Comprehensive Analysis: Aldi Company's Business Operations Report

This report provides a comprehensive analysis of the business operations of Aldi, a retail company operating in the UK. It begins by examining different types of firms, including private and public sectors, and then delves into the structure of businesses, specifically focusing on Aldi's flat and tall hierarchical structures. The report emphasizes the importance of accounting for businesses, discussing its role in providing financial information and aiding decision-making. It also covers the functions of Human Resources (HR) within Aldi, including motivation, compensation, and performance appraisal, alongside key features of employee legislation. The report further explores accounting information through an income statement analysis, and the significance of teamwork, including its stages and motivational theories such as Hertzberg's and Maslow's. Finally, the report concludes by highlighting the impact of customer service on the overall success of the business.

How Business Operates

TABLE OF CONTENTS
.........................................................................................................................................................1
Table of Contents.............................................................................................................................2
Introduction......................................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Types of firms...................................................................................................................1
1.2 Structure of businesses and reasons.......................................................................................2
It has different types of structure of businesses. Various types of structure of business followed
by Aldi are:.....................................................................................................................................2
1.2 Impact of local, national and international effect on Aldi....................................................2
TASK 2............................................................................................................................................3
2.1 Importance of accounting for business..................................................................................3
5.1 Functions of HR.....................................................................................................................3
5.2 Key features of employee legislation....................................................................................4
TASK 3............................................................................................................................................4
3.1 Accounting information.........................................................................................................4
TASK 4............................................................................................................................................5
4.1 Determination of role of team work......................................................................................5
4.2 Stages of team development..................................................................................................6
4.3 Three motivational theories...................................................................................................6
4.4 Types of leadership styles......................................................................................................7
TASK 5............................................................................................................................................7
5.1 Impact of user service on success.........................................................................................7
CONCLUSION................................................................................................................................7
.........................................................................................................................................................7

REFERENCES................................................................................................................................8

Introduction
Business environment consists of factors which are staff members so that firm can run
successfully. Through this firm earn more revenues and they can enhance market share. Hence as
a result company can run their operations successfully and effectively (Macaulay, 2018).
. As a result it can also maintain good and string position in minds of all staff members.
Assignmnet discusses about Aldi company which is a retail firm. It was found in U.K. There are
various types of firms and structure of businesses. Accounting is crucial for Aldi and accounting
information is important for Aldi. Team work is very important for firm. Customer service is
important for firm as report describes about impact of user service on success of business.
TASK 1
1.1 Types of firms
Various firms are there in public and private sector. Types of firms in Aldi are:
Private sector: They are not run by govt but are controlled and managed by private sector. Its
types are:
Sole proprietorship: It is run by a single person. In this profits and losses is also bear by single
person.
Partnership: It is run by two or more persons. Losses and profits are borne in partnership by two
or more persons.
Limited liability: In this company only have to pay the debts and do not sell of their personal
assets to pay liability. This is known as limited liability.
Public corporations: Various types of firms which are available in public corporations are:
Departmental firms: They are manager by ministry. For example there is railways which is
controlled by departmental firms.
Statutory corporations: These are created due to passing of parliament. It is also formed by
various legislations and rules and they can manage various tasks.
Govt Company: It is created by govt. It is formed due to passing of special act of govt, 1956.
51% of shares is held by central or state govt (Laszlo and Cescau, P2017)
.
It is crucial so that they can enhance their profits and they can manage all operations effectively.

1.2 Structure of businesses and reasons
It has different types of structure of businesses. Various types of structure of business followed
by Aldi are:
Flat: It is a structure in which less levels are there. So there is less chaos and confusion among all
buyers (Grayson, McLaren and Spitzeck, 2017)
Tall hierarchical structure: It is structure which consists of many level and hence there can be
less chaos. So thus firm can develop many strategies and policies so that they can earn more
revenues.
Thus as a result it can maintain god image in front of all users and in market.
Through following this structure fir m can earn more profits and can easily widens their
business.
1.2Impact of local, national and international effect on Aldi
Various business follow a different structure and they operate in a dynamic environment. There
is different impact on the business. Impact on Aldi are described below:
Impact of local economy: There is drastic impact of local economy on business. For example
there is demand of healthier products and people want that they can get products at home. So
hence it has to change system and the policies they products at home.
National impact on business: There is national impact on economy. For example if there is
deflation on economy then it can increases profits on economy. As a result it leads to increase in
profits and firm can sell products at less costs. So hence it can attract more users. As a result it
can earn huge revenues.
International effect: There is different impact of international effect on economy. For example
there is flood or earthquake so due to this it can have negative impact on Aldi. There is increase
in prices and people cannot purchase it. So it reduces revenues and market share of firm. So it
can give competition to Tesco and other retail firms. Through this it can maintain good image in
front of users and in market (English, J., 2006)

TASK 2
2.1 Importance of accounting for business
Business runs to earn profit but there is requirement to proper funds to achieve targets
(Håkansson and Ford, 2002)
. It is essential that company has to adopt proper planning so they can give correct ideas to
workers. It is essential that management of ALDI has to perform activities through which
company can perform activities in better and effective way. Accounting means to show financial
status of company. It is essential that company has to make policies which give correct and
appropriate way to give correct information to stakeholders. Through proper allocation company
is able to competent with external parties of company and it helps in increasing faith and trust of
workers as well as consumer. Accounting helps in proper delivery of information in better and
effective way. Accounting tells about revenue and expenses of any project. It is effective with
proper assistance of legal body.
5.1 Functions of HR
HR are in ALDI plays vital role in performing help to company. It is essential to give
chance to workers through which they can achieve targets in proper and effective way. There are
many workers to achieve targets of company and there is difference in their perception so it is
essential that company has HR manager through which they can achieve targets. To increase
profit it is essential that employees must be motivated, to give their best. Functions of HR are as
follows-
Motivation- There is requirement of proper targets which helps to achieve goals and
objectives in better way. Manager has to analyse external factors and deliver them to employees
sop they came to know about change in forces. Motivation of employees is necessary so they can
perform actions in best way.
Compensation and remuneration- There is requirement of proper compensation which
help in performing activities in better manner. Employees work in organisation to earn money. It
is responsibility of HR manager to give proper pay so it helps in performing activities in better
way. Remuneration must be on time so it improves morale of employees. It is effective for
improvement of condition of company (Chesbrough, 2006)
Performance appraisal- There is change in performing of workers. It is essential to give
chance to workers by saying performing good helps in getting good. There is difference in need

of employees so it is essential to analyse need and then take corrective actions. Performance
appraisal is important through which they can motivate workers (Day and Tinney, 1968)
.
.
5.2 Key features of employee legislation
ALDI is an organisation which deals with society to perform activities. It is important to
provide feeling of safety, through which they can feel safety at their work place. It is essential
that company has to perform activities in way which is effective for company's growth. With
these laws there is fear in the mind of company also, they perform with full efficiency and
effectiveness ( Kahaner, 1997)
. There are many laws such as equal remuneration act, employment act, discrimination act, etc.
which help in creating activities in better way. ALDI has many workers so they have to apply
changes in business and it is essential to avoid government interference. There is requirement of
legal body which operate and amend changes in effective way. In case of changes taking place in
government policies then ALDI has to modify policies.
TASK 3
3.1 Accounting information
ALDI has to prefer proper books of accounts through which they can perform activities in
way through which they can achieve targets in better and effective way. Income statement for
2000-01 of ALDI is as under-
Income Statement
Revenue 2000-01
Total Revenue 485873000
Gross Profit 124617000
Cost of Revenue 361256000
Operating Expenses
Research Development -
Selling General and Administrative 101853000

Operating Income or Loss 22764000
Income from Continuing Operations
Total Other Income/Expenses Net 100000
Interest Expense 2367000
Earnings Before Interest and Taxes 22864000
Income Before Tax 20497000
Income Tax Expense 6204000
Minority Interest 2737000
Net Income
Dividend charges -
Net Income Applicable To Common
Shares 13643000
INTERPRETATION-
Frond the above income statement it is clear that company has to perform activities in
more effective way through which they have good image in market. ALDI has good image in
market so it is easy for them to raise funds from market. These days research and development
department has main role because of competitions so it is essential that company must give
emphasise on it (Qualman, 2010)
.
TASK 4
4.1 Determination of role of team work
There are many activities in company which work to achieve targets. It is essential that
management of ALDI must give emphasise on time work. Team work means two or more people
working for same targets in same environment. As per change in policies there is requirement of
guidance which help in achieving targets on time. Team has people which help in achieving
targets in better way. Organisation has to guide workers through which they can perform actions

in better way. It is essential that management of ALDI must frame teams through which they can
achieve targets in better way. ALDI has to develop strategies through which they can perform
activities in way (Casadesus-Masanell, and Ricart, , 2010)
.
.
There are many workers and they achieve their own skills and knowledge through which
they can perform activities in better and effective way. Organisation has to work as per external
environment of business, so it is essential to work in team so targets can be achieved in effective
and efficient manner. Through team, members are assign some job responsibilities with some
power which is important. It is essential to give some knowledge about subject so it is fruitful for
the growth of company. It is essential to analyse market and then taker actions through which
they can enhance their knowledge. When employees work in tame there is feeling of competition
so actions are more effective. There are possibilities that manager has to keep eyes on working
styles so it is fruitful in competing with external parties.
4.2 Stages of team development
Various stages of team development used by Aldi are:
Forming: In this stage staff members can familiarise with the manager of firm.
Storming: In this step staff members can have responsibility towards tasks. Safer members can
be out of comfort zone and other remaining can emerge it.
Norming: Employees can perform together and they understand each other views and thoughts.
Performing: In this step leader have no authority to take decisions. They only check
performance.
By performing all stages Aldi can create effective and efficient team. It results in good work and
good performance of firm.
4.3 Three motivational theories
Different motivational theories are:
Hertzberg motivational theory: First is X factor theory which fulfils monetary needs and Y factor
can increase motivational and satisfaction level of staff members (Koçoğlu, , Akgun, and
Keskin, 2017).
.

Maslow’s theory: 5 levels are there. First is psychological which can meet basic needs. Second is
safety through which keep employees safer from any threat (Wang, Guo, and Liu, 2017). Third
is love which helps in maintaining friendly environment among all employees. Fourth is self
esteem in which staff members are recognized in front of all employees in seminars and are
given certificates for their good performance. Fifth is self actualization in which
accomplishments and potential is recognized by person.
4.4 Types of leadership styles
Different leadership styles followed by Aldi are:
Democratic: It is leadership in which leader receives feedback from staff members also. Leader
cannot bind their own decisions.
Transactional leadership styles: In this style leader has set various objectives and vision for firm.
Leader motivate and guide members so that they can complete their tasks. Through this they can
perform better and can give superior results.
TASK 5
5.1 Impact of user service on success
Effect on Aldi are:
Increase revenues: When there is good relationship between manager and customer then it
increases satisfaction level of users and it can increases profits of firm.
Can give strong competition: Through communicating and solving all problem so it can maintain
customer loyalty. Thus they can give strong competition to other firms.
5.2 Benefits of customer profiling to business:
Advantages for Aldi are:
Knowledge of user: Manager can have full knowledge of data regarding user.
Good relationship: Manager can maintain good relationship with customer by communicating
through interview or telephonic calls.
CONCLUSION
Business scanning is very crucial for company. Through this it can increase the profits and can
enhance market share. Firm can also maintain strong position in minds of all users and in
market. Types of firm include sole proprietorship, partnership etc. Accounting is crucial fort
company. Accounting data is crucial for firm. Team work is crucial for firm.

REFERENCES
Books and Journals
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Laszlo, C. and Cescau, P., 2017. Sustainable value: How the world's leading companies are
doing well by doing good. Routledge.
Grayson, D., McLaren, M. and Spitzeck, H., 2017. Social intrapreneurism and all that jazz: How
business innovators are helping to build a more sustainable world. Routledge.
English, J., 2006. How to organise & operate a small business in Australia. Allen & Unwin.
Håkansson, H. and Ford, D., 2002. How should companies interact in business
networks?. Journal of business research 55(2). pp.133-139.
Chesbrough, H., 2006. Open business models: How to thrive in the new innovation landscape.
Harvard Business Press.
Day, R. H. and Tinney, E .H., 1968. How to co-operate in business without really trying: a
learning model of decentralized decision making. Journal of political
Economy, 76(4, Part 1), pp.583-600.
Kahaner, L., 1997. Competitive intelligence: how to gather analyze and use information to move
your business to the top. Simon and Schuster.
Qualman, E., 2010. Socialnomics: How social media transforms the way we live and do
business. John Wiley & Sons.
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2-3). pp.195-215.
Koçoğlu, İ., Akgun, A. E. and Keskin, H., 2017. The Role of Business Model Development in
the Ex-Post Creation of Online Entrepreneurial Opportunity. In Key
Challenges and Opportunities in Web Entrepreneurship (pp. 1-32). IGI
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