Strategic Business Analysis and Change Management

This assignment requires a comprehensive analysis of business strategy's influence on project portfolio management success. Utilize concepts from Meskendahl (2010), Teece (2010), Van Grembergen & De Haes (2012), and Hall (2015) to develop a clear vision for change strategies. Additionally, explore Aldi's business model and strategy as a case study, considering the context of cross-cultural missions (Hougard, 2012) and SMART goals.

Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Aldi's mission, vision, objectives, goals and core competencies that inform strategic
planning..................................................................................................................................1
1.2 Factors which Aldi has to consider when formulating their strategic plans.....................2
1.3 Usefulness of techniques used when businesses develop their strategic plans................3
TASK 2............................................................................................................................................5
2.1 Organisational audit for ALDI.........................................................................................5
2.2 Environmental audit for ALDI.........................................................................................6
2.3 Importance of stakeholder analysis..................................................................................8
2.4 Proposing a new strategy for ALDI..................................................................................9
TASK 3............................................................................................................................................9
3.1 Appropriateness of suitable strategy for ALDI................................................................9
3.2 Justification for the chosen market growth and entry strategy.......................................10
TASK 4..........................................................................................................................................11
4.1 Roles and responsibilities of personnel for the implementation of new strategy...........11
4.2 Resource requirements for the implementation of strategy............................................12
4.3 Way in which smart targets can contribute in achieving the strategic objectives..........13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
“Strategy is simply resource allocation (Jack Welch). When you strip away all the noise,
that's what it comes down to. Plan of action means making clear cut choices about how to
compete. You cannot be everything to everybody, no matter what the size of your business
organisation or how deep its sack- Jack Welch”. Hence, a company must have a strong strategy
in order to contribute to the success of business. In the present report, ALDI has been chosen that
is the chain of supermarkets which is operating internationally. This research is all about ALDI’s
strategic plans and procedures which are being followed in order to have proper functioning of
company. This study consists of a complete guideline about ALDI’s operations, its mission,
vision, core competencies as well as goals and objectives. Along with that, the way in which it
makes strategy to overcome various threats is also being described here. Also, there are
suggestions for a new strategy which Aldi can implement to become stronger in its operations.
TASK 1
1.1 Aldi's mission, vision, objectives, goals and core competencies that inform strategic planning
Strategic planning consists of plans and procedures which company makes to achieve the
targets which are set for gaining success in business. It consists of firm's various statements such
as mission, vision, goals and core competencies. It is the information which is necessary for all
employees who are working with company so that they can have a proper direction to perform
their actions (Anitsal, Anitsal and Girard, 2012). Aldi is an international company which also
having these core values on which it operates and strategies- for same are listed below:
Vision
Company aims to build an environment which provides high quality products at low cost.
For this, ALDI has obtained various strategies to cut down the cost by reusing and recycling
policy. Company forecasts itself as promoting sustainability and development by utilising
resources fully (Hall, 2015).
Mission
ALDI's main purpose is to provide grocery products related to food and daily utilities to
each and every customer with high quality. It aims to reach people across the globe by providing
best services to customers (Hougard, 2012).
Goals and Objectives
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Its primary target is to become a number 1 company in grocery market by providing the
best services. It focuses on profit but also works for society's development so that things could be
improved and developed (Brandes, and Brandes, 2015).
Core Competency
There is high competition present in the market for Aldi like Sainsbury’s, Tesco,
Morrison's, etc. Hence, company needs to deal with it so it have made some Unique policies so
that it can have differentiated services from its competitors (Eggers, Batsche and Kuperstein,
2013).
Simultaneously, while developing strategies for company, these are to be taken into
account so as to have sound and strong hold over the business and direction in which firm is
moving.
1.2 Factors which Aldi has to consider when formulating their strategic plans
Aldi, the grocery giant, has to consider many factors in order to have a strategy which is
suitable for its operations (Asghari and Aissa, 2010). There are elements which affect the
operations of business directly and indirectly. These elements are to be considered while
formulating strategies. These are listed as follows:
Competitive advantage
The company have to form some strategies which have been different from its
competitors like- it aims at making people aware of recycling the products and services which is
a competitive advantage. This can be used by the firm for further development of strategies.
Internal factors
These factors consist of internal structures, plans and procedures according to which the
strategies have to be formed. ALDI has some core values which have to be considered while
formation of strategy.
External Factors
These are outside the business but these elements affects business's operations for e.g.-
political conditions, legal conditions and other factors in PESTEL are considered in external
factors while formulation of strategy for ALDI.
Stakeholders
Stakeholders are the core people of business who are directly responsible for business
operations. They are the people who are associated with business hence, they contribute in
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decisions making which must be accordance with their consent (Astrachan, 2010). While
strategy implementation it is important to consult with them.
Political factors
A country's structure and its native people also affect the business (Brandes and Brandes,
2012). They are influenced by legal bodies operating in it and hence, these are also needed to be
analysed while making a strategy for the same.
Technological factors
There is constant development in this factor which has to be acknowledged in order to
have a plan which meets the requirements of current scenario.
Competitors
There is a huge threat to company by its substituents and competition so it have to assess
rivalries strategies in order to make their own so as to have core competency to have an edge
over them (Champoux, Durgee and McGlynn, 2012). .
1.3 Usefulness of techniques used when businesses develop their strategic plans
BCG (Boston Consulting Group) is a portfolio matrix which is basically used by business
strategist to have the best strategies for their business (Chen and et. al., 2010). This matrix helps
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in assessing the factors according to business requirements that results in the formulation of an
effective strategy. It provides assistance to business about where to invest and where not to.
There are four quadrants in this which are listed as below:
DOGS
These products have low market share as well as their growth is also low. Hence, they
can be retrenched from company so as to save the cost of production for them. For example-
Supply services of the company.
QUESTION MARK
There is a chance for some products either to develop or fail as they have high growth
rate but low market share (Cheng, 2013). Company can put a risk to sale them as they may rise
in market as well as they may fail to rise which might increase revenue. For example- Clothes
range of company is considered under this.
STARS
These products are always acceptable in the market with having high market share as
well as growth. These are the best products of company contributing to it on a large scale. For
examples- FMCG products.
CASH COWS
These products require a cash injection or a push so that they can work in the market as
they have low growth but high share. For example- Wine and liquor products of ALDI.
On the basis of above description, ALDI can choose a strategy to sale various products in
which it is dealing and this analysis will help company to have the best decision regarding
offerings which have to be retained in business and which is to be withdrawn.
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SPACE (Strategic Position and Action Evaluation) matrix is generally used to develop
strategic choice for business (Ellickson, Misra and Nair, 2012). It consists of various factors
which are classified as internal and external like environment stability, industry attractiveness,
competitive advantage, financial strength, etc. After analysation of these factors, there comes a
strategy for aggressive, competitive defensive and conservative posture. With the help of this,
ALDI can make an appropriate strategy for its operations that could help it to have success in the
market. This is a well-known and mostly used strategy for businesses who aim at the formation
of long term strategies so that they can earn more revenue.
ALDI needs to adopt competitive advantage strategy which will help it to overcome the
competitors in market and attain a more superior position than it is on as of now.
TASK 2
2.1 Organisational audit for ALDI
Audit refers to analysation of factors that are associated with business and related to
them, strategies are evaluated so that problems can be rectified (Eppstein and et. al., 2011).
ALDI is a grocery company having its presence worldwide and hence, for its organisational
audit, SWOT analysis technique can be used which is as below:
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Strengths
 Maintenance of quality in products
 Pricing of product is affordable.
 Having presence worldwide A positive brand image
Weaknesses
 In comparison with competitors, it has
small share.
 ALDI has less number of chains.
 Needs to work on developing a global
impact
 It is sometimes classified as a cheap
brand in the market by people
Opportunities
 It can have budget control strategies
which are there in the market.
 It can expand its business in more
locations globally. Developing country would be a great
opportunity for company.
Threats
 The major threat is of competition and
substituents.
 It is not providing a complete shopping
experience to the customers.
 This can be affected by other
competencies.
Current strategy of ALDI is that it provides a huge range of products which are of very
low price and it have a competitive advantage that it promotes recycling of products and
services. Hence, the company is at a very good path to grow and excel its business further in
order to develop and grow.
2.2 Environmental audit for ALDI
Micro and macro factors are considered in the environmental audit. These include
customers, suppliers, employees, government and shareholders and they affect the decision
making of business. A reference for this by conducting various environmental factors analysis
for ALDI have been given below:
Customers They are the key people of a business who buy
its offered products and services (Gielens,
Helsen and Dekimpe, 2012). It is necessary for
company to access the needs and wants of
these people so that products could be
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produced accordingly to maximise profit.
Employees These people of organisation are responsible
for operations and execution of various
functions. These people are involved in the
decision making of a business for various
problems which might rise in organisational
context.
Suppliers They are the people who supply goods and
services of company to final consumers and
firm has to maintain a proper relationship with
them.
Government Rules, policies and legal procedures which are
made by government have to be followed in
business which affect its operations.
Shareholders They are the people who directly invest in its
operations (Gklaveris, 2016). Funds are
provided by these people and they play a keen
role in initiating the plans into actions.
Macro factors consists of all the factors of economy as a whole which impacts business.
These includes social, technological, socio cultural, legal and political (Grant, 2016). Porter's
five forces model would be best to justify macro factors for ALDI. They are not controllable by
firm and a justification to them is given below:
Bargaining power of supplier The potential suppliers of ALDI will set the
prices of goods according to their demand and
their monopoly which will impact the final
good prices of company. Hence, this would
impact company's operation directly. It can be
high, medium and low depending on the
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quality of product.
Bargaining power of buyer The potential consumers of good can have the
power to negotiate with company as there
demand is in large number and company will
have to modify its operations according to it.
As the buyers aims to buy products at low
prices so they tend to bargain for high products
to be set at low prices.
Threat of new entrants Their are many new business in grocery are
coming up which have new strategy and an
ability to capture market which will be a threat
to Aldi as it can loose its customers.
Threat of substitutes There are many substitutes of grocer in UK's
market and they are TESCO, Morrisons,
ASDA, Sansburys etc. which can be chosen
over by consumer other than ALDI this could
impact revenue of company.
Threat from rivalry There are competition available in market for
which ALDI have to make appropriate strategy
so that it can deal with it properly so as to have
a lead over market by capturing maximum
share.
2.3 Importance of stakeholder analysis
Stakeholders are the people who are associated with the company directly of indirectly
they are classified as internal and external. Internal stakeholders consists of owners, employees,
managers etc. External consists of customers, shareholders, government etc. Further they are
classified as: Primary stakeholders(Owners, Customers) Secondary stakeholders(Employees, Managers)
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 Tertiary stakeholders(Public authorities)
Stakeholder analysis is very important and this can be justified by Mendelow's matrix
which classifies them into various categories. This matrix helps to have a result of impact that
stakeholders will have on particular strategy (MacGregor, 2010). Justification for the boxes
shown in this matrix is given as below:
Box A- Minimum effort
Least interested with least power which makes them to be open to influence. They are
more concerned to go with the regular change as they don't pay much attention to what is going
in organisation. They are general public who are not associated with ALDI and are leat interested
in its operations as they have no power in company.
Box B- Keep informed
They are to be informed from time to time despite the fact that they have low interest but
their power is very high in context with business (Meskendahl, 2010). This will help in retention
of these players so that the don't shift to substitutes. Customers of company have to be informed
about new strategies and schemes of it as they have power for regulating operations of business.
Box C- Keep satisfied
They are to be satisfied as they have interest in business but they have least power. These
people are needed to be satisfies from time to time in order to have a proper enhancement of
power. Employees of the company have to be addressed here as they have high interested but a
limited power as they have to do what administration tells them to do.
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Box D- Key Players/Participation
They are the people who are main players in the organisation and they are necessary to be
informed as they have high power as well high interest in business of a company. The
stakeholders, main member of board and CEO comes under this category and they have power as
well as interest in business and its operations.
Hence, above justification helps in identification of various stakeholders and there role as
well as companies role towards them according to their interest and power (Moon, 2010). This
will help ALDI in taking appropriate decisions while formulating strategy in order to satisfy and
maintain its people for a long period of time with it.
2.4 Proposing a new strategy for ALDI
Currently ALDI is operating at various locations its main objective is to provide goods
and services at best quality with lower price. Company is having a strong presence in various
market internationally which tells its global presence. The company is recognizing to have many
competitors like- TESCO, SANSBURY'S, MORRISONS etc. so it wants to head over a
direction which will help it to attain leading position in market by capturing maximum share.
ALDI will get there by the following way:
Strategy:
Aldi is at 5th position in UK so it wants to be at the top which can be done by adopting
competitive strategies for differentiation by lowering price of products in order to penetrate in
market (Aldi becomes UK's fifth largest supermarket, 2017).
Objectives
Main objective of organization is to gain maximum number of share in market by
obtaining success through competitive advantage of price and CSR activities in enterprise.
Actions
Communication of plan of action for reduction in price by minimising wastage in a
proper manner will assist troupe to have manpower which will know what to do and where to go.
Hence, company can make strategy regarding pricing of product which will help it to
attain the position which it want to attain in market of its sector. As more and more customers
will be attracted by low prices which will help company to capture maximum share in market.
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The present situation of company is very good but it needs to develop its business further
to sustain in market by obtaining relevant strategy in order to attain a command of business and
its competitors. This will be done by using substantive growth strategy by company.
TASK 3
3.1 Appropriateness of suitable strategy for ALDI
ALDI is aiming to target UK's market as it is thinking to expand its business in that
nation. So there are number of strategies which are available for company in order to enter in to
that market and the are listed below:
Substantive growth
ALDI can adopt substantive growth strategy for entering into new target market.
Substantive growth implies entry into a new market vertically and horizontally. In vertical entry
company direct establishes its own venture in new market. In horizontal entry company merges,
joint venture or any kind of acquisition is done. Hence, expansion of business is main target of
ALDI for which substantive growth would be best.
Limited growth
Limited growth aims aims at cutting down cost of unnecessary operations of company so
that wastage and cost can be minimised.
Retrenchment
The company can shut down those enterprises which are not working properly according
to standards. In this ALDI can close its enterprises which are not generating any kind of profit to
the company.
ALDI can adopt substantive growth strategy which will be most suitable for it for
initiating this it can have further strategies in order to penetrate in new market a case for business
through this strategy is given below:
 Targeting market
 Developing various sub strategies
 Implementing it
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 Reviewing its performance.
3.2 Justification for the chosen market growth and entry strategy
ALDI wants to have maximum share in market by overcoming its competitors so
substantive growth would be best for this kind of mission. Hence, the strategy also have various
other factors which are suitable for business and its related factor. ALDI can adopt substantive
strategy which is consistent, suitable, valid, feasible for its current requirements. Technique is
very consistent for a long term plan of company to grow and excel in its field. This strategy will
help it to have expansion in market where it is not present and that will earn revenue which is
consistent. Appropriateness of strategy is that it is most suitable for current requirement of ALDI
which is to expand its business. By the help of this company will have an edge over competition.
Strategy have a long term validation as the formation and structuring of new ventures with their
proper establishment will take time. So, this will be a long procedure for company which will
have a long validation. The target which is set is approachable and it is possible to be achieved.
Hence, this justifies that the strategy is not vague it is proper for the chosen organisation ALDI.
There is a risk of penetration and development of business as the company might or might not
like company (Teece, 2010). But there are more chances of success as ALSI have a good brand
image. Key people of company would be attracted to it as they can see the growth scale of
company which is very rapid. Hence, they will contribute to invest in functioning of company for
the new strategy of substantive growth.
TASK 4
4.1 Roles and responsibilities of personnel for the implementation of new strategy
While implementation of a strategy, there are various people who have to be associated
with it as this is a major decision which impacts whole organisation. As we know there are
various levels of management in an organisation which specifies that their roles and
responsibilities are also different. Hence, while making a strategy these people have various role
till the time it is not implemented. Human capital is major resource which contributes to any idea
or initiation. ALDI is a big diversified organisation so for initiating Substantive Growth strategy
in that various people will perform various tasks which are given below:
Top Level
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They are responsible for formation of plans and procedures in a company on which
everyone else will work for substantive growth. This level includes COO CEO and MD of
company who will bring the strategy into existence. New strategy is completely in their hand to
form and communicate it to lower levels so that they can work in the same direction.
Middle Level
At this level Manager and Leaders works who are acting act a connection between top
and operational level. They are responsible for communicating new ideas to workforce of
company as well as monitoring their actions so that their could be proper operations as they are
required in a company. ALDI with help of these people can make its Strategy of substantive
growth implemented by workforce.
Operational Level
These are the most responsible and most important people who are directly working on
the strategy which have been formed. The responsibility of actions which are to be there for
strategy are contributed by these people. Workforce of company jointly works for operations of
company than only the dream of it comes true to be a leading company in market by entering
into new market. ALDI's employees are responsible to carry out daily operation in premises of
firm which are very important for implementation of new idea.
4.2 Resource requirements for the implementation of strategy
Resources required for implementing the proposed strategy are like:
Human resources
Aldi needs to consider their human resources for implementation of strategy. It is the
basic component of a company on which a company relies on. Workforce of company helps in
achieving their goals and objectives. Every person in the organisation who is contributing in
functioning of that company comes under human resources (Grembergen, 2012). There is the
major responsibility of HR manager to create a healthy work environment for employees so that
they can contribute more to achieve organisational objectives. Without this resource, a company
cannot work efficiently.
Financial resources
Without this resource, a business cannot run its operations. Every kind of business
requires financial resources. There are two main financial resources which an organisation has to
consider. First is debt and second is the equity (The ALDI Story, 2016). Debt needs interest to be
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paid and equity required the dividend. For ALDI, it is good to select both options in an idle ratio.
Equity holders are also called as the owners of company and debt holders can take legal actions
against the firm. There are many financial resources available in the market and organisation can
adopt an option to run out their business.
Time and material resources
There is always a specific time period available to implement a strategy within which the
process needs to be completed. ALDI has to consider these important resources to implement the
strategy effectually. There is always some material required for executing the strategy. Material
included natural and artificial resources which help to complete the task. These material should
be used efficiently and economically.
4.3 Way in which smart targets can contribute in achieving the strategic objectives
SMART stands for specific, measurable, achievable, realistic, time bound. Details are
given below:
Specific
First stage of strategy is specific. It focuses on some specified questions such as what a
person want to accomplish, specific reasons for complete the goals, how many persons are
involved, location where project has to be completed. ALDI wants to increase its existence that
what things has to be consider for that, it includes in this for substantive growth. This will help it
to set specific targets.
Measurable
The second term focuses on the need for criteria to measuring progress of Strategy
formulated. It is very important to measure implementation to check its benefit in the
organisation. This process will help a team to stay on line, reach target dates, and achieve the
goals. Method of measuring depends on the project because different strategy wants different
measuring methods. It also help to the individual to attain their goals (Wu, Shan and Zhao,
2010). One thing is very important in this term that method of measuring has to be flexible
according different circumstances. This will help the company to know suitable targets which are
to be achieved in terms of numerical data or by its quality. ALDI with the help of those can
measures the scope and successfulness of targets.
Achievable
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When a company is setting its goals it is very important that it has to be achievable. The
importance of being able to accomplish a goal or strategy is equally vital when a person setting
his goals for other, as it yourself (SMART goals, 2017). This is important when a person setting
objectives for the organisation it has to be achievable. The strategy of substantive growth is
achievable for ALDI hence, it can have it in its operations.
Relevant
This term is focuses on that goals and targets has to be related with the team, boss or
organisation. This is a careful analysis that what an organisation want to achieve and it should be
related with your departmental goals (Misra, 2012). The target of substantive growth and
penetration in market should relevant with ALDI's activities and its working.
Time bounded
It is very important that strategy has to be completed in time available for a particular
project. It focus on team effort towards completion of target. ALDI should set standard time for
each strategy in order to have proper functioning of various role which have been specified.
CONCLUSION
It can be concluded from the above report that every business organisation aims at
leading its sector so that it can attain maximum profits. ALDI is one such organisation which
aims at becoming the best organisation in its business of grocery. The above report is a complete
research for choosing the best strategy for ALDI so that it can expand its business in UK so as to
have an edge over its competitors.
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