Organizational Structure and Effectiveness

Running head: ALDI
Organizational Structure and Effectiveness
[Aldi]
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Executive summary
Organizational structure often proves very decisive in terms of communication
effectiveness, practicing management principles and applying new ideas to business
practices. This study also has the purpose to describe the organizational structure of
Aldi. The study finds Aldi practicing a decentralized structure. The structure as found in
the study has been helpful for Aldi in the management of innovation and business
performance. Unlike many major retail brands, Aldi successfully used various
management strategies to operate differently. The exclusion of middle managers from
the hierarchy is one of these strategies. There are many other strategies discussed in
this study. The study finds that Aldi should use differentiation in its product selection
strategy.

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Table of Contents
Brief Introduction and background Information on Aldi.....................................................3
Section 1: Overview of Aldi's organizational structure and strategies...............................3
Organisational Structure................................................................................................3
Strategies.......................................................................................................................4
Section 2: Impact of Aldi's structure on management innovation.....................................5
Section 3: Impact of Aldi's structure on overall business performance.............................7
Recommendations on how to improve innovation and performance................................9
Conclusion.........................................................................................................................9
References.......................................................................................................................11

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Brief Introduction and background Information on Aldi
Aldi is a highly successful internationally operating organization, which follows
simple business principles and works according to the business essentials. The concept
of Aldi to offer quality products while always fulfilling its low-price strategy has helped it
become a renowned name in Germany and other parts of the world. The key to Aldi’s
success at the global level has been due to many reasons. On a much narrower note,
the key to success has been its ability to maintain a long-term relationship with the
industry-based business partners and effective employee management (Aldi.com 2019).
The corporate identity for the Company is due to its business principles, efficient
marketing activities, effective management of the supply chain operations, marketing
communication and effective organizational communication. Aldi has been and is able
to maintain a status of being internally famous for offering the highest quality at the
lowest prices (Aldi.com 2019).
Section 1: Overview of Aldi's organizational structure and strategies
Organisational Structure
Out of many organizational structures, Aldi is an outright follower of a
"Decentralised” structure. It is due to this structure there is less communication error
between the managers and more adaptation of essentials that helped it constantly
deliver a top performance. A conservative mode of financial planning has helped Aldi
become economically independent and strong as well. A decentralized structure has
been helpful to Aldi in various ways. The structure has helped Aldi spreading out the