period more
countries are opening gates for international trade by reducing trade barriers. It is globalization
which make easy for firms to open their branches in the foreign nations. In past couple of years
large number of companies enter in to the UK market especially in the retail sector. Earlier there
were only two firms namely Tesco and Sainsbury but due to globalization two new firms namely
Lidl and Aldi also enter into the market. These two firms disrupt industry because of their low-
cost model. Aldi is the company on which research is carried out in the present research study.
Mentioned firm make available product at very low price in the market because it purchases
items from those retailers whose products are not so popular in the market and are of good
quality. In such kind of deal there is benefit of both entities. This is because for small size firms
whose products are not so popular it is hard to generate sales in the market. Aldi directly make
purchase of items from these small firms due to which latter entity earn good amount of revenue
on regular basis. On other hand, Aldi due to purchase of product at low price make available its
items at price less then Tesco and Sainsbury charged. This help firm to make its business stable
in the UK. In other words it can be said that due to low cost strategy firm today is giving tough
competition to the Tesco and Sainsbury.
Research topic
The impact of globalization on large multinational companies and challenges face by the
companies.
Research background
The research is all about impact of globalization. The globalization is concept in which
two companies with different geographical area trade with each other across geographical
boundaries. The activity of globalization undertakes different types of companies with their
resources, products, services, government, etc. with one company across the world. The process
of globalization includes transfer of technology, data, capital along with products and services
from one country to other.
The research report will lay emphasis on globalization impact on multinational
companies when they deal in global market. Also, the impact of globalization on their working
will also explained in this research. The report will also evaluate various challenges which are
facing by the company by opting for globalization. The study will also have emphasized on ways
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to overcome these challenges. The globalization impact directly to the whole world as many
companies are now indulging in the trend of globalization by buying and selling their products
along with services in many countries of the world across their geographical boundaries.
Overview of company ALDI
The present case of research will lay focus on ALDI group plc of UK. The ALDI is the
largest supermarket chain in United Kingdom (Oosten dorp, 2019). The company has almost
16.9% market share among supermarket. ALDI is the public limited company which is dealing in
retail business (ALDI business model in nutshell., 2019). The company has their headquarters in
Germany. The company is founded by Karl in the year 1946 (Sundaram, Schwank, and von
Arnim, 2018). The company deals in grocery stores, super market, etc.
The ALDI believes to earn short term gain at relatively low and affordable cost. For this
the company created their image as a brand of affordable price of their products in the global
market. There are almost 10000 supermarkets of ALDI in different countries of the world
( Baskerville, and Hay, 2016). In current time period Aldi is giving tough competition to the
competitors due to its low-cost model. Mentioned firm start procuring products from the
companies that are not so popular and produce good quality of products. Thus, Aldi start selling
its product at low price in the market which make it very popular among people. At fast rate firm
grab market share and comes in position from where it can challenge its rivals. In today time
period Aldi have high market share and is in good position. Other than Aldi there is another
German company in UK which is giving stiff challenge to mentioned company. That company
name is Lidl. Lidl is also following same business model and under this it is also making
available product at very low price in the market.
Aim and Objective
Aim
“To understand the impact of globalization on large multinational companies and
challenges face by the companies. A study on ALDI group”
Objective
 To analyse the impact of globalisation on multi national companies.
 To comprehend the trend of globalisation on companies.
 To evaluate the challenges face by the companies while dealing in global market.
 To recommend ways by which company can overcome the challenges.
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