P1 Unit 1 Business

Production – Having a good production team can help your business stay up to the task of handling all of your demand needs. Knowing your production costs and the speed your employees can complete a task will help you to figure out how much profit can be made of an item. This can be done by taking in the time factor when working on a particular job and the parts required. The speed and quality of production plays a big factor in the company and keeping it running. Our employees in the business who are in the production department will be the engine room of the business. We would strive to keep them comfortable and provide them with enough down to make sure they are not over worked and stressed, which will give us better quality in

In times of recession people tend to be very conservative when spending and the people see that ALDI offers value add to their spending by saving them money in their groceries.

As Aldi has already established itself as a large discount supermarket chain with over 10,000 stores in 18 different countries including Australia (2001), and holds a large market share in the grocery world due to its business culture and market leading initiatives. This report aims to provide the ALDI board of directors with:

In this section of the report I will be analysing how business activities from each factor; political, legal and social, have impacted on two contrasting organisations. The two contrasting organisations I will be focusing on are Tesco's and Amazon.

| A trade union is an organisation that employees can join, where their rights and interests are discussed and protected. A trade

P: As we know this factor is determined on how what degree the government intervenes in the economy. This can affect supermarkets such as Lidl in a number of ways; these are as follows, the national minimum wage and taxation. The minimum wage will affect Lidl because if the government have the national minimum wage low the level of people who want to work will be very low, this is due to the fact that people will not work for low level of pay. Taxation in the country will affect Lidl such as if the level of income tax is high the less disposable income consumers will have and the less sales that Lidl will make, so the government have a big part to play in affecting companies such as Lidl .’ The effects of the

Marks and Spencer has many external forces that affect the company. These are known as macro environmental factors. There are six of these forces, Political, Economic, Sociological, Technological, Legal and Environmental factors. These external factors affect the types of products/services Marks and Spencer offers, the nature of its market positioning and strategies, there relationship with their customers and their suppliers. These external factors allow Marks and Spencer to develop:

From the time it opened, Aldi has expanded the number of product assortments that allow consumers to find nearly anything they need to supply and feed their families. Aldi developed a strong marketing program and decentralized their pricing and assortments that also include some well-known products. Aldi’s begins its value propositions to shoppers with its amazingly low prices. Their “hard” discount pricing, averages about 30% below standard supermarkets like Winn-Dixie or Kroger’s (Brick, 2016). They attribute their success and growth to the “hard discount” model as it has demonstrated to be highly effective. Aldi is different than “large” discounters like Walmart where Walmart’s varieties are limited in size and led by private label products, and investments are made in stores atmosphere, unfortunately, resulting in lackluster customer service. This allows “hard” discounters like Aldi to win the grocery price war by greater margins than Walmart, making Aldi a major competitor of Walmart (Bartone,

This Act protects consumers from misleading descriptions which the business has said about their products and services. It would be a criminal offence if the business trader was to:

Apart from those challenges, there are some external forces that can effect on Aldi’s business in Australia. 2.0 Macro-environment forces Macro-environment includes the external factors that can effect an industry. Those external factors are political, economic, social, technology, environment and legal. Political includes federal, states and local government that can influence the economy or a certain industry. Political factors includes tax policies, fiscal policy, trade tariffs and so on.

Both Walmart and Aldi should be worried about each other because both have distinct advantages over each other in bringing in customers. Aldi advantage is that its stores provide the lowest price in town with their products being on average 15-20% cheaper than Wal-Mart (pg 3). How it does this is by cutting costs and offering its products at the lowest possible price. This practice of cutting cost is best summed up by the Aldi motto “"When you buy a can of peas at Aldi, you're paying almost

Mars also use branding; this means that they use their brand name to attract customers. For example they have managed to do this with galaxy as

The proprietor will hire a professional accountant to prepare income statements, profit and loss statements as well as file federal and state income taxes. Figure one depicts the estimated income statement for the business which is $43,795.00 in net taxable income.

Aldi’s will be expanding with 400 stores in the United States to keep up on pressure price. It is a privately held German retailer, known for cheap prices on private brand food products, being sold in rudimentary stores, has recently included inexpensive fashion to its availability. This will be a competitive factor for low priced retailers.

Aldi price is far lower than the majority of retailers in Europe. For example, in the U.K “The budget chain was at least 27 per cent cheaper than the ‘big four’ – Tesco, Asda, Sainsbury’s and Morrisons.” (Poulter 2016). I feel that Aldi can increase this strength further through expansion. The more Aldi expands the more buying power they attain.