Business Strategy and its Impact

This assignment delves into the concept of business strategy and its significance in achieving organizational excellence. It examines various aspects of business strategy, including the relationship between strategy, uncertainty, and performance across different industries. The assignment also explores how external factors influence strategic decision-making and highlights the importance of aligning business strategy with evolving market dynamics.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 .........................................................................................................................................1
1.1 Assessment of Aldi’s missions, visions, objectives, goals, core competencies .............1
1.2 Analyse the factors that Aldi will have to be consider when formulating their strategic
plans........................................................................................................................................3
1.3 Evaluate the worth or usefulness of techniques used by businesses develop their strategies
................................................................................................................................................5
2.1 Carry out an organisational audit for ALDI ....................................................................7
2.2 Carry out an environmental audit for ALDI showing both micro and macro environment. 8
2.3 The significance of stake holder’s analysis while preparing new strategies....................9
2.4 Using the research and information collected about ALDI, present a new strategy......10
TASK 2 .........................................................................................................................................11
3.1 Identify a market and analyse the appropriateness of suitable strategy for ALDI.........11
3.2 Provide a justification of one of the strategies for market entry and growth ................13
TASK 3 .......................................................................................................................................14
4.1 Provide an assessment of the roles and responsibilities.................................................14
4.2 Provide an analysis of the resource requirements for the implementation of the strategy 15
4.3 Evaluate how the use of SMART targets can contribute to achieving the strategic......15
CONCLUSION .............................................................................................................................16
REFERENCES .............................................................................................................................17

INTRODUCTION
Strategy management refers to formulating, interpreting, analysing the major goals taken
by top management. So that policies and plans should be formulating in better way. It provides
way to firm in order achieve their goals and aims. There are many different kind of resources
which are available to firm (Ackermann and Audretsch, 2013). Enterprise need to allocate these
resources properly. Strategic management provides framework so that firm can take decision in
most complex situation. By this concept company can control and control the performance to get
success.
The company which taken into consideration for this particular project is Aldi. Aldi is
famous super chain market in UK. The market share of company is rising by the recent years.
The firm able to earn good profit. There are many competitor of Aldi in UK market such as
Tesco, Aldi, Asda, Sainsbury and other. The main motive of company is to provide good quality
of products in cheaper prices (Acquaah, 2011).
In this report company vision, mission, objectives, core competency are mention. The
various factors which Aldi need to considered while formulating their strategies are discussing.
The tools which are used to develop these strategies are describe in this project. In this
assignment the external and internal audit of organisation has been done.
TASK 1
1.1 Assessment of Aldi’s missions, visions, objectives, goals, core competencies
Vision:
It is statement in which company shows where they want to reach and where they see
themselves in future. It is long term plans. It identifies the growth of business and benefit of
stake holders. Every company having its own vision. The vision of Aldi is as follow.
 To become one of the best retailer in UK and other parts of EU
 To provide a low cost product to its customers.
 To become one of the leading retailer in UK and other parts of the world.
The basic purpose of Aldi is to satisfying the needs and wants of customers at market
place. As a large business enterprises Aldi is concern on gaining attention of large number of
people towards their offered products and services. This statement is effective in respect to create
reflection of the present situation that the company have attained at market area.
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Mission:
It is refers guild lines which help enterprise to achieve aims and vision. It is statement. Mission
follow vision. By this company decided how firm need to operate to achieve their final goals.
Business unit need to commit all the promises which they did with their stakeholders. The
mission of Aldi is as follow. The essential mission statement of firm is “To save money and
provide excellent products and services in the longer run to its customers.” this can be considered
as the most effective factor of firm which is designed by firm in respect to gain desired targets in
appropriate manner.
Goals and objectives:
Goals and objectives are returns which firm want to get and achieve in particular point of
time. Goals are prepared for longer period. Objectives can have prepared for shorter and longer
term both. Objectives provide support to achieve goals. Goals refers to plans which brings wider
scope for business unit (Acquaah, 2013). Following are the goals and objectives of Aldi.
 ALDI wants to increase their presence in other countries.
 ALDI main aim is to increase market share by 5 percent in the next few years.
 ALDI also created trust and brand loyalty in an effective manner.
These are some predetermined statements which are designed by the business
organisation in order to moving forwards towards right direction. This plays vast role in carry out
all business in significant manner. It is required for each business organisation to make
significant efforts in order to attaining organisational goals in systematic manner.
Core competencies:
Core competency is a concept by which company get advantage from their competitors.
The firm is having USP which other competitor are not having. This concept is having vital role
in business operation. Every is specialised in producing products in their own way. There are
many products and services which are producing in the market by different countries. So its very
important that enterprise bring new innovation everyday so that they can lead in market place
and customer prefer their products rather than competitor goods. Core competency help firm to
build brand loyalty and get advantage in terms of prices, size, quality and other factors. By this
business can grow and get success.
Aldi is having core competency because they are providing large range of products and
their quality of products are also high. The organisation is good at understanding customers’
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needs and wants and producing goods accordingly. Aldi is a popular retail company and widely
concern on satisfying the needs and wants of customers who are willing to consuming offered
products and services of firm. The basic purpose of business is to exploring their business and its
activities at large scale through offering high quality and variety of goods and services than their
rivals.
Business plans are effective as these are helpful in implementing all business activity in
well planned manner. It involves various activities in which some are described as below:
Business plan:
BASIS TIME DURATION
Different action that are connected with
research and development function.
25 to 45 Days
Important Aims and objectives 26 Days
Current position of firm at market place. 20 to 25 Days
Written documents designed by Retail firm. 22 Days
Effective evolution of plan and policies. 18 Days
Rewriting of business plans. 30 Days
1.2 Analyse the factors that Aldi will have to be consider when formulating their strategic plans
There are different types of factors which company need to considered while making and
formulating strategy plans. While formulating there are issues which need to be address. These
factors are having large impact on strategic planning. There are steps that are useful to formulate
strategic planning (Annabi and McGann, 2013). These steps are given below.
 The first effective tools in strategic planning is SWOT analysis. This tools helps to
identify company to know their strength and weakness. By this firm can do internal
audit. SWOT refers to strength, weakness, opportunities, threats. By this business unit
helps to know who are the competitor in market which are selling same kind of products
and opportunities which enterprise is having for their future aspect.
 The next is PESTLE model which can be used to formulate strategy planning. By
enterprise know about external factors which affects business. The external audit can be
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done by this model. In this all external factors such as political, social, economic,
technological, legal and environment are mention. This factors can have positive and
negative impact on business operation (Astrachan, 2010).
 The third stage where both SWOT and PESTLE are taken into consideration. This help
to identify the current position of market and challenges which are faced by enterprises.
 In final stage the budget need to prepare and tools which are going to use to implement
the plans.
There are various kind of challenges which company is facing while making strategic
planning. By this company progress can be decreases. So these factors need to address properly.
There are internal and external factor. Internal factor refers to those which are under control of
organisation. These took inside the enterprise such as structure of enterprise, employees
behaviour, shareholders, leadership styles, management etc. by this firm success and failure can
be decided. On the other hand, there are external factors which also have great impact on
business unit. These are not controllable by the firm. Regarding to this firm made different
various policies and plans. These includes nature, climate, legal rules and regulation, economic
conditions and others. In context to case Aldi is also facing many challenges related to external
environs (Azar, 2011). For example, inflation in which prices of product and services are
increases and demand goes down. There are many other rules and regulations govern by
government of particular country by this business unit need to change their standards and
policies. Social factors related to values, belief and norms of the people which influence their
buying behaviour by this demand and supply fluctuate.
Business firm need to look after environmental factors they have to produce their goods
and services in a manner by which there is no harm on environs. All goods should be produce in
eco-friendly manner. By this way they can overcome by these challenges and get success.
There are various factors that are needs to be considered by Aldi in order to formulating strategic
plan, in which some elements are described as below:
Future Targets: Each business organisation is concern on creating some future targets which are
required by firm to attain them in efficient manner as to reaching at higher position at market
place. These are valuable in accumulating final output and result at work place.
Financial aspects: This can be considered as the most effective elements as it helps in
implementing organisational activities into proper action. It is necessary for firm to maintain
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proper flow of funds and capital as each and every activity are based on some cost, so this is the
most essential part of strategic plan. As a large business organisation Aldi has huge amount of
capital in respect to organise all activities in effective and efficient manner.
Customers: These can be considered as the king of market as each and every activity of firm are
based on the new and changing needs and wants of customers at market place. These are
essential factor as organisations are concern on producing goods and services as per the neds and
wants of targeted market which helps in maximising organisational performance.
Communication: It is important for each and every sort of organisation to implement an open
conversation session within company which create value in sharing data and information at work
place. This also helps in resolving the issues and conflicts that are arises at work place though
conducting an effective communication process among different department of firm.
1.3 Evaluate the worth or usefulness of techniques used by businesses develop their strategies
Business unit use different kind of techniques so that they can formed and develop their
strategy effectively. There are advantage and disadvantage of these model. In this report the
suitable technique which is adopted is BCG matrix. In this model there are four different kind of
situation which Aldi is facing (Bharadwaj and et. al, 2013). Following is the BCG model of Aldi.
 Stars: This is the first kind kind of situation which firm can be face that is starts. In this
firm is having large market share and large market growth. Enterprise need to take
appropriate decision to sustain in market for longer run.
 Question mark: In this situation firm products are having large growth but the market is
not high. It can indicate risk for company as they can lose whole market share. So Aldi
need to try to introduce new product in market to increase market share.
 Cows: This situation reflects high market share but low growth. In this firm is earning
good revenues and they need to concentrate on product growth by investing on it.
 Dog: In this situation both market share and growth is low. The product of company is
not earning any profits. In this situation firm need diversify their business in which new
product can be offered to new market.
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Following are the few of advantage and disadvantage of BCG matrix.
Advantage:
 It helps firm to understand when they need to invest
 BCG is simple model to follow
 It can help firm to take decision regarding future
 By this enterprise can know when they need to focus on new business
Disadvantage:
 The success of company is not only depending upon market share and growth even other
factors are also there (Boies, Lvina and Martens, 2011).
 By this model it is difficult to find data about market share and growth
 There is situation in dogs are earning more money than Cows.
 Sometimes products in low market share are earning good amount of profits The term market is not clearly defined in this model
Ansoff matrix
Market penetration This is one of the most and suitable approach in order to increase
customer base and revenue in an effective manner. ALDI required to
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relaunch its product in a regular basis with the key modification. It
will lead to increase customer satiation.
Market development There is various emerging market such as India and China which can
provide enough opportunity to maintain its market share and position
in the market.
Product development ALDI required to conduct market survey and introduced new
product in the market which can provide sustainable growth in the
longer run.
Diversification In this approach top management needs to identity new scope of
their business which helps to maintain their market share as
compared to its competitors.
2.1 Carry out an organisational audit for ALDI
In this company audit the internal factors which are occur inside the firm. This audit can
be conducted by SWOT analysis. This model help enterprise to know about their strength,
weakness, opportunities and threats. By this Aldi can know their position in market. By this Aldi
can take their major decisions. Following is the SWOT analysis of Aldi.
Strength  ALDI have more than 2500 store across UK which provide competitive
position in the market.
 ALDI have an effective supply chain management which help
minimise operational cost.
 This enterprise also operates their business in other countries such as
Germany, France, Denmark, India, China and so on.
 As the company is having large number of customers who are regularly
buying the products and services of firm and creating vale in
companies growth and profit. This is the major strength of firm.
Weakness  ALDI is not large as compare to other firms.
 The product quality is not good as compare to other business
organization.
 As a large super market chain company is having large number of
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competition at market place, this can be evaluated as the major
weakness of firm.
 As the company has their outlets and stores in limited areas so they are
not able to satisfying the needs and wants of customers who are
belongs to different geographical area.
Opportunities  There is various emerging market in Asia which can provide long term
growth to them.
 The firm is required to diversify their business in to the other sectors in
order to sustain their market share.
 Aldi is concern on expanding their business activities at large scale
which helps in creating various job opportunities for people.
Threats  The global economic slowdown having a negative impact on the
growth of ALDI in the longer run.
 Values of rough materials is enhanced that has a huge impact on
revenues of company.
 High competition cause low productivity and performance at market
place.
These are some of the strengths and weakness of firm that they need to look after
properly and take action accordingly (Chang and Graham, 2012). Aldi can take advantage of
their strength while making any decision and make policies so that weakness can properly
address on time.
Company has their own standard and according to this they follows some rules and
regulation in order to attaining higher position at market place. Aldi is concern on applying the
method of benchmarking as it is effective in adoption of various strategies that are used by rivals
in respect to providing high range of competition at market place. Company is widely applying
the policies of their rivals in respect to attaining higher competitive advantage.
2.2 Carry out an environmental audit for ALDI showing both micro and macro environment
Environment audit can be done by firm to know and have better understanding about
external factors which may have great influence on business. When company is launching new
product or expanding its market they need to look after these factors. This report porters five
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force model has been used to conduct external environment audit. Porter five force model of Aldi
as follows.
 Threats of new entrants: There are many competitor and player in grocery industry. So
this factor is very important to considered (Firnkorn and Müller, 2012). In this one player
can easily copy the products and also adopt same strategy as their competitors are
following. Aldi is having competitor in UK market like walmart, Tesco, Asda and others.
In UK there are obligation by which new entrance cannot take place.
 Threats of substitutions: The threat of substitution is very high as customer can find same
products easily (Gandolfi and Hansson, 2010). Customer shift to other brands if they are
not getting products in Aldi. Aldi is having Advantage because consumers are having
mindset that Aldi is providing good quality of products in lower prices. By this switching
cost can be lower.
 Bargaining power of supplier: The bargaining power of suppliers are low because Aldi is
one of the famous and well known company. There are many suppliers available to
provide good quality of raw material to these companies. Aldi is having number options
by which they get their material in cheaper prices.
 Bargaining power of buyers: As there switching cost is high the bargaining power of
buyer is moderate. Buyer can go for any brand according to their needs and wants. There
are many grocery retails in UK. Where buyer get number of products which are available
with the companies. In this Aldi is having an advantage because many customers are
brand loyal because they think this brand can provide them goods in good quality and in
lesser prices.
 Competitive rivalry: As there are many competitors in the market like Sainsbury, Tesco,
Asda and others. Because of this competitive rivalry is very high in this sector. There are
many other companies those who provide same kind of products. So Aldi need to
promote and advertise its product more so that they can generate awareness among
customers about their goods (Gollakota, Gupta and Bork, 2010).
2.3 The significance of stake holder’s analysis while preparing new strategies
Stakeholders are important part of an organisation. Every enterprise ensure that they
satisfied their stake holders because they can determine company success and failure.
Stakeholder includes employees, customers, government, suppliers, media and others. In this to
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analyse stake holders stake holders matrix has been discussed. By this firm can identify the
important members which support in business activities. Following are the importance of stake
holder analysis while formulating new strategy.
 Important opinion can be get by stake holders.
 Stake holder can provide powerful support to company.
 Communication can help to understand stake holder nature and their requirements
 By this company can observe the reaction of people for their company.
Following are steps which need to be followed to conduct stakeholder analysis.
 Step 1: In this business find out the persons those who are very important and because
of them business get affected.
 Steps 2: Next step company find out the interest, power and their influence on business
activities. Aldi prepare stake holders grid to have better understanding. High power and
interest stakeholders make great efforts to promote the product. These stake holders are
satisfied with the strategies of company. The stake holders those who having low
interest they get bored early with firm (Haley, Haley and Tan, 2011). Low power and
high interest stake holders need to inform regularly as they can help firm. The stake
holders those who are having low interest and low power they do not influence on
business and make minimum efforts.
 Step 3: It is final step where company try to develop good understanding about stake
holders by choosing the most important stake holders. Firm can take feedbacks and
support for these stakeholders.
By this it can said that every stake holder is having their own importance. According to
this firm formulate different strategies and plans. Different stake holders are having their own
roles and responsibility in firm. These are pillars of business organisation. If business unit
manage these stake holders properly they can get success in their strategy plan.
2.4 Using the research and information collected about ALDI, present a new strategy
Aldi needs to increase their product range because they are only selling their own brands
product. Because of this the sales comes down. So Aldi decided to sell other local brands also so
that various range of products and services can be avail by company. The firm wants to expand
their business and gain competitive advantage for this they are doing new market development.
In which they are trying to sell old products in new markets. Aldi is trying to reduce their
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operation cost so they can earn more profits (Hoejmose, Brammer and Millington, 2013). Aldi is
conducting fair practices to serve their customer while other competitor is promoting their
products. Following are the few of strategies which can follow by Aldi to expand their product
range and gain competition.
Revenues strategy: Aldi can introduce new premium products which can give them good
revenues. Aldi need to adopt all those activities by which they can generate more profits.
Improving awareness and technology: As Aldi is doing less promotions they need to go
for promoting their products. These days social networking sites are very famous to promote
products. So Aldi can advertise their goods on Facebook, Twitter and other famous sites. These
sources have high range and have wider reach to customers. Firms are trying to update their
products so that they can use their all resources in effective manner.
Product strategy: As Aldi is having limited numbers of products and they are selling their
own brands goods. By this sales can be affected. So Aldi need to develop new product so attract
new customers. The company need to come up with new ideas and bring updated goods before
their existing items become old. Aldi can bring new kids and sports range (Hsieh and Chen,
2011).
Expand in new geographical regions: As firm wants to expand their business they can go
for other countries also like Asia and middle east. By this more customers can be retaining by
firm and it leads to increase revenues of business unit. To gain competitive advantage also
enterprise need to expand their business outside the country.
Strategic alliance: This is entry way by which firm can enter into foreign market. This
help firm to increase their product range and customers all over the world.
TASK 2
3.1 Identify a market and analyse the appropriateness of suitable strategy for ALDI
There are different ways by which company can enter into foreign market. Different firm
adopt different ways according to their needs and requirements. Some of the entry strategies are
as follows.
 Merger and acquisition: It is way by which company can easily enter into foreign market.
In this two companies combine together to do their business. The entity can be different
between these two companies (Jocovic and et. al, 2014). Acquisition refers to take over
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one enterprise. In starting they are separate entity but after take over company become
part of main firm.
 Strategic alliance: In this two or more company comes together can work on one single
project. Strategic alliance includes joint ventures, franchise, licensing.
Substantive growth strategies:
 Horizontal integration: In this company expand their area in same value chain but in
different industry (Köseoglu and et. al, 2013). As Aldi can open new super market retail
store but they need to bring different variety of products.
 Vertical integration: In this the area can be differ but industry can be remaining same.
 Related diversification: This refer to increasing in product line similar to the existing
product which firm is already providing. In this Aldi extend the ranges of goods.
 Unrelated diversification: This refers to when firm come up with new product and
launching that product in totally different market.
Limited growth strategies:
 Market penetration: In this firm try to increase the ability of existing market by increasing
in market share.
 Market development: In this company can go for launching existing products in new
market. This situation can take place when the demand of products decrease in existing
market. In that case firm develop new market.
 Product development: In this firm launch new products in existing market. This can be
take place when technology came and firm want to adopt it before existing product gets
old in marketplace. Diversification: In this both product and market is not working properly. In this firm need
to change their business and they need to launch new product in totally new market. In
this large time and cost can be incurred because firm is investing in totally different area.
Retrenchment strategy: In this strategy company decide to cut the cost. So that the profit
margins can be increases. In this company cut it sub business in which company is not earning
good profits. So they cut down that sub business and utilise the resources in those business which
are providing good returns (Li and Tan, 2013). This situation take place when expenditure are
more than revenues. In context to Aldi the customer is dissatisfied because Aldi is providing
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only limited number of products. so firm decide to sell range of products. Now Aldi is selling
their branded products as well as other local brands also.
Aldi is not having their business in many other countries so company can go for market
development strategy. So that they can serve to large market and can sustain in market for longer
run.
3.2 Provide a justification of one of the strategies for market entry and growth
The company is going to expand its market by adopting marketing development strategy.
this strategy can be evaluated on three parameters. Following are these parameters which decide
the success of business strategy.
Green field investment: This is one of the most significant approach which suitable for
the ALDI and its proposed expansion. Under this method, cited firm required to acquire new
asset such as land, machine, human resource and start their operation. This is a risky approach
due to high investment and influenced by different types of risk such as political, economic,
investment risk. ALDI needs to plan their proposed strategy in advance which can helps to meet
their short and long term goals and objectives in an effective manner.
Aldi is having all the resources available so they can implement strategy effectively. Aldi
is major player in UK so according to that feasibility is also high. Aldi is having flexible
organisational structure so implementation become more easy (Tsamenyi, Sahadev and Qiao,
2011).
Substantive growth strategies: This is the widely applied strategy which helps in attaining high
competitive edge at market place. In any kind of business organisation each firm is focused on
generating high profit and growth through providing variety of goods and services at market
place. Aldi adopt this strategy as it helps in generating exponential growth, competition wealth
creation etc.
Limited growth strategies: Higher authority and manager of Aldi are concern on making
improvement in existing goods and services in order to gaining growth and profit at market
place. This strategy is effective in enhancing brand reputaion of firm at market place through
increasing their sales and revenue.
Retrenchment strategy: This is the best strategy for market growth and with the help of this
strategy organisational can take effective financial decisions that are beneficial for firms growth
and success. Along with this, company can pay their dues and credits within desired period of
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time. Firm can easily accomplish their goals and objectives more appropriate manner. It also
create result in providing high competition to their rivals.
TASK 3
4.1 Provide an assessment of the roles and responsibilities
To implement strategy, it is very important that top management manage all the activities
properly so that implementation can take place in proper manner. There are different authorities
like leaders, manager and other professions. They have huge responsibility to manage activities
in effective manner. Following are some of roles and responsibility which these authorities need
accomplish (Montgomery, 2011).
 Top management need to communicate these plans and policies to their employees so
that they can have clear understanding about how to achieve desire goals.
 The management need to motivate employees so that they work in effective manner.
 Regular feedbacks need to take so that all changes can be made on time.
 Proper controlling and monitoring has to be done so that results can be evaluated.
 Employees should get the task according to their skills and knowledge
Following are the roles of different authorities in relation to strategic implementation.
CEO: CEO needs discuss the plan, policies to shareholders. After having discussion, they
need to formulate the strategies according organisation benefits.
Top management teams: Top management need to communicate that plan which other
staff of company and take their view whether it can work or not.
Middle manager: Middle manager need to design a schedule so that they can give task to
their subordinates.
Strategic planners: The strategic planner need to find the resources which can be used in
implementing resources. This resources should have allocated in proper manner.
consultants: The company can take expert advice on particular issues so that they can
formulate strategies accordingly. Consultant provide advice on certain areas such on finance,
human resources and others.
4.2 Provide an analysis of the resource requirements for the implementation of the strategy
Followings are resources which can be used to implement strategy in proper way.
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Raw material: This resources is very important in grocery industry. If company wants
produce their products on time it very necessary that all resources should be available on time
(Peteraf, Gamble and Thompson, 2014).
Financial resources: This is another factor which is very crucial. No activities can take
without money. This resources can have used to buy raw material, to pay employees, buy
machines and others. If this resources are not available, it is difficult to implement strategy.
Human resources: Human resources is important because every task are done by them. If
this resources are not available, the work and task cannot be completed. Employees by their
innovative and creative idea they complete work on time.
Technology resources: Company need to use high technology machines and equipment’s
to produce their goods so that quality need to be maintain.
Physical resources: The firm need to use physical resources such as equipment’s,
machines, store, many tangible equipment’s that are used in business.
For example: Aldi is adopting product development strategy in this firm is introducing
new product in their existing market so that they can attract new and existing customers to buy
their products. For this firm required above resources so that they can implement strategy in
effective manner.
4.3 Evaluate how the use of SMART targets can contribute to achieving the strategic
SMART target refers to those which firm need to considered while making their
objectives. It gives support to company so that they can make good and it firm can properly
chieve their vision and mission. Company follow SMART targets to implement strategy in
proper manner. Before implementing it is very important that the target which is set by
organisation should be SMART target. SMART refers to five parameters which are given below.
Specific: The goals which are set should be Specified. As Aldi want to expand their
market share so they need to prepare targets which can help them to accomplish this goal. It is
required for each business organisation or its higher authority to develop some specific strategies
that helps in effectively conveying the messages so that employees can organise their work as
per the strategic plan.
Measurable: The goals which are set should be measurable. Aim should be quantifiable
which can be calculate in number. The goals and objectives that are designed by organisations
needs to be measurable by firm.
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Attainable: Goals which are set can be achievable. Every company know their capability
so they can design their target accordingly. Aldi set some goals and objectives which are
valuable in attaining high growth and success at market place. Aims and objectives of firm needs
to be achievable in nature as to attaining profitability.
Realistic: The aims which are set should be realistic. The goals which are imaginary is
impossible to achieve (Scholes, 2015). the desired objectives can be reliable on which
organisation can conduct their business operations and it is not based on assumption.
Time bound: The goals which are set should be achieved in particular point of time. If
aims are not achieved in given time then there is no use of that objectives after certain period of
time (Teece, 2010). the goals and objective needs to be created as per completing them in given
period of time. Time is the essential factor in which it is required for firm to attaining their goals
and objectives.
As firm wants to introduce new product in market. The main objective of firm is to
design product according to customers’ needs and wants. For this objective SMART target can
be used so that the objectives which are prepared should real, achieved at particular time,
measurable and specific. Employees should have good understanding about objectives and they
should have clear idea how they need to do work and in what manner.
CONCLUSION
Concept of business strategy is very important for very business unit. This strategy may
have great influence on success and growth. These are various tools which help enterprise to
design business strategy. Before making strategy it is important that firm do internal and external
audit. By this they get an idea about their strengths and weakness. Firm establish SMART targets
so that goals can be achieved effectively. Aldi adopt the strategy of market development so that
they can expand their market in other countries and also increase the range of products. Every
firm wants to get success and growth and for this they implement strategies which help them to
reach their final goals.
REFERENCES
Books and journals
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Ackermann, S.J. and Audretsch, D.B. eds., 2013. The economics of small firms: A European
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comparative analysis of family and non-family businesses in a transition economy in
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647). Trans Tech Publications.
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Köseoglu, M.A., and et. al., 2013. Linkages among business strategy, uncertainty and
performance in the hospitality industry: Evidence from an emerging economy.
International Journal of Hospitality Management. 34. pp.81-91.
Li, Y. and Tan, C.H., 2013. Matching business strategy and CIO characteristics: The impact on
organizational performance. Journal of Business Research. 66(2). pp.248-259.
Martin, N and Rice, J., 2010. Analysing emission intensive firms as regulatory stakeholders: a
role for adaptable business strategy. Business Strategy and the Environment. 19(1).
pp.64-75.
Montgomery, C.A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Peteraf, M., Gamble, J and Thompson Jr, A., 2014. Essentials of strategic management: The
quest for competitive advantage. McGraw-Hill Education.
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Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Tsamenyi, M., Sahadev, S and Qiao, Z.S., 2011. The relationship between business strategy,
management control systems and performance: Evidence from China. Advances in
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