In this assignment, I have chosen ALDIsupermarket to identify their macro environmental factors by applying PESTLE and SWOT to identify key strength and weakness of their businesses.The macro environment is a major externaland uncontrollable factor that influence an organization’s to take a decision or helps in decisionmaking and affect organizations performance and strategies.
The economicfactors are demographics; legal, political, and social conditions;technological changes; and natural forces.Examples of macro environment influencesinclude competitors, changes in interest rates, changes in cultural tastes,disastrous weather, or government regulations.Purposeof ALDI supermarket To provide value and quality goods to thecustomers through fair and efficient in all and give value for money.
Politicalfactors affecting ALDI:Inthis environment, we consider political, but not legislative, issues. Levels ofconflict are high and political vulnerability across the world rewardsthreaten the sustainability of foreignfirms who may be stigmatized based on their country of origin. Aldistores are situated in Europe, as well as in the U.S.
A, Australia, and China,which at present are all relatively free from conflict, and thus threat toAldi’s operations from war is low AfterBritain voted to leave the EU, the uncertainty remains in the future of Europeanfirms in the UK. Aldi made a foreign direct investment into theUK, and thus should not be affected as much as a firm with a joint venture orimport/export business. However, theregulations and political relationships between the UK and Germany and they areone of the most influential countries in the Eurozone is likely to presentdifficulties to Aldi’s UK operations Economic factors affecting ALDI: Thisenvironment, perhaps more than any of the others, is the one that mostinfluences business decisions. Prices have risen in the U.K due to Brexit andtherefore pound has dropped.
This wasfavorable to ALDI as the shoppers turn to discounters and sales was boosted inover two years and it helped to increase their market share.