Business and Business Environment Analysis for ALDI Retail Company

This report provides a comprehensive analysis of ALDI's business environment, encompassing various aspects of its operations. It begins with an introduction to the concept of the business environment and its significance for organizations. The report then delves into different types of organizations, including private, public, and voluntary sectors, using ALDI, NHS, and Oxfam as examples. It explores the size and scope of these organizations, along with their visions, missions, and legal structures. The analysis further examines the interrelationship between various organizational functions, such as finance, marketing, and research & development, and how these functions contribute to achieving organizational objectives. The report also identifies and evaluates the positive and negative impacts of the macro environment on ALDI's business operations. Furthermore, it conducts an internal and external analysis to identify the company's strengths and weaknesses, explaining how these factors interact with external macro factors. The conclusion summarizes the key findings and insights gained from the analysis. The report provides a detailed overview of ALDI's operations and its interaction with the business environment.

Business
and
Business
Environment

Table of Contents
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.............................4
TASK 2............................................................................................................................................5
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.......................................................................................5
TASK 3............................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................7
TASK 4............................................................................................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses............................................................................................................9
P6 Explain how strengths and weaknesses interrelate with external macro factors.................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Business environment refers to combination of all external and internal factors which
influences business operations as well as decision making process of a firm. In will include
various factors such as social, political, economical, employees, process, technology, capital and
many more. Business environment is essential for an organisation because by it they get various
benefits such as able to identify business opportunities, identify useful resources, adopt change
effectively, help in adopting plans and many more (Alles and et. al., 2018). Organisation taken
for this assignment is ALDI, which is a private retail company founded by Karl and Theo
Albrecht in year 1946. Its headquarter is in Essen, Germany and they are operating its business in
various locations such as Great Britain, Hungary, Switzerland, Australia, China, Italy, Austria,
Ireland and many more. It provide variety of products like food and beverage products,
household essentials and sanitary products. Topics covered in this report are different type of
organisation by including size and scope, interrelation between various functions in an
organisation and evaluate positive and negative impact of macro environment. Along with this it
include strength and weakness of external factor of an organisation.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
An individual can operate business operation in three type which explanation is given below:-
Private organization: It refers to type of organization type which is operate its business
operations and functions in order to generate profit in effective manner. In respective type of
company there are 2 minimum and 50 maximum employees. ALDI is a private retail company
which is operating its business in United Kingdom and other countries market. It is established
by Karl and Theo Albrecht in year 1946. along with this they offer variety of products such as
food and beverage products, household essentials and sanitary products. Purpose – ALDI is a private retail company which provide variety of product to their
customers with high quality as well as in affordable price. Their main purpose it to serve
quality products to customers so that they able to enhance their standard of living in
effective and appropriate price (Ardichvili and et. al., 2012). Along with this they also
want to gain loyalty of customers so that they can sustain in market for a long run in

effective manner. Now a day customers want high quality of products and services in low
price so it is necessary for respective company to develop appropriate quality products
according to need and demand of customers. Legal Structure – Legal structure of ALSI is corporate governance according to which
they have to deal with various stakeholder in order to identify need and requirement of
stakeholder which help in developing strategies in effective and appropriate manner (Bar-
Isaac and Shapiro, 2013). Stakeholders – In respect of this company stakeholder can be anyone such as a person,
group of individual etc. who have major interest in organisation and its outcome. In
respect of respective company its stakeholder are customers, employees, shareholders,
government and many. Products and services- Respective company offer variety of products and services such
as food and beverage products, household essentials and sanitary products with best
quality and in affordable price.
 Objective- The major objective of respective company is to offer best quality products
which fulfil need and demand of customers in appropriate and effective manner in
affordable price.
Public organisation: It is a type of business which is mainly operate and run by government as
well as endure to rent their services to its native. This type of organisation hardly engage private
companies to deliver goods and services at the residents. NHS (National health services) is a
public company which operate their business operations and functions in health and social care
sector. It is established in year 1948 and provide their services in various sectors such as
England, Scott land, Wales, Northern Ireland and many more. Purpose – The main purpose of National healthcare service is to provide appropriate
health care services to society so that they leave their life in effective and efficient
manner (Boons and et. al., 2013). They provide services related to health in affordable
price in order to ensure appropriate living environment. Legal Structure – Legal structure of NHS is of high level this is so because they are
operating business at international level so that they have to adopt and ensure government
policies and procedures in effective manner. They have to ensure and take care that they
are adopting government policies and regulations in effective and appropriate manner

which help them in various manner such as in decision making, conducting business
function in various location in proper manner. Stakeholders – Stakeholder of National health services are those person who are directly
and indirectly related with health care and its system. Such as in context of respective
company shareholder are customers, government, suppliers and many more. Products and services- National health service provide services related to health care in
order to make or develop healthy environment of peoples (D’Haen and Van, 2013).
Along with this services provided by respective company are affordable by customers in
proper and effective manner.
 Objective- The main objective of respective company is to offer best quality health care
services as well as conduct work to maintain it in appropriate and effective manner.
Voluntary organisation: In this type of organisation an individual or group of individual come
together through an agreement in voluntary form in order to attain goal and objective in effective
and appropriate manner. Oxfam is a combination of 20 independent charitable companies which
mainly focuses on reducing poverty at global level. It is a non profitable company which starting
operating its business from year 1942. It is founded by Cecil Jackson-Cole and its headquarter is
in England. Purpose – The main purpose of respective company is to identify and develop solution
for poverty so that everyone can leave their life in effective and appropriate manner.
They also want to develop a world where everyone will enjoy their life as well as rights
so that they can treat equally and appropriately. Legal Structure – In respect of Oxfam they are operating their business operations and
functions in various location and their main motive is to provide solution to poverty. Here
legal structure will include associates, trustee, donors, community or interested
companies, government and many more (Hilton and Platt, 2013). Respective company
develop their decision or strategies by concerning them. Stakeholders – In this type of business organisation stakeholder can be board members,
government, volunteers and many more. In respect of respective company their
stakeholder are beneficiaries, trustee, associate members and many more. Products and services- Respective company offer product and services in order to reduce
poverty from world.

 Objective- The main objective of Oxfam is to develop services as well as programmes so
that they able to reduce or eliminate poverty from environment in effective and
appropriate manner.
P2 Explain the size and scope of a range of different types of organisations
Public organisation : NHS
Product & Services Size and Scope Vision Mission
NHS facilitates a
range of health care
services such as
medicines, various test
at reasonable cost to
the public part from
dental as well as
optical care.
It is a largest public
organisation which
lining or catering to a
population of approx
54 million as well as
employing about 1.1
billion individuals. It
deals with approx 1
million patients within
36 hours involving
routine check up,
treatments and so on.
NHS vision depends
upon 3 components
that are better health,
better care as well as
better value (Laudon
and Traver, 2016).
NHS mission is to
facilitates standard
quality care to whole
people regularly for
better health.
Private Organisation : ALDI
Product & Services Size and Scope Vision Mission
ALDI provides
products such as
beverages, households
essentials, food,
sanitary and many
more (Lee, Olson and
Trimi, 2012).
ALDI have approx
32000 workers in
United Kingdom. It
has more that 10,000
stores within 20
countries such as
Switzerland, Austria,
Spain and so on.
Respective company is
Its vision is to enable
Australian shoppers to
live richer lives for
less. Also, to provide
standard quality at
incredibly low cost to
people so that they has
opportunities to buy
daily groceries of
The mission of ALDI
is to spend a little but
live more. Its main
mission is to
facilitates low quality
products at reasonable
price to poor people
those who can not

planning to recruit
more than 500 worker
as well as plan to open
eighty new stores.
better quality at low
price.
afford.
Voluntary Organisation :Oxfam
Product & Services Size and Scope Vision Mission
Oxfam is facilitates
humanitarian services
into famine as well as
droughts prone
locations. It has
intention to remove
poverty from world.
They sell its products
and services into fair
trade and facilitates
products such as
cloths, foods etc.
With Oxfam twenty
independent charitable
firms are working so
that poverty can be
reduced as well as
facilitates welfare
service into famine
prone or drought areas.
Its vision is to form
world poverty free and
develop the world in
which all people are
treated as well as
valued equally (Savru,
lIncekara and Sener,
2014).
Its mission is to aids in
developing solutions to
poverty unfairness. As
this is the part
international
movement for making
future that are free
from poverty.
TASK 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure
There are various kinds of departments within company that perform effectively as well
as in interrelated manner in order to accomplish the organisational objectives. ALDI have
different departments that work together to enhance productivity of the firm. These sections has
various roles and responsibilities but has a common aim for achieving the goals of the particular
business (Wu, Zhang and Lu, 2015). There are relations of many departmental sections of ALDI
and its interrelation with one another:
Finance and marketing department:

Both the department are essentials in all company. Without capital any business cannot
capable to maintain as well as operate its activities of the business effectually which is controlled
by finance department. The main goal of ALDI is to enhance funds and develop whole
organisational performance. Department have various accountabilities which interrelates with
marketing functions that assists in gaining capital through utilising another sources. Also, finance
section facilitates funds to marketing one so that all activities such as promotion advertising can
be performed successfully and accomplish the objective of company.
Marketing and Research & Development:
When both department concentrates upon effective knowledge of customers requirements
then both make its work simple as well as outcomes in profitability. The information facilitated
through marketing manager assists manager of research and development to conduct appropriate
research so that effective outcomes can be gained (Bharadwajand et. al., 2013). Both required to
perform together to understand the current trends as well as fashions in order to enhance the
output. Manager of ALDI should develop strategic decision on the basis of facilitate information
through both manager its improvement as well as modification of products.
Operation and Human resource department:
The main aim of operations department is to modify whole valuable sources which
facilitates better quality products to its regular consumers. This maintain daily activities of the
business as well as maintain records of them. In ALDI, department of operation should has
common responsibilities which can analysis data that is facilitated through marketing department
for assessing various goods requirements into different market place. This aids to interrelates
structures of the firm with its functions likewise to help manager of activities for controlling its
operations task according to their needs and cover up the gap among product demand and supply.
Within ALDI, both department assists to interrelate with their structure as well as functions of
firm which ascertain roles coordination, responsibilities and power of employees of every
sections.
Therefore, whole department in ALDI are working it functions in interrelated way. It will
not only beneficial for firm to accomplish its target in specified time period but also to develop
effective working environment in its work place (Berg and Kilambi, 2014). These departments
aids company to accomplish its objectives of the business as well as set target in order to
maximise the organisational growth. Also, interrelation among various sections facilitates many

benefits to firm. In context of ALDI, these interrelationship benefits them to adapt effectual
communication channels and achieve the goals of the organisation in successful manner.
TASK 3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
Macro environment is know as external and uncontrollable factors that affect business
operations and decision making process of a company. It include various factors such as
economical, technological, environment, social, interest rate, government policies and many
more (Schaltegger, Lüdeke and Hansen, 2012). For conducting analysis of macro factors ALDI
conduct PESTEL analysis, whose explanation is given below:-
Political Factors- Respective company has to change or update their strategies or policies in
effective manner when there is any change occur in political factor. Such as when they expand in
new country they develop new strategies accordingly and effectively. Positive Impact- By political stability of United Kingdom and any other country
respected firm able to conduct their business operations in effective manner. Along with
this company also able to conduct their operation in another country in appropriate
manner.
 Negative Impact- In political factor various type factors are included which affect
decision making process of a company which impact negatively on respective company.
Economic Factors- Due to Brexit in UK, inflation in grocery market get rose to 2.9 % in may
2019 due to which respective company has to change their decision and strategies in order to
survive in a market. Positive Impact- Buying behaviour of a customers are depend upon their working
condition such as if economic situation of company increase then buying power will also
get increased (Ballard and et.al., 2012).
 Negative Impact- Whereas if economic condition of customers get decrease then
respective company has to change their strategies due to which working of staff get
affected.

Social Factors- For social service respective company develop various programs such as their
aim is to teach 1.2 millions children by 2020. That will also help them in developing positive
impact and goodwill. Positive Impact- If respective company develop products according to need and demand
of customers they able to develop various opportunities in order to expand their business
in effective manner.
 Negative Impact- Need and demand of customers get change on regular basis due to
which respective company has to develop strategies on regular basis which affect their
manufacturing process.
Technological Factors- ALDI adopt new and innovative technology in order to check quality
and effectiveness of products in appropriate manner (Werbach and Hunter, 2012). Along with
this they also use technology in order to conduct survey. Positive Impact- By adopting new and innovative technology respective company able to
conduct their manufacturing process in effective manner which save their time as well as
reduce wastage.
 Negative Impact- It also impact negatively on society because it reduce need of human
labour for conducting work due to which unemployment increased.
Environmental Factors- For adopting environment factor in appropriate manner ALDI started
supplying their products from local British producer and farmers in order to support local
producers (Aldi PESTEL Analysis, 2019). This will also help them in ensuring sustainability at
that particular market. Positive Impact- By this respective company follow appropriate legalisation related to
environment which increase goodwill of company in effective manner.
 Negative Impact- The respective company has to keep concern about all the environment
legalisation which may increase their cost of production.
Legal Factors- In current time many supermarket companies are facing issues related to scandal
concerning with food products. Due to which respective company also is also going through
legal disputes which affecting their business operations and functions. Positive Impact- By adopting strategies in effective manner respective company able to
generate and maintain job satisfaction of employees in appropriate manner.

 Negative Impact- ALDI is conduct its business on large level and for them it is not
possible to follow each and every law in effective and appropriate manner.
TASK 4
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses
It is essential for an organization to conduct analysis of their internal and external
environment which them in identifying strength as well as weakness in effective and appropriate
manner. For this a firm may adopt various method and theories such as SWOT analysis,
PESTEL analysis and many more (Alles and et. al., 2018). In respect of ALDI they conduct
SWOT analysis by evaluating internal and external environments in order to identify strength
and weaknesses. This will help respective company in developing strategies, plans and policies
in effective and appropriate manner. SWOT analysis of respective company is given below:-
SWOT analysis-
Strength Weakness
 Respective company offer quality
products and services in affordable
price.
 They also offer wide range of products
and services at their store.
 The respective company has very
strong presence at German market
according to which they have
approximately 2500 stores.
 ALDI also has strong international
presence in Europe and other countries.
 Respective company is still
comparatively small in comparison to
other competitive company.
 They also didn't have large global
presences and they also have have very
few chain stores.
Opportunities Threat
 ALDI must need to invest more money
on their advertising and promotion
process.
 Major threat of respective company are
their competitors such as Tesco,
Amazon, Walmart, LIDL and many

 Respective company also have wide
opportunities of growing business into
other country such as Africa, Asia and
many more.
 They can also introduce more
innovative and attractive products
range.
more (ALDI SWOT Analysis,
Competitors & USP, 2018).
 Continuous change in policies and
taxation of government affect
respective company business operations
and functions.
By analysing strength and weakness respective company manager able to develop
strategies and plans in effective and appropriate manner in order to conduct business in proper
way as well as sustain at market for long run.
P6 Explain how strengths and weaknesses interrelate with external macro factors
External factors refers to outside factors which affect business operations and functions
of an organisation. So it is necessary of manager of a firm to evaluate and analysis external
factors of a business so that they able to run company in effective manner and sustain in market
for a long run in appropriately manner (Ardichvili and et. al., 2012). It can be analysis by various
methods such as SWOT analysis, PESTEL and many more. ALDI conduct PESTEL analysis in
order to identify their strength and weakness in effective and appropriate manner of all external
factors such as political, economical, technological, social and so on. Explanation of which is
mentioned below:-
Political Factors- It refers to those external factors which are related to political elements such
as tax rate, interest rate, government policies, import and extort tax and many more. It is
necessary for an organisation to conduct analysis of political environment so that they able to
develop strategies and plans in effective manner (Bar-Isaac and Shapiro, 2013). Which help in
operating business in appropriate way as well as sustain for a long run at a marketplace.
Respective factor have both positive and negative influence on working of ALDI which works as
a strength as well as weaknesses for them, evaluation of which is given below:- Strength- Political situation of United Kingdom is stable due to which respective firm
able to operate its business in proper manner as well they able to introduce new outlets in
various areas and earn maximum profit.
 Weaknesses- Due to fluctuation in political factors cost of import and export increase as
well as decrease which directly influence decision making of respective company.