Organizational Change Management: A Case Study of Aldi Stores UK

This report analyzes the organizational change management of Aldi Stores UK. It includes a PESTLE analysis, Porters Five forces analysis, Balanced Scorecard Analysis, McKinsey 7s, and SWOT analysis. The report identifies issues and opportunities, proposes solutions, and recommends changes. The report also includes a Gantt chart and action plan, before and after organizational structure analysis, and other recommendations.

ALDI STORES UK
ALDI STORES UK
MANAK JEET SINGH
UNIVERSITY OF CUMBRIA
STUDENT NO. 1553030

1ALDI STORES UK
Executive Summary
Organizational change can be described as a crucial aspect of the organization and it is
important for all the companies to ensure that they change with respect to the external
environment in order to maintain a competitive positioning. The given report follows a
structured format whereby the case of the Aldi Stores in the UK has been considered and
their issues have been analyzed. The report begins with a brief introduction which is then
followed by the brief about the company. The external and internal environment of the
organization has been analyzed to understand the problems as well as opportunities being
faced by the firm. This is followed by a proposal of the situations where the firm can
implement change. One of the problems related to the digitalization of the stores has been
selected followed by the procedure to change.
Lastly, the organizational structure which is necessary to incorporate the change has been
depicted followed by recommendations on the same.

2ALDI STORES UK
Table of Contents
Introduction................................................................................................................................4
About the organization...............................................................................................................5
Research into the internal and external environment.................................................................5
PESTLE Analysis...................................................................................................................5
Porters Five forces analysis of ALDI.....................................................................................7
Balanced Scorecard Analysis.................................................................................................9
McKinsey 7s.........................................................................................................................12
SWOT analysis.....................................................................................................................14
Identification of issues and opportunities................................................................................15
Technological advancements...............................................................................................15
People Management relationship.........................................................................................16
Supermarket- low utilization of resources...........................................................................16
Choosing one problem and elaboration....................................................................................17
Recommendations on the change.............................................................................................18
The procedure of change..........................................................................................................20
Gantt chart and action plan......................................................................................................22
Before and after organizational structure analysis...................................................................23
Before:......................................................................................................................................23
After.........................................................................................................................................24
Other recommendations...........................................................................................................25
Slow change.........................................................................................................................25

3ALDI STORES UK
Conclusion................................................................................................................................26
References................................................................................................................................27

4ALDI STORES UK
Introduction
Strategic Management plays a key role in the organization whereby the scanning of
the external environment, as well as the internal environment of a business, is very important
as it is assists in the identification of problems (Abushova, Burova and Suloeva 2016). These
problems might be related to the internal management of the organization or to the presence
of an external factor in an organization which might lead to issues for the organization.
Strategic Management not only helps a firm to analyze these problems but also helps to
figure out solutions for them so that the company can come on track.
Organizational behavior tends to play a key role in the given scenario whereby the
employees are greatly affected by the change which the company aims to bring into the
organization and hence, the study of both individual performance and the activity within an
organization is crucial in order to determine the impact of such changes in this organization
and how to manage them (Alkhafaji and Nelson 2013). The organizational behavior tends to
study human behavior at work and topics like communication and performance.
Hence the primary aim of the report is to analyze the problems which are being faced
by a company and recommend the changes which can be made in order to solve the stated
problem. The report will be following a structured format whereby the brief overview of the
company will be provided which will then be followed by the external and internal
environmental analysis of the same (Barney 2014). Using this external and internal
environmental analysis, certain problems faced by the organization will be figured out and
solutions for the same shall also be provided. Moreover, the change in the organizational
management structure before and after the change shall also be provided and certain relevant
recommendations shall also be provided. The organization which has been chosen for the
given assignment is the ALDI Stores in the United Kingdom.

5ALDI STORES UK
About the organization
ALDI is a German supermarket chain which covers more than 10000 stores in more
than 20 countries. The company was found by brothers Theo and Karl Albrecht in the year
1946 after taking over the store from their mother. The organization is formerly known as a
low cost and efficient supermarket retail which has various stores and is one of the most
popular company’s functioning in the retail industry. In the United Kingdom, the company
came into the establishment I the year 1990 and comprises of the 7 percent of the market
share (Aldi.co.uk. 2018). There are around 726 ALDI stores in the UK each of them having
the latest technology in place and has been performing considerably well. The stores sell
goods at the cheapest price available and also tends to function on a system of faster checkout
which will enable faster and efficient operations in the organization. This creates a
competitive advantage for the firm over its competitors.
Research into the internal and external environment
For ALDI UK, the five major tools which shall be used which are PESTLE Analysis ,
Porters Five forces, Balanced Scorecard Analysis, McKinsey 7S and the SWOT Analysis
(Bettis et al. 2014).
PESTLE Analysis
The PESTLE Analysis is a useful tool to analyze the external environment.
Political
There exists high levels of conflict as well as political vulnerability which exists in the
United Kingdom currently and pose a threat to the different firms which function in the
respective countries. Although in different countries like China, Australia, and other
companies, Aldi does not face much of a threat but in the United Kingdom, it might face

6ALDI STORES UK
problems as there exists uncertainty after the Brexit (Bolino et al. 2013). This will be mainly
due to the regulation and legislative laws and relationships which exist due to the political
relations which exist between the UK and Germany.
Economic
As the Brexit took place earlier this year, an after effect of this has been the rising
prices in the United Kingdom. The pound has dropped considerably and this has impacted the
operations of ALDI which has helped the company to grow the fastest in the last two years.
The cost of imports has increased and this has impacted the functioning (Aldi-nord.de. 2018).
The inflation rate in the grocery market has also increased considerably, shoppers have to pay
extra for the goods which then makes them attracted to ALDI where they can avail to larger
discounts.
Moreover, the grocery market in the United Kingdom has grown to an average of
3.8% and this indicates that the demands have been increasing and so are the sales of the
firms. As ALDI has followed the law and has increased its wage from £7.20 to £9.75, the
employees will be attracted to the firm.
Socio-Cultural
At present, Aldi one of the highest paying supermarket in the United Kingdom and
there are more than 5000 employees working in the United Kingdom (Bratton and Gold
2017). Additionally, the ALDI Company has come up with the Get Set to Eat Fresh
Initiatives program which will further help the company to improve the operations of the
firm.
Technology

7ALDI STORES UK
With the advent of technological advancements, the Supermarkets are increasingly
making use of the access to Technology and are utilizing it to aid their service propositions
whereby consumers tend to have an access to self-service checkouts in the grocery provider
store (Brewster 2017). The company has not yet adopted such a technology.
Environmental
ALDI tends to increase their stock sourcing from British producers and the different
farmers which further tends to support the local producers and helps in ensuring the
sustainability of the local areas in which they tend to function inefficiently. With regard to the
conservation of the environment, the food norms need to be abided by regularly in the
business environment.
Legal
The grocery industry in the United Kingdom has been greatly affected by the scandals
which have taken place due to the content of food having been provided. This was very
relevant with respect to the horse meat scandal. With time, even Aldi has found itself amidst
legal disputes as it had misrepresented the sales of herbs (Brewster, Chung and Sparrow
2016). For this reason, the company needs to ensure that it abides by all legislative
requirements in order to ensure success in the long run.
Porters Five forces analysis of ALDI
The Porters Five forces tool can be described as an industry analysis tool which is
generally used by the companies in order to understand the different forces which operate in
the external environment or the industry environment. The forces have been examined as
follows:

8ALDI STORES UK
The Threat of new Entrants-LOW
This threat of new entrants is comparatively quite low because, the majority of the
supermarket stores in United Kingdom has been captured by the large retailers like the Tesco,
Sainsbury`s, ASDA and Safeway (Wright, Paroutis and Blettner 2013).
The Bargaining power of the suppliers- LOW
The bargaining power of the different suppliers is comparatively quite low in the
United Kingdom because the different suppliers fear losing their business to large
supermarket. In addition to this, the different suppliers are also worried about selling the
retailers getting their own manufacturing base.
The bargaining power of the customers-HIGH
The bargaining power of the customers has become considerably high because the
number of options present for the customer has become considerably high. As the products
being sold in the markets have become highly standardized, their choices change (Zott and
Amit 2013). The giant retailer Tesco tends to offer various loyalty programs to the customers
in order to retent them.
The threat of Substitutes- MODERATE
The threat of substitution in the given industry can be stated to be moderate in nature
because the major substitutes for the supermarkets are smaller stores like convenience and
express stores.
The rivalry among competitors

9ALDI STORES UK
As the grocery market has grown in size, the retailer concentration along with the
competition among existing players has increased considerably. This has led to accelerated
development in the industry and innovated the way of business.
Balanced Scorecard Analysis
The balanced scorecard can be defined as a performance metric which can be used to
improvise on the different internal functions of a business and thereby improving their
outcomes for the future. It provides relevant feedback to the organization and then is used to
formulize efficient strategies (Hill, Jones and Schilling 2014). The balanced scorecard
segregates four different arenas in the business so that the analysis becomes comparatively
easier and then, it uses these areas namely, learning and growth, business processes,
customers as well as finance in order to attain the objectives as well as the goals resulting
from these areas (Kalkan and Bozkurt 2013). Balanced scorecard is also used to implement
strategy mapping and add value to an organization. The Balanced scorecard analysis of the
ALDI Stores in the United Kingdom has been done as follows:
The financial perspective
The financial perspective seeks to attain information from annual reports and other
related statements. This helps in the formation of marketing strategies, management systems
and internal operations. The balanced scorecard of Aldi on financial perspective is as follows:
Objectives Measures Target Initiatives
Increasing the
revenues with
respect to assets
Revenue/Total assets
%
Increasing the
Revenue by 8% in
the next year.
Make more use of
assets to increase the
revenues
Increase revenue Revenue/employees Increasing the Increasing the

10ALDI STORES UK
with respect to the
employees
% measure by 5% in
the next 6 months
employee base
through efficiency ,
training and
technology
Increasing return on
investments made
ROI Increasing ROI by 2
% every year.
Reducing operating
costs and achieve
economies of scale
by making bulk
purchases.
As ALDI aims to use the cost leadership strategy, achieving these objectives will go a
long way to help the firm.
The customer service perspective
The customer service perspective helps in gauging the customer satisfaction by
making use of effective decisions like price and quality of the products available.
Objectives Measures Target Initiatives
Increasing the
average customer
size of Walmart
Average customer
size
Increasing the
customer size by 5%
every year
Providing better
choices to the
customers
Increasing the
customer rating of
ALDI
Improving customer
ratings
Improving the
customer rating by
10% in one year.
Practicing product
variety and cost
reduction
Reducing the
number of
The customer Reducing the
number of customer
Improving the
quality of the

11ALDI STORES UK
complaints complaints received complaints received
by 4% per annum
products in the
stores.
Internal Process perspectives
This perspective seeks to understand the manner in which the products are
manufactured and whether there are any gaps or delays and other bottleneck shortage as well
as wastage. The scorecard for ALDI is as follows:
Objectives Measures Target Initiatives
Reduction in the
total expenses
Administrative
expenses/ total
revenue
Reducing the
administrative
expenses by 2% per
annum.
Providing training to
the employees to
make them more
efficient
Reducing delivery
time
Average time taken Reducing the time
taken by 5% in the
next three years
Making use of
automatic packing
and handling
technology to reduce
the time taken.
Reducing the
waiting time of the
customers at the
counters.
Average waiting
time
Reduction in the
average waiting time
by 15% in the
coming year.
Bringing about a
change in the layout
of the store to ensure
more counters can
be kept.

12ALDI STORES UK
The learning and growth perspectives
The learning and growth perspectives of the organization helps in the investigation of
the training as well as the knowledge perspectives.
Objectives Measures Target Initiatives
To increase the
training provided to
the employees in
order to improve
them.
Average training
hour per employee
Increasing training
hours per employees
by around 8% in the
next three years.
Hiring trainers and
managers which
ensure good
performance of the
employees.
Reducing the
employee turnover
rate
Employee turnover
rate
Reducing the
employee turnover
rate by 5% in the
next three years.
Increasing employee
engagement and
employee
participation
Increasing use of the
employee
engagement.
Empowerment Index Increasing the index
by 5%.
Providing decision
making authority to
the customers.
McKinsey 7s
The McKinsey 7s model was developed by Tom Peters and Robert Waterman in the
year 1980, which stated that there are seven important internal aspects which are required to
be covered in order to ensure the success of the organization (Johnson 2016). It has several
benefits associated to it like improving the performance of the organization, examining the
impact of changes, aligning the departments and processes and determining the best strategy.

13ALDI STORES UK
Source: (Carnall 2018).
 Strategy: The strategy of the organization helps to maintain a competitive advantage
over competition. With respect to ALDI, it makes use of the cost leadership in order
to compete in the external environment (Jarzabkowski and Kaplan 2015).
 Structure: This describes the manner in which the company is structured. The
structure of ALDI comprises of various hierarchal structures.
 Systems: The systems describe the daily activities of the staff members who engage
into the job (Grant 2016). The supermarket uses a wide number of daily systems to
sustain its operations.
 Shared values: These are known as the superordinate goals and states that these bind
the other six factors (Hubbard, Rice and Galvin 2014). ALDI functions on the shared
value that, its main objective is providing adequate services to the different
consumers.
 Style: The style looks after the management style. The leaders at ALDI follow a
transformational style.

14ALDI STORES UK
 Staff: This is concerned with the employees and their general capabilities. The staff at
ALDI are given freedom and engaged in decision making.
 Skills: This looks out for the actual skills required and the competencies necessary for
the employee to work for the company. These skills include hard work and
sustenance.
SWOT analysis
Strengths
The primary strength of the company is that its sales have been increasing
considerably. In 2017, the sales rose by 20% ad this was the largest in comparison to the big
four supermarkets as present in the United Kingdom (Harrison and John 2013). These are
Asda, Tesco, Morrison’s and Sainsbury`s.
Their market share has also been increased considerably and there are more than 1.1
million additional customers who have been visiting their stores (Carnall 2018).
Weaknesses
Although the supermarket is a discount retailer, they are suffering from decreased
profits due to the discounts being offered and the increase in the imports due to the
weakening of the pound and thus, for this reason, they have had to increase the prices of the
products which is hampering their cost leadership strategy (Moutinho and Vargas-Sanchez
2018). Although the company has been growing considerably, it is still behind the four major
supermarkets present in the United Kingdom which are Tesco, Sainsbury’s, Asda and
Morrison’s.
Opportunities

15ALDI STORES UK
Recently, the company has been labeled as the best company in terms of the quality
being provided and therefore, for this reason, its products are fairly popular in nature (Chance
2013). Having stated this, the company can develop and expand these products lines in the
given case scenario.
Threats
The major threats being faced by Aldi is the takeover of the market by the Amazon
Company. Amazon now provides Whole Foods which tends to prove to be a successful
domain for the UK Market (DuBrin 2013).
The company faces intense competition from Lidl and holds around 5% of its shares
which is then expected to take over the positioning of the company
Identification of issues and opportunities
Hence, from the strategic analysis undertaken using the different Strategic Analysis
tools of PESTLE, Porters Forces, Balanced Scorecard Analysis , McKinsey 7s and the SWOT
analysis, the following issues and opportunities could be identified with the company:
Technological advancements
Inefficient checkout process.
The inefficient checkout procedures, act as one of the biggest problems which
organizations face today. The inefficient system generally refers to the slow system of
checkout done at the counters of the organization. According to Frankland et al. (2013), this
can be considered to be one of the most important reasons, why the organization may face
issues with respect to the turnover of the consumers.

16ALDI STORES UK
Hence, this can be considered to be one of the biggest problems faced by the different
stores at ALDI (Greenberg 2013). At the ALDI stores in the UK, the staff checkout procedure
is one of the fastest but they have been often been faced by issues with respect to the
damaging of items during the checkout procedure because of the speed.
People Management relationship
The way in which an organization function is largely dependent on the kind of people
who operate in the chosen organization. In the case of ALDI, UK the company needs to
ensure that the organizational procedures are managed efficiently by the Managers (Hahn
2013). Due to the hierarchical structure of the organization, the company may find it very
difficult to change the structure of the organization which may then assist the firm in
maintaining a smaller chain of command (Hechanova and Cementina-Olpoc 2013).
For instance, if any customer comes up with a particular query then they will not be
able to address to that query because the store supervisors and the managers do not have the
answer for it (Jacobs, Chase and Lummus 2014).
Supermarket- low utilization of resources
Instead of opening more supermarkets, the company can cater to the demands of the
different customers by ensuring that they open up express outlets. Currently, a large majority
of the stores of Aldi are large supermarket stores which lead to increased costs for the firm
and bigger maintenance.
It is for this reason, that it has been recommended that the company needs to ensure
that this problem is solved (Kramar 2014). Hence, proper scanning of the environment is

17ALDI STORES UK
required in the given stage and the company needs to ensure that it saves cost. Furthermore,
instead of seeing the other outlets which do not achieve much of a demand, the company can
concentrate on the larger stores and improve their capabilities instead (Hubbard, Rice and
Galvin 2014).
Choosing one problem and elaboration
From the analysis of the different problems as discussed in the previous section, it can
be understood that there are quite a few numbers of issues which require the assistance of the
administration and the CEO will be required to change these in order to make the situation
better and in order to ensure that the organization is able to achieve a competitive advantage
(Lasserre 2017). Hence, the problem is chosen or rather the opportunity which has been
decided to be exploited is the problem related to the digitalization of the chosen stores using
information solutions and inventory management techniques.
Inefficient checkout systems
The checkout procedure which is majorly used in the different counters at a Grocery
store can be described as a major point of issues for the company this is because the
management of checkout counter is linked with various other problems like the follows:
1. Customer Management
The customers are directly in contact with the different employees who are present at
the given counter. Hence, for this reason, it becomes increasingly important for the company
to ensure that the checkout system is efficient.
2. The efficiency of the System
The efficiency of the system is also portrayed by the organization's efficiency of the
checkout counter. When the checkout counter of the organization is very slow, the customers

18ALDI STORES UK
may give bad ratings to the company and may also switch over to the competitors (Stead and
Stead 2013).
3. Cash Management
The checkout counter also needs to manage the cash paid by the people and during the
peak season, this may become extremely difficult to carry out (Lengnick-Hall, Lengnick-Hall
and Rigsbee 2013). This is because the cash which is difficult to collect and the correction of
its authenticity also becomes a tiresome job.
4. Discounts
As ALDI is a cheap priced products store, almost all the products sold in the
organization tend to comprise of an offer and thus, for this reason, the checkout procedure
becomes complicated.
Hence, due to these reasons, the entire staff oriented checkout counter has become a
point of concern for the ALDI stores in the United Kingdom (Luthans, Luthans and Luthans
2015)..
Moreover, while inculcating checkouts using the new software of Retail Point of Sale
(POS) System, the pricing system and other stocking information can be shared in a single
database to ensure maintenance of paperless records and further managing the procedure
(Martinsuo 2013).
Recommendations on the change
Customer friendly checkouts using POS System

19ALDI STORES UK
With the advent of technology, the self-checkout mechanism has become quite
popular and provides a mechanism for the different customers to process their own purchases
from the retailer. This opportunity serves as an alternative to the cashier-staffed checkout
(Merat and Bo 2013). The customers tend to carry out the purchases scanning themselves and
applying payment for the items which have been purchased. Moreover, this facility is then
supported by preparing various sales data, inventory data and other related information easily
for the store managers. Various supermarket retailers in the United Kingdom have come up
with the strategy of self-checkouts and the implementation (Miner 2015). Moreover, the store
managers will be easily able the daily transactions.
Moreover, changes to the entire database system using the POS System will be
changed with respect to the stocking of goods, maintenance of records and other related
aspects (Morschett, Schramm-Klein and Zentes 2015).
Hence, the implementation of these changes with respect to the self-checkout and
POS System will bring about the following advantages to the system:
 Reduced Labor Costs
The labor cost of a cashier at the self-checkout system will be reduced. There is no
need to replace the employee or to lay them off. Moreover, maintenance of systems cost
using POS will also reduce considerably.
 Saving space
The self-checkout counter is comparatively smaller in size and hence, this can help in
saving of space which may then be used to stock extra products (Team 2013).
 Faster

20ALDI STORES UK
The self-checkout system minimizes human error and contact and hence, it is faster
than the usual checkout. Moreover, the use of POS will then make the preparation of reports
and other such inventory management procedures easier.
 Improves efficiency
Undoubtedly, the entire procedure of the self-checkout system helps in maintaining
the efficiency of operations. In addition to this, the POS System shall bring about greater
efficiency in the management of the stores.
The procedure of change
The change has to be implemented in the different ALDI stores and hence, for this
purpose a designated blueprint procedure needs to be followed. Given below are the certain
plans which need to be undertaken in order to bring about the change:
1. Planning the change- The first step of the chosen procedure involves determining the
change which has to take place. As it has been decided that the self-checkout systems along
with the POS Systems will be implemented, it is important for the management to decide
upon the number of self-checkouts installed in each store (Pinder 2014).The choice of the
different packages of the software’s available will also be required to be planned.
2. Discussion with the employees-The employees needs to be informed about the different
changes which will take place in the chosen organization (Vogel and Güttel 2013). As the
implementation of the self-checkout system involves the change in a job of the cashiers
employed, the need to be explained about the procedure and allocated to another department
as per their expertise and competency.
3. Test Run in the major stores-The change cannot be implemented in all the stores at once
and it is extremely important for the management to run a test change which will help in

21ALDI STORES UK
identifying whether the idea has been successful or not (Pugh 2016). This can be done in
stores which experience footfall and thus will reduce the burden on the employees as well.
However, it needs to be noted that during the test run period, the staff oriented counters need
to be continued.
4. Training provided to the customers and employees-The customers need to be trained. This
procedure can only be done during the test run period. In the given procedure, promotional
activities need to be uncertain which will then advertise about the implementation of the new
systems (Purce 2014).
In the given scenario, the employees shall be impacted deeply as it may lead to lower
work pressure and losing out of jobs. Hence, it is the duty of the management to bring
considerable changes in the store organizational structure as well.
5. Measuring the success of the test run-After the test run has been conducted, the relevant
changes need to be measured and their success needs to be organized effectively.
6. Implementation in 250 stores-If the test run has gone well, the organization would be
required to implement the given procedure in around 250 stores in the country.
7. Measuring responses-The responses and the efficient functioning of the organization needs
to be measured effectively after it has been launched in the initial 250 stores (Rothaermel
2015).
8. Correctional methods-There may be various technical glitches and operational
shortcomings while the implementation of the given system takes place. For this reason, the
correctional methods need to be undertaken so that the system can run smoothly.

22ALDI STORES UK
9. Launching the self-checkout system and POS Systems in all stores-After the correctional
methods have been undertaken, the checkout system needs to be launched in all the stores
effectively.
10. Evaluation and control of the change-Once the changes have been made effectively they
need to be evaluated continuously (Scarborough 2016). This means that the system needs to
maintained and any error in the functioning of the system will be required to be handled well.
Gantt chart and action plan
Activity Months
M
Jan
M
Feb
M
Mar
M
April
M
May
M
June
M
July
Planning 
Discussion with the employees  
Test run 
Training provided to the employees   
Measuring success  
Implementation in selected stores  
Measuring response  
Correction  
Launching in all stores 

23ALDI STORES UK
Change in organizational stricture 
Evaluation and controlling of change  
 
Time Line of Research
(Source: Created by the author)
Before and after organizational structure analysis
From the given analysis, it could be seen that the main change which the organization
will be undergoing is the change relating to the technological advancement of the stores.
Technological change forms an essential aspect of the organization in order to remain
competitive in the global world (Slack 2015). However, when technological advancements
are incorporated in an organization, the manner in which the different stores were managed
shall change considerably and now a centralized POS System will be used to manage the
inventory of all stores at once. For this reason, it has been recommended, that the
organization may be required to reorganize the structure of the firm (Wagner III and
Hollenbeck 2014).
This change in the structuring will then serve as an assurance to the employees that
their position in the firm is secure and that all the new POS Systems can be easily adapted
into the systems.
Before:
The organizational structure before the change followed a hierarchical structure as
follows;

24ALDI STORES UK
The organizational structure before the change (Hierarchy)
After
After the changes will be implemented, as stated earlier in order to ensure that the
employees are able to take in the change and they are easily able to cope with it, the
following flat structure shall be followed (Wheelen et al. 2017). This will assist in providing
assurance to the employees and be able to remove any technological and hierarchical barriers
City head
Store heads
Departmental
heads
Departmental
heads
Inventory Purchases Marketing
Store heads
Departmental
heads

25ALDI STORES UK
so that they are easily able to make way through the following structure. Moreover, as
witnessed earlier, the different ALDI Stores were managed separately, but now with the
implementation of the POS Systems, the management of all the stores shall become unified in
nature.
The organizational structure after the change (Flat)
The implementation of the given structure shall inculcate transparency in the
organization and ensure that the technological advancement is adapted easily by all the
employees and the changes can be monitored easily (Williamson et al. 2013).
Other recommendations
Slow change
City heads
POS System
Store heads
departmental
heads
employee and
managers

26ALDI STORES UK
The implementation of the changes which shall be made in the organization need to
be made slowly and one section at a time. If the entire store is transformed under the POS
System in one go it shall become considerably difficult for the people to manage the different
employees to cope up with the system and it shall also become considerably difficult for the
different customers to get used to the given system of development (Wood, Wrigley and Coe
2016). Hence, while implementing the change the manual checkout also needs to be made
and it needs to be ensured that when the changed ones are successful, only then the manual
checkout needs to be mitigated.
Conclusion
Therefore, from the given analysis, it can be stated that organizational change is a
crucial part of an organization. The organizational is faced by various external environmental
factors and for this, the company will be required to ensure that certain changes to the manner
in which the organization functions so as to ensure a competitive advantage. The given report
was based on the ALDI stores in the UK. The report analyzed the external environment and
presented various problems as well as the opportunities which were being faced by the
organization. This helped in ensuring that all aspects of the company are taken into
consideration. From the various problems being presented, the problem related to inefficiency
of the stores due to lack of technology had been chosen and it was decided that Self-checkout
along with POS System is implemented into the system. Recommendations to change the
procedure have been provided. When a change takes place in the organization, the
organizational structure also needs to undertake a change and for this reason, the before and
after the organizational structure of the stores has also been provided.

27ALDI STORES UK
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