Report on ALDI: Analyzing Business Context, Ethics, and Sustainability

This report offers a comprehensive analysis of ALDI's business operations, examining the micro and macro environmental factors that influence its global presence. It delves into the competitive landscape, supplier relationships, and customer dynamics, highlighting the impact of political, economic, social, and technological factors. Furthermore, the report emphasizes the importance of ethical and sustainable practices, particularly in relation to Corporate Social Responsibility (CSR), cultural differences, and economic considerations. The study concludes by underscoring the necessity for businesses to adapt to the changing global market, incorporating ethical and responsible strategies for long-term sustainability and success. The report uses ALDI as a case study to illustrate the practical application of these concepts, referencing various academic sources to support its findings.

CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1......................................................................................................................................1
LO 1 Micro and Macro environmental factors that changes the nature of business in the global
environment:...........................................................................................................................1
LO 2 Analysing the importance as the individual and organisation to manage responsibly,
sustainably and behave ethically in relation to social, cultural, economic and environmental
issues.......................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCE...................................................................................................................................5

INTRODUCTION
Context word used as impact, trends, issues and relationship with the business and across
the global market. However, to change the business process new ideas are innovated and
implement them to grow the business for longer terms and expand their business into new area
for future growth. Present study is based upon ALDI company, it has more than 10000 stores and
around20 countries. Firm offers food, beverages, sanitary etc. products to its consumers..
Report includes the Micro and macro factors which influence the nature of business in the
global environment. Further it's also include the ethics, suitability and responsibility that
individual and organisation maintain in relation to social, economic, cultural and environmental
factors.
PROJECT 1
LO 1 Micro and Macro environmental factors that changes the nature of business in the global
environment:
Micro factors that change the company working structure are ~
 Competitors: Nowadays company is facing a big boom in the market in terms of
competitors. Competition in the market are common in the upcoming work profile as
mostly competitors occurs due to similar in the products use which customers can be
differentiate easily as all company offers same price and quality which result in tough
competition in the market. If ALDI wants to expand their business and to grow in the
market they have to face the competitors which results in high growth rate and also
increase in cost as demand of more resources and more capital are increased in the
market(Context is everything for modern business, 2019).
 Supplier: As due to changes in market condition demand of supplier has also changed.
They depend upon the productivity and labour cost of the company. If ALDI is not
growing there is reduction in productivity of the products which results in decrease in
supplier rates and also it affects the cost of the company image as well (Mlecnik and
et.al., 2016). If the firm plans to enter into New market then it is essential for ALDI to
make changes in its supplier chain strategy. It has to develop relationship with local
suppliers so that it can manage cost and can get raw material quickly.
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 Customers: Products of the company depends upon the needs and demands of the
customers and also to improve their satisfaction level. Customers demand are frequently
changing which affects the working of the company which results to change in criteria of
producing the product. ALDI can get affected when there are continuous improvement or
change in product by the customers which results in wastage of resources, cost and time
as well. Company whole stability depends upon the happiness and loyalty with the public
relations. The strength of public is that they can bring the company at the top and at the
same time bring them down in the challenging market. Company whole planning is
around the improvement of product and satisfy the people so that they promote their
brand name. Company the biggest impact is that they have to spent lot of earning to
satisfy the people and their needs(Hopkins, 2017).
Macro factors which affecting the environment of the company externally are ~
 Political factors: To enter the business into new global market, lot of changes which
reflect the company background such as tax rates, Labour laws. Tax rates is the major
issue raised when company expand their business because to transport their business
products every country implement their rates issued which charges costly to deliver their
products(Kolk, 2016).
 Economic factors: The factors which influence the working of bushiness is related to
terms of GDP and rate of inflation and barriers in import and export items which reflect
the company working criteria to enter into new market. ALDI has to verify all the
changes and apply them in their planning strategy, so that company can continuously
flow their products and growth structure.
 Social factors: Social factors reflects the nature of company through thought, ideas and
culture. As every country has different culture and language and the company feels
barriers if they are not presentable to them which result in lack of communication and
failure of ALDI’s progress (Dierksmeier and et.al., 2016).
 Technological factors: Due to changes occurs technology also to be amended and
changed from time to time. The Fastest growing technologies crack the business ideas if
company are updated with the recent technology. Company mostly reflect of lacking in
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technologies and implement them to update their business product and ideas which result
to lack of company progress.
LO 2 Analysing the importance as the individual and organisation to manage responsibly,
sustainably and behave ethically in relation to social, cultural, economic and environmental
issues.
Individual and Organisation has to maintain their social responsibility and behave
ethically in terms of CSR (Customer Social Responsibility). This policy is done to encourage
employee and motivate them and also beneficial for society and ALDI to earn profit. CSR helps
company to know their employees better and trained them in their working environment and also
it is the eco-friendly work which saves the environment from other disputes (Mayne, 2016).
Cultural difference are the big issue in expanding the company because everyone is not
familiar with the every culture and language with the other country and this stops the company to
grow more. As organisation has to maintain some ethics which reflect the company structure and
their relationship with their employees and this is the basic culture with other organisation notice
while working with the company. ALDI has to use some technology to communicate their words
and meaning to understand them about the product and services which they are dealing in the
market(Mayne, 2016).
Economic factors which is important to have a sustainable and ethical behaviours is that
the lot of cost arises in result of transportation and by delivering the products from one place to
another. So company has to maintain a suitability in that factor can improve the condition which
result in positive effect on both the sides of area and result in eco-friendly environment(Crane
and Matten, 2016).
ALDI has to manage responsibly the environment issue which reflect the working of the
company as company uses lot of resources to produce a product which similarly results in
wastage of raw materials. Sometimes product get affected due to changes in environment such as
natural calamities which reflect the company productivity. Company has to maintain the rules
and regulation regarding the changes and influences in company productivity which helps the
company to grow stronger(Kolk, 2016).
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CONCLUSION
From the above study it can be conclude that in modern times company are changing their
criteria to earn profit and stabilise their working structure by analyse the global market strategy
and also turn out various factors which influence the working of the company internally and
externally and the individual and organisation both have to apply some ethics and responsibility
in the managing the company affairs globally.
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REFERENCE
Books and Journals
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dierksmeier, C and et.al., 2016. Humanistic ethics in the age of globality. Springer.
Hopkins, M., 2017. CSR and international development. In CSR and Sustainability. (pp. 88-108).
Routledge.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Mayne, S.L., 2016. The Effect of Macro-Level Factors (Policies, Prices, and Neighborhood
Social Environment) on Smoking Behavior in Two Multi-Ethnic Cohorts of US Adults.
Drexel University.
Mlecnik, B and et.al., 2016. The tumor microenvironment and Immunoscore are critical
determinants of dissemination to distant metastasis. Science translational medicine.
8(327). pp.327ra26-327ra26.
Online
Context is everything for modern business.2019.[Online].Available
through<https://www.forbes.com/sites/rogertrapp/2014/02/27/context-is-everything-for-
the-modern-business/#246e031c32e4>
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