Integration of Business Function Essay

Added on - 21 Jul 2020

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Integration of business function
Table of ContentsINTRODUCTION...........................................................................................................................31.Choice of organisation.........................................................................................................32.Role of business functions and Changes of strategy and strategic direction in Aldi..........33.How leadership, times frame and changes have influenced the Aldi.................................54.Concept, theories and models of Leadership used by Aldi.................................................85. Applications of STEEP Model in Aldi...............................................................................96. The Stakeholder Theory..................................................................................................117.Organizational culture of Aldi and specific concept and theories used in Aldi................13CONCLUSION.............................................................................................................................14REFERENCES.............................................................................................................................15
INTRODUCTIONWorking if the organisation is highly affected by the internal and external forces of theenvironment within which business conducts its operations. Business integration is the strategyof co-occurring the cultures and objectives of business along with the information technology.Business integration is use to analyse the functions of the business absorbed by informationtechnology and it also helps in increasing customer services , sales and helps in providing abetter work environment. This assignment is based on the style and strategies of leadership,STEEP model analysis, porters five forces model and SWOT analysis. It also lay emphasis onthe role of business functions.1.Choice of organisation.Aldi, is the leading global supermarket chains with approximately 10,000 stores in 18countries. Its estimated turnover per year is around50billion. Its headquarters is in Germany.Food and household articles are served by Aldi to their customers. It was founded in 1913, andin 1946 it is split into two parts, Aldi Nord and Aldi Sud. According to some reports its revenuein 2010 was53 billionbillion. It operated around 8000 stores across the world. Some businesspractices followed by Aldi is unique for other counties, one of them is that Aldi does not acceptcredit cards.2.Role of business functions and Changes of strategy and strategic direction in Aldi.Oraganisations like Aldi, perform various types of business functios in order to regulatetheir business activities. Marketing, Human Resource activities are some of the businessfunctions that are very important for the firms (Chatterjee, 2017).Financial outcomes of Aldi, as per some reports Aldi is one of the largest supermarket inthe Europe, and its profit sharing ratio are very high as compared tot he other giant supermarkets. It is the largest retailer in the Europe, and consider as a excellent global retailingindustry. In early 1990, 3000 stores are operated and established by the Aldi.Aldi has seen huge success globally , Aldi provides stocks ot the brands only to increseits own discounts(Butler, 2015).As per the reports of the 2017, The UK department of Aldi announced a thirdconsecutive year of failing profits as the German, discounter are enable to maintain the lowprices of the product. Grocery chain has seen a loss of 17%, £211.3 m in the year to 31December 2016, from 255.6m the year before, despite a 13.5 % leap in sales to 8.74 bn. The
company reported that its operation are failing because of its lower pricing policies andstructures. The owners of the Aldi mentioned that they do anything to keep heir prices low ascompared to the other super market.Aldi claims that their prices are 15.2 % cheaper than Asda. The Aldi group of industriesmentioned that they want to open approximately 70 new stores next year for increasing theirfinancial outcomes.Aldi has present record sales and a planned £300m investment to refresh it stores in UK.As on December 2015, the sales of German Aldi was more than £7.7bn. The discount of theAldi has fall up-to 15.2 % in pre-tax profit. Aldi also unveiled a £300m revamp of its stores,with many of the changes being made in response to a survey of 50,000 customers. The store ofthe Aldi has very simple layout and their products are of competitively low prices. The companyhas seen a rapid growth, ant in 1950 it owns 13 stores and than in 1961, it owns 300 stores inGermany. The strategies applied by the Aldi helps in establishing the rapid growth in the marketAccording to the reports, efficiency of the Aldi to perform in the market is currently very high.The current strategies used by Aldi is, human resource practices, recruitment and selctionprocess, development and training and strategic human resource management.Changes in strategy and strategic direction in Aldi during 2007-2017According to some reports of 2017, the founder of the Aldi, Theo Albrecht and KarlAlbrecht Sr, and their leadership style helps the organisation to achieve high rate of successacross the world. Thee two brothers are founder and managers of the Aldi. It was introduced in1913.In 1960 the business was split into two separate parts and later divided into Aldi Nord andAldi Sud. The name Aldi was come into light in 1962. Since 1966, in Germany Aldi was beingseparated financially and legally. Since last 10 years Aldi's Germany operations consist of AldiNord's with around 2,500 stores in Western, eastern and northern Germany (Gielens, 2018).In 2017 both the operations of Aldi comprise of 1,600 stores in United States. The AldiNord group currently consists of 35 independent branches with around 2,500 stores. And AldiSud comprises 31 companies with 1,600 stores.Reports presented in December 2002, states that Forsa identified that 95% formalworkers, 88% white collar workers, 84% government workers, and 80% self employed areregular customers of Aldi in Germany.
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