Analyzing Business Strategies & Stakeholders

This assignment delves into the concepts of business strategy and stakeholder analysis. Students are tasked with analyzing a chosen company's business strategy, applying Porter's Generic Strategies framework to understand its competitive approach. Furthermore, the assignment requires conducting a stakeholder analysis to identify and categorize key stakeholders influencing the company's success. This comprehensive analysis provides valuable insights into a company's strategic direction and its relationships with various internal and external parties.

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Aldi vision, mission, core competencies and objectives inform strategic planning.............1
1.2 Elements which includes in strategic planning formulation.................................................2
1.3 Effectiveness of methods used when developing strategic planning ...................................3
TASK 2............................................................................................................................................4
2.1 Organisational Audit of Aldi ................................................................................................4
2.2 Environmental Audit of Aldi................................................................................................5
2.3 Significance of stakeholder analysis when implementing new scheme................................6
2.4 Present an innovative strategy for a Aldi .............................................................................7
TASK 3............................................................................................................................................9
3.1Appropriateness of alternative strategies link to market entry...............................................9
3.2 Justify the Strategy selection for the Aldi ............................................................................9
TASK 4..........................................................................................................................................10
4.1 Roles and responsibilities of personal who charged with scheme formulation..................10
4.2 Estimated resources required in order to implement new strategy.....................................10
4.3 Contribution of SMART Objectives ..................................................................................11
CONCLUSION ............................................................................................................................11
REFERENCES .............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Strategy is refers to the plan or method to bring regarding a desired futures and growth,
such as attainment of a objectives and solutions to a issue. It is also determined as the science
and act of marshalling & planning resources for their most effective and efficient use. Business
strategy is defined as a long term policy and plan of action planned to accomplish a specific
targets or set of objectives or goals (Business Strategy, 2015). It is a core and essential function
of management which must be said that having an effective strategy and analysing them, doest
not assurance success and development (Ackermann and Audretsch, 2013). It is important for the
organisation to increase their turnover and sales in limited time duration. This report is based on
Aldi which is a retail and private supermarket chain in all over the globe. They mainly deals with
different beverages, sanitary articles, food, household goods to the customers at reasonable
prices. This assignment shown background of business i.e. vision, mission etc., and various
elements which are used in the formulation of strategies planning. Organisational and
environmental audit of Aldi which is also described in this study. Selection of new strategies and
in this role of key person also determined here. SMART objectives of company help in order to
determine their project duration essential, it is described here.
TASK 1
1.1 Aldi vision, mission, core competencies and objectives inform strategic planning
Strategic planning: It is refers to the process which covers the strategies, it is followed
by the each and every organisation to attained the decided objectives. In order to identifying the
resources usages and direction to change the essential forces which are analysed by the such kind
of planning. It is incorporates few of the essential elements which are must be created the all
plan.
Mission: The main motive of this aspects is to meet the desired goals and objectives set
by the enterprise (Annabi and McGann, 2013). It assist in determining the market size of Aldi
and also support the stakeholder by handling the strategies performance used by the company.
For instance: in Case of Aldi the mission aspect “ Top product and services quality at incredible
low cost guaranteed”. With the help of this statement respective firm wants to fulfil all the
client's all over the world by developing essential values in the form of digitalisation, availability
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& services or products quality. So in this, strategic plan of company will acquire a desired goal
or aim.
Vision: It is observe the business futures and help it to form for its mission. With the
assist of vision, respective firm easily attain such statement. For instance: In case of Aldi, Vision
statement is “To revolutionize or modify the grocery sector with an attractive and unique
business Model”. From this such aspects, strategic planning of Aldi will acquire the objectivities
and parameters to initiate the activity for accomplishing the ultimate objective in term of sales.
Goals: There are defined targets or goals which a business settle before utilizing any kind
of strategy (Auzair, 2011). There are two types of goals which are described as below: Short term goal: They assist to attain such kind of goal as they support the respective
company in facing regular difficulties, thus maintaining the business intact. For example:
in case of Aldi, short term goal is to define innovative place to develop and to cater new
series to attract million clients. Long term goal: It covers to accomplish the targets set by the company in order to
achieve mission of the firm. For example: long term goal of Aldi is to get a leading
customer food business in the globe by having a million clients base.
Objectives: Main objective of Aldi to giving customer satisfaction, using digitalisation,
raising the sales generated by the company and supportive large business atmospheres for the
employees.
Core Competencies: It is also support in strategic planning or designing which assist the
business to attain competitive benefits. It also improve the employees skills which advantage the
audience. For example: Aims of Aldi is to decrees operation cost as well as increase the
profitability ratio in order to develop a better position and image in the marketplace.
1.2 Elements which includes in strategic planning formulation
Strategic planning is mostly important for the Aldi to accomplish their desired and long
term goal. However, there are certain essential source that are involved with such kind of
planning, these are required to be seen accurately (Azar, 2011). It is not easy for the
administration to select those forces against the precedence. In case the business entity has few
incongruities regarding the factors and priorities, possibly it will turn the business from vision or
mission to targets.
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There are some factors which are required to be involved while developing the strategic plan
appropriately are follows:
Market position: It is one of the main and essential element which is highly includes in
the formulation of strategic planning. In this business entity easily identify consumer perception
and behaviour of a product in link to competing products. It is main process of developing the
image of a company in marketplace.
Customer demand: It is also important for the business manager in order to identify
customer demand and need related to strategies planning formulation. So it is beneficial for the
organisation to easily achieve long term goals and objectives in limited time period.
Competitive advantage: It is a condition that follow an organisation or nation in order to
produces service and product at same value in a desirable fashion. So it is also beneficial for the
business manager to formulate effective strategies planning in an accurate manner.
Managers: These are main assets of the organisation concentrated to the hierarchy of
business covers, Middle, Front Line and Top level management. Strategic plan are designed by
the group of upper level administration in the company proceeding the perspective of respective
firm objectives and goals (Bharadwaj and et. al., 2013). In this Middle level administration will
classify the targets and duties emphasised on the front lime managers and departments will set
the specific targets to cope up with the such plan.
Delegation: In this middle level administration delegate the responsibilities according to
strategic plan set by the upper authorities. In this entire roles are classified as per the skills and
experiences of the workers. The delegation is lay on the accessibility of the factors which are
required to be associate with the targets or goals other than the disequilibrium will output in
maximum productivity.
Resources: These are identifies as the necessitate which are required in the company for
achieving strategic plan. It is fix by proceeding the view of company goal or objective and for
the forces like: knowledge, human capital, finance, place and different equipments are needed.
These are essential to be assigned according to the result of deficiency and process in the rootage
can take crisis in the such planning.
1.3 Effectiveness of methods used when developing strategic planning
Strategic planning is lay on the company situations. With the assist of these kind of
strategic the referred firm keep its position or image in the marketplace (Bucolo and Matthews,
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2011). There are some important facts that PIMS, SPACE, Scenario Planning and BCG growth
matrix are followed by analysing the powerfulness of the company plans developed for Aldi. All
these are follows the some strategies which are describe as as below:
BCG Matrix: It is an essential part which identifies the industry level link with the business
share. It has for dimensions which is beneficial for the company to set their strategic plan by
considering firm growth rate and actual position of firm. It has four parts which are determined
as below:
Question Mark: It assists in knowing the question mark sphere of respective firm that
have low market share and maximum growth. It is useful for the organisation to improve their
sales and revenues.
Stars: The business known this aspect which sector Aldi have high market growth and
share. It is essential for the company to understand their position and image in competitive
marketplace.
Cash Cows: This kind of sector of Aldi have maximum prices of share and minimum
growth. In this section, company easily attract large number of customers towards business
products and effective services.
Dog: This part of firm shows the low growth and market share. In this business growth
and success is very low so it is less useful for the respective organisation.
All these section require to be evaluated along with strategies necessity to be developed
for increasing the positive point and rectifying the negative aspects which moving the treats in a
positive manner so that it get changes for the organisation (Kalyani and Sahoo, 2011).
PIMS & Space matrix: Furthermore, PIMS which is also called Profit impact of
marketing strategy assist respective firm in knowing the business atmospheres. Budget
Allocation, Competitive position or image of company and the production process structure. This
support in knowing the entire scenario of market including the goodwill, expansion and market
growth for successfully analysing the techniques of strategic planning. Furthermore, Space
matrix also supports in evaluating the position and status of organisation. This aid in
identification of the such type of strategy , in this business require to initiate for a sustainable and
successful business. It also help in evaluating the financial forces that covers cash flow, turnover
and liquidity along with the aggressive benefits the business entity has over another. With the use
of such tools company developing flexible and long term plans.
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TASK 2
2.1 Organisational Audit of Aldi
Organisational Audit includes the Value chain and SWOT analysis which help the
business to identify their Strength, weakness, opportunities and threats. It is also help full in
formulating new strategies which are determined as below:
Value chain analysis: Aldi has to selected value chain that covers the evaluation of operations,
inbound and outbound logistics, sales and marketing (Köseoglu and et. al., 2013). Review is
important for the raw material, inventory cost etc., that are significant for organisation audit for
Aldi. Business operation also required to be involved as it proceed into place the output and
input procedures. In this outbound logistics which refers to an effective activity to the final
product storage that required to changed from one area to other place (Matzler and et. al., 2013).
The sales and marketing department also necessarily to evaluate for observing the market sales
and revenues.
SWOT Analysis: It includes the business Strength, weaknesses, threats and opportunities of
company which are determine as below:
Strengths: Claims to offer top and quality products or services. Serve at vary reasonable prices.
Strong existence in Germany with across 2500 outlets. Operation of Aldi in over 15 nations
worldwide.
Weakness: Still relatively micro as linked to another brands. Poor management is also main
weakness of the company which effects on business productivity and profitability. Insufficient
raw materials or resources. Company has been capable to effect in all over the world as there are
some another chain stores.
Threats: Requires to invent more in promoting to beat substance. It is another threats of the
organisation Enlarging into increasing economics like Asia, Africa Etc.
Opportunities: They can not cater to retailers observing for a full experiences of shopping. Other
shoppers how have different SKUs. One of the main opportunity of the business is to expand
their operations and functions at national and international level.
2.2 Environmental Audit of Aldi
There are different factors which affects ALDI company. PEST analysis of Aldi are as
below: -
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 Political: It includes the government rules and regulations. ALDI company while
creating goods and products has to follow the legislations then only their business can run
successfully (Meskendahl, 2010). Economic: It includes factors which include recession. So consumers do not buy the
products and there is negative impact in market. Business has to make new strategies so
that it can compete with other firms. Social: Due to older employees respective firm have to pay expenses of illness and pay
the pension. So hence it increases cost of their business. Technology: Online shopping is continuously increasing. So company has to use Wi-Fi
and other techniques in the stores.
Five forces model - Threat of new entrants – It is low. The cost required to establish new brand is high,
business entity has to put more investment. Position of this factor is highly effected by
the ability of peoples in order to enter in new marketplace. For example: it will takes
sufficient amount and afford to exist business market as well as compete in an effective
way. Threat of substitute products - It is high. Company has to create innovative products
according to trends. It is important for the referred firm in order to maintain business
productivity and profitability level. For example: if Tesco supply an quality and unique
goods that changes an essential process, large number of person may utility it by applying
the activity manually. Bargaining power of supplier – It is low. So organisation has to offer various discounts
to suppliers for increasing the sales (Mitra and Bhardwaj, 2010). This activity identify
the how many clients are there. In this factor supplier has more power to negotiate
production process effectively. Bargaining power of buyers - It is high. So consumers want different products so ALDI
has to give variety of offers and discounts to customers. In this buyer has more power and
ability to negotiate products price in an effective and efficient manner. For examples:
customers power is high they have different alternatives which is low.
 Rivalry among the existing firms – Due to high advertising and other competitive
activities ALDI company uses low pricing strategy and put more emphasis on advertising
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campaigns and other promotional activities. There are some potentials factors which are
includes in this such as advertising expenses level, sustainable competitive benefits
through innovation and many other.
2.3 Significance of stakeholder analysis when implementing new scheme
Importance of stakeholder in creating new strategy: Stakeholders are very crucial in the business
for effective and efficient management. Importance of stakeholders of ALDI are - Employees: They are the backbone of the industry. They give suggestions and feedback
to managers in planning various plans and policies. This helps the company in proper
management. Thus tasks and operations runs successfully. It results in growth of the firm Manager: Manager take crucial decisions by creating important plans and policies. They
delegate the responsibility to the employees so that they can perform their work
efficiently and effectively (Schaltegger and Wagner, 2011). They helps in managing the
functions of each department. So it results in improving the performance of the
organization. Suppliers : Suppliers deliver the raw materials which are necessary for producing various
products. Through it good products can be produced. Thus it results in increasing the
production and leads to increasing the sales of the company.
Mendelow's Matrix-
It includes the impact of a strategy on the shareholder. In this shareholders interest and
power is considered and accordingly company may give order to them. Matrix has 4 parts - Minimum effort: It has low interest and power (Teece, 2010). So company put less
emphasis on employees to create strategy.
 Keep informed: This includes high interest and low power. Management have to
convince shareholders so that they can create strategy.
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Illustration 1: Stakeholder Analysis
(Source: Analysis of stakeholder, 2017) Keep satisfied: Management have to assure the results of strategy to shareholders.
Through this employees do not loose interest.
 Key players: They have high interest and high power (Slater, Olson and Finnegan, 2011).
So management needs to properly communicate the plans and policies so that
shareholders can make effective strategy.
2.4 Present an innovative strategy for a Aldi
New strategies which is important for the organisation to achieve higher development and
growth of company. Aldi select Porters generic strategy which is essential for the organisation to
successfully develop in marketplace. It covers four dimension which are described as below:
Cost Leadership: For using this aspect, Aldi can maximise their turnover rate. So it is
useful and valuable for the enterprise in increasing their productivity and profitability level. It
also assist in reducing the additional and wastage cost of product.
Cost differentiations: With the use of such aspect, company can easily create their new
operations and activities which is necessitate in growth of referred firm (Tsamenyi, Sahadev and
Qiao, 2011). Aldi has different range foods which are highly offers to clients in order to satisfy
them.
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Illustration 2: Potter's Generic Strategy
(Source: Potter's Generic Strategy, 2015)
Cost Focus: With the use of this part, business entity determine the wants and
requirement of clients towards its services and products. It also help in attracting million number
of customers in an effective and efficient way.
Differentiation: For using this aspect, business entity mainly emphasis on their potentials
& target clients who can purchase various goods and effective services (Valos and Bednall,
2010). So it is essential and significant for the company to maximise their turnover in less time
period.
TASK 3
3.1Appropriateness of alternative strategies link to market entry
There are various strategies is mainly followed by Aldi in regards to develop plan
effectively and efficiently. Referred firm mainly emphasis on formulating and creating strategic
planning of company in order to achieve future growth and success of organisation.
Substantive growth strategy: For using this, Aldi enlarge their business business
operations and functions in different two ways such as vertical and Horizontal. In this company
can acquire to interrelated their entire operations and functions, it is essential for increasing the
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turnover of enterprise. With the use of this strategy company introduce their new services and
quality products to clients.
Limited Growth: For using this, Aldi can accomplish desired objectives and goals. There
are various forces such as penetration, innovation and product development are beneficial
(Woerner and Wixom, 2015). They introduce their home delivery and other essential facility.
Retrenchment: It is an effective and significant strategy which help for the business
manager to evaluate effectiveness and profitability of enterprise. It is also important and useful
for the respective firm for decrease their additional and unnecessary price of product.
3.2 Justify the Strategy selection for the Aldi
Aldi is a retail enterprise in all over the world so in this they prefer Substantive growth
strategy. It is very useful in the business operations and activities because with the help of this
they easily increase their turnover. It is also essential for attracting million number of clients
towards business services and quality products. So it is valuable and useful strategy for the
enterprise to improve their performance and productivity in limited time period.
Aldi try to enlarge their business operations and activities nationally and internationally.
So that Substantive growth strategy help in achieving desired and long term objectives in an
effective way. One of the main motive of applying this kind of strategy is to improve
performance and productivity of the enterprise (Woerner and Wixom, 2015). It is also helpful in
providing food and non-food products by satisfying them. With the assist of this aspect, they can
introduce their future strategic which help in increasing turnover.
TASK 4
4.1 Roles and responsibilities of personal who charged with scheme formulation
There are various key people who can develop business strategies essentially and
effectively (Bharadwaj and et. al., 2013). In this Aldi require and wants to enhance their success
and growth in marketplace. There are some person which have some duties and roles in
developing strategy effectively.
Leaders: In the organisation this person is highly important for formulation of strategic
planning in an accurate and planned way. In the company main role of this person is to give
accurate guidelines and direction in order to formulate better strategy. Main aim of leader is to
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satisfy customers by providing quality products and services to them. They also have ability to
effectively implement and formulate all strategy in a systematic manner.
Workers: In the business entity they play vital and effective role for implementation of
strategic planning. These person also very important part of the company which plays vital role
in formulating business strategy in a proper way. They have good skills and talent to attain
desired goals in limited time period.
Administrator: These are main assets of the company which plays important role in
developing effective strategy in an accurate manner. They are able to formulate entire strategy in
a proper manner. In the organisation, they have some skills and talent which can assist in develop
entire action plan.
4.2 Estimated resources required in order to implement new strategy
There are various factors which are needed in formulate innovative business strategy
essentially. All these resources are determined as below:
Time management: It is another essential and important resources which is used by the
company in order to formulate strategic planning in an effective and systematic manner. With the
use of this factor company easily complete their all task and project time to time.
Financial resources: It is very essential and important resources which are needed by the
manager in order to formulate new strategy (Azar, 2011). It is identify the financial ability of the
enterprise to handle amount of capital. Examples: Aldi create effective strategy plan in order to
develop better scheme which are valuable for the organisation.
Technical resources: It is also required by the business manager in order to develop
effective business strategy. In this Aldi and its administrator use digitalisation in promoting
goods and services to the customers. It will require innovative technology for producing entire
goods in a systematic way.
Raw materials: It is important and significant factor which is follow by the business
administrator in order to formulate and develop strategy plan. In Aldi , sufficient raw material is
not available which is difficulty for the company to develop effective strategy.
4.3 Contribution of SMART Objectives
It is very essential and valuable aspect for the organisation to set their desired targets and
objectives in a systematic way. Aldi provides different rang of products to the customers so they
are highly satisfy. It can move as the advantage of company to increase their sales and turnover
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in limited time period (Auzair, 2011). They have some responsibilities and roles to measure their
effectiveness and performance effectively. It is achievable in specific time duration in nature
which is realistic. SMART Objectives includes for dimensions which are important and defined
as below:
Specific: It assist the company in targeting a particular and specific areas that requires
important. It is essential for the business entity to develop the effective strategy plan in an
effective and accurate manner.
Measurable: It is essential approach which shows the progress and success of the
strategy or plan of action that is enforced or implemented (Annabi and McGann, 2013). Needs of
targets to be measurable and essential according to that approach so that is shows success and
development of strategy.
Achievable: In this strategy fulfilment require to be achievable that shows the team or
group workers who will be processing it.
Realistic: The requires to be implemented and enforced, it also should be practical and
realistic according to resources accessibility that should be practical nature which is
implemented.
Time related: In this business entity had a specific opinion, so in this all strategy should
be time bounded that will be beneficial the period when the outputs of the new strategy
implementation will be observed.
CONCLUSION
As per the above mentioned report, it can be concluded that business strategy is very
essential for the business development and growth. Mission, vision, objectives etc., and different
sources also use in implementing new strategy in an essential and effective manner. There are
different tools such as PEST, SWOT, Porters generic strategy and different aspects are also
helpful for the organisation to enhance their productivity and profitability of enterprise in an
effective manner. Different factors that help the company to implement business strategy
effectively. SMART Objectives also helpful for the organisation to complete their all project in
given time period.
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Online
Business Strategy. 2015. [Online]. Available Through:
<http://finsburyfoods.co.uk/who-we-are/business-strategy/> .
Porter's Generic Strategy Assignment Help. 2017. [Online]. Available Through:
<http://www.assignments4u.com/porters-generic-strategy-assignment-help/> .
Stakeholder Analysis 2017. [Online]. Available Through:
<https://knowhownonprofit.org/organisation/strategy/directionsetting/stakeholder> .
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