BM461 Global Business Environment: Aldi PESTEL Analysis Report 2021

This report presents a PESTEL analysis of Aldi, a UK-based company, examining the external factors influencing its operations. The introduction defines the external environment and its impact on businesses. The main body delves into each component of the PESTEL framework: political, economic, social, technological, environmental, and legal factors, providing specific examples related to Aldi's performance. For instance, the political section discusses the impact of Brexit, while the economic section covers shifts in consumer demand. The social factors address employee wages and societal benefits. Technological factors focus on contactless payments, while environmental factors highlight energy-saving technologies and legal factors concentrate on consumer protection. Each section identifies both positive and negative impacts on Aldi. The conclusion summarizes the key findings, emphasizing the importance of understanding the external environment for business growth. The report uses the Harvard referencing system and includes a list of relevant academic sources.

External Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
External Environment is also known as general environment that refers to the outside influences
or factors which affects the operation of business. It includes elements that are related to those
dimensions that are out of control and include economy, political system and government
decisions within its preview. It also covers economic forces that includes elements like
employment statistics, wages and exchange rates. The project deals with pestle analysis on Aldi.
(Cepel and et. al., 2019)
MAIN BODY
Pestal Analysis
It is tool by which market players analyse on the external environment factors to
determine the macro marketing factors of an organisation. The tool helps notify the performance
and impact of organisation depending upon external terms.
Political Factors
These factors detriments the extent at which government intervenes through its policies in
the economy. In context to Aldi, there has been a positive impact the rise in prices of new
products after Brexit and various supermarkets will transfer these prices on the customers and
this had acted as an opportunity for the customers for shifting them for discounters like ALDI.
There has been negative impact, as the supermarket has faced the threat of weakening the value
of pound due to which there is a fall in its profit scale.
Economic Factors
These are the parameters upon which economic performance depends. It plays a crucial
role in indirect and direct long term impact of an organisation. In context to ALDI, there has
been a positive change as the customers demands have shifted to discounters because nowadays
they prefer convenience over prices. There has been negative impact as due to supermarket
discounting it has lead to cause deflation impact on Australian economy which the government
was trying to boost up. (Hrechyshkina and Samakhavets, 2019)
Social Factors

These factors illustrates growth of a business as the environment determines the
demographic customs and values of the masses within which a company deals. These factors
generally targets certain customers depending on there lifestyle and health consciousness. In
context to ALDI, there has been positive impact as it provides high wages to its employees
which leads to better living conditions for them which overall benefit the society. Increase in the
labour cost has lead to negative impact in the growth of the company.
Technological Factors
These factors deals majorly with innovation practices which may have impact on industry
operations. In reference to ALDI, positive impact is that the company offers the feature of
contactless payment to its customers. There has been negative impact the rise in the technology
has increase the product prices too. (Khan, Çera. and Nétek, 2019)
Environmental Factors
These factors deals in the corporate social responsibility of a corporation and impact on
ecological terms and general environment. Sustainable management and recycling are some
factors which are included under environmental head. In context to ALDI, the positive change is
that they have launched technologies which saves energy. There has been negative impact as it
fails in comparative advertising in print by which the company faced loss as the customers could
not connect to the brand.
Legal Factors
These factors determines the legal implications of rules and regulations which an
organisation faces within which they functions. In context to ALDI, the positive change is that it
focuses equally consumer protection laws of the legislators. The negative impact is that the
company is charged for not paying negative working hours.

CONCLUSION
The project dealt with the business environment which refers to external factors that are
responsible for the affecting the growth of the business. Pestle analysis of ALDI is which
describes political, economic, social, environmental, technological and legal factors to identify
its growth in the market.

REFERENCES
Books and Journals
Cepel and et. al., 2019. Selected economic factors of the quality of business
environment. Journal of International Studies.
Hrechyshkina, O. and Samakhavets, M., 2019. Changing business environment in
Belarus. Journal of Geography, Politics and Society. 9(1). pp.1-11.
Khan, K.A., Çera, G. and Nétek, V., 2019. Perception of the selected business environment
aspects by service firms. Journal of Tourism and Services. 10(19). pp.111-127.