Strategic Management Journal Analysis

This assignment tasks you with analyzing a bibliometric study focusing on strategic management research published in the 'Journal of Strategic Management Education'. The analysis should delve into the key findings, identify prominent research themes, and discuss the implications of these trends for understanding strategic management.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The way ALDI's mission, vision, objectives, goals and core competencies inform strategic
planning.......................................................................................................................................1
1.2 Factors to be considered by ALDI at the time of formulating their strategic plans..............3
1.3 Evaluating effectiveness of techniques used in strategic planning.......................................4
2.1 An organizational audit for ALDI.........................................................................................5
2.2 An environmental audit for ALDI.........................................................................................5
2.3 Significance of stakeholder analysis for ALDI.....................................................................6
2.4 New strategy for ALDI.........................................................................................................7
TASK 2............................................................................................................................................8
3.1 Analysis the appropriateness of suitable strategy for ALDI in relation to substantive
growth limited growth or retrenchment......................................................................................8
3.2 Selection of strategy..............................................................................................................8
TASK 3............................................................................................................................................9
4.1 Roles and responsibilities of personnel who involves in strategy implementation..............9
4.2 The resources requirement for implementing strategy..........................................................9
4.3 The use of SMART target and its contribution in strategic objectives...............................10
CONCLUSION..............................................................................................................................10
REFERENSES...............................................................................................................................12
...................................................................................................................................................13

INTRODUCTION
Business strategy is one of the important activities for every type of organization to
achieve desired goals and objectives in a systematic way. Basically, it is an effective process of
doing planning for all business activities in which company easily attain their target in an
appropriate time frame. In this, it is an important duty of manager to formulate an effective
business strategy in order to attain positive outcomes (Business Strategy, 2017). With the help of
this, manager easily takes fruitful decision for the business. By this, company easily improves
their performance level in the market. Mainly, it includes company’s vision, mission, goals and
objectives which help in attaining higher success in the market place. Present report is based on
ALDI, which is a retail company in the UK. They offer grocery products and services in various
places to attain competitive advantages. Various techniques and policies are included in this
project which helps in attaining vision, mission and core competencies in company. Furthermore,
organizational and environmental audit is also mentioned in this project. Along with this,
SMART objectives of company are also mentioned in this project which help in attaining
competitive advantage in the most effective manner.
TASK 1
1.1 The way ALDI's mission, vision, objectives, goals and core competencies inform strategic
planning
It is important for every business to set their goals and target before setting a new
business. In this, strategic planning is an essential process which defines the direction and path in
which company formulates their activities. It covers all the strategies which are followed by
company to attain set targets. Along with this, it also determines the utilisation of available
resources within company to maintain their performance level. For attaining higher success,
strategic planning should be more effective which provides number of benefits to the firm which
directly contribute in overall success of company. In this, some major components are important
to be considered in strategic planning in order to attain desired targets in an appropriate manner
(Azar, 2011). All these can be understood by the following points:
Mission: Main motive of this statement is to meet company’s goals and objectives which are set
by company. Basically, it defines the market size of company which helps in attaining
company’s vision. Mission statement provides guidelines to execute all the activities in an
1

effective way. By this, company attains their targets in set time frame. In this context, the
mission of ALDI is to offer quality products to its customers at incredible low cost. With the help
of this, company easily fulfil customer’s wants and attain their higher satisfaction level (Bucolo
and Matthews, 2011). To attain better results, it should be more effective so that company will
enhance their profitability level in an appropriate manner.
Vision: It is also an important component for strategy which helps in increasing company’s value
in the market place. Basically, it is a written statement in which company defines their future
aspect where they want to see itself. In this, the vision statement of ALDI is to modify their
grocery sector with more attractive and unique business model as well as to provide new services
to their customers. With the help of this, ALDI easily acquires their objectives in an appropriate
manner and also attain competitive advantage to gain success in market place.
Goals: It is an important activity which is set by company before formulating any kind of
strategy. With the help of this, they improve their productivity level in market place. Basically,
goals are of two types which are as follows: Short term goal: This type of goal helps in attaining all those targets which support the
business organization to eliminate their difficulties in order to maintain performance of
company. In this, the short term goals of ALDI are to define new and innovative location
to attract as well as invite a large number of customers. Long term goal: It includes all those targets which are set by company to attain
company’s mission in an appropriate time period. In this context, the long term goal of
ALDI is to form customer’s base by delivering high quality services. By this, they take a
strong place in the market place.
Objectives: It is also an important aspect which helps in increasing the profitability level of
company in market. The main objective of ALDI is to provide higher satisfaction by delivering
quality services to its customers. For this, company uses digitalisation in which they increase
their overall sales and attain profitability level in an appropriate manner.
Core competencies: It is also a supporting component of strategic planning which helps the
organization to attain competitive advantages. With the help of this, company improves
employee’s skills and knowledge which leads to attain a positive image in market place (Butler,
2012). Basically, core competencies of ALDI help in increasing the profitability level as their
2

USP plays an important role in selling of products and services to its customers at affordable
cost.
1.2 Factors to be considered by ALDI at the time of formulating their strategic plans
Strategic planning refers to a process in which company includes all strategies which
guide manager to take better decision (Dandira, 2011). Mainly, it provides an effective direction
to manager at the time of executing their activities which helps in attaining competitive
advantages in market place. By implementing effective strategies, company easily achieves their
set targets in specific time period. In this, there are some major factors included in strategic
planning process which are as follows: The industry: It is one of the important factor of strategic planning, in this evaluation of
entire industry is important to improve positive image of the company. Evaluating of
industry include new market entry, market size, profitability, potential growth and future
threats. All these are directly affect the organizational activities. Competition: Assess the competitors position is also an important component which
considered in strategic planning process. In current scenario, competition is very high in
which it difficult for company to attain their target so that they have to understood
competitors policies and position. In this company have to find out the better path to offer
their quality services to its customers as per their needs. With the help of this firm easily
capture larger market share form its rivals. Strength and weakness: It is important for business organization to carry out SWOT
analysis in order to formulate an effective strategic planning process. Basically strength,
weakness, opportunities and threat directly affect the overall business activities and its
decision making process. In this strength and weakness are called as a internal factors and
other side opportunities and threats are part of external factors. In this it is important for
business to determine their strength to improve by putting better efforts. Furthermore,
determination of weakness is also essential for defining some improvements to remove its
negative impact on business organization (Elhamma and Zhang, 2013).
 Resources: Keep enough resources are important for business organization to implement
all the strategies. In case company has less resources than they did not able to execute
their activities and also fails in attaining positive results. In this context ALDI required
appropriate resources and equipments to enhance their productivity level. Basically
3

resources are human resource, financial funds and many more. All these are used by
manager at the time of implementing strategic planning activities to attain desirable goals
and objectives (Ferreira and et. al., 2011).
All these factors are important for implementing effective strategies within the company
which helps in attaining positive outcomes and at the same time it also assist in improving
performance level at market place.
1.3 Evaluating effectiveness of techniques used in strategic planning
Effective process of strategic planning affect by some various elements which exit in
business and its surroundings. With the help of this manager attain better guidance to take best
decision which helps in executing all the activities in appropriate manner. In this context,
manager of ALDI use effective techniques to develop a business plan.
BCG growth share matrix: It is an appropriate strategies which define four situation which is
faced by company are as follows: Stars: It define high market share with high growth of products in market. In this ALDI
require huge funds in order to maintain their growth rate at market place by capturing
market share. Cash cows: It define high market share and at the same time is also show low growth
market rate. In this ALDI generate larger profitability by capturing larger market share
but company also face low growth in market. Doges: This situation define low market share and low growth of products. In this ALDI
requires reduce their expenses cost to maintain their profitability level. Whenever
company fails in attaining profitability than they should wind up the business activities
and start a new business. Question marks: Under this situation, it define low market share and high growth rate.
This type of situation company face loss because of low market share. Mainly, it define
new manufactured products at market place (Galpin and Lee Whittington, 2012).
Advantage of BCG matrix can be understood by following points:
 It provide better guidance to manager in order to take better decision for their future
activities. With the help of this manager easily examine their company portfolio.
Disadvantage of BCG matrix:
4

 In this manager face complexity to gather information towards the market share and
growth (García‐Rodríguez and et. al., 2013).
 Some time high market share define low profitability level.
 Some time low market share show higher profitability.
2.1 An organizational audit for ALDI
Carry out an organizational audit is more important for business which define actual
performance level of this company and market place. By this ALDI, accomplish their objectives
in systematic manner which directly contribute in improving effectiveness of the company. In
this SWOT analysis which is conduct by ALDI are as follows:
Strength Weaknesses
 One of the biggest strength of ALDI is
its quality products.
 They offer their products at very
affordable price.
 Its positive brand image is also a
strength of company at market place.
 They has around 8000 stores in Europe.
 ALDI is small as compare to other
brands.
 They include low level of
advertisement activities.
 ALDI has limited range of products.
Opportunities Threats
 They invest more funds in promotion to
make their strong place.
 ALDI expand their business in growing
countries like Africa and Asia.
 ALDI also sell their products on online
platform.
 High competition at market place is
also a threat for ALDI.
 Less customers loyalty is also a
negative aspect for company (Goll and
Rasheed, 2011).
2.2 An environmental audit for ALDI
Environmental audit is one of the essential activity for business organization in which
company effectively execute their operational activities in appropriate manner. For attaining
better results it is important for ALDI to analysis all these factors effectively in order to reduce
5

circumstances within the company which aid in improving the performance level at market place
(Granados and Gupta, 2013). With the help of this manager easily take best decision and also
formulate effective strategic plan by considering porter five force analysis. These can be
understood by following points: Threat of new entry into market: It is one of the important threat for those business
organization who work at global level. In this company have to formulate effective
strategies to improve market share of the company. In this context, ALDI have their good
brand image and also has market share in UK. By this they easily attain success at nee
market by delivering quality services. Bargaining power of suppliers: It define better analyse about suppliers sell their products
at high cost which helps in increasing profitability level of the company at market place.
In context of ALDI, they have number of suppliers which helps in increasing profitability
level. Bargaining power of customers: it is important that if customers purchase products in
bulk which show low purchasing power. In context of ALDI, bargaining power of
customers are high due to high competition. In this company have to formulate effective
strategies as per customers needs in order to improve their performance level. Threat of substitute products: It is simple for customers to switch form products. In this
ALDI provide various products to customers but on the other side they also introduce
innovative products which is substitute of other one which reduce sale of existing
products. By this company fails in generating profitability. For this management have to
prepare as well as conduct survey at market place.
 Degree of competitive rivalry: It define competition level in market place. In this if less
number of seller at competitive market then it shows slow competition. In context of
ALDI, they face high competition due to number of competitors are there in market.
2.3 Significance of stakeholder analysis for ALDI
Stakeholder analysis is important activity for business organization which helps
improving the performance level of the company in effective manner (Hall and Wagner, 2012).
In this stakeholder also essential for executing activities of the company which directly impact
on overall growth of the company. Basically creditors, employees, government bodies and
suppliers are considered in stakeholders. With the help of this method company easily implement
6

new strategies within the organization. By this ALDI improve their productivity level. In this
context, there are some steps which include in stakeholder analysis are as followings:
 Step one: It is initial stage in this stakeholders involve those people who are part of the
business in which they execute their business activities. With the help of this company
enhance their performance level (Helms and Whitesell, 2013).
 Step two: Under this step, stakeholder defines their interest and power which helps in
satisfying their needs as per demand. Under this stakeholders show their high interest
which aid in improving the performance level of the company at market place.
 Step three: It is last stage in which company take feedback from their workforce to
understand their requirements and activities. By this ALDI easily execute their
operational activities and attain positive outcomes.
2.4 New strategy for ALDI
Strategy is essential process for business organization which define better path and
guidelines in which manager easily execute entire activities in effective manner and attain
positive results. By using this company easily attain competitive advantage in which they
improve their performance level and positive outcomes. Strategic plan play important role in
attaining higher success at market place by considering its mission, vision, goals and objectives.
Along with this, company also provide quality products and services to its customers which
helps in getting their higher satisfaction. By this they retain them for long time period.
Furthermore, ALDI also set their objectives in order to generate larger profitability level. With
the help of this company capture larger marker share form its rivals and also attain strong place
at market place. In this management of ALDI formulate effective scheme in which they earn
larger profitability which contribute in overall success of the company (Kalyani and Sahoo,
2011). In current time working style of company is good which aid in capturing larger market
share so that they does not requires any kind of changes within their activities.
TASK 2
3.1 Analysis the appropriateness of suitable strategy for ALDI in relation to substantive growth
limited growth or retrenchment
Selecting best strategy is one of the important for business organization which helps in
attaining overall goals and objectives in appropriate manner. With the help of this company
7

easily attain competitive advantage by improving their performance level at market place
(Sprengel and Busch, 2011). In this context, there are some suitable strategies used by ALDI to
attain positive and desirable outcomes in appropriate manner are as follows: Substantive growth strategy: This type of strategy is effective for business in which
company take advantage of merger and acquisition. This type of advantage applicable for
certain company by this company easily expand their operational activities. With the help
of this firm introduce them in another new market to attain higher success in most
effective manner. Limited growth strategy: By applying this strategy, company sale their products in
existing market to maintain their profitability level. Along with his they also introduce as
well as produce their products in new market with the aim of attaining more profits. By
this Aldi attain their goals and objectives.
 Retrenchment: It is not appropriate for business organization because it cuts down their
workers with another companies due to heavy loss. In this condition company can not
able to manage their profitability which directly affect on its productivity level at market
place.
3.2 Selection of strategy
Various strategies are there which used by the company to improve their performance
level at market place. For increasing effectiveness within the companies and its activities ADLI
use substantive growth strategy. It is one of the effective for company to increase their
profitability level by delivering quality services to its customers. With the help of this company
introduce themselves in another countries which directly affect of rising the profitability level at
market place. By using this ALDI produce as well as offer quality services to the customers
which helps in forming customers base (Stiakakis and Georgiadis, 2011). Along with this
company also attain competitive advantage in which they attain success at market place. To
capturing larger market share this type of strategy help company in which they easily compete
their rivals and take strong place in market place.
8

TASK 3
4.1 Roles and responsibilities of personnel who involves in strategy implementation
Strategy implementation is one of the important process which helps in attaining all set
target in systematic manner. In this manager play important role in managing all kind of situation
in order to formulate all the strategies which aid in attaining long term benefits to business
organization (Torrent-Sellens, 2015). In this context, there are important role and responsibilities
which play by manager of ALDI in implementing strategies are as follows:
 Manager is responsible for determining entire market situation in order to attain relevant
information about external environment.
 Another important role of manager is to effectively execute all the activities in order to
improve effective implementation of strategies.
 Manager also responsible for motivating workforce which helps in attaining positive
outcomes. With the help of this ALDI manager enhance their overall sale in market place.
All these are important responsibilities which perform by manager of ALDI to achieve
desirable goals and objectives in appropriate time frame.
4.2 The resources requirement for implementing strategy
It is important for business organization to have enough resource to implement strategies
in appropriate manner which helps in increasing profitability level of the company at market
place. If company did not has adequate resource than it increase company cost which create
complexity for business. In this ALDI include main resources which helps in executing all the
business activities in effective manner. Which are as follows: Financial resource: Funds are important for executing all the activities which help in
attaining set target. In this ALDI should keep enough funds to operate all the activities in
effective manner. In case of improper funds it directly affect the profitability level of the
company. Human resource: It is another important resource which helps in implementing
strategies within the business organization. In this company should include skills and
capable workforce so that they easily attain their objectives (Zott, Amit and Massa,
2011). For better implementation ALDI provide training and development programs to
their employees to enhance their knowledge in appropriate way.
9

 Physical resources: Building, furniture and other physical equipment are helps in
strategy implementation. In this updated technologies are helps in satisfying customers
needs and demand which leads in increasing profitability level of the company.
4.3 The use of SMART target and its contribution in strategic objectives
Concept of SMART target is essential which used by manager of ALDI in which they
easily implement strategies which helps in attaining positive outcomes in systematic manner.
Basically this goals helps in ensuring maximum utilisation of available resources which aid in
service more customers. SMART defines the specific, measurable, attainable, realistic and time
bound objectives. All this contribute in implementing strategies which can be understood by
some points are as follows: Specific: It is more important that final goals must be specific because it will guide
manager to take best decision and attain success at market place. Measurable: Under this, final objectives of the company should be measurable because it
provide opportunity to manager to assess their overall effectiveness of the strategies. In
this ALDI wants to enhance their sale by 6 % in upcoming 1 year. Acceptable: It is necessary that all end target must be acceptable by company and its
stakeholders. Which the help of this ALDI easily increase their profitability level. Relevant: It is also essential that all the target should be relevant with business activities
which helps in attaining higher success at market place (Ferreira and et. al., 2011).
 Time bound: It is also important for manager to set time bound objectives which help
company to completing all the activities in set time frame. It also offer various advantage
to business organization. In this ADLI wants to increase their market share by 7% in
upcoming 1 year. It is a example of time bound objective.
All these are effective components which contribute in overall success of ALDI. With the
help of this company increase their profitability level by implementing their strategies.
CONCLUSION
From the above mentioned report, it can be concluded that business strategy is essential
activity of company in which company easily attain their set goals and target. For better
formulation of strategy it is important for manager to considered strength, weakness,
opportunities and threats. Along with this, various techniques is also use by manager of company
10

to develop an effective business plan in which they easily attain their targets. In this stakeholders
are also play important role in attaining success at market place in which it is essential to carry
out an effective analysis to gather all the relevant information about customers demand.
Furthermore, employees also play important role in implementing business strategies in which
workers perform their responsibilities to attain their goals and objectives in systematic manner.
In this enough resource is also important for implementing new strategies which provide number
of benefits to attain higher success at market place.
11

REFERENSES
Books and journals
Azar, O. H., 2011. Relative thinking in consumer choice between differentiated goods and
services and its implications for business strategy. Judgment and Decision Making. 6(2).
p.176.
Bucolo, S. and Matthews, J. H., 2011. A conceptual model to link deep customer insights to both
growth opportunities and organisational strategy in SME’s as part of a design led
transformation journey. Design management toward a new Era of innovation.
Butler, D., 2012. Business development: a guide to small business strategy. Routledge.
Dandira, M., 2011. Involvement of implementers: missing element in strategy formulation.
Business strategy series. 12(1). pp.30-34.
Elhamma, A. and Zhang, Y.I., 2013. The relationship between activity based costing, business
strategy and performance in Moroccan enterprises. Accounting and Management
Information Systems. 12(1). p.22.
Ferreira and et. al., 2011. John Dunning’s influence in international business/strategy research: a
bibliometric study in the strategic management journal. Journal of Strategic
Management Education. 7(2). pp.1-24.
Galpin, T. and Lee Whittington, J., 2012. Sustainability leadership: From strategy to results.
Journal of Business Strategy. 33(4). pp.40-48.
García‐Rodríguez and et. al., 2013. Corporate social responsibility of oil companies in
developing countries: from altruism to business strategy. Corporate Social
Responsibility and Environmental Management. 20(6). pp.371-384.
Goll, I. and Rasheed, A. A., 2011. The effects of 9/11/2001 on business strategy variability in the
US air carrier industry. Management Decision. 49(6). pp.948-961.
Granados, N. and Gupta, A., 2013. Transparency strategy: Competing with information in a
digital world. MIS quarterly.37(2).
Hall, J. and Wagner, M., 2012. Integrating sustainability into firms' processes: Performance
effects and the moderating role of business models and innovation. Business Strategy
and the Environment. 21(3). pp.183-196.
Helms, M. M. and Whitesell, M., 2013. Transitioning to the embedded librarian model and
improving the senior capstone business strategy course. The Journal of Academic
Librarianship. 39(5). pp.401-413.
Kalyani, M. and Sahoo, M. P., 2011. Human resource strategy: A tool of managing change for
organizational excellence. International Journal of Business and Management. 6(8).
p.280.
Sprengel, D.C. and Busch, T., 2011. Stakeholder engagement and environmental strategy–the
case of climate change. Business Strategy and the Environment. 20(6). pp.351-364.
Stiakakis, E. and Georgiadis, C.K., 2011. Drivers of a tourism e-business strategy: the impact of
information and communication technologies. Operational Research. 11(2). pp.149-
169.
Torrent-Sellens, J., 2015. Knowledge products and network externalities: implications for the
business strategy. Journal of the Knowledge Economy. 6(1) pp.138-156.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Online
12

Business Strategy. 2017. [Online]. Available Through:
<http://finsburyfoods.co.uk/who-we-are/business-strategy/>.
13