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2363 Downloads 16 Pages 4046 Words
Business environment is classify as internal and external factors that affect functional and operational business approaches. For this, management of organisation requires to build impactful strategy that reduce negative impacts of such factors. Impact of these factors can be positive or negative that can affect decision making process of firm. Internal factors of firm are analyse through SWOT analysis and external factors are through PESTEL analysis. All these environmental factors can impact directly on business activities and profitability as well (Fernando, 2011). This project report is based on Aldi which is a discount supermarket chain. This organisation was established in the year of 1913 by Karl Albrecht and Theo Albrecht. Aldi has over 10000 stores in approx. 20 countries. This report includes analysis of different type of organisations, size and scope of theses firms and organisational structure as well as functional approaches. This report also include uses of PESTEL model and its positive or negative impacts, uses of SWOT model for internal analysis. At last this report includes strength and weaknesses that are interrelated with external environmental factors.
In a business environment, there are various organisations used to operate their activities. Every firm have their distinct function and purpose which need to evaluate properly so that better and signified outcome used to get drawn. It is really essential for an organisation managers to understand various kinds of enterprises working in a keen competitive environment so that beneficial gains could be opt. Thus, various working firms with signified purpose and supply of goods and services will going to evaluated as follow. This need to understand by an organisation manager for managing their work in better and signified frame (Hamilton and Webster, 2015).
Various kinds of business which working and evaluated in dynamic environment of business are stated as follow:
These are certain kind of business units and entities which are operating in business environment of UK. All of them have their own and signified purpose and consideration for which they used to work in a beneficial frame. This result in evaluating and gaining better outcome so that effectiveness in their operations could be maintain. Like profit generating companies have a single and clear aim and objective to generate more and more profit so that their keen position of sustainability at market world could be maintain. On the other hand, not for profit firms are those which used to earn profit but lack concentrate of customer satisfaction due to high government interference. Thus, they work simply to render services but nothing else. NGO also work in society for upraise the standard of society so that a beneficial and effective attribute could be drawn in order to maintain and maximise effectiveness and efficiency in working operations.
Business entities belong to different size and scope which need to evaluate by an organisation manager properly. A business environment is dynamic in nature which get changed at each and every course of time (Scheer, 2012). Thus, for management of a company it needs to better understand various firms whom belong to differ size and scope of working. Like there are certain firms which used to operate in an environment are signify as follow in terms of micro enterprise, small and medium enterprise and large enterprise. All these have differ market share as well as working abilities. This need to properly understand for analysing the market world so that various units become understandable in order to operate freely as well as for gaining and sustainability. Thus, growth and sustainability are major aspects on which such kind of entities majorly focus upon in order to gain efficacy:
Thus, such aspects define in an appropriate and suitable manner of interference where each and every working entity belong to distinct with each other in context with size and scope as well (Bryman and Bell, 2015). Thus, in such consideration, market share of a company also get vary from each other. Market share define the size and scope better so that an appropriate understanding get reflected. Like Oxfam is a small company where as ALDI is one of a large corporations in the world. This result in signify that such associations have limited and definite working operations area which need to better understand for managing effective operations at business environment.
Aldi is a discount supermarket that provide its quality services in several countries. This organisation crate proper relation between different organisational functional to getting desired and appropriate outcomes. All these business approaches are very beneficial for firm. Through this firm can easily serve their quality services in target market or to target audience as well. There are relationship between different functions are given below -
Research and development – This department of organisation is helps to analyse market condition and demand as well. Through this firm can easily analyse market condition and requirement for specific services (Carroll and Shabana, 2010). These organisational activities are beneficial to getting appropriate information related to target market and customers as well. These organisational activities are beneficial to getting proper information of customer’s requirement. Through this they can easily serve quality service to them for providing higher satisfaction easily. All these activities are beneficial; in production and manufacturing activities.
Sales and Marketing - These kind of marketing activities are based on sales and marketing activities of organisation. In this, marketing manager of Aldi provide proper information related to new products and services. For this they use promotional and advertising approaches to provide information of several organisation's approaches. Main objective of this department is to maximise sales and income of firm in proper manner. For Aldi it is require to use different marketing tool as advertising, promotions, digital marketing and online promotion through several web marketing tools. These activities maximise organization's sales and revenues in proper manner. Aldi requires to use such marketing activities to introduce their products easily in front of target market. These kind of activities are beneficial to build new image of firm in a economy (Charter, 2017).
Production – This procedure is based manufacturing and production services of organisation. This is based on customers demand and requirement for specific product and services to produce them in proper manner. Through this organisation can easily build their own image in front of target customers to getting higher benefits and growth as well. These production services are based on research department and its marketing strategy to maximise sales and revenue of firm easily. Through this Aldi can easily build their effective goodwill in target market or in front of audience. These kind of production activities consider Just in time approach to serve quality approaches on proper timing or as per the bases of customer's demand. This is help to reduce extra wastage and time factor that can consider in production approaches.
Human resource – This department of organisation is work to analyse different aspects that are based on quality and productivity development of firm. Human resource manger of firm play a most important role to analyse employees skill and working capacity that helps to maximise income and profitability easily (Chesbrough, 2010). For this they require to provide training and learning to their employees to enhance their interpersonal skills and working capacity as well. Through this firm can easily getting higher marketing approaches and productivity as well. Through this firm can achieve their target objectives and goals in appropriate manner.
Finance division - This division is work to manage accounts and financing activities of organisation to manage sources properly. For this firm require to hire an excellent talented candidate who has skill to manage accounting sources in appropriate manner. These kind of activities helps to manage organisational income and expense properly.
IT department – This department of firm is helps to build digitalisation in organisational approaches to getting higher benefits easily. Through this organisation can easily manage their resources, funds and data in effective manner.
International Business - These are basically importers and exporters. International businesses do not make direct investments in the host countries where they operate.
Multinational Business - Often called a multi domestic strategy, multinational businesses make direct investments in host countries where they operate.
In a business organisation different kind of external factors affect firm's decision making process and profitability as well. Retail sector in UK provide quality service to their customers on effective and attractive cost (Commander and Svejnar, 2011). For them, it is requiring to analyse external environmental factors and its positive as well as negative impact such as -
Political and legal factors – These are based on different governmental and legal factors that impacts that implement for making effectiveness in business firms. Fir this the retail sectors requires to manage all governmental policy and procedure in their organisation to getting higher and positive benefits easily. These factors can impact positively and negatively on business organisation such as -
Economic factors – Supermarkets in UK require to analyse different economic factors that can impact on their organisational activities. This helps to provide economy growth and development through different methods. There are different positive and negative impact of these factors such as -
Social factors – These factors are based on customer’s demand and several changes in trends and policies. Different supermarkets which are part of UK always uses several policies and procedure to analyse different social factors to provide quality services to customers easily. There are various positive and negative impact of these factors on business organisation such as -
Technological factors – For a business organisation, it is require to implement technological factors that helps to provide higher and effective growth easily. These technological process helps to make effective alteration and modification on the bases of customer's demand.
Environmental factors – For a business organisation, it is requiting to provide quality products and services to customers that has to be eco-friendly (Drucker, 2017).
There is SWOT analysis of Aldi is given below -
· Aldi provide quality services to their customers on the basis of their capacity.
· Firm uses cost effective method to attract various customers easily toward their services.
· Firm has effective resources, skilled employees and quality product that are known as their key strengths (Trkman, 2010).
· Aldi provide some of their products on high cost that impact negatively on customer’s demand and requirement as well.
· Firm do not have various stores in different location.
· Firm do not uses different advance technology and innovative ideas in their business procedure. So it can be the weakest point of firm in this new generation.
· If firm grab digitalisation and innovation so they can easily increase their treading process through online servicing.
· Firm requires to conduct different training program to enhance their employees interpersonal skill and working capacity as well.
· Tesco, ASDA and Sainsbury can be the biggest threat for organisation who also dealing in retailing sector.
· Low customer's demand and higher cost of products also can be the biggest threat.
Porter's five forces model
For Aldi, it is require to analyse their strength and weaknesses that are interrelated with some external factors such as -
Political and legal factors – Aldi start their business services in several countries. For this they always implement governmental rules and regulation in their business process to getting higher advantages easily.
Social factors - In this scenario, company used to craft short term and long term objectives which need to fulfil in a define time manner so that effectiveness and efficiency in operations could be maintain and manage. This result in enable them to become sustainable at market world through providing better quality products and services on the bass of social factors.
Technological factors – Aldi requires to use advances technology in their business process to maximise their organisational structure through online dealing process. For this manager requires to maximise their organisation's level in appropriate way.
From the above report it has been summarised that environment has direct impact on organisational activities and decision making procedure as well. It consider two different factors such as internal and external that directly affect profitability of firm. This report is based on Aldi which is a discount supermarket chain and has over 10000 stores in approx. 20 countries. This report include different type of organisations, size and scope of theses firms and organisational structure as well as functional approaches. It also determine PESTEL model and its positive or negative impacts, uses of SWOT model for internal analysis and porters five forces model as well. At last is includes strength and weaknesses that are interrelated with external environmental factors.
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