Analysis of Current Strategic Position of ALDI

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1. Mission, vision, objective, goals, core competencies inform strategic planning of ALDI's1
1.2 Factors to be analyse while formulating strategic plans by ALDI........................................2
1.3 Evaluating the worth of techniques during the development of Strategic plans by
businesses....................................................................................................................................3
2.1 Analysis of current strategic position of ALDI by carrying out organisational audit...........6
2.2 Environment audits for ALDI using Porter's 5 force analysis..............................................7
2.3 Significance of stakeholder analysis for ALDI.....................................................................8
2.4 Formulation of New strategies for ALDI..............................................................................9
TASK 2..........................................................................................................................................10
3.1 Strategies appropriate for ALDI..........................................................................................10
3.2 Strategies for market entry and growth...............................................................................10
TASK-3..........................................................................................................................................11
4.1 Role of personnel in implementation of the strategies........................................................11
4.2 Resource requirement for strategy implementation............................................................11
4.3 Use of SMART targets to achieve strategies objectives.....................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategies are the purpose for the development in an organisation by making
strategies and plans which can help the organisation to deal with its future challenges, it creates
continuous improvement in performance. ALDI is a German supermarket chain. It is considered
as formation of both organisation which is Sales oriented and Market oriented. The organisation
has opened its first store in 1913 and not having more than 7000 stores worldwide. This retail
company is mainly famous for their product's low prices. The following report is throwing light
on the an organisation's missions, its values, objectives, etc., along with its undertaken business
strategies that has been further evaluated in this report (Auzair, 2011).
TASK 1
1.1. Mission, vision, objective, goals, core competencies inform strategic planning of ALDI's
Nation's low price grocery leader is ALDI. ALDI is creating efficiencies at every point
either on building of the stores or in display of store, which ensures that the price will remain
low and helps their customer for saving. ALDI is mainly focusing on stakeholders and delivering
their needs, these are the main reasons behind the success of ALDI.
 ALDI's Mission:- The main mission of ALDI is to providing, “Top quality of the
products at incredibly low prices.” The organisation wants to satisfy their customers by
every possible efforts, either its from quality satisfaction or by the price of it. The
organisation always says, “Spend a little live a lot”.
 ALDI's Vision:- The business philosophy of ALDI is very clear. Keeping their mission
in mind, the organisation works on five main idealogical principles.
1. Huge amount of saving.
2. Excellence in the quality.
3. Outstanding value.
4. Special buys.
5. Confident buying.
 ALDI's Objective:- The main objective of the organisation is to insure the quality of the
products and total customer satisfaction. The organisation is providing the best quality of
products and services to their customers and continuously updating their services
(Bharadwaj and et.at., 2013).
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 ALDI's Goals:- The organisation is working to provide the best products and services to
their customers. They also want to introduce healthy food diet and for this they are
providing only healthy food items in their stores and encouraging people to stay fit and
eat healthy.
 ALDI's Core competencies:- The core competencies of the organisation is their strict
focus on price. They attained their leadership status because of the price they are offering
to their customers. Other competitors are unable to offer such low prices (Azar, 2011).
The corporation has undertaken by ALDI and has become fifth biggest market of UK.
According to data about market from Kantar Worldpanel, this German retailer company has
increased its sales by 9.8% in just 12 weeks, whereas other UK's top four supermarkets
collectively grew just by 1.6%.
1.2 Factors to be analyse while formulating strategic plans by ALDI
Formulation of Strategic plan is the planning which is done by the organisation which
carefully creates the vision of their future goals and with the help of those strategies' organisation
would be able to achieve its Goals (Martin and Rice, 2010). For the successful implementation of
Strategies plans organisation should ensure these five critical factors.
 Engagement:- That is the involvement of Staff to generate additional input and building
of commitment to complete or achieve the plans. Providing full information about issues,
Objection, concerns and fully make sure that the employees understand about
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Illustration 1: Market share of supermarkets
(Source:-Trouble for the big four supermarkets as Aldi and Lidl growth
speeds up again, 2015 )