Based on the below presented case, answer the following questions:

a$-$ Name and briefly explain two environmental factors affecting Aldi Sud in the American market

$(20$ points$)$

b$-$ Name and briefly discuss the foreign market entry mode $($s$)$ of Aldi Sud to the America

$(15$ points$)$

Two German brothers founded the world's first discount retailer Aldi in $1950$s$.$ Aldi grew in the Eur

market. In $1961$ one brother started to manage Aldi Nord and the other brother Aldi Sud. Aldi's Germar$-$

operations consist of Aldi Nord's $35$ individual regional companies with about $2,200$ stores in western,

northern, and eastern Germany, and Aldi Sud's $32$ regional companies with $2,000$ stores in western and

southern Germany. Internationally, Aldi Nord operates in Belgium, France, Luxembourg, Netherlands,

Poland, Portugal and Spain, while Aldi Sud operates in Australia, Austria, China, Hungary, Ireland, Italy,

Slovenia, Switzerland and United States, In Austria and Slovenia, Aldi operates stores under the Hofer

brand. Their competitor Lidl also is a very successful German player in the market.

Aldi Sud which decided to expand into other markets, started to open around $100$ shops a year in America,

faster than its competitors Lidl and Aldi Nord. Aldi Nord owns Trader Joe's supermarkets but does not

operate Aldi stores in the American market. In August $2023$ Aldi Sud announced the takeover of around

$400$ Winn$-$Dixie and Harveys supermarkets in southern United States namely in cities of Alabama, Florida,

Georgia, Mississippi and Louisiana. Many of them were remodelled as Aldi markets. Mr$.$ Hart, who heads

Aldi Sud's American business operations, announced that the company aims to invest more into the

American market and open $800$ more stores on top of the $2,400$ it already has.

American consumers influenced by inflated food prices shopped from Aldi which offers low prices. The

retailer offers weekly price reductions up to $50\%$ and promotional offers on grocery products. The food

prices in American market are $24\%$ higher than they were four years ago. In the American market, Kroger

supermarket is another rival for Aldi. The other discounter Lidl has not grown as fast as Aldi Sud in the

American market.