Report on Business Strategies of Aldi company

Contents
INTRODUCTION........................................................................................................... 3
1.1 EXTENT TO WHICH ALDI’S MISSIONS, VISIONS, OBJECTIVES, GOALS, CORE
COMPETENCIES INFORM STRATEGIC PLANNING............................................................3
1.2 FACTORS TO BE CONSIDERED BY ALDI WHEN FORMULATING THEIR STRATEGIC
PLANS......................................................................................................................... 4
1.3 EVALUATE THE WORTH OR USEFULNESS OF TECHNIQUES USED WHEN BUSINESSES
DEVELOP THEIR STRATEGIC PLANS..............................................................................4
2.1 ORGANIZATIONAL AUDIT FOR ALDI AND PROVIDE AN ANALYSIS OF THEIR CURRENT
STRATEGIC POSITION................................................................................................... 5
2.2 ENVIRONMENTAL AUDIT FOR ALDI BY THE USE OF PORTER’S 5 FORCES ANALYSIS...6
2.3ASSESS THE SIGNIFICANCE OF STAKEHOLDER ANALYSIS FOR ALDI WHEN
FORMULATING NEW STRATEGY................................................................................... 7
2.4 USING THE RESEARCH AND INFORMATION COLLECTED ABOUT ALDI, PRESENT A
NEW STRATEGY ALDI CAN FOLLOW.............................................................................7
3.1 ANALYSES THE APPROPRIATENESS OF SUITABLE STRATEGY FOR ALDI IN RELATION
TO SUBSTANTIVE GROWTH, LIMITED GROWTH OR RETRENCHMENT..............................8
3.2 PROVIDE A JUSTIFICATION OF LIMITED GROWTH STRATEGY THAT YOU HAVE
DISCUSSED IN 3.1......................................................................................................... 9
4.1 PROVIDE AN ASSESSMENT OF THE ROLES AND RESPONSIBILITIES OF PERSONNEL
WHO ARE INVOLVED WITH THE IMPLEMENTATION OF THE STRATEGY..........................9
4.2 PROVIDE AN ANALYSIS OF THE RESOURCE REQUIREMENTS FOR THE
IMPLEMENTATION OF THE STRATEGY........................................................................10
4.3 EVALUATE HOW THE USE OF SMART TARGETS CAN CONTRIBUTE TO ACHIEVING THE
STRATEGIC OBJECTIVES............................................................................................. 11
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INTRODUCTION
Business environment is the sum total of all the factors being internal and external that
impact the overall working of company (Voigt, Buliga and Michl, 2016). Hence in this regard
the need of the company is to make use of strategies so that business can be run in proper
manner. This is essential as strategizing aids in long term future sustainability of business
(Verbeke, 2013). The present report has thus made an attempt to study the business strategies of
Aldi. Here emphasis has been made on carrying out a proper assessment with respect to mission,
vision, goals; conducting organizational as well as environmental audit. This is followed by
evaluating the strategy of Aldi to make an entry into Indian market followed by making the
strategic choice and carrying out its successful implementation.
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1.1 EXTENT TO WHICH ALDI’S MISSIONS, VISIONS, OBJECTIVES, GOALS, CORE
COMPETENCIES INFORM STRATEGIC PLANNING.
 Mission – The mission statement of Aldi is providing top quality products at incredibly
low pricing.
 Vision –With respect to the vision statement the company wants the shoppers to live rich
lives in lesser amount.
 Goals and objectives – As per its goals, it wants to provide the consumers with products
that can be bought regularly and also make sure that they are of high quality and low
prices (About Aldi, 2017).
Core competency – Adherence to Cost leadership strategy
Low pricing but quality products
Keeping the cost of company as low as possible (Aldi supermarket core
competencies, 2017).
The above given core competencies has aided in strategic planning of Aldi as the
company tries to maintain a strict focus on price. It further keeps limited stock of items
that are of high quality which can then be offered so as to set competitive prices thereby
doing justice to the overall mission. Focus is also given on own brands followed by
keeping small store size, labor cost and no marketing to save on cost factor. In this way,
the company ensures that consumers have a presence of a smarter way to shop and the
firm is also able to attain the leadership status on the basis of prices that are offered to the
consumers (Ododo, Mulholland and Turner, 2015). Moreover, the stores are also small in
size hence it is easier to find them by the consumers. This is followed by keeping the
store design simple but efficient one which can assist in saving the overall logistics cost
with the help of shelf management. It further focuses on not keeping casual staff and the
normal staff is also less in number which aids in providing comparable salaries. This
strategy then contributes to higher profit margin for the company (Aldi supermarket core
competencies, 2017).
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1.2 FACTORS TO BE CONSIDERED BY ALDI WHEN FORMULATING THEIR
STRATEGIC PLANS.
There is a presence of varied factors that are required to be considered by Aldi when it
makes the strategic plans. These can be explained with the help of Ansoff matrix.
 Market penetration – when focusing on strategic planning, Aldi is required to sell
products in existing market which can be done by increasing market share of current
products; undertaking aggressive promotion to drive out the competitors or introducing
loyalty schemes (Butler, 2017).
 Market development – in this strategy, the firm can sell products in new markets by
starting operations in a new nation, introducing new product dimension or distribution
channel or adhering with different policies so as to attract the consumers.
 Product development – this may involve for introducing new products into the market or
modifying the existing ones so as to appeal the masses.
 Diversification – this can entail for introducing an entirely new product for new market
but only after a thorough assessment of the risk factors involved in it (Voigt, Buliga and
Michl, 2016).
1.3 EVALUATE THE WORTH OR USEFULNESS OF TECHNIQUES USED WHEN
BUSINESSES DEVELOP THEIR STRATEGIC PLANS
Various techniques can be used for strategic planning by firm and one such is BCG matrix whose
overall worth or usefulness has been discussed below;
As a part of its strategic planning, Aldi is planning to make an entry into India the company may
focus on launching its star products and concentrate on bringing an improvement in the cash
cows so that they can be launched in India with some modifications. They should not launch
products in the category of dogs and question mark in India as they have low growth potential as
well as market share (Gassmann, Frankenberger and Csik, 2016).
SWOT analysis can further be used as strategic planning by Aldi as it can concentrate on its
strength of good brand image all over the world while launching itself in India. Moreover the
presence of quality products and affordable pricing is also going to help in successful entry. It is
however required to work on its weakness within Indian market and convert them into strength.
This can be done by making the interiors of store attractive one and increasing the staff members
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