Strategic Management Analysis of ALDI

The report analyzes the strategic management processes of ALDI US, providing insights into the company's strengths, weaknesses, opportunities, and threats. The analysis includes a review of the external and internal environment, risk mitigation strategies, cost benefit analysis, stakeholder relationships, and a comparison of the company's mission and vision with its current operations.

Running head: BUSINESS STRATEGIC PLAN
Business Strategic Plan
Name of the student
Name of the university
Author note

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Executive Summary
The report helps in analyzing the different kind of strategic analysis that is required for the
supermarket for ALDI. The different analysis of the vision, mission along with core values of the
company has been analyzed that has helped in understanding the solutions for the different issues
faced by the company. The internal and external analysis has been done along with
implementation of risk mitigation and cost benefit analysis that has helped in solving the issues
in an effective manner. Proper analysis has been done in the report regarding the different
competitors of ALDI in the entire Australian market.

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Table of Contents
Introduction......................................................................................................................................4
Values (vision and mission) of ALDI..............................................................................................4
Importance of consulting stakeholders............................................................................................5
Strategic plans..................................................................................................................................6
Market Analysis of ALDI................................................................................................................7
SWOT..........................................................................................................................................7
Competitors in the market...............................................................................................................8
Strength and Weakness of competitors..........................................................................................10
Key strategic goals.........................................................................................................................11
Prioritize Strategies........................................................................................................................12
Action Plan....................................................................................................................................12
Strategic Monitoring and Control..................................................................................................14
SWOT analysis for first two strategies..........................................................................................14
Strength and Weakness of Metcash...............................................................................................15
Risk mitigation plan.......................................................................................................................15
Cost benefit analysis......................................................................................................................16
Legislation impact.........................................................................................................................17
Task 2.............................................................................................................................................18
Business Overview........................................................................................................................18
Analysis of vision and mission......................................................................................................18
Stakeholder relationship review....................................................................................................19
Conclusion.....................................................................................................................................19
References......................................................................................................................................21

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Introduction
The report helps in analysis of the strategic plan of the business of the respective
organization named ALDI that is one of the largest super market in the entire Australia. The
report will help in analysis of the different kind of mission, vision and analysis of the
stakeholders of the respective organization as well. The different competencies of ALDI
supermarket will be discussed as this will help in analysis of the position of competitors of
ALDI.
The main aim and purpose of the report is to identify the different strengths and
weaknesses of the company along with the analysis of the competitors. Proper analysis of the
different strategic goals will be identified in the market as this will help in creating action plan,
risk mitigation and cost benefit analysis of the different kind of strategies.
Values (vision and mission) of ALDI
ALDI has emphasized in providing different kind of fresher products as the main mission
of the supermarket is to provide services and products that will satisfy the customers and partners
with providing them unique experience of shopping. It helps them in offering variety, quality and
service based on commitment and attention to the different employees ("ALDI US - Homepage",
2018).
Furthermore, the vision of the supermarket is to an independent, honest and innovative
sustainable supermarket wherein the different customers can able to choose different goods at the
prices that is reasonable in nature. The core values of the company is to listen to the different
customers, employees and suppliers of the supermarket as to provide the different information
and welfare through honesty and commitment.

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Importance of consulting stakeholders
There are different stakeholders in ALDI who plays an essential part in the organization
as they help in influencing the different decisions relating to business. The different stakeholders
of ALDI are as follows:
Customers
Suppliers
Government
Media
Non-government organizations
Employees
There are different stakeholders that create huge effect on the different kind of business
decisions in ALDI. The different kinds of implementation of policies that will create direct
impact on the different kind of employees and customers wherein the different employees of the
respective supermarket will require to take different measures for the policy implementation
along with consumers will help in experiencing different kind of terms of the quality of the
different services and products.
Suppliers are required to understand the different changes in the procurement of the
different policies and the different government policies are required to be within the different
rules and regulations of the government. Furthermore, the different rules and regulations of the
government include the different kind of competition forms along with licensing of liquor and
other regulations on carbon as well.

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Therefore, the respective supermarket needs to abide with the different rules and
regulations of the government as this will help the company in creating a positive impact on the
organization along with on the different regulations of the government. ALDI is involved in
different kind of corporate social activities along with collaboration with different kind of NGOs
and they need to implement the different CSR activities in an effectual manner, however if such
laws are not followed this can create negative aspect on the NGOs. When the respective
supermarket will face different kind of issues related to not following the rules and regulations,
this will create negative aspect on the internal and external stakeholders.
Strategic plans
Wolf & Floyd, (2017) commented that the strategic plan comprises of different kind of
activities as this will help in improving the sustainability practices of the company in an effectual
manner. The different sustainability practices are required to be analyzed by ALDI as this will
help in gaining competitive advantage in an effective manner. The strategic planning is essential
in respective supermarket as this will help in providing sense of the direction in outlining the
different goals that are desirable in nature.
ALDI needs to implement different kind of strategic plans as this will provide clear
facilities and direction as this will develop action plan for the organization. The appropriate
strategic planning will help in assisting prioritizing the different kind of goals along with
allocation of the resources to reach the goals that is directed in nature. The timeframe and
accountability of the tasks is defined as the usage of the different kind of plans that is strategic in
nature that will help in increasing the level of the communication and commitment with the
entire company. These kinds of strategic plans will help in facilitating the development of an

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accurate framework that will help in maintaining proper process of decision making (Wolf &
Floyd, 2017).
Market Analysis of ALDI
ALDI is one of the largest supermarkets that is situated in Australia wherein the
respective company has tried to differentiate the positioning strategy in an effectual manner as
this will help the company in gaining competitive advantage. The respective company has
positioned their products and services in the market wherein the target customers of the company
are the households who purchase different kind of grocery items in an effectual manner. The
pricing has been crucial in the supermarket ALDI wherein it has been seen that prices are lower
than the other competitors in the market. The positioning and segmentation has been done in an
effectual manner as this has helped the company in managing the change and gain competitive
advantage in the competitive market as well.
SWOT
SWOT ANALYSIS OF COLES
Strength  ALDI claims to serve the customers top quality branded products
 ALDI offers the different ranges of products at an affordable rate
 The operating costs are low in nature (Hill, Jones & Schilling, 2014)
 It has different kind of operations in more than 29 countries
worldwide
 It has created strong kind of presence in Germany in over 2500 stores

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Weakness
es
 It is relatively small in comparison to the other brands
 It has no global presence as there are few chain stores
 It is regarded as the store for the cheap along with low quality items
Opportuni
ties
 It has to invest more in the advertising as to beat the competition
from the competitors
 Expanding the different growing economies like Asia, Africa
Threats  It cannot cater to the different shoppers for the complete experience
of shopping
 There are different other retailers who have different SKUs
 There are different private level brands of ALDI can be tossed with
the established brands
Competitors in the market
There are different competitors of ALDI in the entire market of Australia that includes
Woolworths, Coles and Metcash (Wolf & Floyd, 2017). It has been seen that Woolworths is the
leader in the entire market of Australia wherein the other supermarkets are the followers in the
same respective market (Frynas & Mellahi, 2015). These are the different kind of organizations
that offers similar kind of products and services to their customers and they target the same
audiences in the market as well. However, there are different strengths and weaknesses of the
different competitors that has to be analyzed in an effectual manner (Rothaermel, 2015).

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ALDI has tried to gain proper competitive advantage in the market wherein they apply
the discount strategy (Wheelen et al., 2017). Furthermore, Metcash follows the same kind of
strategy as ALDI wherein they too provide different kind of products and services to the
customers at the discounted rates as well (Galliers & Leidner, 2014). The retail sector in
Australia is growing in a rapid manner wherein the different major kind of players in the market
are the different competitors. The different competitors in the market serve the same kind of
customers like ALDI and they have the entire ability to make the customers happy and satisfied
by providing them same products at a discounted rate (Dibrell et al., 2014).
Figure 1: Comparison of different supermarkets
Source:
Strength and Weakness of competitors
Strength and Weakness of Competitors

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Woolwor
ths
Strength  Woolworths is one the largest supermarket giants in
Australia
 It has created strong awareness of the brand
 It has created strong base of the customers
Weaknesses  There is minimal kind of presence on the global market
 They do not have proper maintenance of the
competitive advantage (Lasserre, 2017)
Coles Strength  It has created large kind of presence in the entire
market after Woolworths
 They apply different kind of pricing and promotional
strategies
 The online delivery has effective presence and it helps
them in becoming popular (McLean, 2018)
Weaknesses  The organization operates in low margins when it is
compared to the other big competitors in the entire
market globally
 There are no such proper and accurate negotiations
with the different suppliers as Woolworths or ALDI
Metcash Strength  It helps in delivering the different kind of products in
different kind of independent stores in Australia

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 The scale of economies is large in nature and this has
huge distribution network
Weaknesses  The model of business is copied in an easy manner and
this creates presence in the global market
Key strategic goals
There are different kind of strategic goals of ALDI wherein it will include the different
sectors of the retail store that are as follows:
Training and development of the different employees in the respective organization is
essential in nature as this will help in solving the different kind of tasks of the managerial
levels. The training provided to the employees is essential in nature as this will creating
innovative ideas effectually
Secondly, fostering positive and open team environment as this will help in disseminating
the ideas and this will help in changing the different level of stores and gain appropriate
business partners. Proper usage of value added portfolio is essential in nature as this will
help the company in constantly improving their strategies
Thirdly, the business that is within the entire organization is required to be customer
centric and this will help in support the different organizational goals and objectives in an
effective manner and this will help the employees in understanding the customer
relationship management
Lastly, it is required to proper implementation of different strategies of backward
integration is essential in nature as this will help in reducing the production cost and
solve the issues in comparison of the different competitors (Slack, 2015)

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Prioritize Strategies
It has been seen that there are different strategies that has been adopted by ALDI as to
gain competitive advantage in the market effectively (Jarzabkowski & Kaplan, 2015). The two
strategies that has been prioritized by ALDI are the maintaining customer centric services in their
organization as this will help them in attracting more customers in the future. Secondly, the
integration strategy that is backward in nature has to be developed as this will help the company
in dealing with different issues in an effective manner and this will help ALDI in increasing the
entire operational effectiveness.
Action Plan
Strategic goals Strategic Action Responsible
parties
Expected
Outcome
Timeframe
Implementatio
n of integration
that is
backward in
nature to
reduce the
operating costs
Identification of
different
processes
Chief
Operational
officer
Positive 08 days (23rd
march to 30th
March)
Estimation of
process cost
Financial
manager
Moderately
Positive
09 days (30th
March to 7th
April)
Identification of
the different raw
Operation
manager
Positive 10days (7th April
to 17th April)

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materials
Development of
the product
Operation team Positive 30days (17th
April to 17th
May)
Product analysis CEO and CFO Highly Positive 5days (17th May
to 21st June)
To be customer
centric in
nature as to
gain more loyal
customers in
the future
Proper meeting
has to be
conducted
Board of
directors’
customer service
department
Highly positive 6 days (21st June
to 26th June)
Discuss the
difficulties
CEO Positive 2days (26th June
to 28th June)
Develop solutions Board and
stakeholders
Negative 5days (28th June
to 2nd July)
Implement
solution
CEO Highly negative 3days (2nd July
to 4th July)
Strategic Monitoring and Control
Strategic monitoring and control is essential in ALDI as this will help in understanding
the different kind of resources that are required for the project along with the span of time as
well. A project manager will be appointed by ALDI as this will help them in understanding the
span of time required along with resources used for monitoring the different activities. In order to

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generate desired results, it is required to conduct weekly meetings that will help in analyzing the
progress in the future progress.
SWOT analysis for first two strategies
SWOT ANALYSIS OF THE STRATEGIES
Strength  Backward integration will help in increasing the operational
efficiency and this will increase the percentage of profit
 Proper connection with the customers is essential in nature that will
help in solving the different kind of issues
Weaknesses  There is huge amount of risk involved in such processes
Opportunities  The different customer service is essential in nature as this will
provide different opportunities to increase their purchase
Threats  Other competitors in the market has implemented same kind of
methodologies
Strength and Weakness of Metcash
SWOT ANALYSIS OF METCASH
Strength  It has self-owned private brand level
 The entire business is supported by more than 6 major distribution
centers ("Home - Metcash | Australia’s leading wholesale distribution
and marketing company", 2018)

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Weaknesses  Innovation is limited
 Highly imitable kind of model of business
Opportunities  Vast scope for expanding the business outside Australia
 Foray into online selling their products and services
Threats  Inflation is rising
 Labor issues
Risk mitigation plan
Risks Likelihood Impact Mitigation
action
Responsibility Timeframe
Delay in time
for receiving
different
kind of
materials
Low Medium Maintaining
good
relationship
with
consumers
Project
manager
11th April to
25th April
Delay in
getting
approval for
process of
backward
integration
High High Developing
communicatio
n plan that is
effective in
nature
Project
manager
26th April to
11th June)
Issues in
different
High High Regular
maintenance of
Project
manager
June 2018

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machineries
used in the
process
the machinery
Generation
of
unexpected
issues
Low Low Cannot be
analyzed
Project
manager
Any time
Cost benefit analysis
Item Details Cost Benefit Estimated
revenue
Licensing
fee required
for
developmen
t of
products
License required
for
implementation
of backward
integration
$6 million Profit margin
will increase by
around 15%
Revenue of
ALDI will
increase by $50
in two quarters
Setting up
factory
Factory for
development of
product
$ 85million Profit will be
increased
wherein the
operating costs
will decrease by
15%
It will help in
increasing
generation of
revenue by $
125 million in 1
year

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Legislation impact
There are different government rules and legislations that plays a large part in
understanding the process of running the business.
ALDI along with the different competitors follow the different legislations that are as follows:
Australian Consumer Law
State Liquor Legislation
National trade legislation measurement
Retail leasing state regulations
Furthermore, there are different licenses that are required to be adhered by the different
organizations or supermarkets as this will have huge impact on the business environment. The
licensing and permits are as follows:
Importing Goods
Zoning permits
Disposal of wastes
Selling different tobacco products
Selling and distributing alcohol
Task 2
Business Overview
ALDI is one of the supermarkets wherein they provide proper discounted products and
services that is provided to their customers and their presence is over 10000 stores in more than

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21 countries. The main business core value of ALDI is to provide the clear vision and it helps in
introducing different kinds of food and beverages wherein they have earned a turnover of more
than €50 billion. ALDI helps in saving money in different ways wherein they offer different kind
of goods and services that will help in increasing their customer base.
Analysis of vision and mission
As per the mission and vision of the respective company ALDI, it can be analyzed that
the company needs to focus more on the vision as this will help them in gaining competitive
advantage in the market. ALDI has to be more innovative in their approaches as this will help in
understanding the competitors and plan accordingly as well. As per the mission and vision of the
company, the company needs to offer different kind of ranges of their products along with free
online delivery for the customers to gain competitive advantage in the market.
Stakeholder relationship review
Meet their
needs
Suppliers of
ALDI
Employees
Key Players
Customers
Least
Important
Non
government
institutions
Show
consideratio
n
Media and
Government
institutions

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From the above stakeholder analysis matrix, it can be analyzed that in ALDI, the
employees and suppliers are given proper importance wherein they are the assets of the
company. Similarly, the key players are the customers of ALDI wherein they have to be given
importance for receiving and generating success. The media and government institutions are
essential but they re not provided with proper importance.
Conclusion
Therefore, it can be concluded that the report helped in analyzing the strategic
management processes of the respective organization ALDI. There has been huge analysis done
on both external and internal environment that has helped in providing proper scope of gaining
competitive advantage. The risk mitigation and the cost benefit analysis has helped in
understanding the issues and solved them in an effective manner as well. In the second part, the
stakeholder analysis is required to be done wherein this helped in gaining customer advantage.
The mission and vision has to be analyzed effectively as this helped in gaining strong customer
base.