Research on Business Strategy - ALDI

UNIT 7
Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1.1 Mission, Vision, goals, objectives and core competencies of an organisation.....................3
1.2 Analysis of the factors that have to be considered while formulating strategic plan............5
2.1 Organisational Audit.............................................................................................................7
2.2 Environment Audit for ALDI................................................................................................8
2.3 Significance of stakeholder analysis.....................................................................................9
2.4 Business strategy for ALDI.................................................................................................10
PART 2..........................................................................................................................................11
3.1 Alternative strategies relating to market entry, substantive growth, limited growth..........11
3.2 Justification of selected strategy.........................................................................................12
PART 3..........................................................................................................................................13
4.1 Assessment of the role and responsibilities of strategic personnel.....................................13
4.2 Analyzing Resource requirement........................................................................................13
4.3 Role of SMART targets in Strategy Implementation..........................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
In every business organisation, management makes use of various types of strategies that
provides help to them in growing in market or in facing any kind of situation in the market.
Strategies can be defined as plans and policies that are formed by the managers of the companies
so as to complete all the activities in an effective and efficient manner. So, in every business
strategies are very important as they act as a guideline which is to be followed by every member
of the company. But having a business strategy does not guarantee success but it definitely helps
them in facing the unforeseen circumstances that may arise in company in future (Acquaah,
2013). All these strategies are made by top level management and followed by middle level
management so as to achieve the goals and objectives of the company.
The case study that has been referred here is of Aldi. It is a global discount supermarket
chain having around 10000 stores in almost 18 countries. This report will discuss about the
strategic evaluation of ALDI and the factors that will be used by them for such evaluation. Along
with this making a strategic choice and implementation of strategy in the company will also be
discussed in detail.
PART 1
1.1 Mission, Vision, goals, objectives and core competencies of an organisation
Strategies are considered as a very important part of a business plan. So, basically
business strategy is a type of long term planing that is done by company so as to achieve their
goals and objectives. They are helpful in achieving the vision, mission, goals and objectives of
the company by making using the core competencies, strategic thinking and planning system in
an effective manner (Blackburn, Hart and Wainwright, 2013).
STRATEGIC PLANNING: It is a process that is being conducted in the company so as to define
its strategy or taking any kind of decision related to allocation of resources so as to conduct the
operations of the company. It is considered as a very important part of strategic management and
are being created by strategists of the company. The activities that are involved in strategic
planning consists of meetings where communication between organisation's leaders takes place
so to discuss about their response towards the environment.
It is required that responsibility of designing the strategies should be in good hands
because then only companies will be able to achieve its aims and objectives. ALDI is known to
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work on a policy on 'everyday low prices' and does not work on any such policies like buy one
get one etc. so, they are having some of their visions and missions of their (Ferreira and et al.,
2014). It is specified as:-
 STRATEGY – It is a type of method that is chosen by company so as to conduct all of its
activities in an appropriate manner. ALDI is using a “No Frill” strategy which is a cost
saving method and is providing various benefits to company as well as customers.
 MISSION – It is a type of statement that is prepared for maintaining the positive growth
in the business and to aware the customers about the products and services they are
offering. The mission of ALDI is to satisfy the needs of the customers and supplying
goods and low prices as well.
 VISION – A vision is something that drives the company in achieving their goals and
objectives. It can be hypothetical as well as realistic. ALDI is following a vision
statement which says, “Top quality at incredibly low prices- guaranteed”.
 GOAL – These are classified as a tangible objective that is set up by the company for
shorter period. ALDI's goal is to increase its sale in the market which will help them in
increasing their profit level as well.
 OBJECTIVES – It is basically prepared for long term and is likely to be achieved by the
company after the time span of 1 year. The main objective of ALDI is to become the no.
one retailer of the country.
 CORE-COMPETENCIES – It is a kind of values that is set up by the company for
themselves to differentiate them from its competitors. The core competency of ALDI is
its low-priced products. They are selling goods at a very low price which other retailers
cannot think of selling.
There are a number of core competencies of ALDI, for instance price and quality. The low
pricing strategy is one of the core concepts of Aldi, because of low pricing strategy the company
has increased their sells over 6% in Christmas in 2017, Many customers liked their quality, for
example, Aldi has opened a store in Chelsea which is one of the richest borough in the UK, the
company has been successful in term of selling the products.
1.2 Analysis of the factors that have to be considered while formulating strategic plan
Every organisation is required to make strategic plans for themselves. These strategies
are created very carefully by having the vision of company in mind. But it is not necessary that
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