Lacey-Demi Eyles Unit 1
Assignment 1 – ALDI vs Oxfam
In this document, I will be comparing two organisations with completely different aims. These two organisations will be
ALDI which is a for-profit organisation and Oxfam which is a not-for-profit organisation. There are several differences
between for-profit and non-profit organisations. While the aim ALDI which is a for-profit organisation is to maximise
profits and forward these profits to the company's owners and shareholders, non-profit organisation such as Oxfam aim
to help society's needs. Instead of maximising profits, Oxfam are more concerned with ensuring the revenue is greater
than costs.
Aldi is a leading global discount supermarket chain with over 10,000 stores in over 18 countries. ALDI is said to have an
estimated turnover of more than £50 billion. Originally based in Germany, the chain was founded by
brothers Karl and Theo Albrecht in 1946 when they took over their mother's store which had been in operation since 1913.
It is now one of the world's largest privately owned companies and provides high quality food for low prices to billions of
people around the globe. ALDI can also be classified in a tertiary sector as they provide services to individuals such as
by providing customers with cheap food. The purpose of a business is to offer value (through products and/or services)
to customers, who pay for the value with cash or equivalents. The money received in the worst way should fund the costs
of operating the business. The business purpose of ALDI is to supply products to customers. For example, an individual
may need some food but only have a small budget, therefore ALDI would be the best option as they buy high quality food
for a cheaper price than other supermarkets. ALDI is a private business which means that it is owned by private
individuals rather than being government owned. Private owners risk their own money and therefore are more driven to
succeed, but this also means that they may get too greedy and end up risking their business for the sake of a few extra
pounds. A private limited company is a type of company that offers limited liability, or legal protection for its shareholders
but that places certain restrictions on its ownership. Limited Liability means that the owners do not have to sacrifice their
personal belongings if the business was to fail. Therefore, they can only lose the money which was invested into the
business. This is a good thing, as the business owner has unlimited liability he could lose not only the business but their
possessions to such as their car, house and more. Issuing shares, growth and share transfers are three common
disadvantages of having a private limited company. Since the company is private, the company cannot issue shares to
the general public and therefore cannot raise large amounts of capital through public offerings. This affects the growth
of a private limited company, another major disadvantage, because the maximum number of shareholders permitted by
law is only fifty. Also, law prohibits private limited companies from transferring stock to non-shareholders without the
consent of the other shareholders, which can further limit growth.
Oxfam in the other hand is an international confederation of 19 organisations working together with partners and local
communities in more than 90 countries. Oxfam is determined to change that world by mobilising the power of people
against poverty. Oxfam works to find practical, innovative ways for people to lift themselves out of poverty and thrive.
They save lives and help rebuild livelihoods when crisis strikes. Oxfam works with partner organisations and alongside
vulnerable women and men to end the injustices that cause poverty. Oxfam has a limited liability meaning that the
members of the company are liable for the company’s debts or liabilities, however they can only lose the money which
has been put into the business. Their mission was to persuade the British government to allow food relief through
the Allied blockade for the starving citizens of occupied Greece. The purpose of Oxfam is to help create lasting solutions
to the injustice of poverty. They are “part of a global movement for change, one that empowers people to create a future
that is secure, just, and free from poverty”. As Oxfam does not have an owner, all decisions are made by a board of
directors who have all been elected by members and donors. They have a responsibility to follow their members wishes
and ensure that the charity does what it is expected to do. Oxfam relies on the public to donate items such as clothing,
electronics and food which they then sell at a reasonable price, the money that they make then gets sent to countries in
need. There are a few limitations for being a charity, these include:
Trustees need to avoid any situation where charitable and personal interests conflict.
Charity law imposes certain financial reporting obligations; these vary with the size of the charity.
A stakeholder is anyone with a vested interest in a business such as ALDI. Stakeholders are individuals, groups or
organisations that are affected by the activity of the business. Internal stakeholders are groups within a business such as
owners and workers. External stakeholders on the other hand are groups outside a business such as the community. They
include:
Customers: Customers want value for money (The highest quality products at competitive prices)
Employees: They want security of employments, good rates of reward and also promotional opportunities.
Suppliers: They want to feel valued by ALDI and want frequent orders with prompt payments.
Owners: Owners like to see their share of profit increasing, and the value of ALDI rising.
Unions: This is for groups of employees who seek to secure higher wages and better working conditions.
Employer Associations: This represents the interests of employers in specific industries.
Local and National Communities: The actions of a business can have a dramatic effect within the community.
Governments: The government wants businesses to become successful, to create jobs and to pay taxes.
The Key Stakeholders within Oxfam also varies, they include:
Donors: They provide Oxfam with all their inventory which contributes to helping people in need.
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Assignment 1 – ALDI vs Oxfam
In this document, I will be comparing two organisations with completely different aims. These two organisations will be
ALDI which is a for-profit organisation and Oxfam which is a not-for-profit organisation. There are several differences
between for-profit and non-profit organisations. While the aim ALDI which is a for-profit organisation is to maximise
profits and forward these profits to the company's owners and shareholders, non-profit organisation such as Oxfam aim
to help society's needs. Instead of maximising profits, Oxfam are more concerned with ensuring the revenue is greater
than costs.
Aldi is a leading global discount supermarket chain with over 10,000 stores in over 18 countries. ALDI is said to have an
estimated turnover of more than £50 billion. Originally based in Germany, the chain was founded by
brothers Karl and Theo Albrecht in 1946 when they took over their mother's store which had been in operation since 1913.
It is now one of the world's largest privately owned companies and provides high quality food for low prices to billions of
people around the globe. ALDI can also be classified in a tertiary sector as they provide services to individuals such as
by providing customers with cheap food. The purpose of a business is to offer value (through products and/or services)
to customers, who pay for the value with cash or equivalents. The money received in the worst way should fund the costs
of operating the business. The business purpose of ALDI is to supply products to customers. For example, an individual
may need some food but only have a small budget, therefore ALDI would be the best option as they buy high quality food
for a cheaper price than other supermarkets. ALDI is a private business which means that it is owned by private
individuals rather than being government owned. Private owners risk their own money and therefore are more driven to
succeed, but this also means that they may get too greedy and end up risking their business for the sake of a few extra
pounds. A private limited company is a type of company that offers limited liability, or legal protection for its shareholders
but that places certain restrictions on its ownership. Limited Liability means that the owners do not have to sacrifice their
personal belongings if the business was to fail. Therefore, they can only lose the money which was invested into the
business. This is a good thing, as the business owner has unlimited liability he could lose not only the business but their
possessions to such as their car, house and more. Issuing shares, growth and share transfers are three common
disadvantages of having a private limited company. Since the company is private, the company cannot issue shares to
the general public and therefore cannot raise large amounts of capital through public offerings. This affects the growth
of a private limited company, another major disadvantage, because the maximum number of shareholders permitted by
law is only fifty. Also, law prohibits private limited companies from transferring stock to non-shareholders without the
consent of the other shareholders, which can further limit growth.
Oxfam in the other hand is an international confederation of 19 organisations working together with partners and local
communities in more than 90 countries. Oxfam is determined to change that world by mobilising the power of people
against poverty. Oxfam works to find practical, innovative ways for people to lift themselves out of poverty and thrive.
They save lives and help rebuild livelihoods when crisis strikes. Oxfam works with partner organisations and alongside
vulnerable women and men to end the injustices that cause poverty. Oxfam has a limited liability meaning that the
members of the company are liable for the company’s debts or liabilities, however they can only lose the money which
has been put into the business. Their mission was to persuade the British government to allow food relief through
the Allied blockade for the starving citizens of occupied Greece. The purpose of Oxfam is to help create lasting solutions
to the injustice of poverty. They are “part of a global movement for change, one that empowers people to create a future
that is secure, just, and free from poverty”. As Oxfam does not have an owner, all decisions are made by a board of
directors who have all been elected by members and donors. They have a responsibility to follow their members wishes
and ensure that the charity does what it is expected to do. Oxfam relies on the public to donate items such as clothing,
electronics and food which they then sell at a reasonable price, the money that they make then gets sent to countries in
need. There are a few limitations for being a charity, these include:
Trustees need to avoid any situation where charitable and personal interests conflict.
Charity law imposes certain financial reporting obligations; these vary with the size of the charity.
A stakeholder is anyone with a vested interest in a business such as ALDI. Stakeholders are individuals, groups or
organisations that are affected by the activity of the business. Internal stakeholders are groups within a business such as
owners and workers. External stakeholders on the other hand are groups outside a business such as the community. They
include:
Customers: Customers want value for money (The highest quality products at competitive prices)
Employees: They want security of employments, good rates of reward and also promotional opportunities.
Suppliers: They want to feel valued by ALDI and want frequent orders with prompt payments.
Owners: Owners like to see their share of profit increasing, and the value of ALDI rising.
Unions: This is for groups of employees who seek to secure higher wages and better working conditions.
Employer Associations: This represents the interests of employers in specific industries.
Local and National Communities: The actions of a business can have a dramatic effect within the community.
Governments: The government wants businesses to become successful, to create jobs and to pay taxes.
The Key Stakeholders within Oxfam also varies, they include:
Donors: They provide Oxfam with all their inventory which contributes to helping people in need.
1
