Business Environment Report: Aldi's Sectors, Functions, and Analysis

This report provides a detailed analysis of Aldi's business environment, encompassing various aspects of its operations and external influences. It begins with an introduction to the business environment, defining its impact on companies like Aldi, a retail giant. The report then delves into the types, purposes, and legal structures of organizations, including public, private, and voluntary sectors, using examples like the National Audit Office, Aldi, and Oxfam. It explores the size and scope of these organizations, examining their backgrounds, products, services, missions, visions, objectives, organizational structures, and stakeholders. The report further investigates the interrelationship between different organizational functions, such as marketing, research and development, and human resources, within Aldi's context. It also identifies the positive and negative impacts of the macro environment (PEST) factors on Aldi. Finally, it conducts an internal and external analysis to identify Aldi's strengths, weaknesses, and how these relate to external macro factors, culminating in a SWOT analysis of the company. The report aims to provide a comprehensive understanding of the factors shaping Aldi's business environment and its strategic positioning within the market.

Business Environment

Table of Contents
Business Environment ....................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures..........................................................................................................1
P2. Explain the size and scope of a range of different types of organisations:...........................3
TASK 2............................................................................................................................................5
P3: Explain the relationship between different organisational functions....................................5
TASK 3............................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment (PEST)........................7
TASK 4............................................................................................................................................9
P5 explain internal and external analysis of an organisation in order to identify strengths and
weakness.....................................................................................................................................9
P6 Explain how strength and weakness interrelate with external macro factors........................9
CONCLUSION..............................................................................................................................11

INTRODUCTION
Business environment refers the all internal and external factors which impact the
company's functions and operations such as employees, regulations, customers etc. In this chosen
organisation is ALDI which is deals in retail sector. It founded in 10 July 1946 by Karl and Theo
Albrecht. Its headquarter situated in Germany. In this report include the types, purpose and legal
structure of the different sectors. And also include their size, scope, objectives, vision, mission,
organisational structure etc.(Bah, E.H. and Fang, L., 2015) . In this consist interrelationship of
different departments of organisation. In this include negative, positive and strength, weakness
of political, economical, social, technological, environmental and legal environment. At last
include SWOT analysis of the company.
TASK 1
P1. Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
Organisation is a legal structure that is established for purpose of carrying and
continuing of the business and business related activities in respect to prescribed regulations and
concepts. In the present scenario, enterprises is termed as legal and lawfully authorised division
and structure in respect to create productivity and occupation for common efficiency and social
welfare of the public. There are various types of organisation which comprises of private, public
and voluntary etc. All are various types of the legal constitution and legal structure etc. The three
types of body of the organisation are as under:
Public organisation- National Audit Office:
The public organisation is a sector which is operated, owned and controlled by the
government and its provided the various services to its public and work for interest of the public.
Public sectors raise their funds from the public through various fees, taxes etc. In this chosen
organisation is National Audit Office which is a governmental body and its a audit
department(Botha, A., Kourie, D. and Snyman, R., 2014).
Purpose: public organisation's main purpose is to provide services to the public without
making any profit. The purpose of National Audit Office is to audit the accounts of the
government and parliament departments and improve public services.
Legal structure: The legal structure of the public organisation are as under:
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Central government- Central government controls entire part of the authorities and
government bodies for the accountability and maintaining constitution of the trust and faith of
the public.
State government - State government controls all matter and affairs related to the state
authority. Fundamentally, central government provide finances to the state government for
growth and benefits for the people.
Local government - This body the lowest series of the system of government. It doesn't
have power to take decisions and allocate the monetary resources and funds without the consent
of the central and state government (Bryman, A. and Bell, E., 2015) .
Private organisation- Aldi:
Private organisation is the part of economic system which is driven by the companies or
an individual for making profit and satisfying the consumer's needs. Aldi is a private retailer
company and discount market chain.
Purpose: Private organisations' important purpose is earn maximum profit to survive in
the market and continue driven the business operations. Aldi's main purpose is providing
qualitative and valuable products to their consumers.
Legal structure: The legal structure of the private companies are as under:
Partnership - Partnership is an association of two or more individuals which
have a common objective to attain business goals and targets. Partner's share profit according to
their respective ratio through with the signing partnership deed.
Sole proprietorship - Sole proprietorship is a established by the solo and one individual
for the earning profits. Person who found the occupation and entirely driven and maintain by
them.
Voluntary organisation- Oxfam:
A voluntary group and organisation is a group of persons who make an agreement to
complete a purpose and goal(Cai, S. and Yang, Z., 2014) . Oxfam is a charitable organisation
which is focus on the relief of global poverty.
Purpose: Voluntary organisations' main purpose is work for the common contribution
and welfare to the general public and development of the society etc. Oxfam's main purpose is
remove and reduce poverty from the country and its society and provide education for
awareness.
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Legal structure: Legal structure of voluntary organisation is as under:
Trust: A trust is a traditional constitution for a charity. It is regulate by the trust deed
which main objective is invest fund to the society's welfare(Schaltegger, S. and Wagner, M.,
2017) .
Associations: Association means small groups and units which exist to carry out the
objectives other then profit.
P2. Explain the size and scope of a range of different types of organisations:
National Audit Office, Oxfam and Ensoft Ltd. have different size and scope of their
structure. The size and scope of the organisations are categorised on the behalf of public, private
and voluntary which are as under:
public sector-National Audit Office:
Background of the organisation: National Audit Office was founded in 1983 by
government of the united kingdom. Its headquarter situated in Buckingham place road, London.
Product and services: Its provide services of inspections and audit of the books and
accounts of the government agencies, central government department and non-departmental
bodies(Cairncross, F., 2014) .
Size: It has approximately 796 employees and annual budget is approx £64 million.
Scope: The current scenario of the organisation is broad and full of possibilities and
chances to pursue more audit and inspection services.
Mission & vision: Its mission is to provide effective quality audit and inspection services
which improved the accountability, performance and transparency of the public sector. Its vision
is to be extremely regarded establishment that growth in auditing of public body.
Objectives: Its main objective is serving the nation and spend wisely.
Organisational structure: It is apart into two structural units i.e. the Audit Department
which deals in the principal activity and other is Development and Administrative Service which
help the Audit Department.
Stakeholders: Its main stakeholders is government and public.
Private sector- ALDI:
Background of the organisation: It is deals in retail sector. It was founded by Theo
Albrecht and Karl Albrecht in 10 July, 1946. Its headquarter situated in Germany.
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Product and services: Its provide various products such as sanitary articles, food,
household goods and beverage.
Size: It has a approximately 104,400 employees in their various store with revenue of 53
billion.
Scope: This is provide wide scope such as Australia, China, Italy, Spain, United
kingdom, Poland, Luxembourg, United States etc.
Mission & vision: Its mission is to be a leader in the merchandising and distribution of
food, personal care items, pharmacy and related goods and services. Its vision is provide great
quality at the fair and best price(Sekaran, U. and Bougie, R., 2016).
Objectives: Its main objective is provide quality and value to to their consumers by being
efficient and fair.
Organisational structure: It has structure of Flat command hierarchy.
Stakeholders: Its main stakeholder is government, its users, consumers and employees.
Voluntary organisation-Oxfam:
Background of the organisation: Oxfam was founded in 1942 at Oxford England. It is a
non-governmental organisation. Its headquarter situated in Oxfam house, Oxfam international,
Oxford, England.
Product and services: It is a charitable organisation which provide welfare to the society.
They save lives and support to rebuild livelihoods.
Size: Oxfam is a union of 20 charitable organisation who are focus on relief of global
poverty.
Scope: The organisation is working in active and opportunistic field. The range of the
organisation is very broad and lengthy. They require to cover the various part and area of the
global for the social welfare and improvement purpose.
Mission & vision: Its mission is to support to create permanent solution to the unfairness
of poverty. Its main vision is just world without the poorness. They want to a global place where
public are treated and valued equally and they can enjoy their rights.
Objectives: Its main objective is to support public to claim their rights to a healthier life,
save lives, equal rights for women etc(Chang, J. F., 2016) (.
Organisational structure: This organisation has a single management structure.
Stakeholders: Its stakeholders are society, government and other trust sector.
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Sole trader:
Sole proprietorship is a established by the solo and one individual for the earning profits.
Person who found the occupation and entirely driven and maintain by them.
Partnership:
Partnership is an association of two or more individuals which have a common objective
to attain business goals and targets. Partner's share profit according to their respective ratio
through with the signing partnership deed
Private:
Private organisation is the part of economic system which is driven by the companies or
an individual for making profit and satisfying the consumer's needs
Public Ltd. Company:
The public organisation is a sector which is operated, owned and controlled by the
government and its provided the various services to its public and work for interest of the public.
Public sectors raise their funds from the public through various fees, taxes etc.
Multinational corporation:
A worldwide and multinational corporation is a corporate business which controls and
owns production of products and services in at least one nation instead of its home country. This
types of organisation have offices in several countries and have a head office in their home
country.
Global companies:
Global company have a presence in many countries but the processes and offerings are
consistent in every country. In other countries, the business not adopt the local norms but
enforces its existing framework on the country.
Transactional companies:
It is a commercial organisation which operates significant facilities and run business in
more than one nation and don't have any particular country as national home.
TASK 2
P3: Explain the relationship between different organisational functions
ALDI is a private sector with the purpose to gain productivity and profitability to sustain
and survive in the business and acquiring the large amount of the marketing stock. There must be
a strong coordination among the several division of an enterprise. Different departments have
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various and specific duties and roles , but perform together to increase the achievements of
objectives and goals.
Marketing department:
A marketing function promotes the business and increase sales of its goods and services.
They create methods of promotions through advertisement, TV, magazines, social media, online
websites etc. Marketing managers of Aldi needs the HR department to aid them to finding a
subordinate of marketing. They support the marketing division with setting out a vacancy,
advertising the vacancy, candidate profile, job description, etc. HR department also have a strong
communication factor which is closely related to the marketing.
Research and development department:
It is an department within a enterprise that is take initiate and create innovations, new
services and goods and new ideas. In ALDI, R&D department is driven accordant to the selling
concept. The needs of potential customers must be important for new development in regard to
present products and services that meet the needs of consumers. Marketing managers are discuss
with researchers in regard to ensure that consumers needs and wants are represented.
Human resource department:
It is function of recruitment, finding, selection, training and development. In this HR
managers of Aldi provide the employees' benefits, their health & safety, employees relations,
compensations, education programmes, making policies & rules etc. human resource department
based on the marketing and selling concept. They recruit the marketer and sales based candidate
who expert in promoting the products and services in the market or increase the sales and profit.
'production department:
Production department is the Aldi doing many activities and operations like
manufacturing the goods and services, their description, design, packaging, price etc. They fulfil
the customers demands and needs. Research and development and information and technology
department help the production department to innovate the new product and create new ideas and
new technology help them to produce goods fast. So, they can maximise the satisfaction of the
customers and increase the profit of the companyCharter, M., 2017) .
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TASK 3
P4 Identify the positive and negative impacts the macro environment (PEST)
PEST analysis is a model which uncover the several macro economical factors such as
political, economical, social and technological factors for the competitiveness and benefit of the
enterprise. In context with Aldi, here is a various positive and negative effect of PESTEL
component on the company are as under:
Political factor:
It involves the political circumstances, stability and changes of the policy and
government etc. which influencing the development of the Aldi company and up down its
income capability. In Aldi, need of both positive aspect as well as negative discussion in respect
to political factors:
Positive: This factor's positive aspect is strong position and reputation of the Aldi in the
activity. Political power can lead the possibilities of the company for the huge and long life in the
market.
Negative: Negative feature of this factor is that here is a unfair possibility of advanced
economical risk and lack of productiveness in the nation where company is drive their business
activities.
Economical factor:
Economical - This element is about the economic situation of the nation, stableness in
the cost of the goods, and resource component etc. In Aldi, economic factors has reverse and
large impact on the economical and financial condition or situation of the company.
Positive - Impressive and effective economic policies can increase the future
development of the Aldi. If economical policies are effective and fair, then its easy to control
and negotiate the prices of the goods and services which are offering to customers.
Negative: Poor and pathetic economic policies or strategies like diminishing and
declining in the currency price and rates, deficiency of the corporate, heavy tax charge etc. can
make the barrier for the Aldi's business to run in the market.
Social factor:
This factors plays an significant role in influencing the action of a person as well as group
of individuals. In Aldi, this element influence the external and internal action of the individual in
respect to gain the issue and outcomes from the customer.
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Positive - It plays essential function in the attracting and influence the attitude and
action of the users for the intention of profitability and acquiring business.
Negative: This factor effect the purchasing power of a consumer, buyer or individual .
This is essential to manage the response of the customer's to increase the maximum chances of
profitability.
Technology factor:
This feature presents the fast technological activities and process of the sector. Aldi is
giving advanced rivalry and quickly transforming to challengers in the market.
Positive - These technological improvement is encouraging to new merchandise offering
which assist in sales earnings. Aldi carry out with paperless system by adopting IT and different
technology that creating business activities more flexible(Crane, A. and Matten, D., 2016) .
Negative - It can addressed technological activity if it is not accordant with the
consumer's taste and preferences.
Environmental:
Each country has various culture and norms that directly impact to a business's
profitability. Before entrance in existing and new market, company must concern with
possession article for execution of operations program.
Positive - These measures assist to Aldi in proper and effective perceptive of climate
conditions and environmental changes. Administrator can easily direct recycling programs in
their retail industry.
Negative - If Aldi company avoids these components then it make many obstacles in the
business step-up or expand and operation program.
Legal factor: A nation's legal departments and structure are not entirely adequate for any
enterprises property's security. So, managers of Aldi should examine carefully these feature that
can addressed to stealing secret of the organisation.
Positive - This feature assist to data protection, copyright, anti-trust and e-commerce
for household and others products which protect to Aldi's business.
Negative - Aldi require to match their conditions and terms with nation's statute law
other than it impact negatively on further activities.
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TASK 4
P5 explain internal and external analysis of an organisation in order to identify strengths and
weakness.
SWOT analysis helps in strategic planning by measuring internal and external
components for any business success. In SWOT include four components strengths and
weakness, opportunity and threats,. Through using this tool Aldi can determine each aspects of
success and increase profits.
Strength: This component take positive points of an enterprise so administration can
gain maximum earnings by using its competencies. In respect of Aldi, is survive easily because
of their lower pricing strategy, strong ecosystem, great savings, good product mix, high level of
customer support. Etc.
Weakness: Weakness are describes those factors where the brand and business needs
improvement. Aldi's main weaknesses are low margins, poor incursion in high- income groups
and poor subordinates satisfaction etc (Grayson, D. and Hodges, A., 2017) .
Opportunity: This possibilities features provides various derivatives for business growth
by examining all target aspects. Its main opportunity is that they give its main preference to their
consumers. Customer's demands are increase time to time for this, Aldi adopt new technology to
fulfil the needs of the consumers on time.
Threats: Threats are those components in the environment that can be damaging the
development of the company. Aldi's main threats is their challengers or competitors. They face
various competition from their competitors like Walmart etc.
P6 Explain how strength and weakness interrelate with external macro factors.
Macro environment component alert from all the condition of market which can instantly
impact the organisation. A proper and effective appraisal enables for changes weakest element
into strength factor by adopting strategic methods.
Political:
Governmental policies impact on market process when a company get in new
marketplace during business enlargement plans. Amendment in laws and new statute law can
impact to organisation's policies for disposal further programs in fair way(Kolk, A., 2016).
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Strength: Aldi can easily doings business activities without facing any boundaries.
Furthermore government has describe to diminishing 26% to 24% tax in business law that
increase stability and profitability.
Weakness: Aldi company dealing with 52 nation and operating 250 stores with online
facilities. So unawareness of governmental stabilities can address to down market stock. Here
managers OF Aldi's must know about attendant nation strategy for protective unwilling
condition.
Economical:
Each nation has various level of gross domestic product and moving rates and pricing on
exchange. As United Kingdom has irritable interest rate or tax that increasing the financial
condition and issue. So managers required to aware timely on changeable rate for growing
business operations(Hair Jr, et. al., 2015) .
Strength: Company perform healthy and achieving maximum profits. Aldi is principally
focusing on monetary sustainability with growth of the business that increase maximum share.
Weakness: Economical rejection can making large issues for Aldi company because of
broad scope of products and services in various countries.
Social factors:
This factor view on customer's lifestyle, taste and preferences, and attitude for existing
products. Managers of Aldi must develop new goods accordant to public's requirements and their
demand.
Strength: Company has broad scope of products and services that help to potential
consumers by rendering quality goods. New generation absorbing with their trade image by
getting online products.
Weakness: ALDI enterprise render potential product in advanced rate that can make a
boundary for sales activities.
Technological Factors:
Fast changes in technology, help for online purchasing and new applicable attribute in
existing goods and services. Aldi also follow new technical ability for making new goods that
contributing in earning from the global markets.
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Strength: Aldi enables to their customers for internet buying those facility rising the
sales formulation with paperless activity. This online purchasing option is important strength of
Aldi company because they are transaction in many countries(Jeston, J., 2014) .
Weaknesses: They has 250 stores, they essential to prepare for more security for saving
essential reports and data.
CONCLUSION
From the above report, it has concluded that legal structure and purpose of different
organisation are differ from one to one which affect the all industry. All the departments are
interlinked with each other which affect the company's policy and factors. PESTAL have many
strength and weakness which affect the company,s positive and negative aspects. SWOT analysis
is the main factor which determine the all aspects of the organisation.
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