Aldi Pestle Analysis Essay

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For my essay the main focus will be around the growing German supermarket ALDI and the ways in which they use business tools to assist their management strategies and decision making. Therefore I have conducted a SWOT and PESTEL analysis to help support my answer. ALDI are a global business who have over 500 stores in the UK with plans to double this by 2021. They are rapidly growing due to their combination of low prices and convenience so therefore tempting shoppers away from the market leaders such as Tesco and Sainsbury’s. (http://www.theguardian.com/business/2014/sep/11/aldi-extend-uk-hq-70m-pounds).
First of all the PESTEL model is a great way of highlighting potential threats to a business and therefore can help to reduce the negative impact that it has on the business. In ALDI’s case it is useful as in the economic section it highlights the current high unemployment …show more content…

It is a great business tool when regularly updated but some businesses do not invest the time for it to be very effective. There is no use looking at legislative data for example, that is 1 or 2 years old as it will almost certainly have changed significantly. In ALDI’s case for example, if they were to look at rules concerning changing agreed prices with suppliers, they may find that this used to be more lenient but is much stricter now. Therefore when planning to minimise variable costs further to keep with their low price strategy they would encounter unnecessary issues which could damage their reputation if made public. It could be seen as exploiting suppliers when really they were just trying to cut costs in a way they thought was complying with the rules. This would have a negative impact on their brand image, just like the horse meat scandal did to Tesco and take large amounts of time and money to turn around. To overcome this they should simply keep information in their PESTLE analysis up to

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