Aldi in the Global Business Environment: A Comprehensive SWOT Analysis

This report examines Aldi's position in the global business environment through a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. It further analyzes the operational impacts within the marketing and finance departments, focusing on strategies such as discounted stores and the introduction of new product lines. The report concludes that understanding the global business environment is crucial for companies like Aldi to frame effective strategies, especially in targeting low and medium-income groups to enhance profitability and operational efficiency. Desklib provides access to similar solved assignments and past papers for students.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
GLOBAL BUSINESS ENVIRONMENT.......................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT Analysis..........................................................................................................................1
Operational Impact Analysis.......................................................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment is the aspect which provide the brief information about the
different sovereign countries with the various distinct factors to the native environment of the
company that is influencing the capabilities, resources and decision making of the
company( Pant, Virdi and Chaubey, 2020.)). Aldi is the chosen organsaition for this report, It is
the leading supermarket business which is established in 1946 and ensure deliveries of the
products that is reasonable for the customers. This report will cover the SWOT analysis of the
company is also analyse their operational analysis.
MAIN BODY
SWOT Analysis
It is the framework of analysing the micro factor of the business which is impacting the
overall functionality of the business. In includes the strengths, weaknesses, opportunities and
threat of the company so that they can exist in the competitive environment in order to have the
effectiveness in the operations. In context to Aldi, Swot analysis is explained as follows:
Strength:
 Stores like Aldi is surviving due to discount store chain as most of the products are what
the customers uses on day today basis and they are offering lower of their products then
other companies.
 Aldi is also having the strong ecosystem which has analysed the critical parameters of
food retailing and This aspect making them more successful in their business.
 The company is having good product mix as they are offering general merchandise which
cover more than 25% of the total shelf in the stores(. Morrison, 2020).
Weaknesses:
 Aldi is having low profit margin as it is completely based on the sales volume but they
eliminates the actions such as price discrimination and treat their suppliers badly to
ensure high profit margins.
 Discount store are mostly preferred by the low and medium income group of consumer
and this is very rare to find in the high-income groups in Aldi. Hence, they are having
poor penetration in high-income groups.
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 Employees is not having satisfactory compensations and salary as they are working in the
flexible working hours but they are paying lesser according to their efficiency which
create dissatisfaction among the employees.
Opportunities:
 Changing needs and preferences of the customers is having significant impact on the
growth of the business as customer are ready to pay the premium price for their quality
products. Thus, discount store also can charge higher price for the premium products.
 They can also introduce the new products line especially in niche products by which they
can attract the large group of potential customers.
Threats:
 There is the huge competition in the market and Aldi is facing lot of competition from
their plays such as Best buy and Walmart.
 Retailers like Amazon is also moving in groceries which is also a big threat for the
company in order to generate and hurdle the success and growth of the company.
Operational Impact Analysis
Marketing is the department which is engage in promotion and advertising the goods and
services of the company to the final user so that they can ensure higher profitability and growth
in the market. In context to Aldi, The operational impact of marketing department of Aldi is
explained as follows:
 Discounted stores: These are the type of stores which is offering certain low profit
margin products and the survival of such stores are based on the discount so that need to
emphasis on offering various offers to their potential customers. But on other hand, it
slow down the profit margin of the company by which there overall profitability and
revenue get decreases. Aldi somehow manage their profitability by using specific strategy
so that they can establish good brand image of the company in the large
market(Madakam, Ramaswamy and Date, 2019).
 Introducing new product line: When the company is introducing the new product it
needs direct control of marketing department so that they they can effectively advertise
their new product to their target customers as Aldi is targeting low and medium-income
groups. Hence, marketing person must must use the strategies by which they can directly
targeting their customer by using newspaper and television as the promotional tool.
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Finance department is the one that is engage in procuring and allocating the financial
resources so that they can ensure the effectiveness in the department in order to generate higher
profitability. In context to Aldi, the operational analysis of Finance department is given below:
 Strong Ecosystem: It refers to the aspect which is concern for the environmental aspect
of the society and Aldi is making the best use of their environmental aspect ad having
effective ecosystem in the premises. this helps in attracting the large group of potential
customers. But on same side, It leads to incur e the huge cost in the installation which
slow down the overall profit margin of the company(Ahmad, Masri and Lee, 2019).
 Introduction of premium products: AS the company is targeting the lo income groups
but they can also change premium price for quality products in order to increase their
overall profitability and sale of the company.
CONCLUSION
It is concluded from the above report that Global business environment is significant as it
helps in understanding the prospective of the different countries and this report conduct the
SWOT analysis in order to understand the strength, weaknesses, opportunities ad threats for the
company. Moreover, It also analyse he operational analysis impact and it is seen that the
marketing department must focuses on framing such strategies so that they can target the low and
medium income groups in order to generate higher profitability in the operations.
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REFERENCES
Books and Journals
Ahmad, A.M.B., Masri, R.B. and Lee, C.A., 2019. Future Challenges to the Entrepreneur in
Relation to the Changing Business Environment. Global Business & Management
Research, 11(2).
Madakam, S., Ramaswamy, R. and Date, H., 2019. Quality of life@ Palava smart city: A case
study. Global Business Review, 20(3), pp.708-742.
Morrison, J., 2020. The Global Business Environment: Toward Sustainability?. Red Globe Press.
Pant, M., Virdi, A.S. and Chaubey, D.S., 2020. Examining the effect of marketing innovations on
GPMA: A study using the PLS–SEM Approach. Global Business Review, 21(4),
pp.1025-1036.
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