Business Environment Report: ALDI's Organizational Analysis

This report provides a detailed analysis of ALDI's business environment, encompassing its organizational structure, the interplay of its various departments, and the impact of macro-environmental factors. It begins by differentiating between private, public, and voluntary organizations, using ALDI as a case study for the private sector. The report examines ALDI's size and scope, detailing its operations and market presence. It then explores the interrelation between different organizational departments within ALDI and how they contribute to the company's objectives. A key focus is the impact of macro-environmental factors on ALDI's operations, including political, economic, and social influences. The report also conducts an internal analysis of ALDI, identifying its strengths and weaknesses, and further analyzes the interrelation of macro-environmental factors with the company's internal capabilities. The report concludes with a summary of findings and a list of references.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and purpose of private, public and voluntary organisation and their legal structure. .1
P2 Size and scope of different organisation................................................................................3
TASK 2............................................................................................................................................4
P3 Interrelation between different organisational departments and their link to objectives.......4
TASK 3............................................................................................................................................5
P4 Impact of macro-environmental factors.................................................................................5
TASK 4............................................................................................................................................8
P5 Internal analysis of organisation for identification of strength and weaknesses...................8
Threats :- .........................................................................................................................................8
P6 Interrelation of macro-environmental factors with organisational strength and weaknesses 9
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Business environment is the combination of various factors including internal and
external which have direct impacts on the company operations. In this defines several
environmental elements that included customers, competitors, owners, technologies
improvements, political factors, government activities, social and economical forces, and market
trends. Business environment is generally related with entire external factors that cannot be
control by the management and has impacts on the functions of organisation. Therefore,
company consider these environmental aspects while making decisions and take corrective
actions in well manner (Reed and et. al., 2013). This report is based on ALDI which is
supermarket chain store and deals in various types of products or services. its headquartered in
Germany and there are around 10000 stores available across the country. This assignment will
defines different types and purpose of organisation including pubic, private and voluntary. It
also describe relationship among organisational functions and objectives. This will support in
analysing positive and negative impacts of external factors and identify strengths or weaknesses
which interrelate with macro environmental factors in the business firm.
TASK 1
P1 Types and purpose of private, public and voluntary organisation and their legal structure
In current time period, there are various number of organisation which regulate and
operate its business operation and its functions according to business nature. This can be divided
into three parts such as public, private and voluntary sector. Such type of venture which play an
essential role in enhancing economic situations and also develop nation in effective manner.
Along with this, there are different types of business and its legal structure are as follows:
Private organisation
In this consider, the business venture starts, regulate and operate by an individual that
have ownership of an organisation. In private companies, person can bring appropriate ideas,
required resources for beginning new entity (Reinhardt and Stavins, 2010). On the other hand,
they mainly focus on generating profitability and operating business so this will grow in large
business environment.
For example, ALDI is largest supermarket chain which have around 10,000 stores in 20
different nations and they have estimated turnover is more than 50 billion euro. There are various
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products which are provided by ALDI company such as food, beverage, articles, household
goods, etc.
Purpose of ALDI:
 To provide best quality products for satisfy their buyers needs and requirements.
 To fulfilling social needs and demand by delivering appropriate food items so they will
make effective relation with their customers.
Legal structure of private company Partnership – In this, business venture regulate two or more person who come under an
agreement for smoothly running of business concern. The main aim of this firm is to earn
high amount of income and profitability effectively.
 Sole proprietorship – An individual operate and regulate effective business functions for
developing strategies or policies and also carry out various resources which assist in
gaining accurate results.
Public organisation
This is that firm which mainly operated and regulated by government bodies and they are
taking effective responsibilities for smoothly running of business in proper manner (Shigang,
2010). The main aim of this firm is to provide services and facilities to the people welfare.
For example, National Health Services (NHS) is the public organisation which provide
health care services in the united kingdom country. They are providing different type of
treatments which main purpose is to improving their health condition.
Purpose – To treat better and effectively to an individual for improving their health in
better manner. Also they are providing different medical facilities and services at reasonable rate.
Legal structure - The legal structure of public undertaken public company, state
government and local government so these are controlled and operated all functions of NHS
organisation.
Voluntary organisation:
This is that type of companies who are performing different functions and activities for
smoothly running of business concern which main motive is to given help to needy people. They
are mainly focus on giving different services or facilities to people regarding effective products
and services. They determined that poor people or volunteers who assist them in surviving in
complex situations for satisfying all people expectations.
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WELCOME trust is the best example of voluntary sector who provide space to people for
their lives. They giving donation, charity and funds for the old age people by surviving in the
charitable homes.
Purpose- The main motive of WELCOME trust is to provide appropriate services and
facilities for reducing poverty in the nation (Karagiorgos, Drogalas and Giovanis, 2011). They
also protect the people from such destroys like floods, calamity and other natural disasters for
providing necessary assistance.
P2 Size and scope of different organisation
In this determination, there are different types of organisation which includes various size
and scope according to above businesses. There are various companies along with legal structure
that has been perform whole tasks or functions as per the nature. This will assist in identifying
size or scope of each firm for achieving desired goals and targets in better manner. In this, there
are various functions and activities which need to be performed in well organised manner in an
organisation such as delivering, making, designing of specific products to satisfying their buyers
requirements and needs in given time period (Kolk, 2016). Thus, ALDI, NHS, WELCOME trust
have their own size or scope which can be understand effectively. Such are as follows:
ALDI Size – ALDI is supermarket chain which mainly deal with food, household goods, some
others. It is multinational organisation that provide various goods to their customers to
satisfy them in better manner. There are around 104,000 employees who work for
achieving desired goals and targets. The firm is located in around 10,366 other location
for expanding their business operations or functions.
 Scope - There are different goods and services which offer to their potential customers at
international level. The firm try to expand their business in other location where they
easily attracting more buyers towards their product items.
NHS Size - This will determine the health care services or facilities which provided by NHS
organisation to the people. There are various services which are provided by company
such as dental, medical and optical to society people at free charge so they can improving
their health situation for live better life (Nishitani and et. al., 2012). It was founded in
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1948 in the England, United kingdom. They are giving appropriate treatment by
specialists such as dental therapies, medical services and optical to people.
 Scope - The NHS provide various services or facilities regarding healthcare to the
patients according to their demand and needs so that they get comfort from different other
diseases, infections, Cancer and flues in proper manner.
WELCOME trust Size - WELCOME trust is mainly concentrate on reducing poverty and assist
serviceman for providing them improved living. They also provides different types of
goods or services to those person who need to survive in any situation. This voluntary
company is established in 1942 for assisting people without gaining profitability. They
also determined critical circumstances that includes volcano, tsunami, flood and
earthquakes.
 Scope – This is wide scope which each nation need to reducing poverty and provide
effective services or facilities to needy person so by this they can survive in any
situation. Thus, they mainly concentrate on policy inquiry and destruction.
TASK 2
P3 Interrelation between different organisational departments and their link to objectives
In this includes several organisational department and their functions which is necessary
to be perform so that business can achieve its goals or objectives. Every organisations consider
these functions or activities which are interlinked with departments. They focus on proper
coordination and work together for achieving set targets or goals in well manner. There should
be required to improve the internal strengths of company by setting targets and perform entire
tasks (Osterwalder and Pigneur, 2010). Therefore, company focus on increasing productivity or
profitability by performing various functions in different department including human resources,
IT, finance and accounting, productions and operations, marketing department and many more
who works for achieving set targets or objectives in an effective manner. ALDI is a famous
supermarket that deals at global level and there are approx 10000 stores at different places. They
try to increase goodwill and achieve competitive advantages in well manner. It can be understand
by undertaking these functions or department for achieving business goals or objectives such as:
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 Human resource department: This is most important function of organisation which
helps in running the business operations in an efficient manner. HR manager is
responsible for managing manpower and their performance in an appropriate way so that
they can accomplish set targets. They perform various activities within the firm such as
recruitment and selections, training and development, reward systems, performance
appraisals of employees which support on improving their performance and set particular
targets. HR department always try to create effective workforce so that positive
environment can be created within the firm (Osterwalder and Pigneur, 2010). ALDI also
consider this and conduct training session for improving their performance in better
ways.
 Marketing department: This is an another important factor which play crucial role in
increasing demands and goodwill in the marketplace. Many of firms consider this to
create awareness among potential customers and accomplish particular goals or
objectives. Marketing manager always focus on promotional activities and analysing
market trends or situations so that better strategies can bes formulated in well manner.
ALDI and many other firms undertake marketing activities as conduct survey for
identifying customers choices, tastes, demands, strong competitors and market condition
so they gather informations and use for making strategies.
 Finance department: there are requires proper funds and resources for running business
organisation. It play an important role for performing entire activities in well manner so
that organisation can attain predetermined goals or objectives. ALDI make strategies to
provide proper finance services for completing task or work.
 Production department: In this department, company produce or manufacture particular
goods or services and deliver those to the targeted audiences for fulfilling their basic
requirements and desired expectations (Pikka, Iskanius and Page, 2011). Marketing
department provide adequate information to the production department regarding current
market trends and potential customers what they wants to satisfy needs or desired
expectations as well.
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TASK 3
P4 Impact of macro-environmental factors
Macro-environment have direct impacts on the brand image of firms so it also affects on
functions and these are beyond the control of management. In this included political, economical,
legal, social and environmental elements which can affects on the business functions or its
activities as well. Therefore, company focus on undertaking such factors and formulate better
strategies to run the operations such as: Political factors: there are number of political aspects which affects on the business and
its operations because it is not stable due to changes in government authorities, rules,
regulations, policies and procedures and many others which cannot be control by an
organisation (Pulver, 2012). Therefore, they have to follow such legal structures and
consider regulation such as import, export duties, government stability and taxation
which effect business performance. There are some negative and positive impacts of
political factors such as:
◦ Positive impacts: There can be positive impacts on the business if such legal laws or
legislation are favour of the company so that they can achieve particular goals or
objectives. They have to follow political rules and regulation for running business
firm.
◦ Negative impacts: It can affects negatively due to increasing tax rates on various
activities. Economical factors: it included several aspects that affects on the company's
profitability as in it fluctuate values and rates so that organisation make favourable
decisions regarding economical crises (Avramenko, 2012). ALDI is also considering
these factors while expanding business at different countries because it can affects on the
operations and profitability as well. It include GDP rates, inflations or deflation, growth
rates and other fluctuation on economy.
◦ Positive impacts: It is necessary to focus on several economical changes and growth
rates that can influence on the business so company should get proper informations or
data regarding these.
◦ Negative impacts: it can affects negatively due to economical fluctuation because it is
not stable so company requires adequate strategies.
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 Social factors: Many of firms are dealing in international market so social factors may
have direct impacts on the business operations (Bovee, Thill and Raina, 2016). It
included cultural values, religions, lifestyles, customs, norms, beliefs and behaviours that
have major impacts on sales of particular products or services. therefore, every
organisation have to undertake such factors and make better decision to satisfy needs or
wants of customers.
◦ Positive impacts: It can be helpful in analysing customers demands and their buying
behaviours by conducting survey so that customers can be satisfied in well manner.
◦ Negative impacts: There is some negative effects of social factors due to lack of
knowledge about their culture and value system as well. Technological factors: In the present scenario, many of new technologies are launching
and new innovations are going to adopt by the organisations for running their business
operations in more effective manner.
◦ Positive impacts: This can be helpful component for every organisation to survive in
the competitive environment. These will support in achieving set targets and goals in
an effective manner. It included internet, Emails and e-commerce, new tools or
equipments to run business.
◦ Negative impacts: This can be effects negatively due to adoptions of new
technologies because it create costs or expenses for the organisation. Legal Factors: It consist number of rules or regulation and legislation that are formed by
the parliament of the nation. They formulate some laws and legal terms regarding running
business activities for the purpose of attaining set goals or targets in well manner.
◦ Positive impacts: These rules, regulation as well as legislation will support in
avoiding such crimes and any illegal activities so that company can run its operations
in an effective ways.
◦ Negative impacts: It can affects negatively if company do not follow legal laws and
regulations because they may liable to pay any penalty to the government as per the
laws. Environment factors: This is most important factor which must be undertake by the
company regarding climate safety and security (Cavalcante, Kesting and Ulhøi, 2011).
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They have to clean the environment for running business organisation in more efficient
manner. ALDI and many other company perform CSR activities for achieving growth.
◦ Positive impacts: It will support in creating better image among social people and
build good relationship among them.
◦ Negative impacts: It is necessary to undertake several activities for making safe
environment.
TASK 4
P5 Internal analysis of organisation for identification of strength and weaknesses
SWOT Analysis of ALDI :-
Strengths :-
 Pricing:- It is discount store market provided low prices product to consumers in
comparison to other retailing store and achieve high success in market.
 High Consumers Support:- This stores are offers variety of product at affordable price
it's reason that customers are highly purchase their daily needs product.
 Advanced Saving:- ALDI stores giving best discount on product and earning high profit.
Relating stores are sale non advertisement product at lower rate to consumers.
 Economic Development:- With the help of earning high profit, ecosystem of nations are
easily developed. In modern day some factors adopted by retailing stores like buying
convenience, distribution Chanel, multiple location, low waiting time for consumers to
product.
Weaknesses :-
 Low margin:- Relating stores expand on low margin because they largely focus on
increasing sales volume. Treat badly to suppliers in order to margins are consistent .
 Dissatisfaction of employees:- The super market's require high manufacturing of
product for surviving in business. For this reason employees needed multiple shifts for
production and pay minimum salary.
 Poor perception of large income people:- Mostly stores are prefer shopping to small and
medium group.
Opportunities :-
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 Taste of consumer:-ALDI stores providing good quality of product at the right price
according to demand of customers and it's reason that users are easily agree to pay a
premium amount for services. This stores are charge high amount for offering product.
Threats :-
 Competition:- Many company's producing different type of product they all are face high
competition in retailing. Walmart, Amazon are the players in market offering product at
a lower price its create a problems to ALDI stores.
P6 Interrelation of macro-environmental factors with organisational strength and weaknesses
There must be required to identify particular environmental elements that influence on
the business operations and its profitability as well (Hair, 2015). ALDI also needed to defines
macro-environment factors and their impacts for the purpose of formulating effective strategies
in an well manner. PEST analysis of ALDI such as:
 Political factors: it has direct impact on the business due various rules or regulation
and government stability. Organisation have to undertake these policies to run an
organisation.
◦ Strengths: ALDI should consider some political aspects for expanding business in
an appropriate ways.
◦ Weaknesses: It is difficult to understand different political aspects to run business.
 Economical factors: Every firm have to required for analysing economic crises
including imports, exports, cash flows, growth rates and many more.
◦ Strengths: ALDI has opportunities to increase growth and market shares at global
market.
◦ Weaknesses: High tax rates can affects on the business profits.
 Social factors: Social people have major impacts on the company image so it is
necessary to identify the customer's culture, attitudes, values and beliefs for running
organisation.
◦ Strengths: ALDI undertake R&D department for analysing target customers.
◦ Weaknesses: there may be some cultural difference due to multinational company.
 Technological: Company have to required for adopting new technologies to run
operations (Hamilton and Webster, 2015).
◦ Strengths: It helps in running activities in smooth manner.
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