Aldi's Market Access and Business Strategy

This assignment analyzes Aldi's successful market access and high profit margins. It explores how Aldi considers various factors impacting its business and implements corrective measures to address potential threats. The analysis draws upon relevant academic literature on business strategy, innovation, and family businesses.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Strategic planning..................................................................................................................3
1.2 Factors considered while making a plan...............................................................................4
1.3 BCG growth matrix...............................................................................................................5
TASK 2............................................................................................................................................5
2.1 Organisational audit with current strategic plan of Aldi.......................................................5
2.2 Organisational audit of Aldi with micro and macro concept................................................6
2.3 Stakeholder analyses for formulating new strategy..............................................................7
Task 3...............................................................................................................................................9
3.1 Market strategies...................................................................................................................9
3.2 justification .........................................................................................................................10
TASK 4..........................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES...............................................................................................................................11

INTRODUCTION
Business strategy is a planning made by the companies in order to grow and expand in
the targeted market. This shows the mission which shows what they actually want to do to
achieve success in the market and vision to see all the threats so that they can take corrective
measures according to the situation occurs. This planning also defines the objectives that the firm
wants to achieve with a specified goal in the market(Teece., 2010). This strategy gives very clear
description that what should be done and what should be avoided to achieve efficiency in the
future operations so that they can retain in the market by satisfying the customers and earning
more profit than others.
TASK 1
1.1 Strategic planning
Mission : Mission refers to the target that is made by the company to avoid all the unwanted
thing and achieve efficient so that they can fight the competition and retain in the market. ALDI
is a retail firm and provides all the services to the citizen who participate in the development of
the society so that they will be able to create independent economy.
Vision : Vision refers to the power of seeing but in business this refers to the pre analysing al
the factors that may turn into threat for their business . Pre analysing all the feature helps to
detect the threats so that they can take the corrective measures on time. ALDI has both long term
and short term vision. Its long term vision is to achieve the best position in the market and earn
more profit than others Its short terms vision is to achieve efficiency in the work that is done by
employees as this will help them to run their business for long run(Astrachan., 2010).
Objective : It is he part of planning that translate the process into actions as this clarify the
purpose of the business and help in identifying the necessary actions and helps in achieving the
profitability ALDI has very specified objectives as its main aim is serve the best to its customers
by achieving efficiency in the work so that they can earn sufficient profit and retain in the
market for a longer period.

Goals : Goals refers to the target that is achieved by the firm as this decides that in future firm is
there or not in the market ALDI company is a retail firm and that too very famous in the market
that's why its main goals is to earn more profit than others so that they can retain in the market
by satisfying the customers to the core. Efficiency is the only thing that will help the firm in the
growth and expansion of their firm.
Core competencies : Core competencies defines the competition for the company in the target
market. ALDI is a very fast growing firm that's why it has many competitors in the market
because it is earning more profit than others(Verbeke., 2013).
1.2 Factors considered while making a plan
There are many factors that are to be considered by the firm to avoid all the unwanted changes in
the business environment. Some factors are as follows:
Competitor Strategy: This is a strategy made by the competitors so that they can defeat the latter
one and retain in the market by holding very strong position by earning more profit. By
analysing the competitor strategy the firm can take its moves accordingly by rectifying al the
mistake with the help of with the help of corrective measures so that they can earn more profit
and retain in the market for longer period. ALDI Company analyse the competitor's strategy so
that they can make their move more efficient as this efficient move will help them and brings
growth and expansion. ALDI Company analyse all the planning of the competitors so that they
can make the better planing to defeat them by holding more customers on their side in the
targeted market.
Change in consumers behaviour : This is one of the most important factor as consumer can make
the business and break the business because they have the power with them. Consumer
behaviour refers to the choices and the preferences of the consumers that changes according to
time and if the company want to retain in the market then it need to work according to the need
and preferences of the costumers. ALDI Company work according to the need and wants of the
consumers as they know what consumer mean to the company who wants to retain in the market
(Teece., 2010). They satisfy the customers by full filling their demand so that this an help them to
rtain in the market for longer period.
Economic condition : This condition is related to the economy that deeply affects the market in
all the way possible. This condition includes all the economic factor that affects the business in
every way possible. Economic factors are like demand and supply that means how much the

product is demand by the customers and how much the company is supplying to them. ALDI
company is a retail firm and supply only those products whose demand are very high in the
market in a very reasonable price as supply and cost have direct relation and if supply increases
then the price of the product also increases and this helps the firm in growing and earning profit
in the market(Spender., 2014).
Inter business costing : It refers to the cost that occurs by doing the business operations(Dong-
Hun., 2010). ALDI company manages this cost in a very specified and systematic way as this cost
saving will help the firm to grow and expand in the targeted market.
1.3 BCG growth matrix
BCG growth matrix that shoes the market share and the growth rate of the employees. This have
four categories :
Dogs : Dogs category of the matrix includes those companies who have low market share and a
a low growth rate as these company is unable to generate cash from their operation's for survival
of the firm in the market.
Question marks : This category of the matrix is growing rapidly as thy consume very large
amount of cash because they have low market share and do not generate much cash in the market
for their firm.
Stars : This category of the matrix generate very large amount of cash as their market shares are
high and they also consume very large amount of cask. ALDI Company comes in the category of
the cash cows as they have high growth rate and market share among all in the targeted market.
They consume very large amount of cash and also generates the cash on the same level.
Cash cows : They act as a leader in the market as they have all the power and the authority in the
market. They generate more cash than they consume. Their return on the asset is higher than the
growth rate in the market ALDI Company also belongs to this category as they are also generated
mare than they consume.
TASK 2
2.1 Organisational audit with current strategic plan of Aldi
Audit report is a structure of Aldi that explains and critical evaluate its structure. From
this the company can analyses its management position, organisational culture and mission.
From this report managers can evaluate annual growth(Verbeke., 2013). Aldi follows a

decentralized method of structure. Managers takes decision relating to business by themselves.
In this report there are some rules and regulation of terms and condition of Aldi. It also describes
some methods of calculating results. As a part of decentralized strategy Aldi was formed as an
Aldi sud and Aldi nord. The company planed a strategy in the year 2004- 2006. Its objective was
development of its business in the next three year. The main goal of its strategy was to increase
economic development in the market(Spender., 2014). The company planed three strategy that
was business services provision, local economic development and market access. Marketing
strategy of Aldi is also based on cost control. The business focuses on indispensable investment
and ensures that customer can save our money.
Aldi's current strategic plan is based on its profitability and productivity. The can wants
to maintain pressure on competitor. It also focusing on reduce differences between stores and
supermarket. The company assures all aspects relating to product sourcing and suppliers
relationship with the organisational. It also applying a strategy to maintain customer experience.
Aldi wants to maintain low price products and services for its customers. The company
reduced prices to everyday grocery range. The company promises that it will always keep low
prices that will help customer with time and money. The company have visited to its stores to
understand customer's needs and expectation.
Aldi manager has a responsibility to create effective plan to increase the performance and
productivity of an entity in the world. First the need to identify the consumer needs and set the
desired target which helps to higher profit in the world. Effective and efficiency strategy help to
expand enterprise in a world.
2.2 Organisational audit of Aldi with micro and macro concept
Aldi is a part of business environment that is can be understand as a functional
environment surrounding it organisation. There are two categories of business environment
which is divided into micro and macro. Micro environment mainly concerned with internal
activities of business that have direct impact on its performance. In the other and macro
environment is wider concept and concerned with external market place of its business. To
understand micro and macro environment porter's five forces analyses is helpful for it. There are
five steps of porter from which Aldi's micro and macro concept can be understand. It includes

threat of new entrants, threat of substitutes, bargaining power of customers, bargaining power of
suppliers and industry rivalry.
Micro environment includes suppliers, customers and competitors. Suppliers can be
understand by manufacturer, processor, packagers, distributors, wholesaler, and merchant and
franchised dealership. There are more them 500 labour works in the organisation, they make
good for sale. So they are first supplier of the company(Astrachan., 2010). Packaging is also
important for distributing, storing and selling products. Thus, packager also a supplier of Aldi.
There are many middlemen available for the company who plays an important role from
manufacturing process to retailer. In many cities of UK there are some wholesale stores that sells
goods to retailers. Customers are also a part of micro environment of Aldi. There are many
consumers in UK who uses its product. They also appreciate its business. Aldi play an important
role for its rival companies. The company sells it products less than 30% from it rival companies.
Macro analyses considers external function of business strategic plan. Aldi operates
globalized environment for Albrecht Discount all around the UK. Its technological factor plays a
vital role for its business. The company uses new technology for its production activities.
Aldi manager needs to take appropriate decision based on the challenging market. There are
different types of factors that affect the firm performance in a world. Political, legal and
technology factors that has impact on an entity performance in the world. There are many
changes in technological factor such as new technologies, advanced techniques etc. to compete
with other companies they need to adopt the new technologies that gives higher performance to a
firm in the world.
2.3 Stakeholder analyses for formulating new strategy
Stakeholder plays a central role for setting objectives and to ensure appropriateness and
relevance. Strategic planning requires stake holder's involvement. They include identification of
public concerns, values and development of plan imaginatively(Dong-Hun.,2010). Strategies
relating to increasing productivity, rising capital of the company all are about stakeholder
consultations. Stakeholders view integrates resource based as well as market based view.
Marketing strategies- If Aldi want to develop marketing strategy, it should be careful to
understand about stakeholder. Transformation of clear and fair information, communication and
interaction with stakeholder helps to develop effective strategies.

Forming partnerships- Stakeholders collaborates among manufacturers, retailers and
distributors. They also consider technologies relating to integrity and openness for company's
benefits.
Decision making- Stakeholder includes high ranking executives, board of directors and
other outsiders who holds large amount of equity(Pagani., 2013). Without concerned of
stakeholder the company cannot accomplish its business work and also cannot implement its
business strategies.
Project planning- business strategies includes the identification of project objectives and
evaluation of outcomes and activities. Stakeholders participates in project planning depends on
mission and objectives of the project. In the planning of project external and internal
stakeholders both plays vital role for it.
Therefore, stakeholder’s analyses is a way of responding, identifying and evaluating
critical interdependencies. It represents integrated approach to achieve strategic goals. The best
outcome of stakeholder’s analyses is it determines time and degree of participation in decision
making in the firm.
Stakeholder and shareholder gives more profit to the company. Aldi has many shareholders in the
world that helps to increase the firm performance and also helps to expand their firm business in
the world. They provide innovative products to the customers to get desired goal in an industry.
2.4 Strategic presentation of Aldi
Strategic plan defines the decision that the management take to allocate all the resources
to pursue this strategy. It is very important aspects that gives definite direction to all the
departments in the firm(Pagani., 2013). Strategy end where the goals are achieved by the
organising.
Business vision- vision refers to the power of seeing things from far away. In business
terms vision refers to the capacity of the management that where they are where they want to be.
Aldi is a retail firm that has defined vision to access the hold target.
Mission statement- mission refers to the planning that is made by the management to
achieve a defined goal. Aldi firm has a definite mission to satisfy current and generate more new
customers so that they can retain in the market by earning more profit.

Listing of critical success factor- success factors gives direction to remove all the threats.
Aldi has made a finite planning by considering all the factors which will helps them in achieving
the success so that they can retain in the market.
Compilation of business strategy- compilation refers to the collecting all factor together
so that management can make a systematic planning by considering all the factors. Aldi compile
all the factor together to make a perfect plan for growth by avoiding all risk factors. Compilation
helps in eliminating all the threat that may occur in the way of success.
Priorities to timeline- priorities should be achieved within the time as they are goals and
objectives which helps the business to run for a longer period. Aldi achieve its goal and objective
within a timeline as it is earning more profit and giving tough competitions to others.
For the effective implementation of the strategy in the company they need to set plan and process
for the implementation then only they can easily get desired target in the world. Aldi manager
has good leadership and communication skills to manage entire activities of the firm. It prepares
the plan to implement the strategy in a firm. It gives more advantages to the firm to increase their
productivity in the world.
Task 3
3.1 Market strategies
Market is very uncertain as the choices and preference of the customers are changes
according to the time. Existing market refers to market which is running with the product that are
chosen by the customers whereas new market refers to the upcoming changed product with
choses and preference of the customers in the market.
Aldi is a retail organisation that access the whole market by giving tough competition to
its competitors(Pagani., 2013). Strategy is the planning made by the management to achieve the
success by avoiding all the threat factor. Aldi plans in a systematic way as it reanalyse all the
factors that may affects its business in all the way possible.
Substantive growth is a first factor that has to be considered in the strength and strategy
of the competitions. Aldi ensure success by following this business strategy as it knows its
strength and make the strategy accordingly.

Limited growth refers to the growth which stops after going to a curtain point. Aldi is
highly known for its growth and expansion in the market in very short period. So limited growth
strategy is not accepted by the company.
Retrenchment refers to reduction in cost and spending money in solving economic difficulties.
Aldi reduces its cost by applying many technologies that are cheaper in now a days and apply
this cost in solving an economic problem.
3.2 justification
Justification refers to the clarification given for a specific thing that is done by the
management to the firm(Pagani., 2013). Aldi is growing rapidly in the market by adopting several
tools and technique that are helping in its growth and expansion. Substantive growth is a
business strategy adopted by the Aldi as it considered all the factors of strength that helps in
fighting competitions in the market. Aldi adopted this strategy for achieving immediate growth in
a excellent way to ensure success against competition in the market so that they can make their
positions by defining others.
Retrenchment is also adopted by the Aldi company as this is helping in reducing cost by
Appling new tools and techniques in the business and shift this remaining fund to solve the
problem that are occurring in the economy as economy deeply affects the market by considering
all the possible factors. Aldi has chosen substantive growth strategy as it is providing proper
direction towards success. This strategy analyses also factors and give the result by showing
what to adopt and what to eliminate. From the planning process that is made by the management
to achieve the goals and objective on time by earning more profit than other in the target market.
TASK 4
Attached in PPT

CONCLUSION
Business strategy refers to the specific planning made by the management for the
expantion and growth of the firm in the market so that the firm can retain in the market by
holding strong position and earning more profit than others. This report includes mission, vision,
goals and objective along with core competencies as this are the factor that deeply affect the
business of the firm. Strategic planning gives the definite direction which shows what should be
done and what should get avoided for achieving success(Spender., 2014). In his report Aldi has a
greate access over a market as it is a retail firm whose profit margin is much more than other as it
considers all the factor that may affect the business in all the way possible and if there is any
threat occurs than it take corrective measure again those factor.
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