Business and Business Environment Analysis Report for ALDI

This report provides a comprehensive analysis of the business environment, with a specific focus on ALDI, a major retail organization. It begins by defining and differentiating various organizational types, including private, public, and voluntary sectors, outlining their purposes and scopes. The report then delves into the internal and external factors that influence business operations, examining the relationships between organizational functions like HR, finance, R&D, production, and marketing in relation to overall business objectives. A significant portion of the report is dedicated to identifying the positive and negative impacts of the macro-environment on business organizations, with a focus on ALDI's strengths and weaknesses in relation to external factors. The analysis includes discussions on the legal structures, stakeholders, and the interrelation of strengths and weaknesses with external factors, providing a holistic view of ALDI's position within its operating environment. The report concludes with an overview of the key findings and recommendations for the organization.

Business and business
environment

Table of Contents
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Several types and purposes of organisation...........................................................................3
P2 Size and Scope of various types of organisation...................................................................4
TASK 2............................................................................................................................................7
P3 Relationship between various functions of organisation in respect to objectives.................7
TASK 3..........................................................................................................................................10
P4 Identification of positive and negative impacts of macro environment on business
organisation...............................................................................................................................10
TASK 4..........................................................................................................................................12
P5 Internal and external analysis of specific organisations in order to identify strengths and
weaknesses................................................................................................................................12
P6 Interrelation of Strength and weakness with external Macro factors..................................13
CONCLUSION .............................................................................................................................14
REFERNCES.................................................................................................................................16
Books and Journals:..................................................................................................................16

INTRODUCTION
Every business organisation is affected by its internal and external environment. Which
influences on the business performance and activities like planning, organising, controlling and
directing. Business environment consist various factors like employees, competency,
management regulation, business operation. Also business environment affects externally
through public policies, technologies, government interference, also political and legal
environment (Naous, Schwarz and Legner, 2017). An organisation must fulfil market needs
according to the trend and demand of consumers. This report is based on one of the largest
organisation ALDI which render food items , cosmetics, personal health care products across 20
countries. Apart from this, it includes all the macro environment factors consist with their
strength and weaknesses also inter-relations of the organisation by analysis their positive or
negative impact towards organisations goals.
TASK 1
P1 Several types and purposes of organisation
In the growing market, there are various business organisation which runs their
organisation in order to provide some goods and services to gain maximum profit satisfaction.
These organisations are elaborated into different sectors such as private, public and voluntary,
which has their own norms and provision regarding business performances and operational
conduct, which are elaborate below:
Private organisation: This sector organisation is incorporated by private individuals
which make their own norms and working strategies. But has affected by political and legal
factors by establishing dynamic environment in order to fulfil market demand. ALDI is a private
retail organisation which provide consumer valuable product and services under their
independent working environment.
Purpose: ALDI's main motive is to provide more of consumer goods with superior quality
and more of customer preferable products with high efficiency and low cost techniques, this
enhance their organisations capabilities to interact with uncertainties and meet dynamic
environment.
Public organisation: This is another and well known sector which is operated and
managed by government bodies which aims at NO profit and highly aimed at more costumer

services evaluating social and cultural factors. Public organisation is mainly funded and
incorporated by government regulation and decision, tasks, strategies are regulated by
government bodies (Grizane and Jurgelane, 2017). Crown prosecutions service is a government
funded agency, this agency regulates investigation and crime department branch in England and
Wales.
Purpose: Crown Prosecution service's main aim to solve crimes and irrelevant activities
by doing valid research and investigation in order to eliminate miss conduct in society. They help
the victims by giving them justice and compensation for their loss.
Voluntary Organisation: This sector organisation is basically termed as non profit or
civil services provider, which aims as rendering their products and services for welfare of society
without expecting profit in return. other like NGOs which termed as private as well as voluntary
organisation that aims at low profit criteria (Cherunilam, 2020). UNICEF is United Nations
Children’s Fund agency established in New York. It provide assistance and personal and overall
growth to children and mothers.
Purpose: UNICEF is aim to provoke children and mothers about their rights by
conducting required session and lawful activities which makes them aware to raise their voice
against any discrimination or harassment.
P2 Size and Scope of various types of organisation
From the above explanation, here are three sectors private, public and voluntary
organisation according to its size, scope, investment, competition and product/services which
has their own targets and management operations. hence these factors emphasize on
organisations objective and goals. This could be understood by below description:
Private organisation: ALDI is retail supermarket based in Germany and other countries
like Australia, china, France and more.
Products and services: ALDI provide consumer household products at one roof, for every
age groups and gender. Products like daily goods, personal care, sanitary, and other grocery
items are treated accordance with the demand of consumers.
Size and scope: ALDI has divided into two parts Aldi Nord and Aldi Süd which has
approx 2500 stores in north and 1600 in south. These stores has around 1,04,000 employees
working with the main to achieve constantly rising turnover to € 53 billion.

Vision: The company's vision is to become most renowned firm in united kingdom by
provide products at cheap prices with customers great utility power to buy from them.
Mission: The mission of ALDI is to attain great sustainability and growth in order to
promotes its brand and make it most reasonable price store with great quality product, so that
more number of buyers could attract towards the organisation (Shtal and et. al., 2018)
Business objectives: The main objective of ALDI is to attain profit maximisation at low
cost efficiency to reach worldwide.
Legal structure: An organisation faces legal influence in order to accept their terms and condition
before operating their business. These 3 kind of legal prospectus which has its scope in both
national and internationally. These are mentioned underneath:
 Sole proprietorship: Before starting any firm, the owner has to recognise its
proprietorship agreement whether it has decide to run in an self owned or partnership . In
this type of organisation, management and operation are conducted by one member. Also
entitled to get business profit individually also enjoy freedom of decision making and
capital investment. Whether the organisation attain profit or loss, only the member will
be liable for the consequences hence, it has unlimited liability towards the firm, up to his
personal extent in order of attaining risk and uncertainties.
 Partnership: Organisation runs by two or more members bound in partnership
agreement, in which they are mutually agree to share profit and loses in decided ratio,
with an equal investment of capital and liabilities. Also mutual concerns regarding
decisions and authorities will be took. Every partner has equal rights under deed, about
working hours, salaries, holiday pay.
 Stakeholders: The main stakeholders of ALDI are its employees, government influence
and its suppliers which affects on its decision making and expansion of new stores. Apart
form this there are other stakeholders also I.e. Siepmann Foundation (ALDI Sud) and
Markus Foundation (ALDI Nord)
Public organisation: Crown Prosecution Service is a well renowned public agency in England
and Wales. Which gets funded and managed by central government by investigating and
eliminating crimes from the country.

Products and services: Crown Prosecution Service adjourn legal proceeding to the court
in order to make justice with valid evidences by making clear justification to government
investigators.
Size and scope: Crown Prosecution Service has around 6000 well experienced
employees. with the view to attain maximum revenue of 600 million. The scope of CPS is an
appropriate and relevant towards society as it supports the witness and proves justices by though
investigation.
Vision and mission: The current mission of the agency is 'to provide' relevant and
accurate services to the people by gaining trust of general public which significantly impact on
their brand name and performance.
Business objectives: The main objective of CPS is to prosecute valid crimes to the court
with the way of proper investigation. It has its cope in UK market.
Legal structure: These are two forms of structure which public firms follow are stated below:
 State Government: The state government influences of the business projects and work
with federal governments (Liao, 2016). Each states organisation has influenced by its
factors such as licensing, policies, agreement etc.
 Local Government: This is another type of administration which influences on lower
level of state by working on specified are of lower management.
 Central Government: This is the highest and most supreme administration which
regulate all the operations of local and state governments, also in decision criteria of each
government bodies. which bound them to perform under this administration.
Stakeholders: The attorney General of Crown Prosecution Services is Geoffrey Cox and
Alison Saunders is director and Paul Staff is chief executive.
Voluntary organisation: UNICEF is United Nations agency which provides social
services regarding one's right to raise their voice. This organisation is specially working for
mothers and children.
Products and services: UNICEF provide their services in order to protect children and
mother from and harassment and discrimination activities by giving support and trust to raise
their voice.
Size and scope: UNICEF has established in 1960, and has global reach in people by
provoking them of right to education, health and harassment. It is run by group of individuals.

Also, it is sponsored by various agencies which make their donation in UNICEF, that raise their
funds and revenue £1.58 every year. It has 26210 employees. It has its cope in international
market.
Vision and mission: Current mission of UNICEF is 'to provide' their service in a way to
make a discriminated free nation, thus safe for females and mothers as much as possible.
Business objective: UNICEF has its objective to make equality between violated nation
through promoting education and rights to women.
Stakeholders: UNICEF is managed by Tore Hattrem as a president. and Henrietta H.
Fore is chief executive director.
TASK 2
P3 Relationship between various functions of organisation in respect to objectives
In an organisation various departments are separated for various activities. As much as
large business conduct, different departments are ,much needed to held various activities in
respect to attain business objectives effectively and efficiently (Michael, Reisinger and Hayes,
2019). There are a lot of function held in an organisation such as ,manufacturing, packing,
marketing, dealing, promotions and sales. These functions work at a single time in the firm,
which interconnect every department to work together. In context with ALDI, departments are
separated according to the tasks and tasks are divided according to human resource abilities and
capabilities. This helps in smooth functioning of the organisation and regular flow of activities
with the main aim to achieve common objective. Thus, these units are inter connected with each
other that are described below:
Human resource department: HR department perform a vital function in an
organisation by conduction and managing employee engagement and employee welfare. The
managers of ALDI perform these task in an effective manner by Recruitment, selection, hiring,
and policies regarding employee welfare (Viriyasitavat and et. al., 2018). These tasks of manager
analyse the working abilities and talent of the workforce and tasks, job roles are allotted as per
the same criteria. Some of them are departmentalised into marketing, sales and promotion, on the
other hand, well experienced individual are assigned to work on productivity by analysing
consumer demand.

Finance department: This department also perform major tasks by making budgets,
plans, investment policies, returns on investment, cash flow statement, accounting. Also provide
solutions for best investment policies. The department of ALDI perform these tasks in a positive
manner which raise their profitability and manage all the accounts which helps in comparing
future performance to present performance.
Research and development department: This department conducts and indulge in the
act ivies of research, by which an organisation could attempt new technologies and innovation in
their working environment. The employees of this department in ALDI works on the new
upcoming market strategies which helps the organisation in product diversification that helps in
expansion of the brand and new stores could be open with the help of effective technologies.
Production/ Operation department: This department is perform the another foremost
activities in the organisation for which an organisation running in the market. This department
performs production function by manufacturing goods in an effective and efficient manner with
proper utilisation of available resources (Turetken and Grefen, 2017). In ALDI, these functions
are running in effective manner by grouping separate tasks in producing good.
Marketing department: This department works on developing various marketing
strategies which could attract more of customer to buy their goods and services. ALDI makes
their effective marketing policies by setting cheap pricing policies.
Sales department: This department work on the interaction with customers by providing
mouth publicity about their products, that must be effective and attractive. In ALDI, as it is
supermarket. Each product is undertaken into one roof which are convenience to customers
reach.
These departments works on the efficient functioning of organisations growth. So that
managers of ALDI needs to evaluate these activities as per individuals capacity and abilities. All
these functions are interrelated as after performing one function need for other generate like after
finance plan being develop, there is need to execute it for research and development. After that
production procedure swill get started and then its selling process be evaluated which include
sale, marketing and others.

Figure 1: Divisional Organisation Structure
The organisational function helps in achieving business objective by making proper
coordination in each department and engaging qualified workforce in required department.
Motivation technique leads the smooth flow of every department with flow of communication
and decision making criteria. These functions make a set of ready structure which shows in what
ways company needs to perform which leads to effectiveness and efficiency. This could be
better understand by the example of ALDI, due to which the company has attain 10%
more productivity by managing all sources effectively. Also, it attain 10% marketing share
by healthy promotion and marketing. More of people are aware about the company and
its services. These functions work all together like one department make policies and
strategies and other department will follow and execute it.

TASK 3
P4 Identification of positive and negative impacts of macro environment on business
organisation.
The tool is used for identification of macro environmental factors that influence the
business organisation is PESTLE. It is the identification tool that develop for the analysis of all
factors that impact business organisation (Nguimkeu, 2016). It is the acronym of economical,
political, technical legal, environmental and social factors. These are all macro factors, they are
beyond on control because these are external factors that are in dynamic nature. In the below
points, all negative and positive impact are considered in each factors that influence the ALDI
and UNICEF:
Political factor
It is the factor that includes all the political factors such as trade restrictions,
environmental laws, labour law, tax policies and tariffs. ALDI is the multinational company that
affected by political factors because they operate their business in many countries. Positive impact: ALDI operates their functions mostly in Europe, Australia, U.S.A and
China. In the present scenario, all these countries are free from conflicts so there are less
political factors that affects the ALDI.
 Negative impact: ALDI is the international firm, so they have a threat of political
vulnerability and having high level of conflicts in all over the world. It threatens the
ALDI for their sustainability in the other countries because it can be destroy their name.
Economic factor
The factor that consider exchange rates, economic growth and inflation rates.These
factors directly influence the ALDI's employees individual income, it also affects the purchasing
power of the individuals. Positive impact: From the affect of Brexit, ALDI take a benefit in the organisation
because the prices in the UK is rise and the pound is decline (Berman and Dalzell-Payne,
2018). It directly favours to ALDI as they can give discounts and coupons on the
shoppers so that they attract the new customers to achieve the targets and goals.

 Negative impact: Due to the continuous rising in the inflation rates, shoppers should
focus on their households budget that leads to lower the purchasing power of the
individual that directly affects the ALDI's profits and sales revenues.
Social factor
It consider the population growth rate, career attitudes, age distribution and cultural
aspects. ALDI is the superstore that deals in the household good and groceries that directly
affected by social factor as they need to satisfy their wants and desires. Positive impact: ALDI is the UK superstore that pay the highest salary to their
employees, so they already satisfy their employees needs and wants that boost the
organisational culture. Negative impact: ALDI is the international superstore so they face many challenges to
satisfy the taste and preferences of the society.
Technological factor
One of the important factor that influence the productivity and efficiency of the
organisations (Benmamoun and et. al., 2016). It includes new innovations and up gradations in
the technological sector that influence ALDI's performance. Positive impact: ALDI always try to innovate their technology so that they achieve their
targets and goals. With the adoption of new technology ALDI can achieve that position
on which they can take competitive advantages. Negative impact: ALDI has faces problems because in now a days technology get
upgraded very fast so that it create the obsolete problems.
Legal factors
It consists consumer law, employment law, health and safety law and discrimination law.
It affects the ALDI's demand and costs of product. Positive impact: ALDI's performance get affected by the legal factors because they try to
run their business legally. Customers get benefit because UK imposed many health
standards that ALDI should have to fulfil that. Negative impact: ALDI faced legal dispute in the past years because they sell wrong food
products at different packet so they have a threat for legal regulations that can be take by
UK government.
Environmental factor

The last but not the least factor that affects the businesses growth, it includes
environmental responsibility that should be accomplish by the ALDI. It includes corporate social
responsibility and ecological factors such as weather and climate. Positive impact: ALDI tried to help to local producers, they provide employment through
increasing their stocks from the local manufacturers and producers.
 Negative impact: It is the responsibility of the ALDI that they have to do something for
the societies welfare that directly effects the companies' position in the market.
From the above discussions it is analysed that ALDI get affected by the all the macro
factors because it is the international company so they faces many challenges and getting
benefits from the PESTLE factors (Domazet, 2018). It is identified that ALDI have many
positive and negative factors that they are facing.
PESTLE analysis of UNICEF:
Political factors: UNICEF is the non profit organisation that do charity for countries that's why
they face many political issues.
Impact:
 Whereas UNICEF face positive impact because all countries helps to obey the rules and
regulations that provided by UNICEF.
 It is very important because UNICEF have many countries that they focus on them so
that they get negatively affect.
Economical factors: UNICEF always try focus on economic factors because they influence
with the economic factors.
Impact:
 UNICEF get positive influence from the economic factors because of many countries
grow very rapidly.
 UNICEF face challenges due to the economic growth slow down in COVID situation.
Social factor: UNICEF have many social factors such as religion and caste issue because they
make policies for societies.
Impact:
 There are very certain issues that help UNCIEF by giving support to them.
 UNICEF make policies for society so they face many challenges in making of policies.
Technological factors: UNICEF adopt new tools and techniques to up grade their technology.

Impact:
 UNCIEF is trying to update their technology because they wants to update themselves.
 UNICEF is not too much upgraded with technologies so they face problems regarding
technological factors.
Legal factors: UNICEF make rules and regulations regarding policies for charity.
Impact:
 UNICEF make policies for charity for that they follow all rules and regulations.
 Because of many rules and regulations they have to follow many laws that create hectic
schedule for the UNICEF.
Environmental factors: UNCIEF already do charities for society welfare.
Impact:
 UNICEF do many charity programmes and make policies for the society welfare that
they already do something for society.
 There are many more factors that can not be follow by UNICEF such as environment
degradation.
From the above discussion, it is analysed that UNICEF also get positive and negative
impacts from PESTLE analysis, that should be considered for handling external environment
factors.
TASK 4
P5 Internal and external analysis of specific organisations in order to identify strengths and
weaknesses.
For identification of strength and weaknesses of the organisation, SWOT is the best tool
for analysing. SWOT is the acronym of strengths, weaknesses, opportunities and threats, the tool
that used by the organisation. It is well defined in the below points:

Strengths Weaknesses
 ALDI is the store that serves many
products to the customers through this
they satisfy the wants and desires of
the consumers by the wide range of
products and services.
 ALDI is the company that serves the
products at reasonable prices to the
customers that directly help to the
company by maximize their sales and
profits.
 ALDI have strong ecosystem that
promotes high level of customer
support and having product mix that
gives choices to the customers.
 ALDI is not much bigger as compared to
the other superstores like Tesco.
 Sometimes customers who thought that
cheap products are inferior quality then it
directly cut number of customers.
 Due to their low prices ALDI found to be
low margins and profits of the company.
 ALDI's employees are not satisfy with
their pay scales as compared to the others
because their profit margins are very low
so they are unable to give nice perks.
Opportunities Threats
 ALDI is the supermarket store so
they have a opportunities to take
competitive advantage through
providing best quality of products
and services.
 ALDI wants to survive and sustain
 ALDI is the international superstore so
they have a threat of dynamic
environment of the global market.
 They can be faces taxation issues
which is a political tool that threaten
the ALDI for their survival.

in the market so they should go for
proper analysing of taste and
preferences of the customers to
target the market.
 ALDI have many competitors like
Walmart, Tesco, Best Buy, etc so they
have a threat of competition in the
market.
SWOT analysis of UNICEF:
STRENGTHS WEAKNESS
 Strong campaign and advocacy
 Increased focus on budgets,
institution and policies.
 Traditional sectors get maximum
focus
 Low level of financing available.
OPPORTUNITIES THREATS
 Try to focus on modern sectors.
 Child rights and social inclusion
through strategic partnership.
 All levels are not covered, mainly
focus on weaker section
 UN erode these policies.
It is analysed from the above discussions that ALDI should make more strategies for regulating
the market (Dziubaniuk and Nyholm, 2020). Because they have very low profits so they should
go for the tools and techniques of marketing that helps to generate their profits so taht they
overcome with their weaknesses.
P6 Interrelation of Strength and weakness with external Macro factors
There are many external factors that effect the ALDI's performance so they should
measure the strength and weaknesses of specific macro factors (Morrish and Jones, 2020). It is
explained in the following points:
Political factor
This point is very well explained in the PESTLE analysis so in this section the strengths
and weakness of political factor are discussed in the following points:
 Strengths: ALDI is the UK firm and the country have a strong political stability so it is
very clear that it strengthens the ALDI's market.

 Weaknesses: After the separation of Britain from the European union, it create the
probability of threats that can be affect the market of ALDI. It can be develop
unemployment, prices rises, inflations that creates problems.
Economical factor
It is the factor that consider individual income, it affects the purchasing power of the
consumers.
 Strengths: From the benefit of Brexit, UK take an advantage of the prices so it gives the
benefit of pricing to ALDI (Aithal, 2017) Weaknesses: Unemployment of ALDI, directly effect the prices and demand because the
customers can be swift to the cheap products.
Social factor
It consider socio-economic culture of the business environment. Strengths: It is very well know that customers have the tendency to buy in bulk from the
one store so it is very beneficial for the ALDI because it is the superstore. Weaknesses: But sometimes it give the negative impact because people thought that
cheap prices are low quality.
Technological factor
Up gradation of techniques is very important so that companies achieve their target
market. Strengths: ALDI's employees have online payment process so they get easily payments
in minimum time.
 Weaknesses: It is very obvious that growing of e-commerce industry creates a problem
for ALDI's store because it declines the sales and revenues.
CONCLUSION
It is concluded from the above report that company should consider all the macro
environmental factors because they are uncontrollable. Macro environmental factors are not in
the hands of companies they are in dynamic nature so companies should make flexible policies
so that they deal with them. This report covers three type of companies that have different
different rules and regulations. It also covers the impact of all macro environmental factors. It is
analysed through PESTLE and SWOT analysis that gives the impact of these factors on
organisation. It covers the relationship of organisation functions that helps to achieve the

organisational objectives. From the PESTLE analysis it is identified that the company should be
focus on external factors so that they can handle all the situations. With the help of SWOT
analysis, it is found that company should identify the internal factors needs because they can be
handle.

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