Analyzing the Business Environment of ALDI: A Detailed Report

This report provides an analysis of ALDI's business environment, examining both internal and external factors that influence its operations and sustainability. The external environment analysis covers political, economic, social, technological, environmental, and legal factors (PESTLE), highlighting the impact of events like Brexit, inflation rates, changing consumer behaviors, and technological advancements on ALDI's business. The internal environment assessment focuses on employees, resources, and company culture, emphasizing the importance of skilled employees and a supportive internal culture for ALDI's success. Additionally, the report discusses how ALDI impacts the external environment through green policies, waste management practices, and adapting to consumer preferences via online shopping and technological innovations. The analysis concludes by underscoring ALDI's efforts to maintain a competitive edge through technological adoption, customer service improvements, and understanding consumer behavior.

Introduction
In the environment business is related to the purchasing and
sale of the goods and amenities for profit generation which is a
wider concept in the economy. The internal and external
factors affects the business sustainability and profitability to
run the business operations successfully (Anidjar, L.Y., 2021).
The chosen company is ALDI founded on July 1946. it is a
brand of the two German families owing supermarket chains
with 10,000 stores. It was established by Karl and Theo
Albrecht. The retail company deals in the products of the
grocery, household essentials etc. its headquarter is located in
Essen Germany UK.
ALDI And Its Environment
External Environment
Political factors- The company sustainability is affected due to the
conflicts. The Britain set to leave European unions as the prices of goods
increased after Grexit which forced the supermarket to increase their
prices.. the changes in the government policy also affects the company.
Economic factors- The consumption of the buyers and business profit is
affected by the factors of the exchange rate, inflation and tax rate. The
ALDI operations is affected by the rise in inflation rate in the economy in
respect to price of goods and services.
Social factors- The decline of the purchasing power declines the sales of
the ALDI as the factors which affects 8includes demographics, cultural
aspects, consumer behaviours etc.
Technological factors- The ALDI has the opportunity of technology
advancement in introducing multiple self-checkout by increasing the usage
of the artificial intelligence in future for checkout.
Environmental factors- To have sustainable development the ALDI
purchases the stock from the local producers. As the customers became the
sustainable for food, clothings and home products. The factors are related
to the climate conditions, weather changes and laws regulating the
environment pollution.
Legal factors- The rules and regulations are followed to secure the
workforce environment comprising the factors of employment law, legal
policies and procedures affecting the working of the ALDI.
How the company impact its context External
Environment
The business too affects the external environment. The green
policy approach was adopted by the ALDI to have the
sustainability in the environment. The discounts were offered
by ALDI to attract more customers and to increase the sales.
In accordance to the consumer behaviour the ALDI start
providing the products and services with the change in the
demands of the consumer tastes and preferences. With the
technology advancement the ALDI start providing the
several facilities of self checkout, online shopping. The
company rules and regulations are followed by the company
to have the political stability. Online shopping facilities was
provided by the ALDI for the customer convenience to make
the purchase of products and services (Pollin, R., 2021). The
ALDI performance is affected by increasing the competition.
The ALDI adopted up to date technology, offering better
customer services and understanding of the consumer
behaviour. Waste management practice was adopted by the
ALDI for the environment cleaning and protection. ALDI
make the use of technological trends for achieving business
advantage in terms of profitability, innovation, and enhance
operational efficiency (Tracana, M.A., 2020).
Internal Factors
Employees and managers- In the internal environment the
employees are the most valuable assets for the company. The
sales and profitability of the ALDI is increased as the
employees are skilled and good in their job to sale the
products.
Money and resources- The business has flexibility in growth
due to the having the adequate resources and cash. It also
expands the business in several areas by having stable
economic downturn.
Company culture- The internal culture comprises of the
attitudes, values and priorities that employees have which
affects the ALDI. In order to create different environment there
exists cut-throat competition in culture where employees
compete with each other.
References
●Anidjar, L.Y., 2021. A Macro-Level Investigation of Transatlantic
Controlling Shareholder’s Fiduciary Duty. Legal Studies (Cambridge
University Press).
●Gupta, S. and Kua, H.W., 2019. Carbonaceous micro-filler for cement:
Effect of particle size and dosage of biochar on fresh and hardened
properties of cement mortar. Science of the Total Environment, 662,
pp.952-962.