International Strategic Management Read and analyse the case study Essay

International Strategic Management Read and analyse the case study - Essay Example With such a zeal and expansion, ALDI is now employing thousands of Australians and with the constant growth planned for the future; this figure is increasing by the day. ALDI started its operation as a small food store and the range of the products kept on increasing from frozen canned food items to bakery stuff, including household, health and beauty products along with vegetables and fruits. Mostly, ALDI store contained its own brand in different ranges and varieties; however later on it also started to store brand like Nestle, Milo, Kellogg, Vegemite cereals etc. For any brand or a company, it is very important to keep in mind that the market in which that company is prevailing should be properly analyzed and surveyed so that it may provide assistance while strategy formulation. For analyzing the environment, there are two basic parameters. These parameters are defined on the basis of internal and external forces and thus are called external environment scanning and internal environment scanning. External environment refers to the scanning of the environment outside the company. It is related to the industry and the competitors prevailing in the market. Moreover, other external factors which may have an impact on the sales of the company. When we study the environment on macro level, we need to do PEST analysis. PEST stands for polit... Let's analyze the external environment of ALDI through PEST. Political Factors. The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. For ALDI the political environment is suitable as government of Australia is democratic and has a labor part rule. Thus, there are certain taxes which are applicable at the federal, state/territorial and local level. A new Tax system (goods and services tax) Act 1999 is introduced which is applicable on ALDI which is not very nominal. As far as government's role in marketing is concerned, ALDI has an advantage as it does not spend any penny on marketing so it does not have any influence of that portion. Economic Factors. Marketers need to consider the state of a trading economy in the short and long-terms but when it comes to ALDI the biggest advantage of economic factor for the company is that they do not use their marketing budget. The marketing budget which if 0.3% of the total revenue is added in the revenue so if there is any economic pressure even, ALDI will not have to be worried about. ALDI also saves cost by not giving shopping bags for free and thus it also saves money. Along with these savings, ALDI can also benefit from the investing policies of Australia on both short and long term basis. GDP of Australia is slightly higher than the market of UK with respect to the purchasing power. Since past, Australia has grown with an average annual rate of 3.6% which is a positive sign for the business of ALDI. Sociocultural Factors. The social and cultural influences on business vary from country to country. In Australia, we would find Christians in majority and thus the social and