International Strategic Management Essay Example | Topics and Well Written Essays - 2000 words

International Strategic Management - Essay Example The business strategy of Aldi has been truly robust; it stood the severe test of the ongoing financial crisis. The brand image of Aldi has been all the more strengthened through the word-of-mouth communication. According to industry reports, more than 1, 72,000 households have been to Aldi stores during 2007-2008. Another attribute of Aldi’s success has been its foray into the fresh fruit and vegetable segment (Grocery Report 2008, n.d.). According to latest reports, the number of stores of Aldi has surpassed 200 and it is all set to increase the number even more. The huge expansion plans are being complemented with proposals to build three warehouses in Sydney and Melbourne (Palmer D., January 21, 2009). In order to analyse the business performance of Aldi, an understanding of the business environment of Australia is necessary. A traditional method of analysis will be followed in the process where the macro environment will be researched through PEST analysis. The Australian economy is stable in terms of its political environment. This has been instrumental in generating a decent growth for the economy since 2000 (The Economic and Political Situation, end of 2002). The Australian government is an ardent advocate of the free market economy and hence is linked to the major countries of the world through foreign trade. The centre stage of Australian politics is shared by three political parties; The Liberal Party, The Nationals and The Australian Labour Party. The Liberal Party and The Nationals are conservative in nature, representing the commercial interests of the urban and rural business class respectively. The Australian Labour Party was formed by the labour unions. This party has been supporting the cause of workers and labourers with a leftist attitude. They are described as a â€Å"social democratic party†. There has been a marked change in the government’s strategy towards providing help to needy families.