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Laws And Government Policies Affect The Expansion Of The Supermarket Industry

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Political and Legal environment Shamsher (2011) illustrates that laws and government policies can affect a particular industry. Changing standard food regulations can dramatically affect the expansion of ALDI. ALDI (2014) states that even though the mainly products in the store is produced in Australia, there are some import product which is contributed from oversea. If there are changing this regulation, it might obstacle to ALDI to provide its product and service. Consequently, it can significantly impact its expansion. In term of tax policy, the supermarket industry is expected to growth estimate 2.4 percent by 2017 (Grant et al, 2014). Changing in tax policies directly impact ALDI in term of the net profits and compromising its strategies. Moreover, the regulation of food and drink packing can affect ALDI supermarket because it has private-label groceries (Australian Food and Grocery Council, 2016). If the organization can cope with new regulations, it could have a positive …show more content…

There are some economic factors that influence the supermarket industry, especially ALDI in term of expansion its market. Firstly, there is the impact of strengthening Australian dollar. Clibborn, Lansbury & Wright (2016) support that the Australian economy is claimed to be declining and fluctuation of the AUD become the dramatic negatively impact to the performance in every industry in Australia including supermarket industry. One of reasons for decreasing economy is that there are increasing the number of unemployment in Australia. Trading economic (2010) supports that the unemployment rate is at 4.9 percent and it is predicted to be increased which can impact ALDI in term of decreasing the number of consumption and consequently the organization’s

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